There are always retracements in the stock market, which is perfectly normal and something every trader should accept.

When the stock market is bullish, everyone is in high spirits.

When the stock market enters a correction phase, watching the stock price fall back to the cost price,

Individual investors begin to search for various 'analysis articles', do various 'homework'.

Some even look for 'inspirational articles'...

Trying to find some comfort~

As long as someone tells him, "Stock prices dropping are temporary, aren't you afraid it won't rebound?"

He feels okay in his heart, very comfortable~

He won't consider whether that statement is based on facts,

and will selectively ignore any opinions contrary to what he hopes for.

This is a common bias in the stock market.

Watching the stock prices fluctuate every day, experiencing ups and downs in mood,

usually because there is no effective trading strategy.

If there is a trading strategy, and it is effective (able to make money in the long term),

As long as you follow the strategy repeatedly, treat the stock market as a probabilistic gaming,

making more profits than losses or making more and losing less (professionally known as having a positive expectation value),

the law of large numbers will eventually help you make money.

The stock market always has a period of retracement, which is completely normal,

it's something every trader should accept.

Why worry about it?

Reduce the obsession with individual stock wins and losses, focus on the strategy itself,

your investment portfolio and well-being will be healthier.

Hello everyone, I am Black Horse, focusing on algo trading strategies.

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Aside:

It takes time every day to research trading strategies and input knowledge.

No time to post every day.

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If you want to read my weekly market reviews, please check the original post comments section ~

Disclaimer:
The content shared above is for educational purposes and personal opinions only, and is not intended as investment or financial advice. Before making any investment or financial decisions, please consult with a professional financial advisor.