Why Are Your Trades Always 'Feeding the Fish'? A Deep Dive into the Fatal Traps of Human Weakness
In the world of trading, the managers of internal groups are often exhausted, while group members rarely reap rewards. What psychological secrets lie behind this?
Many people self-deprecatingly refer to themselves as 'fish', but few truly understand why they are always harvested by the market. From a psychological perspective, the inability to 'control one's hands' is rooted in the desire for instant gratification. The brain is inherently biased towards immediate pleasure; when market fluctuations occur, dopamine is quickly released, driving people to place orders immediately, as if seizing the moment will bring them wealth. They fantasize about trading non-stop for 24 hours, going long when prices rise and short when they fall, not wanting to miss any fluctuations. This greedy nature is an excessive pursuit of 'certainty'—they always feel that every fluctuation hides an opportunity for wealth and do not wish to miss any possibility.
However, the trading market is precisely a battlefield filled with uncertainty. The loss aversion effect in psychology is vividly reflected here. The pain people experience from losses far outweighs the pleasure brought by equivalent gains. Thus, even when they rationally know they need to wait for the right moment, the fear of missing out and the anxiety of missing opportunities drive them to trade frequently, attempting to alleviate their anxiety through action. Unbeknownst to them, frequent trading actually increases the likelihood of making mistakes, trapping them in a vicious cycle of 'the more they trade, the more they lose.'
Why is it said that 'losers cannot trade well'? Here, 'losers' essentially refers to those who lack self-control. The moderation required in trading is, in fact, a manifestation of the ability to delay gratification. High-level traders understand that 'good hunters wait well'; they can curb their impulses, endure anxiety during times of being out of the market, and wait for truly fitting opportunities. Those who lack this ability are like puppets led by their emotions, losing their way in the waves of the market.
To break through in trading, one must first confront their inner weaknesses. When you feel the urge to blindly place an order, it might be helpful to stop and ask yourself: Is this a rational judgment, or is emotion at play? Only by overcoming human greed and fear, and learning to coexist with uncertainty, can one escape the fate of being 'fish' and move steadily forward in the trading market.