Most people lose money not because of the market, but because they are trapped by 'past numbers'.
Have you ever had this experience: a certain coin dropped from a high point, and you always feel that 'it used to be so expensive, now it's really cheap', so you buy in and end up deeply trapped?
Or when holding a losing position, you secretly vow 'I won't sell until I reach my cost price', but the longer you wait, the more passive you become?
This is not rational judgment, but your brain falls into the 'anchoring effect'—being forced to make decisions based on some irrelevant initial number (like historical highs or your buying price).
In trading, there are two common and dangerous anchors:
One is the historical price anchor. 'It has gone up to 100U, now it's only 30U, it will definitely go back.' But where the price has been in the past is not necessarily related to where it can go in the future.
The second is the cost price anchor. 'I bought at 50U, I won’t sell unless it reaches 50U.' But the market will not change direction because of your cost. The price you bought at only concerns you, not the value of the asset.
How to break free from this psychological trap? My own approach is:
Forget historical prices. Before each decision, ask yourself: 'If I were seeing this asset for the first time, at the current price, would I buy it?'
Forget about the cost price. Focus on whether the asset itself is still worth holding, rather than whether it can help you 'break even'.
Replace feelings with rules. Set clear entry, stop-loss, and exit strategies in advance, letting trading discipline replace emotional decision-making.
The essence of investment is a judgment aimed at the future, not an obsession with past prices. When you learn to let go of the 'anchor', you truly start to trade for yourself.
Most people are trapped in a vicious cycle, not due to lack of effort, but due to a lack of a guiding light. Market trends are constant, but opportunities don’t wait for anyone—only by following the right people can you walk out of the darkness. @luck萧