Answer: The strong human desire for profit.
When people see opportunities:
👉 Desire increases
👉 Judgment weakens
Even cautious investors:
👉 Change after success
Typical thought:
👉 “I want more.”
■ Essence
Desire distorts rational judgment.
Why Do People Take Greater Risks After Profits?
Answer: Success creates overconfidence.
After gains:
👉 Confidence rises
👉 Risk perception falls
Behavior changes:
👉 Larger positions
👉 Higher risk assets
But:
👉 Not based on analysis
■ Essence
Success can lead to underestimating risk.
How Do People Behave in Rising Markets?
Answer: They buy after prices have already risen.
Typical belief:
👉 “It will keep rising.”
Result:
👉 Late entry
Then:
👉 Panic selling during decline
■ Essence
People follow price, not value.
Why Does This Behavior Occur?
Answer: Emotions override rational thinking.
Not driven by:
👉 Analysis
👉 Long-term planning
Driven by:
👉 Greed
👉 Fear
■ Essence
Emotion replaces logic.
What Must Investors Control Most?
Answer: Their own emotions.
Success requires:
👉 Knowledge
👉 Information
👉 Emotional control
Without control:
👉 Decisions become unstable
■ Essence
The real battle is internal.
● Conclusion
Answer: Investment failure is rooted in human desire.
Failures are not only due to:
👉 Lack of knowledge
But:
👉 Distorted judgment
■ Essence
Understanding yourself is more important than understanding the market.
👉 In essence, investing is a struggle not against the market, but against one’s own impulses.