The deep connection between psychology and trading lies in the essence of decision-making as a psychological game. 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 (anti-stop-loss);

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

Anchoring Effect: Fixating on entry prices/recent highs, neglecting dynamic market changes (rigid profit-taking);

Herd Mentality: Counteracting when the group is in panic or greed (the basis of contrarian investing).

Solution Path: Use a rule-based system (such as stop-loss/position formula) to suppress emotions, enhance cognition through pre-planned strategies and review attribution, ultimately achieving 'logic-driven trading rather than emotional'.