The recent comments in the derivatives market sentiment section are quite heartbreaking.

Traders shorting spot commodities have been getting liquidated one after another these days. Wails of despair are heard everywhere, almost every day someone is eliminated due to misjudgment. If you look closely, you'll notice a phenomenon: almost all these people believe they are the experts who can precisely catch the market top.

Are they really stupid? Not necessarily.

The problem lies elsewhere — everyone harbors some self-righteous "cognition" in their hearts. It’s not obvious in normal times, but once these beliefs clash with market reality, the cost is paid. Sometimes it’s just the price of a meal, other times it’s years of savings, or even more.

The most frightening part is that this cognitive bias can cause you to sink deeper into the wrong trading direction. You mistake risk for opportunity, and warning signals for buy signals. By the time you realize it, it’s already too late.

So don’t rush to judge others’ mistakes. Those who are mocking others for being taught a lesson by the market now might be the next ones to be taught. This is the cruel reality of trading — most losses ultimately stem from their own misjudgment of the market and underestimation of risk.