The key to stable profits is breaking the vicious cycle

The importance of review, human nature, malice—these are the reasons for continuous losses step by step.
This wave’s change in mindset.
During the New Year holiday, I went to Beijing to relax, and many tickets before the holiday were directly sold off, so my expectation was to play defensively. Feeling that it was becoming difficult, I started the post-holiday opening with a defensive mindset. I also happened to use a computer, adapting to placing orders and watching the market on it. So, during the holiday, I bought the first stock, Fenglong, at a low point—this was conservative, avoiding big losses, and I indeed did the right thing, avoiding a major loss.
On February 12, I bought a small position in C-Position at the close, and the next day, I added more at the low open. It was profitable, so I didn’t do anything wrong.
On the 24th, I added more at the low open, but the stock weakened afterward, and I didn’t exit in time. From this, I already felt I lacked market sense.
On the 25th, I added more at the low open again. Not buying at the lowest point was because I was placing orders on the computer and didn’t buy at the bottom. If I had used my phone, I could have bought even lower. I could clearly feel I wasn’t adapting to the computer. The stock was strong that day, so I didn’t sell any of Fenglong, which was the right move. I’ve been doing pretty well since then, just not fully adapted to using the computer.
On February 26, Fenglong should have surged significantly, but it opened down, then pulled back. It couldn’t rally, indicating weakness. At that time, Yunnan Energy Holdings was also weak. In the morning, Yunnan Energy Holdings hit the limit down during the auction, but by 25 minutes, it recovered to the flat level. The auction had already shifted from weak to strong, and a limit-up rally indicated a shift from weak to strong. As it kept strengthening, I was reluctant to cut Fenglong. If I had been in cash, I would have entered. I was in a good mood that day, so I didn’t sell Fenglong, and by the close, I exited with a small loss. From then on, I didn’t have any major issues.
On the 27th, Yunnan Energy Holdings opened high and quickly surged, but I was more focused on Fenglong. When it opened and rose rapidly, I thought the 26th was just a shakeout, so I immediately sold. I didn’t buy Yunnan Energy Holdings because I was placing orders on the computer and was afraid of a pullback. Subconsciously, I didn’t dare to buy on the limit-up day. I could only place orders manually, but I wasn’t comfortable with the computer, so I chose Fenglong instead. That was a complete mistake. I went all-in on Fenglong and got trapped that day. From then on, my mindset changed. I started wanting to recover losses and make money, but I stopped buying at points.
On March 2, Fenglong opened high and surged quickly. I thought it was just a shakeout, so I held on without selling at the peak. By the end of the day, my mindset was already deteriorating. My emotions were gradually being eroded—like Xiao Ming in the stock trading withdrawal story—fear, human weakness, greed, malice. If I had been in cash, I would have bought Yunnan Energy Holdings, but my greed made me unwilling to sell and cut losses to Yunnan Energy Holdings. If I had been in cash, I could have bought earlier. I sold in the morning and bought back at the close because I had profits, but I was afraid of losing money, so I didn’t dare to cut.
On March 3, the stock surged high, but I didn’t sell due to greed. Yunnan Energy Holdings hit the limit-up, and I was aware of the risk, so I didn’t buy that day. I sensed that the stock was going to explode that morning. I kept thinking if I had bought Yunnan Energy Holdings, I could have caught the limit-up. I kept this thought in mind, so I didn’t sell during the rally. When it weakened and returned to the flat level, I didn’t sell either. In the afternoon, it clearly weakened, and I cut my losses, going to cash.
On March 4, Yasheng Group was strong in the afternoon, and I added to my position. Because I was losing money, I used margin financing. Since I was losing money, I took advantage of the margin, and the next day, it weakened significantly. But because of my malice—wanting to recover losses quickly—I entered without thinking. If I hadn’t used margin, I might have exited during the pullback. My repeated mistakes led to a big loss. My mindset was already shattered that day, so the next day I cut losses during the I-shape decline, trying to adjust my mindset. But that day, it hit the limit-up again, which further shattered my confidence.
From here, the main reason most retail investors keep losing is because they can’t adjust their mindset. The buy and sell points are almost the same. The key issues are mindset and malice. I need to change my bad habits. From here until the weekend, I made a firm decision to correct my bad habits, malice, and break this vicious cycle.
On March 10, I adjusted my mindset. I planned to buy Jiamei Packaging at the open, but I accidentally canceled the order on the computer during the order placement. So, I bought Fenglong at the close for arbitrage. If I had sold during the surge today, I would have made a profit. I didn’t sell because I wanted to recover losses. Even if I had sold at flat, it would have been fine. If I hadn’t accidentally canceled the order yesterday and had fully bought Jiamei Packaging, I wouldn’t be in this situation. Another account bought Jiamei Packaging yesterday and sold it for a 6% profit today, hitting Yasheng Group’s rebound.
The main reasons for losses are poor computer skills, greed, fear of losses, plus my profession without a fixed income, wanting to travel, needing to withdraw money from the stock market, and the desire to make money. Also, at the beginning of the month, I had no profits and wanted to earn more, which fueled my greed. All these are key points—malice, greed, emotional instability, lack of continuous gains—even if I’m optimistic now, I might still be afraid of making mistakes tomorrow.
The “withdrawal from stock trading” story I always mention refers to Xiao Ming, which I interpret as malice. He can make steady money because his girlfriend graduated and is with him, and his mindset gradually improves, making him perform better.
All of this is valuable insight. If you have time, check out the “withdrawal from stock trading” story. When you see him gradually making money because of his mindset, that’s the point.
Finally, I’ll share three more charts. My other account is profitable.