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Recently reviewed the trading account data from the past two years, including over 1,000 trades from myself and traders around me. The analysis results are a bit eye-opening—mistakes made when in floating profit are often more serious than those made during losses.
The most common situation is: just when the account turns green, traders want to greedily chase more, but in the end, they end up with nothing.
**Why is it hard to take profit when in floating profit?**
There are roughly three types of people. One is the lucky type, who, when their account shows floating profit, wants to gamble on whether it can continue to rise, staring at the screen all day. The second is greedy—earning 50 points and wanting 100 points, only to be knocked back to the original. The most heartbreaking is the comparison type—seeing others earn more, they can't sit still and insist on waiting, only to get trapped. I've seen these situations in over 200 accounts. Interestingly, the trades that make money are the most prone to this trap.
One particularly cruel statistic: for accounts that are profitable, those traders who are reluctant to take profit see their accounts experience drawdowns 40% higher. Think about what this means—most of the hard-earned money is eaten up by the drawdown.
**How does psychology explain this?**
In simple terms, it's loss aversion. People fear losses much more than they desire gains. Earning $50 might only make you feel an 8 out of 10, but losing $50 can make you feel a 12 out of 10 in discomfort. So when floating profit appears, we instinctively want to protect that money at all costs, missing the best exit point. Plus, seeing others earn more—say, you earn 10% while others earn 15%—makes you feel dissatisfied, so you keep holding on, only to end up losing 5%. Almost every trader has fallen into this psychological trap.