The financial market is a game of emotions – primarily greed and fear.
Regardless of what analytical school you follow – fundamental, technical, or psychological – in the end, when placing an order, you act based on emotions:
Greed leads to buying.
Fear leads to selling.
There are those who buy at the peak, get stuck with their positions, holding onto a hope of "getting back to shore." But when the price returns to the entry point, that hope quickly turns into fear – and thus... they take a loss or sell at a loss.
When in profit, you fear a price reversal – so you hastily take profits. At that moment, a bit of greed arises: "Could the price go up more?". These two emotions keep pulling back and forth.
When facing losses, you hope. You hope for the price to return, hope for the market to recover. But the more you hope, the deeper the loss becomes. Until you can no longer bear it, you panic sell.
In the end, stocks, real estate, crypto, gold, forex... are all enormous "markets" where millions of people are swept away by the vortex of greed, anger, and ignorance.
That’s why there’s a saying:
When you have money, just opening the chart makes you want to place an order immediately.
After blowing your account, you won’t even bother to look at the chart for a month.
The most important thing: Emotions are the drivers of behavior, not rationality.
You can analyze very accurately, very logically – but when placing an order, it’s emotions that take the wheel, not your head.
That’s also why some people analyze very well, but their trading results are very... poor.
=> Being a good analyst doesn’t mean you’re a good trader.
In a chaotic market like this emotional black hole – if you want to "remain unchanging amidst the ever-changing world," the only way left is
TO MANAGE CAPITAL REALLY WELL
