Trading and investing are a mix of reason and emotion. People can never resist the impulse to act, even if they have suffered significant losses in the past. A profitable gambler might miss a selling signal due to their constant bragging. A trader who has repeatedly failed in the market may become overly anxious. As soon as the stocks they hold dip slightly, they immediately ignore their own trading rules and sell. Once the stocks start to rise, exceeding their initial profit target, they can no longer bear the agony of possibly missing out on the opportunity, and enter the market at a price far above their set buy point. When the stock price stagnates, they remain on the sidelines, initially full of hope, then filled with immense fear as the stock price plummets. Ultimately, they can no longer endure the pressure, cutting their losses and exiting, even as the stock price nears the bottom.