[Trading Insights Simplified] - Why Do You Always Lose?

Self-answering, why do I always lose? Why did I not follow the trading plan? Clearly, I know how, but why didn't I do it? Why do retail investors always lose money? In this cruel financial market, how many retail investors can actually make a profit? And how many people are still persistent after losing money? How many people know how they lost their money?
1. Emotion-driven decisions: Retail investors are often easily influenced by market sentiment, blindly chasing rises and selling on dips, leading to frequent trading.
2. Lack of professional knowledge and experience: When entering the market, there is limited knowledge about investment and trading, lacking an understanding of the basic principles of the market and the skills in technical analysis. There has been no in-depth research on the fundamentals of the investment targets and industry dynamics, and investments are made solely based on believing in the persuasion of others or blindly following trends.
3. Lack of risk management and investment plans: There is often a lack of strict risk management strategies and investment plans.
4. Information Asymmetry and Manipulation: There are situations of information asymmetry and manipulation in the capital markets, where retail investors often find themselves at a disadvantage in terms of information.
5. Like to go against the trend, constantly buying the dip and touching the top.
6. Long-term full position, fully invested, either getting rich or going to zero
7. Liking to take on positions is a big taboo!
8. The subjective bias is too strong, constantly changing the trading plan.
Hope this helps you, remember to follow and give a thumbs up! #交易心得