Why do traders fall into this destructive psychological loop?
So, why do so many traders seem to fall into this vicious cycle of excessive worry? There are three main reasons: the size of their positions is too large, causing traders to worry excessively about losses they can't bear. Many start trading without acquiring the skills or mindset of a professional trader, resulting in behavior in the market that resembles going 'All in' at a casino table. Subconsciously, many traders are actually trading (gambling) for entertainment, and they have not yet learned to treat trading as a business or career. Trading addiction Many traders are skilled chart technicians, but they feel bored in life, so they end up staring at the screen all day (and even at night), looking for the thrill of trading, and each time they enter a trade, their brain releases dopamine. As I often say, a trader's goal should be to stop obsessing after placing an order. After placing an order, walk away, forget about it, and let the market fluctuate on its own. You enter the market to take advantage of price fluctuations, so don't interfere with that fluctuation. The only thing you can do is to determine your trading plan in advance and execute it correctly, but once you enter a trade, your task is basically done; staring at the chart won't help the outcome!
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