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"Enter the market without rush, take profits decisively, and cut losses without delay."
— Almost all your losses stem from these three psychological states.
In trading, the real account destroyers are never just misreading the market,
but three extremely common yet very difficult to control psychological states:
FOMO, Reversal, Holding on.
If you can see through them,
you are already ahead of most people.
1. FOMO: You don't want to make money; you just don't want to be left behind.
When the market starts moving,
your most genuine reaction is often not "Opportunity is here,"
but:
"Why am I not in?"
So you begin to:
Ignore structure
Disregard risk
Tell yourself "I'll get in later"
You're not actually trading,
you're escaping the discomfort of FOMO.
But the market's cruelest point is:
👉 FOMO is mostly just emotional discomfort, chasing high is real loss.
A truly mature trader understands:
Missing a move doesn't mean missing the market.
2. Reversal: You're not losing to the market, but to greed's "wait a bit more."
The market moves in your favor,
Floating profits appear.
But you're not satisfied,
and start to fantasize:
"Can it go higher?"
"What if this is just the beginning?"
You see "taking profits" as betrayal,
as if selling means admitting you're not smart enough.
The usual result is:
Floating profits gradually give back,
confidence gradually erodes,
and finally, profits turn into emotions.
Remember this harsh truth:
👉 The money the market gives you is temporary, not permanent.
3. Holding on: You don't admit you're wrong because you treat your position as faith.
The market starts to go against you,
the price has already negated your judgment.
But you still refuse to exit,
because you're unwilling:
Unwilling to admit a wrong entry
Unwilling to accept judgment failure
Unwilling to "cut at the bottom"
So you start to buy time for hope.
But the most fatal thing in trading is:
👉 Hope is the most expensive cost.
You can be wrong,
but you can't use your account to prove that "you're eventually right."
4. These three psychological states correspond to three wrong rhythms:
FOMO → makes you enter too quickly
Reversal → makes you exit too slowly
Holding on → makes you unwilling to exit
So, truly effective discipline is never about complex systems,
but three simple rules:
Enter without rush: Don't let FOMO command your actions
Take profits decisively: Don't give greed a second decision
Cut losses promptly: Don't leave room for illusions
The last sentence is for everyone still in the market:
You don't need to beat the market,
you only need to beat the moment when you are most likely to lose control.
Those who can control their rhythm,
can traverse cycles.
— MK Shou Yue