The root of frequent trading by retail investors lies in the mismatch between capital scale and psychological expectations— the less money they have, the more they desire to get rich quickly.

The reason why Munger and Duan Yongping can invest calmly is that their capital size makes a prudent strategy more optimal: a large capital earning 10% results in huge returns, while a small capital earning 10% is just a drop in the bucket. Thus, retail investors are forced into a 'gambler's dilemma'—with little principal, they pursue high returns; but high returns often come with high risks, which instead accelerates losses and creates a vicious cycle.

Ironically, the smaller the capital, the more retail investors tend to chase hotspots and believe in 'shortcuts to financial freedom', resulting in frequent trading, transaction fee losses, and emotional decision-making that further depletes their principal. Ultimately, it is not that the market did not offer opportunities, but rather the gambler mentality has trapped them in a dead end.