In the capital markets, 90% of liquidations stem from traders unwilling to acknowledge mistakes, from Jesse Livermore to Bill Hwang's Archegos default, all confirm the positive correlation between error correction speed and account survival duration. Quick recognition of mistakes is not just a trading skill, but a transformation of cognition, behavior, and philosophy.

1. Cognitive Revolution: Breaking through psychological traps.

Traders often fall into three major psychological traps.

1. Sunk Cost Fallacy: Retail investors holding onto losing positions hoping to break even, ignoring.

Account balance is related to current and future decisions. For example, in 2021.

Archegos Fund's unrealized losses in Chinese stocks evaporated 200 million in one day.

100 million.

2. Self-Confirming Bias: When holding losses, the brain only focuses on favorable signals.

Interest. In 2023, during the Silicon Valley Bank crisis, 87% of institutional investors were floating on government bonds.

Initially holding on to 'hold until maturity', ultimately suffering huge losses due to liquidity crunch.

3. Anchoring Effect: Measuring value by purchase cost, ignoring market changes.

Soros' reflexivity theory points out that price reshapes value perception.

2. Behavioral Paradigm: Building a stop loss system.

Top traders have a precise stop loss system.

Space Dimension: The Turtle Rule stipulates that a single loss should not exceed 2% of capital.

Cut losses when breaking critical support levels.

2. Time Dimension: The Paul Tudor Jones mechanism requires holding positions for 72 hours.

Take profits and exit to prevent losses from expanding.

3. Signal Dimension: Multi-indicator cross-validation, such as MACD dead cross and trading volume.

Decisive stop loss when volume shrinks by 30%. Quantitative giant Two Sigma data shows.

Indicates that stop loss response time is shortened, and strategy Sharpe ratio increases by 37%.

3. Philosophical Awakening: From confrontation to symbiosis.

Trading masters internalize 'wrong recognition' as instinct.

1. Gecko Mindset: Top traders' stop losses are like geckos shedding their tails; Simmons shows.

The average decision for a single stop loss in the medal fund is 0.8 seconds.

2. Diminishing Philosophy: Acknowledging mistakes releases cognitive diminishing, stop losses achieve account.

Reduction, Dalio's formula reflects using stop losses for cognitive iteration.

3. The Law of Impermanence: Livermore's late realization that the market has 'unknowable winds'.

Risks; the 2020 oil futures event warns to respect market uncertainty.

Interest.

In the capital markets, account survival relies on error handling efficiency. By 'stop loss'.

Embracing uncertainty, completing the transformation from prey to ecological maintainer, this is Ba.

The deep meaning of FOMO's 'not losing principal'. Capital kings are good at adapting to the market.

The 'wrong recognition artist' who bows his head, moves forward steadily with humble wisdom.