Each of us will start to build positions for some reason. Once we open the position, we will begin to face the fluctuation of the market trend. Our position may lose money. This loss may be a small loss, a big loss, or a small loss and then a loss. Of course, our position may also be profitable. This profit may be profitable at first, or it may be profitable after a loss.
The interests of holding positions are constantly changing, which leads to the change of our mood. In futures trading, the gap between professional players and commercial players is reflected in how to deal with the changes in the profit and loss of the warehouse.
When faced with losses, most people instinctively tend to try their best to avoid such losses. For example, we are dead, such as reducing the average cost, locking up the warehouse in one day and trying to sell it ... This is because we humans naturally hate losing money. I hate losing money, so I don't want to end the wrong order voluntarily. This left a hidden danger for a single huge loss.
And when most people are facing profit? On the contrary, they prefer to put down their bags quickly. Besides our aversion to loss, we also hate uncertainty. It is difficult for us to accept that profits may disappear, so we prefer to determine profits as soon as possible.