The High Risk of Selling at the Top: Zhu Su's In-Depth Analysis
Zhu Su, co-founder of Three Arrows Capital, recently shared insights on social media about a commonly overlooked trading risk — the emotional high from successfully selling at the top can be more dangerous than selling during a decline.
This sense of achievement often leads to overconfidence, pushing traders to re-enter the market too soon and take on excessive risk before the trend is clear.
- Emotional control is crucial for trading success
- Premature re-entry can lead to larger losses
- Overconfidence is one of the most common trading pitfalls
Trading Psychology Through Garrett's Experience
Zhu Su also suggested that Garrett might have fallen into a similar psychological trap after significant gains during the 10·10 event, leading to riskier trades afterward.
This observation highlights the complexity of trader psychology and serves as a reminder to remain calm and rational even after substantial profits.