What is the Three Mountains and Four Difficulties - The Five Psychological Barriers in Investment

According to Buddhist philosophy, greed, anger, ignorance, arrogance, and doubt are the five fundamental mental afflictions of humans. These are not only obstacles in practice but also deeply influence investment decisions. Without overcoming these psychological barriers, it is very difficult to sustain long-term success, especially during market peaks when risks are concentrated.

Greed - Fear of Missing Out

Greed manifests as attachment, fear of losing peak prices, and reluctance to exit positions. In a rising market, greed drives investors to constantly seek new targets, raising their profit expectations. This leads to holding positions too long, waiting for prices that never come, ultimately causing the market to swallow up all gains.

Anger - Negative Reaction to Failure

Anger appears when investors face losses. Instead of analyzing the causes, they resort to blaming analysts, criticizing the market, then hurriedly cutting losses or withdrawing entirely. This is a major mistake during the early and middle stages of a bull market, as rising markets often come with volatility and short-term corrections.

Ignorance - Lack of Knowledge and Learning

Ignorance is not just about being uninformed but also about not learning or updating knowledge. Investors who lack continuous learning are easily swayed by rumors and drawn into market loopholes. They do not understand how the market operates, its cycles, or the core factors affecting prices, leading to repeated mistakes.

Arrogance and Doubt - Extremes in Investor Psychology

Arrogance occurs when investors achieve initial success, leading them to look down on others and ignore warnings and analysis. Conversely, doubt is characterized by indecision, wavering between trust and mistrust, causing delays or half-hearted actions. Both states are harmful in any market.

Overcoming these five psychological barriers is not a task for a day but a long-term cultivation process. Only when investors understand what greed, anger, ignorance, arrogance, and doubt are and recognize them within themselves can they build strong mental discipline to overcome all market challenges.