Today let's talk about the psychology of trading:

1. Small profits are easy to achieve because they align with human nature, which is often referred to as "better safe than sorry." In trading, many people often exit after making small profits, only to regret it when the price falls back. This situation continuously reinforces the idea of "taking small profits and running," leading you further down the wrong path.

2. Small losses are hard to handle because they contradict human nature. In trading, after a price drop and subsequent rebound, unrealistic expectations arise, causing hesitation and an inability to cut losses in time. As a result, small losses turn into large losses, ultimately leading to shutting down the computer and avoiding reality. This escapist mindset can be hard to escape.

Such trading results are often characterized by small gains and large losses, which is the opposite of the results achieved by skilled traders—who typically experience small losses and large gains. Therefore, trading is counterintuitive and requires overcoming human weaknesses such as desire, greed, fear, and avoidance.

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