I've always felt that floating losses are more tormenting than floating gains, mainly not because of the money, but because of that loop in my mind of "Did I do something wrong?"


Floating gains can be canceled out at any time as if nothing happened, but floating losses are like a red unread message hanging on the screen. Even if you convince yourself "not realizing a profit doesn't count as a loss," your body doesn't believe it. You wake up in the middle of the night to check your position. It's quite annoying.

To put it simply, loss aversion is: the thrill of earning 1 dollar can't compare to the stabbing pain of losing 1 dollar, and that pain comes with an amplifier. Especially with leveraged contracts, even if the volatility hasn't changed, the psychological fluctuation doubles first.

Recently, before and after the upgrade/maintenance of that mainstream chain, the group has been guessing whether the project will migrate. I see it more as the same set of emotions: people are not afraid of missing opportunities, but of being on the wrong side and being "migrated" and left behind.
Anyway, my current two simple methods are: before entering the market, set a mindless stop-loss line and follow the process if it hits; and also, I don’t look at the market before sleep, or I might really be disturbed by red figures and have insomnia.
That’s it for now.
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