The painful part of a liquidation is not just losing money, but the complete collapse of one's spirit.
It's not that you don't know when to cut losses; it's that you refuse to admit that you've messed up.
Sometimes, the transition from holding onto the faint hope of a turnaround to complete despair happens in the blink of an eye, sometimes with just one K-line, so fast that you can't even react.
The worst part is, this isn't the first time. You know you should cut losses, but you keep hesitating and dragging your feet. It's not that the market is particularly confusing; it's that stubborn unwillingness in your heart and that nagging thought of "what if it works" that keeps pulling you down.
If one day you suddenly make $3,000, you feel like you're Warren Buffett, full of arrogance. But if you lose $1,000, you become like an ant on a hot stove, only thinking about quickly recovering the loss. This isn't about a lack of skills; it's clearly human nature at play. Ultimately, what drags you into the abyss is not the unpredictable market but that stubborn obsession in your heart that you just can't shake off.
True loss-cutting is not as simple as you think; it's not just about being ruthless and cutting your losses—it's about survival! When you haven't been liquidated, you always think, "Just hold on a little longer; maybe it will rebound," but once you are liquidated, you wake up to the reality: surviving means you'll have a chance to win back what you've lost next time.
Remember this: a true trader isn't someone with an uncanny market sense; it's someone who can gracefully admit their mistakes after losing money and then quickly withdraw without dragging their feet.
