Emotion-driven: Frequent trading, chasing highs and selling lows, fear of missing out, selling at a loss, earning small and losing big (taking profits quickly, holding losses), imagining full positions, buying more as prices drop, turning stop losses into increased positions.
Cognitive bias: Betting on news, hindsight trading, fantasizing about bottom-fishing and market tops.
Lack of strategy: No planning, no position management, chaotic positions, ignoring probabilities and market rules.
Overconfidence: Showcasing profits, considering oneself an 'expert', ultimately becoming market fodder.
Retail investors are driven by human weaknesses (greed/fear/arrogance), compounded by the information advantage of institutional investors and market manipulation, falling into a cycle of 'emotional gambling + lack of strategy + cognitive blind spots' leading to losses.
