Trading is actually an anti-human nature process🔥
Recently, as I've been navigating the trading market, I've increasingly felt that trading is truly an anti-human nature process🤯
Many people think trading is just about buying low and selling high, sounds simple, right? But in practice, you'll find that greed, fear, and hesitation in human nature are all holding you back💔
Today, let's talk about why trading is anti-human nature, and how to overcome these 'human weaknesses'👇
1️⃣ Greed: Always wanting to earn more, ends up losing more
Human nature is inherently greedy, always wanting to seize every opportunity and earn every last penny.
But the biggest taboo in the trading market is greed❗️
For instance, you clearly have gained 10%, but still want to wait for 20%, and as a result, the market reverses, profits are given back, or even losses occur.
Anti-human nature operations:
- Set clear profit-taking targets, and decisively exit once reached.
- Don’t try to predict the market's peak; just catch the body of the fish, leave the tail for others.
2️⃣ Fear: Afraid of losses, missing opportunities
Fear is the opposite of greed; many people dare not enter the market due to fear of losses, or panic and stop-loss at the slightest fluctuation.
So what’s the result? Missing out on big trends while frequently cutting losses, leading to even greater losses😤
Anti-human nature operations:
- Make a trading plan and stick to it, without being swayed by emotions.
- Accepting losses as part of trading; as long as risks are controllable, don’t panic excessively.
3️⃣ Herd mentality: Blindly following the crowd, losing independent thinking
Human nature likes to go with the flow, thinking that what everyone buys must be right.
But the market is often a place where 'a few make money, most lose' 🙃
For example, if a certain coin suddenly skyrockets, and you rush in, you end up being the one holding the bag.
Anti-human nature operations
- Cultivate independent thinking skills, don’t blindly follow trends.
- Learn to think inversely; stay alert when market sentiment is extremely optimistic and look for opportunities when it’s extremely pessimistic.
4️⃣ Overconfidence: Thinking you can beat the market
Many people, after making some money at the start, think of themselves as 'the chosen one', begin frequent trading, or even leverage.
As a result, the market teaches you a lesson in no time😅
Anti-human nature operations
- Stay humble and acknowledge that the market is unpredictable.
- Reduce trading frequency and only take opportunities you are confident about.
5️⃣ Anchoring effect: Being bound by past price levels
Human nature often clings to past price levels, for example, 'I bought at this price before, and now I'm at a loss; I must wait until I break even before selling.'
As a result, the market continues to decline, and losses grow larger😭
Anti-human nature operations
- Forget about the cost price and focus on the current market trend.
- Cut losses in time; don’t let small losses turn into big losses.
Summary: Trading is a form of practice🧘♀️
The essence of trading is to fight against human nature; only by overcoming greed, fear, herd mentality, overconfidence, and the anchoring effect can one survive in the market.
Remember, the market is never wrong; what is wrong is our mindset and strategy.
Therefore, cultivating the right mindset, making a plan, and strictly executing it is the key to trading 💪
✔️ Finally, I want to share a saying with everyone:
"Trading is not about who makes the most, but about who lasts the longest."
Let's encourage each other✨
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