The essence of trading is not just a contest of techniques, but also a psychological game. The vast majority of losses do not stem from insufficient analysis or bad luck, but from falling into psychological traps hidden in human nature. Here are five psychological traps that can lead to trader failure and their coping strategies:

### 1. Confirmation Bias

- **Performance**: Once you hold a certain viewpoint (e.g., "bullish"), you will **subconsciously seek information that supports your viewpoint** while **ignoring or downplaying contradictory evidence**. It's like after buying a stock, you only find the positive news particularly appealing, while ignoring the risk warnings.

- **Coping Method**: Before each decision, **force yourself to list at least 2-3 reasons against your current judgment**. If these reasons cannot be effectively rebutted, it is better to forgo this trading opportunity.

### 2. Disposition Effect

- **Performance**: Tendency to **sell profitable positions too early** (eager to secure profits) while **holding onto losing positions for too long** (unwilling to accept losses, hoping to break even). This directly leads to the situation of "small gains and big losses."

- **Coping Method**: **Systematize your trading**. Use trailing stops to protect and expand profits; once losses reach the preset stop-loss point, **execute discipline unconditionally** and exit immediately.

### 3. Outcome Bias

- **Performance**: People tend to **judge the quality of previous decisions based solely on the result of one trade**, rather than assessing whether the decision-making process itself was reasonable. For example, making a profit without a stop-loss may lead you to mistakenly believe that "stop-losses are not important."

- **Coping Method**: During review, **focus on the decision-making process rather than the profit-loss outcome**. Ask yourself: “Was the decision based on logic and the system, or on emotions? If I could do it again, would I make the same choice?”

### 4. Anchoring Effect

- **Performance**: Decision-making **overly reliant on an initial reference point ("anchor")**, most commonly one's entry cost. For example: “I bought at 3380 yuan, as long as it rises back to this cost, I will sell.” But the market will never change its direction based on your cost.

- **Coping Method**: **Forget your cost price!** Every position decision should be based on one question: “**Given the current market price, would I still choose to open a position?**” If the answer is negative, it’s time to consider exiting.

### 5. Overtrading

- **Performance**: In the **absence of clear opportunities in line with the trading system**, trading **frequently due to boredom, unwillingness, or a rush to recover losses**.

- **Coping Method**: Before placing an order, calmly ask yourself: “**Does this signal really align with my trading system? Or am I just feeling impulsive?**” Remember, top traders understand that **most of the time, the best action is to patiently wait**.

### ✨ Key Insights

A mature **trading system**, one of its core values is to build a rational framework for you, helping you **effectively avoid these psychological traps**. And **strict discipline** is the only key to ensuring the execution of this system.

Hope these insights help you better understand the market and gain a clearer understanding of yourself.