Every market review reveals an interesting phenomenon—most people's loss reports are not primarily due to poor asset selection. What truly defeats investors are two invisible enemies: the psychological fluctuations caused by unrealized gains and losses, and the herd behavior that follows.

Imagine a scenario: you enter the market with 1000 USDT, investing 500 USDT in each of two different assets. Turning around, you see that one has dropped 20%, while the other has risen 20%. The question then arises—when you urgently need cash, do you sell the asset that has gained to realize profits, or do you hold onto the losing asset in hopes of a rebound?

The former's logic is to lock in gains, while the latter is to cling to the loss, hoping for a rebound. Both choices fundamentally stem from emotional reactions to unrealized gains and losses, rather than rational trading plans. This is the real reason why 90% of traders are overwhelmed.