Trading is human nature: Don't let psychological traps ruin your money

The market is a magnifying glass, clearly revealing the greed, fear, and herd mentality in human nature. Research on investment behavior tells us that these psychological biases can turn smart people into 'chives'.

We are not robots; our emotions often lead us in trading:

Greed: Wanting to make quick money, chasing high prices, often getting stuck at high positions.

Fear: Afraid of losing money, panicking at slight drops, missing out on big trends.

Herd mentality: In 2025, whoever is popular on platform X is followed, and with a heated mind, one goes all in.

Wishful thinking: Holding on to losses, fantasizing that 'it will eventually go back up'.

Overconfidence: After making a few profits, thinking one is a stock god, recklessly increasing positions and operating.

Studies show that the pain of losing money is twice as strong as the pleasure of making money, so we always hesitate to cut losses. The cryptocurrency craze is a perfect example; how many people followed the trend and bought at the peak, only to leave in tears.

If we could be calmer while trading:

Set rules: Establish stop-loss and take-profit levels before entering, like running at a 5% loss or taking profits at 20%.

Don't put all in: Diversify investments across stocks, bonds, and gold; with the economic turbulence in 2025, diversification is more stable.

Take notes: Record why you bought and how you felt during each trade; review to find mistakes.

Use tools: Indicators like moving averages and RSI can help reduce impulsiveness.

Don’t trust trending topics, don’t trust claims of guaranteed profits,

Don’t trust trending topics, don’t trust claims of guaranteed profits,

Don’t trust trending topics, don’t trust claims of guaranteed profits,

Important things should be said three times!!!

This year, AI and blockchain are trending again, with hot posts everywhere on platform X, while the macroeconomy is still chaotic. Following trends and panicking will only make you 'chives'. Want to earn? You must learn to see the company's value and control your hands.

Lastly, trading is a battle with oneself. Greed, fear, herd mentality—these human weaknesses exist in everyone, but by controlling them, you can smile in the end. There are many opportunities and traps in the market in 2025; set your rules, analyze calmly, and don’t let emotions ruin your money. What pitfalls have you encountered? Let's discuss in the comments!