Mental Defense Battle: Better to Miss Profit Opportunities than to Let Losses Destroy Your Mindset
Perhaps this view is somewhat conservative, but in the current environment where contract trading has many shortcomings, this is a relatively effective approach for individual investors to achieve positive returns.
For individual participants, there is an essential difference between unrealized profits and actual losses. When there are no profits, in many cases, your analysis and judgment are actually reasonable; it’s just that due to a lack of courage to stick to your views and insufficient confidence to participate, you miss out on profit opportunities, leaving only regret and some slight disappointment. There will still be many opportunities in the future; as long as you are good at learning from past experiences, you can still pursue returns with a good mindset.
On the other hand, losses indicate that there has been a misjudgment in analysis and require serious reflection. More importantly, they can disrupt the mindset for subsequent operations. When facing a losing position, the first thought is often how to explain it to family and friends, followed by annoyance at one's own mistakes, especially when seeing others making profits, creating a strong desire to make up for losses and recover returns.
Live trading poses significant challenges for individual participants; sometimes a 2% profit may require a lot of effort, while a 2% loss can happen in an instant. When losses occur, the capital is directly reduced, and to make up for the loss, one needs to earn double returns. Losses themselves can make people more cautious, leading to doubts about their decision-making abilities, and a desperate desire to profit can lead to impulsive actions, loss of calm, and an increased risk-taking mentality, making it easier to make mistakes again, with potentially more severe consequences.
Therefore, it is crucial to avoid losses even if it means not making a profit, especially when there is uncertainty in grasping market trends. One must always keep this in mind. Only by viewing market fluctuations with a calm mindset, not being greedy or panicking, and not pursuing precise bottom-fishing or peak-escaping, but rather operating in line with the trends, can one be more likely to achieve goals. Conversely, one may gradually fall into the trap of blind trading.
If you have repeatedly incurred losses in the trading market, feel free to leave a message in the comments section 168, and we can discuss it together!
