1. The fatal dilemma of retail investors: Why do they always buy high and sell low?
Have you noticed a curse:
- Stocks fall when bought, and rise when sold.
- Just made 5% and rushed to run, but stuck with a 20% loss and stubbornly held on.
- Rush in to buy when there is good news, cut losses at the floor price when there is bad news.
This is not bad luck! Nobel laureate Daniel Kahneman revealed the truth with "Prospect Theory": **Retail investors are not competing with the market; they are battling human nature**.
2. Three psychologically devastating traps (with cracking secrets)
Trap 1: Cutting losses is like cutting a kidney; stubbornly holding on is like martyrdom (Loss Aversion Law)
- Experiments prove: The pain of losing 100 yuan = The joy of earning 250 yuan
- Typical symptoms:
✓ When profiting: Just earn a little and run (afraid the cooked duck will fly away)
✓ When losing: Lie flat and play dead (fantasizing that not selling doesn't count as a loss)
- Institutional harvesting method: Using your "stop-loss barrier" to rub against critical price levels repeatedly.
Crack the mindset:
> "Cut losses short and let profits run"
> —— Remember: The stock market has no "sunk cost"; holding onto losing stocks is like guarding a leaking ship.
Trap 2: Taking profits is a disease, securing profits can be fatal (Certainty Effect Law)
- Experimental comparison:
✓ Free 900 yuan vs 90% probability of getting 1000 yuan → Most people choose the former
✓ Must lose 900 yuan vs 90% probability of losing 1000 yuan → Most people choose the latter
- The truth: Retail investors have a perverse obsession with "certainty"
Institutional slaughterhouse:
- When good news occurs: Retail investors madly buy in → Institutions take the opportunity to sell → Rise and fall
- When bad news occurs: Retail investors panic and sell → Institutions buy the dip → Deep V rebound
Crack the mindset:
> "When even street vendors are discussing stocks, it's a signal to retreat"
> —— Buffett's counterintuitive operation: When others are fearful, I am greedy; when others are greedy, I am fearful.
Trap 3: The most terrifying gamblers are those who lose their sanity (Reflection Effect Law)
- Scientific discovery: When continuously losing, the rational area of the brain goes on strike.
- Fatal operation:
✓ Down 10%: Increase position to dilute cost
✓ Down 30%: Bet your fortune on averaging down
✓ Down 50%: Uninstall the software and play dead
Blood and tears case:
Newton lamented after going bankrupt in stock trading: "I can calculate celestial movements, but I can't predict human madness."
Crack the mindset:
> "Don't try to catch a falling knife"
> —— Setting a hard stop-loss line is more reliable than praying for a market reversal.
3. The ultimate answer for retail investors' comeback
1. Cognition section: Admit that you are not a stock god (90% of fund managers can't outperform the index)
2. Tool section: Use quantitative strategies to replace emotional decision-making (the secret to a 66% annualized return over 30 years for Grand Prize Fund)
3. Mindset section: Establish investment discipline (just like losing weight requires a scale + food diary)
Ultimate golden sentence:
"The most expensive tuition in this market is using real money to verify one's own human weaknesses"
"The candlestick chart reflects price fluctuations, while the delivery order reflects the soul's true colors"
Now you should understand:
Those retail investors who enter at the peak of a bull market and those who cut losses at the bottom of a bear market are essentially the same person — a puppet controlled by human nature.
BTC
Back to the ultra-low turnover time! If it can't stand above 108950, still bearish! Pay attention to distribution opportunities between 107600-108950! Support below at 104700-104400, 103000-102000!
ETH
Continue to accumulate liquidity! The previous daily report gave the short position at 2430-2460! There is only about 60 points of space! Currently, continue to pay attention to the distribution opportunities at 2540-2570 above! Pay attention to the accumulation opportunities at 2313-2270 below!
SOL
The position above 150 has been reached! Here is the bottom buying near 130 from the daily report, the short-term target for daily line rebound! Currently, pay attention to distribution opportunities at 156-158! Pay attention to pullback opportunities at 142-137 below!
The information and data involved in the content come from publicly available materials and strive for accuracy and reliability, but no guarantee is made regarding the accuracy and completeness of the information. The content does not constitute any investment advice, and any investment based on it is at your own risk!
