Biological Traps in Trading: Why Small Wins Are Better Than Hundredfold Profits?

In trading, human biological mechanisms profoundly influence decision-making. Evolution has instilled in us a craving for victory—each small win stimulates the brain to release serotonin and testosterone, enhancing confidence and motivation; while losses trigger negative emotions, leading to impaired judgment. This instinctive reaction often traps traders in the pursuit of short-term profits, neglecting long-term stable value.

Psychological Traps and Bankruptcy Cycles

Many newcomers are obsessed with "short-term profits" and attempt to get rich quickly through high leverage, revenge trading, or flashy maneuvers, often resulting in losses due to emotional outbursts. True winners focus on accumulating small victories: they acknowledge losses, adjust strategies, and avoid falling into the vicious cycle of “low rebound” caused by a sharp drop in serotonin (such as excessive position scaling or chasing high-risk assets).

The Power of Compound Interest and Long-Term Strategies

The power of compound interest is often underestimated due to its slow growth process. However, as top trader @thiccyth0t demonstrates, a stable annual return of 2 times far exceeds the gambling of hundredfold profits. Key strategies include:

Timely profit-taking: The market is unrelated to personal beliefs; decisive exit after profit is necessary.

Starting with low leverage: Gradually increase risk after stabilizing.

Setting realistic goals: Avoid meaningless trades; exit upon achieving goals.

Controlling losses: The core principle is small losses and big wins; a single loss should not destroy weeks of profit.

Discipline Over Passion

Trading is a marathon, not a sprint. Successful traders view trading as a business, not gambling. Establishing trading rituals, recording victories, and maintaining process consistency can help the brain enter a rational state.

Conclusion

Biological instincts drive people to chase excitement, but the essence of trading lies in restraint. Steadily accumulating small wins and adhering to discipline are essential for achieving both capital and confidence growth. Slow is fast; the boring compounding is far more reliable than quick profits. #币安Alpha上新 #币安HODLer空投SAHARA