This statement represents the transition in trading from "technique" to "Dao"; techniques can be learned, rules can be established, but ultimately, success or failure depends on mastering the weaknesses of human nature; and what is called "understanding the Dao" is fundamentally about completely letting go of subjective obsessions.
1. "Is the final hurdle in trading human nature?"
The essence of trading is a "probability game": any strategy has boundaries of win rates and profit-loss ratios; profits come from "repeatedly executing rules," not from "accurately predicting every fluctuation." Yet, human instincts directly conflict with the core logic of trading:
Greed can make people unwilling to take profits when they are in the green, always wanting to "capture the last point," ultimately turning floating profits into losses;
Fear can make people unwilling to stop loss during losses, always wanting to "wait for a rebound before cutting losses," resulting in small losses turning into large losses;
Luck can make people ignore the rules, such as "this time is special, no need to stop loss" or "I feel it will rise, so I’ll break the rule and increase my position," ultimately undermining the consistency of the strategy; vanity and unwillingness to admit defeat can make people refuse to acknowledge mistakes, such as "I can’t be wrong" or "the market must be the problem," leading to stubbornness in the wrong direction until liquidation.
The "technique" of trading (technical analysis, strategy design, capital management) can be mastered through learning; even a novice can learn an effective set of rules in a short time. However, the process of executing these rules is essentially a confrontation with the weaknesses of human nature: when market fluctuations trigger human greed or fear, the ability to "act by the rules" rather than "act by emotions" is the key that distinguishes winners from losers.
Just like the experiences of many traders: during reviews, one can clearly see "where to stop loss" and "where to take profit," but in real-time trading, one cannot do it—this is not a technical issue, but rather a failure to overcome human nature. Therefore, techniques are the foundation, and human nature is the last hurdle that cannot be bypassed.
2. "Is the true understanding of the Dao to give up?"
Here, "giving up" does not mean "giving up trading," but rather completely letting go of "subjective obsessions," abandoning the illusion of a "perfect trade," accepting the uncontrollability of the market, and acknowledging one's limitations.
The process of "understanding the Dao" in trading is essentially a "disenchantment":
Novices are obsessed with "finding the holy grail," always believing there is a strategy that will be "right every time";
Advanced traders are obsessed with "predicting the market" and always want to use technical analysis to "accurately catch the tops and bottoms";
A true master of the Dao will ultimately understand: the market is chaotic and unpredictable; any attempt to "control the market" is a delusion.
Accepting the inevitability of losses: every strategy has a stop loss; losses are the cost of trading, not a "failure." Refusing to accept losses is essentially refusing the nature of trading;
Accepting the reasonableness of missed opportunities: the market always has opportunities, but those that do not belong to one's strategy must be "given up". For example, a trend strategy will inevitably miss range-bound markets, and a short-term strategy will inevitably miss major trends. Trying to seize every opportunity will only lead to backlash from the market;
Accepting one's limitations: acknowledging that one cannot predict market movements and can only follow; recognizing that one will make mistakes, so it is necessary to constrain oneself with rules (stop-loss, position size).
When a trader "gives up" to the point of no longer opposing the market, no longer using subjective conjectures to replace rule execution, they can instead enter a state of "unity of knowledge and action": being decisive when it’s time to stop-loss, not anxious when holding positions, and not restless when flat. This is not a passive compromise, but an active reconciliation with market laws.#加密市场回调