More often than not, it is not the market that defeats us, but our own mindset.
When prices rise, it is easy to become greedy, always wanting to hold a little longer, until profits are given back and unrealized gains turn into unrealized losses. After prices fall, we become trapped in wishful thinking, unwilling to admit mistakes and cut losses, always imagining that the market will reverse immediately.
Chasing rallies comes from fearing that we will miss out, holding losing positions comes from refusing to accept losses, and rushing to open positions to recover losses marks the beginning of a