Limited funds are indeed the main reason affecting the performance of investment techniques. If the capital is low, it becomes very difficult to allocate funds properly and to implement effective stop-losses. This is also why the author prefers short-term trading. Short-term trading can maximize the use of capital, and intraday trading even avoids overnight risks.
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Many principles are understood by everyone, but whether they can be executed well depends on each person's execution ability. Regardless of whether the current positions are losing or profitable, it is challenging to implement timely stop-losses.
Many investors trade very frequently, lacking the habit of setting stop-losses, and they also lack the ability to secure their winning gains.
Greed is pervasive, as seen with common practices like bottom-fishing or probing the market, which are frequent mistakes among ordinary retail investors.
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Additionally, many investors are extremely emotional in actual trading, unable to rationally overcome their emotions. These investors often lack a trading plan and do not know how to handle issues encountered in actual trading, and they may even be unwilling to accept small losses. This leads to situations where investors stubbornly hold onto losing positions despite going against market trends, resulting in continuous losses.