Here’s an example:

Zhang San is married. When he was young, his upbringing was typical of oppressive education. He rarely received recognition or praise from his father, but his mother often praised him. To be honest, his mother has very little say in this family. What Zhang San takes the most pride in is his academic results; he is a typical small-town exam taker, but he failed the postgraduate entrance exam.

Zhang San: I'm not suited for studying; I can't do well! I clearly guided my friend while we were reviewing together, and he got accepted, but I failed. It's really laughable; I just can't learn.

If we talk in a different way: go to your father and tell him I can't do it and need his help. Can he help find someone to get me a job?

Zhang San: No, it's impossible. I will never do that.

Look, let him admit to his father that he can't do it. From his perspective, it's an absolute taboo. Such issues will be brought into the new family after marriage, running through his life, even in trading.

You often choose to hold on during losses, or even dare not open your account to see how much your positions have lost?

- This issue cannot be entirely blamed on you. There is indeed a significant portion of people willing to admit their mistakes and cut losses, but I am not referring to this type of person. Choosing to hold on during losses is, in most cases, caused by perfectionism and an inability to accept one's failures, which stem from childhood experiences or are innate. Traders need to find the root cause of their issues. In other words, if you are unwilling to admit defeat, should you consider treating trading or life differently?

But you must have noticed something. Zhang San has placed all his expectations on his grades, trying to prove himself to others. As a man, obtaining his father's recognition is very important, and since Zhang San cannot gain recognition from his father, he shifts all emotional leverage onto his academic achievements. At this time, an increase in grades makes him extremely happy, while a decrease makes him doubt himself. Making money from trading makes him very happy, while losing money simultaneously makes him doubt life.

I am also a perfectionist, but I have found my own methods of self-adjustment.

The example above is from a real friend of mine, though we no longer keep in touch. He ultimately did not pursue further studies and instead entered the workforce.

In trading, not using stop-losses and having excessive leverage are direct causes of substantial losses. Chopping wood for a thousand days to burn for one day; many traders have learned a lot of techniques and can analyze the market independently. I want to say, take a look at your profit curve and see if it shows a period of upward movement followed by a sharp decline, or even a drastic drop followed by another drop. Please find the other version of yourself that affects your trading and avoid letting him cause trouble again.

The simplest method is to set a limit so that each short-term trade does not lose more than 1%, medium-term trades 3%, and long-term trades 5-10%.

No matter how obvious the favorable opportunities or how foolish the opportunities you see, strictly implement stop-losses. Base your position size on your stop-loss decisions. Thus, if your capital curve shows an upward trend after trading for a period, you need to refine your skills to improve your winning rate. If it shows a downward trend, then you must modify your trading system and rules.

So, my friend, I know you are reluctant to admit defeat, but anything can happen in the market. Don’t let one or two losses ruin your trading career.