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Brothers, today I want to talk about something that hits close to home: why do my orders always lose money when I get them, but after I sell, they take off? Imagine this: you're holding over 20 positions at once, and after cutting half of them, the remaining ones suddenly surge—while the others stay completely still. Yesterday, you stopped out of two positions, and today they just took off. This cycle is more heartbreaking than any plot twist. I've been through this pattern myself, and only later did I realize that the problem isn't in the market at all, but in the mental barrier that hasn't been overcome.
Why does this happen? Actually, you've fallen into a classic behavioral finance trap—the disposition effect. Basically, it means: take profits quickly and run, but hold on stubbornly when you're losing. For example, with those 20+ positions, after enduring half a month and finally breaking even, you close them all and walk away. But then you miss out on the big rally that follows. It's not because your analysis is poor, but because your subconscious prefers to avoid the feeling of regret, rather than making decisions based on actual trend analysis.
Data shows that assets with losses exceeding 50% typically take an average of 120 days to recover. It doesn't sound long, but how many people can really hold on until that moment? Most have already cut their losses in anxiety.
And what about the phenomenon of a sudden surge after closing a position? That’s often caused by FOMO and panic. Seeing others making profits triggers anxiety, leading to chasing high and buying in; a drop then sparks fear of losing more, prompting hurriedly cutting losses. This emotional resonance can create a feedback loop—when everyone is selling off, the selling pressure is released in an instant, actually creating room for those still holding to rise. In on-chain trading competitions, retail traders are most susceptible to this pattern—trying to climb the rankings, their emotional swings become more intense, and decision-making becomes more prone to errors.
The key point is this: the market doesn't target individuals, but your emotions can trap you.