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Trading Insight_DN
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🔥Do you know why most investors always "Chase the Peak"? Even when the hook is bent, splitting it in half or third, they still cling tightly... This is a psychological trap that almost any investor falls into.
The strange thing in investing is that anyone can withstand losses of 40-50% or 70-80% for a whole year without a word of complaint. But if the market shows a green of 10-20%, they are as happy as can be :)))
Let me give you 2 examples for you to see if it resonates:
1. I give you a position that is making $1000. If you close it, you will get 1000$ right away.
- But option 2 for you to gamble, if you continue to hold, you might receive 2000$ in profit from that position, or back to entry, you won't have a cent.
Most people here will choose to close it to secure 1000$ , right? :))) It’s not easy to let go… because anyone will fear risk when they are in profit… afraid of losing that profit! That’s why we have the "Premature Close" phenomenon.
2. But conversely… you are in a position that is down $1000.
- If you continue to hold, you may not lose anything, from down 1000$ to breakeven, sometimes even making a profit.
- But if you hold, you could go down from 1000$ to 2000$ and more…
Yet most will choose to actively hold the loss. The moment of holding a profit is strong like this is great :))) Because you are betting on recovery, hoping that you won’t lose money…
🔹 Now you know why, no matter who they are, they have to chase the peak, right? Humans are the same, and this is instinct; the only way to escape it is to set a stop point.
Chasing the peak a lot, one day you will be enlightened… or keep chasing :)))) Are you… chasing too?
The strange thing in investing is that anyone can withstand losses of 40-50% or 70-80% for a whole year without a word of complaint. But if the market shows a green of 10-20%, they are as happy as can be :)))
Let me give you 2 examples for you to see if it resonates:
1. I give you a position that is making $1000. If you close it, you will get 1000$ right away.
- But option 2 for you to gamble, if you continue to hold, you might receive 2000$ in profit from that position, or back to entry, you won't have a cent.
Most people here will choose to close it to secure 1000$ , right? :))) It’s not easy to let go… because anyone will fear risk when they are in profit… afraid of losing that profit! That’s why we have the "Premature Close" phenomenon.
2. But conversely… you are in a position that is down $1000.
- If you continue to hold, you may not lose anything, from down 1000$ to breakeven, sometimes even making a profit.
- But if you hold, you could go down from 1000$ to 2000$ and more…
Yet most will choose to actively hold the loss. The moment of holding a profit is strong like this is great :))) Because you are betting on recovery, hoping that you won’t lose money…
🔹 Now you know why, no matter who they are, they have to chase the peak, right? Humans are the same, and this is instinct; the only way to escape it is to set a stop point.
Chasing the peak a lot, one day you will be enlightened… or keep chasing :)))) Are you… chasing too?
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