In trading markets, the outcome of an account often depends on a person's trading philosophy.

There are actually two types of people with the strongest risk resistance. One never compromises, fully enters the market when bullish, and rarely holds cash—these people bet on the right direction and make substantial profits; if they bet wrong, the losses are painful but their mindset remains stable. The other type is very cautious, only taking action when they are firmly bearish, with a holding period of no more than four months a year—they enter the market less frequently, but each decision is well thought out.

The most unfortunate is the third type. These people are most likely to see their accounts cut in half. They swing between gains and losses, becoming pessimistic and shorting after a few days of decline, then optimistic and chasing longs after a few days of rise, switching positions back and forth. The result? When prices rise, they blame themselves for not being fully invested; when prices fall, they regret being fully invested. This constant back-and-forth usually requires multiple top-ups to stop the losses.

Think about which type you belong to?