Risk management for individual traders in financial market

When participating in the financial market, few investors can sustainably succeed most of them often make psychological mistakes that lead to failure. The article applies theories and synthesizes empirical studies analyze common individual traders based on theory behavioral finance, including: prospect theory, herding effect, house money sunk costs, overconfidence. uses qualitative methods combined with descriptive statistics a sample 120 who are directly trading using convenience sampling method. results show disposition effect has strongest impact investors' decisions, specifically, 81.3% close their profit positions too soon while trend is still continuing. Hesitating when making decisions or weak signal, being influenced by others also have strong trader, rest factors moderate impact. From those results, analyzes main cause deviations "fear" inside each person. Investors early because regret aversion if losing profit, they hesitate fear mistakes, affected herd due isolation aversion. On basis, proposes solutions help control survive activities, solution emphasizes self-discipline, planning, constant learning process.