How to be anti-human in trading? A must-read for retail investors!

Everyone knows that trading is anti-human, so what kind of human nature is it against? How should it be opposed? Lao Yu will talk to you through his own trading experience.

The vast majority of investors execute transactions based on their own feelings and emotions. For example, when it comes to taking profits and leaving the market, because there is profit, they are afraid of profit taking back, so most people choose to take profits. Taking profits is to eliminate the fear of this emotion of retail investors. For example, stop loss, the feeling of cutting meat is more painful than any pain in the world, so in order to avoid this pain, many retail investors choose not to stop losses, which is also the result of following emotions. For example, in the matter of fund management, position management is an extremely tedious and complicated project. To constantly adjust positions with the market, this requires great execution and patience. The most basic human nature is to seek profit and avoid harm. Nowadays, people don’t even have the patience to watch a movie, so who has the patience to do position management?

Because trading is complicated and painful, and human nature itself hates complexity and pain. The real anti-human part is whether you can manage your emotions and feelings, and whether you can face every transaction calmly. The way is to have your own stable trading system and use a standardized system to understand our trading behavior. Every transaction we make should not be blind.