Why is trading so difficult?

Today let's talk about the two main points:

1️⃣ Making small profits is easy because it aligns with human nature, which is what we often call 'locking in profits.' In trading, many people often exit the market after making small profits, only to regret it later when prices fall back. This situation continuously reinforces the idea of 'running after small profits,' leading you further down the wrong path.

2️⃣ Making small losses is difficult because it goes against human nature. In trading, after a price drop followed by a rebound, unrealistic expectations arise, causing hesitation and preventing timely stop-losses. As a result, small losses turn into large losses, and eventually, one can only turn off the computer to escape reality. This escapist mentality makes it hard to break free.

Such trading results are often small profits and large losses, which is the exact opposite of skilled traders’ outcomes—skilled traders tend to have small losses and large profits. Therefore, trading is counterintuitive and requires overcoming human weaknesses such as desire, greed, fear, and avoidance.