$Block(SQ)$Buying and selling psychology is very important when it comes to trading. 

What most people think when it comes to investment or trading is that the stock will bounce from the ocean to the sky in a short time frame. 

Even worse, it may even sink deeper into the ocean. I've made the same mistake before, and I've learnt to be better. 

What a lot of people should know are stocks moves in a wave pattern, when it goes up too fast, it willdefinitely come back down (pullback) and move back up (granted if it has great financials and a goodbusiness model).

For people with great risk management skills, they will have a stop loss to mitigate these risks, and they can still get back into the stock at a lower pricethan before. 

For people that doesn't monitor their stock holdings and always think that time in the market always make money, they will see their portfolio holdings drop by a huge percentage before the stock goes back up again. 

Some lessons I've learnt over the years are:

1. Set your stop losses/profit targets

2. Always analyse your losses and work on improving them

3. You can always get back into the stock at a lower price 

4. Hoarding the stock at a high price will always never do you good because the risk reward ratio is not justified

5. Always take some time to analyse charts before getting into the stock

6. Even great stocks will move down before moving higher

What I would suggest to people reading this post would be to take profits always and let it compound.Realised gains are always better than unrealized losses. 

Take care, stay safe and trade wisely!