The Difficulty of Trading: Not in the Market, but in the Human Heart

The futures market itself is not complex; price fluctuations are merely a game of supply and demand. What truly causes losses are the deep-seated **gambling nature, greed, and fear within human nature:

1. Inability to Stop Losses—Feeling pained by small losses, fantasizing about breaking even; being numb during large losses until liquidation. This is the loss aversion effect at play, preferring to endure greater risks rather than admit mistakes.

2. Prematurely Taking Profits—Fearing a return of gains after earning a little, hastily closing positions, missing out on major trends. This is risk-averse psychology, sacrificing long-term gains for short-term security.

3. Unplanned Trading—Opening positions based on feelings, closing positions based on emotions, lacking rules, ultimately being strangled by the market.

Solutions:

1. Establish a Mechanical System: Clearly define entry, stop-loss, and take-profit rules, using discipline to combat emotions.

2. Accept Losses: A stop-loss is a trading cost, not a failure. Control the risk of a single trade (≤2%), protecting the principal.

3. Let Profits Run: Use trailing stops or staggered exits to avoid premature exits due to fear.

The essence of trading is a game of probabilities, not gambling. The true winners are not those who predict most accurately, but those who execute most consistently. When you are no longer governed by emotions, the market is no longer complex.