In fact, many investors have such a psychological account. They will regard profitable investment as a "successful" account, so they hope to lock in profits and sell as soon as possible.

Loss-making investments are regarded as "failure" accounts. They are unwilling to admit their mistakes easily and hope to turn losses into profits in the future and continue to hold them.

This is actually a behavioral financial phenomenon, which we call the "disposal effect", which refers to investors who tend to sell profitable investments too early and hold loss-making investments for too long.

Because people are more sensitive to loss than to gain, the pain brought by the same amount of loss is much greater than the happiness brought by the same amount of gain. Therefore, I am more willing to avoid the pain caused by loss.

The "disposal effect" also reminds us to strengthen self-control, formulate and strictly implement investment plans, and focus on long-term investment returns rather than short-term fluctuations.