1. Weak awareness of risk control: When trading, controlling risk is of utmost importance, yet many traders, especially newcomers to the market, often neglect it. In the face of market fluctuations, they do not respond reasonably but instead stubbornly endure, ultimately falling into difficulties.
2. Erroneous decision-making after being trapped: Once trapped, how to choose is crucial. If the untrapping strategy is wrong, no amount of effort will be fruitful. Decisions must be made decisively based on market conditions; sometimes, a lack of decisiveness in letting go makes it hard to escape the predicament.
3. Chaotic position management: Many traders lack a clear understanding of their positions, operating randomly, which often leads to liquidation. In fact, both increasing and decreasing positions require knowledge; scientifically managing positions can effectively reduce risk.
4. Excessive greed: Some investors are still not satisfied after making dozens, hundreds, or even thousands of points in profit, unwilling to take profits in a timely manner, ultimately giving back profits or even incurring losses. Wealth accumulation requires a step-by-step approach; once the principal is damaged, it becomes increasingly difficult to recover.
5. Unclear positioning: The scale of funds determines the strategy. Different amounts of capital require different investment routes, whether it’s swing trading or long-term holding. If the positioning is inaccurate, it’s easy to lose direction in the market.
6. Unstable mindset: In investing, the quality of one's mindset directly affects decision-making. Confidence is key to success; only by maintaining a good mindset can one calmly analyze and make rational decisions in a complex and changing market.
The above are Sister Lan's heartfelt advice; as the saying goes, 'Listen to advice, and you will have enough to eat.' I hope everyone can gain experience from this and take fewer detours on their trading journey.