Core Insights - Over 70% of retail investors in A-shares have experienced "selling leading stocks" before significant price increases, indicating a psychological issue rather than luck [1] - The fear of drawdowns is identified as the primary reason for premature selling, with investors equating paper profits to actual gains, leading to hasty decisions [1][2] - Behavioral biases such as confirmation bias, sunk cost fallacy, and herd mentality significantly impact investors' decisions, often resulting in missed opportunities [5][6][9][10] Group 1: Psychological Factors - Fear of drawdown is the leading cause of premature selling, with investors often selling when profits decrease by just 5%, missing out on substantial gains [1][4] - Confirmation bias leads investors to focus on negative information while ignoring positive signals, increasing the likelihood of selling prematurely [5] - The sunk cost fallacy causes investors to hold onto losing positions due to prior investments of time and money, often resulting in missed future gains [6] Group 2: Behavioral Patterns - Retail investors have an average holding period of 42 days for leading stocks, compared to 180 days for institutional investors, indicating a tendency to sell too early [8] - The herd mentality influences investors to follow the crowd, often leading to poor decision-making when they see others selling [9][10] - Establishing an independent judgment system and setting clear trading criteria can help investors resist these psychological traps [10][12] Group 3: Strategies for Improvement - Implementing a "moving stop-loss" strategy can extend holding periods and improve average returns by 41% [12] - Reducing exposure to market noise and limiting information consumption can decrease the likelihood of selling leading stocks by 55% [12] - Simulating extreme scenarios can help investors assess their risk tolerance and reinforce their holding logic [12]