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The common pitfalls in trading that are worth revisiting repeatedly.
**FOMO Trap**: Many people feel that missing out on a wave of market movement is not just about losing some gains in their account, but also a deeper anxiety — as if they are being abandoned by the times, appearing sluggish in response. What does this psychological state trigger? Greed.
**Greed and Social Status**: When profits become a chip for comparison within the community, problems arise. Some will continuously enlarge their positions and pursue extreme returns to maintain a mental image of being a "smart investor." What was originally a rational game gradually turns into psychological compensation — proving their insight and strength through larger profit figures.
**The truth**: Once this chain reaction starts, decision-making is no longer based on market logic, but on the need for self-recognition. The result is often counterproductive.
The smartest approach? Regularly ask yourself: Are my current trading decisions based on market judgment, or on confirming my own identity?