#常见交易错误 Emotional Trading

Performance: Trading impulsively due to greed, fear, or revenge, such as forcing additional positions to “make up for losses” after a loss, or taking profits too early after a gain.

Case: Refusing to cut losses when in the red, fantasizing about a market rebound; selling too early due to “fear of heights” when in the green.

Advice: Develop a trading plan and execute it strictly, record the reasons for each trade and emotional changes, and avoid being disturbed by short-term fluctuations.

Overconfidence and Self-Righteousness

Performance: Ignoring risks after consecutive profits, increasing positions or neglecting stop-loss; believing the market will develop according to personal expectations.

Case: Overtrading in a bull market, or abandoning original strategies due to short-term success.

Advice: Regularly review trading records, maintain humility, and avoid attributing occasional profits to skill.

Lack of Systematic Approach and Planning

Performance: No clear entry/exit rules, trading based on intuition or news; not setting stop-loss or take-profit points.

Case: Buying based solely on “feeling” without analyzing market trends or technical indicators.

Advice: Establish a trading system, clarify buy/sell signals and risk-reward ratios, and validate strategy effectiveness through simulated trading.

Counter-Trend Trading and Holding onto Losses

Performance: Averaging down in a downtrend or stubbornly holding onto losing positions without cutting losses.

Case: Continuously adding positions after a stock breaks support, leading to amplified losses.

Advice: Follow the principle of “cut losses, let profits run,” timely stop losses, and adjust positions in accordance with the trend.