Making trades is actually having a dialogue with oneself. When we complicate ourselves, trading becomes complicated; when we simplify ourselves, trading becomes simple.

Emotions are something that accompany a person for a lifetime and cannot be removed; otherwise, one would become a vegetable. The difficulty in aligning knowledge and action (not to mention the issues of deep versus shallow understanding) is separated by a membrane: emotion.

Without emotions, knowing something would lead directly to action; that is software, quantitative, programmatic trading.

As subjective traders, when we experience emotional fluctuations during trading, we create internal friction. Those who have fewer emotions in trading are destined to earn more, or earn more easily, or lose less than those with more emotions.

Emotions, or being emotionally charged, can easily disrupt all prior plans.

For most people, the sudden desires or fears that arise are the direct causes triggered by emotions.

Wanting to earn money outside of the plan, wanting to lose less than what is planned to be lost, will generate emotions, leading to mental friction and confusion.

Therefore, it is essential to have a plan in advance, to clearly understand what money I want to make and what the cost is.

This plan is the trading system.

The trading system is like our savings account; if the balance shows 10,000, the bank will not give 20,000. If we attempt to withdraw 20,000 with a 10,000 balance, it is akin to trying to earn money unrelated to ourselves in trading, and we start doing things like robbing a bank. While we might succeed in robbing a bank a few times in trading, this kind of lucky success will lead us to keep doing such foolish things, and eventually, the outcome will be inevitable: execution. If you are robbing a bank, who else would you execute?

To simplify trading, you must first become simple yourself, not let emotions take over, and not become a slave to dopamine; it means not seeking profits beyond your abilities and not fearing losses within your capabilities; do not be demanding or have unrealistic fantasies. This way, things become simple.