Why do you always run away after making a little profit, but hold on stubbornly when you incur losses?
Let’s do two choice test questions:
Question 1:
A. You have a 100% chance of earning $10,000
B. A 50% chance of earning $20,000, and a 50% chance of earning nothing
Question 2:
A. You have a 100% chance of losing $10,000
B. A 50% chance of not losing anything, and a 50% chance of losing $20,000
Please leave your answers in the comment section.
Most people choose A for Question 1, after all, it’s a profit model; under the premise of a profit model, people are risk-averse.
For Question 2, they choose B. After all, there’s a 50% chance of not losing anything; it’s a loss model, and when people are faced with losses, they shift from risk aversion to risk preference. People actually begin to like this preference for risk.
Human nature is risk-averse when facing profits, but suddenly becomes risk-seeking when faced with losses.
This perfectly explains your repeated liquidation and being stuck in the crypto world:
You buy spot or open contracts, and as soon as you make a little profit, you want to cash out immediately.
But once you’re stuck, you stubbornly hold on. You tell yourself to wait a little longer, and eventually, the losses deepen.
In cases of profit and loss, people's preferences are different: in fact, the difference between Question 1 and Question 2 is 20,000; if you chose A for Question 1, you should also choose A for Question 2, but in reality, people's choices are different. This indicates that people’s psychological behavior can actually affect their investment outcomes.
Why can't you control yourself?
Because you are not investing; you are reacting instinctively.
Refuse to buy spot and open contracts arbitrarily, insist on low-point regular investments in $BTC and $BNB . Hold on, and five years later, you will come back to thank me.
Trading is not something an average person can handle! Getting started is easy, but making money is really hard. Without enough systematic learning, you will forever just be the chives that get harvested in the market.