When we look at the charts of financial markets and instruments, we see that prices move in waves. These fluctuations are sometimes very rapid in case of extreme volatility. People with insufficient financial education, when entering trading positions, enter positions without any strategy, thinking that luck will help them, like a gambler. Or, they open trade positions with buy-sell signals given by only one or two indicators, without knowing important criteria such as loyalty to the risk-return ratio.
These people who do not have a financial trader license; Since they do not know the movement structure of the markets, they are unaware of the risk-return ratio and they do not know how to act with a strategy in case of a reverse situation, they do not know where and how they will realize profit when they are in profit in fluctuating market movements, and when they are in loss, they either panic and close their positions with a loss early. While the amount of loss increases, they do not close their losing positions in the ideal place, because of thinking that prices will rise again.
Here, as a result of the fluctuating movements of the financial markets; People who are not competent in financial investment and trade, do not have sufficient knowledge, do not know trade psychology, constantly lose money and cannot be successful in financial markets. As a result of their loss, these people are caught in the "Revenge Trade Psychology", one of the other negative trade psychology, and the amount of loss increases even more.
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