People always ask me where the end of trading is. Honestly, trading itself has no end; it’s just another way of living.
Let’s look at the results. A very small number of people eventually leave with wealth and freedom, enjoying the rest of their lives. A few make a living from it, earning not much more than a regular job, but with the advantage of not having to read the boss’s face or pretend in the office. However, the vast majority? They exit with a battered face, accompanied by regret, unwillingness, debt, wasted youth, and disappointed family.
Which type you ultimately become depends entirely on how deep your understanding of trading is, how disciplined you are, how solid your skills are, and how complete your system is.
Why do countless people fail repeatedly? Because human weaknesses take root and sprout: arrogance, pain, frustration, madness, complaints… These things will dominate your decision-making.
Think about your rhythm before a margin call. First, small positions make a few profits, and you get inflated psychologically, starting to add more. Then a big loss slaps you in the face, and you go crazy. The next step isn’t to cut losses but to double down and fight hard, resulting in a market wipeout.
Or another pattern: small losses don’t matter, next time you lose a little more, and after several rounds, you want to turn things around in one shot, so you increase your position to fight the market… The final outcome is the same—your account collapses.
There’s a saying: "A great wind rises from a tiny ripple; a huge wave forms from a small disturbance." It’s especially accurate when applied to trading. Once human flaws are touched, if you’re not careful, your rights and interests can collapse.
Don’t fantasize about completely conquering human nature. The best you can do is to put it in a cage.
How to build the cage? With rules.
How long is your trading cycle? Under what conditions do you enter?
What are the criteria within the cycle? Which signals invalidate the conditions?
How much position size do you use each time you enter? Where do you set your stop-loss? How do you take profits in stages?
These are your trading system—what truly makes money in the market.
Traders who can survive in the market for over ten years understand: make money with rules, and if you lose, it should be with rule-based losses. Never make money using rules and lose money because of human nature—that’s what’s called the same source of profit and loss.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
12 Likes
Reward
12
6
Repost
Share
Comment
0/400
ClassicDumpster
· 01-05 04:00
It's the same old story, discipline discipline discipline. Is it really that easy to talk about and earn easily?
---
Honestly, most people are just dead because of greed, nothing else.
---
Rules are good rules, the problem is how many can really stick to discipline? As soon as they make a profit, they get carried away.
---
The group that has survived ten years isn't because the rules are awesome, but because their hearts are cold enough.
---
Many fools start dreaming after just a few wins, the market is teaching us a lesson every day.
---
The saying "profit and loss come from the same source" hits hard. When making money, follow the rules and laws; when losing, it's all about gut feelings and reckless operations.
View OriginalReply0
GasOptimizer
· 01-05 02:33
Honestly, I've seen too many people go bankrupt because of over-leveraging, really.
The logic of making money is the same, but the reasons for losing money are all different and embarrassing.
If the system isn't perfect, don't bother messing around. Instead of calculating K-lines every day, it's better to first fix your own problems.
I just want to know how many people can truly stick to stop-loss?
This set of advice is solid, but I'm just afraid that there's a gap of ten thousand miles between knowing and actually doing.
View OriginalReply0
ProtocolRebel
· 01-04 14:52
It's really heartbreaking; most people are just killed by themselves.
View OriginalReply0
PhantomMiner
· 01-04 14:51
That's so true, human nature is really the poison in trading.
---
Rules are the lifeline; without rules, it's pure gambling.
---
Getting inflated after small gains and stubbornly resisting big losses, I've seen too many of these routines.
---
Traders who have survived ten years have figured it out: both profits and losses must follow the rules.
---
The days of crazy position increases before a margin call still give me chills when I think about them.
---
The hard part is execution. Everyone understands the rules, but only those who execute are the winners.
---
"Profit and loss come from the same source" is brilliant; it hits many people's soft spots.
---
It's the old saying: the market is an amplifier, amplifying your greed and fear.
---
No matter how perfect the system, even the smartest will be taught a lesson by the market.
---
Understanding your own human weaknesses is a hundred times more important than studying candlestick charts.
View OriginalReply0
BlockBargainHunter
· 01-04 14:48
Well said. I am the one who has been hurt by human nature. Looking back now, it brings tears to my eyes.
View OriginalReply0
GasOptimizer
· 01-04 14:30
The core is stop-loss settings and position management; data speaks for itself.
Chasing small-position consecutive wins is a trap, and adding positions at that moment already means losing.
Once system rules are set, don't change them. Changing them is the beginning of losing money.
Those who get margin called are usually people who become arrogant when making profits and gamble when losing money, with hardly any exceptions.
The ability to enforce rules is a hundred times more valuable than prediction ability; this logic is sound.
To put it simply, it's about establishing a complete risk control framework; otherwise, it's all just gambling.
The saying "Profit and loss come from the same source" hits hard, and most people die at this point.
People always ask me where the end of trading is. Honestly, trading itself has no end; it’s just another way of living.
Let’s look at the results. A very small number of people eventually leave with wealth and freedom, enjoying the rest of their lives. A few make a living from it, earning not much more than a regular job, but with the advantage of not having to read the boss’s face or pretend in the office. However, the vast majority? They exit with a battered face, accompanied by regret, unwillingness, debt, wasted youth, and disappointed family.
Which type you ultimately become depends entirely on how deep your understanding of trading is, how disciplined you are, how solid your skills are, and how complete your system is.
Why do countless people fail repeatedly? Because human weaknesses take root and sprout: arrogance, pain, frustration, madness, complaints… These things will dominate your decision-making.
Think about your rhythm before a margin call. First, small positions make a few profits, and you get inflated psychologically, starting to add more. Then a big loss slaps you in the face, and you go crazy. The next step isn’t to cut losses but to double down and fight hard, resulting in a market wipeout.
Or another pattern: small losses don’t matter, next time you lose a little more, and after several rounds, you want to turn things around in one shot, so you increase your position to fight the market… The final outcome is the same—your account collapses.
There’s a saying: "A great wind rises from a tiny ripple; a huge wave forms from a small disturbance." It’s especially accurate when applied to trading. Once human flaws are touched, if you’re not careful, your rights and interests can collapse.
Don’t fantasize about completely conquering human nature. The best you can do is to put it in a cage.
How to build the cage? With rules.
How long is your trading cycle? Under what conditions do you enter?
What are the criteria within the cycle? Which signals invalidate the conditions?
How much position size do you use each time you enter? Where do you set your stop-loss? How do you take profits in stages?
These are your trading system—what truly makes money in the market.
Traders who can survive in the market for over ten years understand: make money with rules, and if you lose, it should be with rule-based losses. Never make money using rules and lose money because of human nature—that’s what’s called the same source of profit and loss.