To The Moon

It’s said that 85% of people don’t make money trading stocks. Even someone as brilliant as Newton wasn’t spared. That’s because trading isn’t just about technicals and fundamentals—it’s a game of human nature.

Let’s take a look at the five key habits that lead to losses. Which one sounds familiar?

1. FOMO: Sell and then buy again—and always go all-in, never holding cash

The moment you sell, you’re itching to buy something else, afraid of missing out. This is classic greed. But remember: as long as the market exists, opportunities will always come. Ironically, when the real opportunity does arrive, you probably won’t have any cash left.

2. Wrong take-profit and stop-loss method: Take quick profits but hold onto losing trades

This is a classic retail investor trap—taking tiny profits out of fear, and holding onto losses out of hope. It's a short-term, impatient mindset. When a stock drops, many console themselves by saying, "It's not a loss if I don’t sell." But if the fundamentals have changed, getting out sooner means losing less.

3. No patience: Think the stocks you don't buy is better and then switch

Sometimes when you buy a stock during its consolidation phase, but feel frustrated when it doesn’t rise. Meanwhile, watching other stocks soar feels unbearable, like you're missing out while others cash in. This leads to constantly jumping between sectors, chasing heat—and usually, compounding losses.

4. Buy penny stocks: Ignore market leaders and chase cheap, speculative stocks

People love “bargains” and cheap stocks, fantasizing about catching a turnaround or reorganization that makes a penny stock soar. But the truth is, leaders are leaders for a reason. Speculative stocks rarely become leaders. Buying them is like betting on a miracle.

5. Betting on the small odds: Catch falling knife

It feels smart to buy something that's fallen sharply—like you’ve found a bargain. But that’s just self-deception. If the bottom hasn’t formed, the dominant trend is still down, and you’re likely catching a falling knife. A 50% drop can still become 80%.

Many people feel personally called out by this list—and that’s the point. These are the traps of human nature. To succeed in the stock market, you must learn to rise above them.

What do you think is the hardest emotional bias to overcome in investing?

Which bad habit do you have in your investing?

Join our topic and post directly: Keep Losing Money 😿 Time to Change These Bad Habits? or leave your comments to win tiger coins~

Plus, you can stand a chance to get $5 stock vouchers. Event detail to click: [Event Reward] Join Hot Topics Everyday to Win $5 Stock Vouchers & Tiger Coins!