The reason is the loss of balance between profit and loss.
When it comes to profits, we should neither be greedy nor miss the good opportunity to take profits.
But we do not support the behavior of closing a position as soon as it starts to make a profit. Anyone who is familiar with the market will not do such a thing without any basis. In the final analysis, it is caused by the fear of loss.
Profitable closing needs to be combined with market trends.
On the other hand, many people have the opposite attitude towards losses. They have no intention of closing their positions even if they lose tens or hundreds of dollars. As soon as people reach the limit of loss, they will arouse a fluke mentality, hoping that there will be a wave of rising market to return the lost part, but they turn a blind eye to the gradually increasing losses, resulting in irreparable losses.
These two seemingly opposite behaviors are both caused by a fear of gain and loss, that is, being particularly concerned about gain and loss. When there is a profit, one cannot wait to close the position immediately, fearing that the profit will be lost immediately. However, when there is a loss, one gives up on stop loss and cannot let go of the loss, fantasizing that one can get back what was lost in the future market.
Even if you are lucky enough to encounter an upward trend, it is very dangerous to have such a consciousness in the spot gold market.