Common bad habits that retail investors must watch out for:


Investors usually hesitate to sell when the price rises and are reluctant to set stop loss when it falls. They are afraid of missing further profits when the price rises, and at the same time, they hold on to the hope of market pullback when the price falls, unwilling to admit losses.
2. Small profits are eager to be profitable, and losses are not taken away: When making small profits, they are eager to realize the profits and worry about a market reversal; but when losing, they hope for a miracle to happen, delaying stop loss, leading to expanded losses.
3. When the loss is significant, being eager to turn the tables and increasing the bet will only lead to deeper entrenchment: after experiencing a significant loss, being eager to make up for the loss by increasing the bet will only further exacerbate the loss.
Response measures:
1. Set buying and selling points: Before trading, set profit targets and stop-loss points, and execute them firmly after reaching the target to avoid emotional operations.
2. Firmly execute stop loss: When the loss reaches the preset stop loss point, the stop loss operation should be executed immediately to avoid turning a small loss into a big loss.
3. Profit Taking in Batches: When making profits, you can adopt a strategy of selling in batches to gradually lock in profits, stabilize your mentality, and avoid greed.
4, Avoid blind operation: do not blindly follow the trend, there must be strategic support, each step is based on careful consideration and learning results, to ensure long-term survival in the market.
Summary:
If investors can overcome these common bad habits and strictly implement the set strategy, they can effectively avoid losses caused by emotional operations. Regularly learning and practicing strategies, and constantly optimizing their trading systems, is the key to long-term foothold in the market.
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