The deep connection between psychology and trading lies in: the essence of decision-making is psychological games. Core points:

Loss aversion: The pain of losing 10,000 yuan is greater than the pleasure of gaining 10,000 yuan, leading to excessive holding of losing positions (reverse stop-loss);

Overconfidence: Overestimating predictive ability and ignoring black swan events (such as heavily increasing positions against the trend);

Anchoring effect: Fixating on entry price/recent highs while ignoring dynamic market changes (rigid profit-taking);

Herd mentality: Contrarian actions during group panic or greed (the basis of contrarian investing).

Solution path: Use a rule-based system (such as stop-loss/position formulas) to suppress emotions, strengthen cognition through pre-planning and review attribution, ultimately achieving "logic-driven trading, rather than feelings."