Why is it easier to lose money in the second half of a market rally after missing the first half? A lot of people got burned in this tech rally because they saw others making huge profits in April and May, and then started buying in at high levels in June. This often creates a psychological anchor: 'They’ve already made several times their money, so I need to at least catch up.' What usually follows are a few risky moves: - Originally only dared to invest ¥100,000, but now upping it to ¥200,000 to chase returns. - Early on, happy to take profits after a 10% gain, but later, reluctant to sell even as prices rise. - Stocks are already far from their moving averages, yet normal pullbacks are mistaken as buying opportunities. - Once losses start, it’s easy to keep adding to the position, hoping for an immediate rebound. The problem is, in the second half of a rally, you often see rising valuations, crowded trades, more profit-taking, and increased volatility. The potential upside may shrink, while the downside risk grows. Traders end up using larger positions when the risk-reward ratio is actually worse. This common mistake is taking on current risk in your account to try to make up for missed gains in the past. The gains you missed are already history—you can’t recover them directly with your next trade. Your next trade should only be based on the odds and risks at that moment.