Why do successful trades go against human nature?

1. Human nature prefers certainty, while trading is uncertain, and the future is unknown;

2. Human nature dislikes losses, so when losses begin, people are unwilling to cut their positions and take the loss, and might even increase their positions while in a losing state, leading to larger losses;

3. Human nature likes to secure profits, so when there is a small profit, traders often close their positions too early, missing out on bigger opportunities;

4. Human nature enjoys gambling; after a few consecutive losses, traders tend to increase their positions, believing that the probability of winning will increase, hoping to recover losses overnight, but the outcome is often contrary;

5. Human nature tends to fantasize about future trends based on news, placing orders based on news rather than market conditions.

Click on the avatar to follow me for daily shares of various potential cryptocurrencies, helping you to ambush various hundredfold coins.