How to Practice the Principle of "Anti-Human Nature" in Trading? A Must-Have Guide for Retail Investors!
As we all know, trading activities often require investors to act against human nature. So, what aspects does "anti-human nature" refer to? How can we practice it? Based on personal trading experience, I would like to share a few insights.
Most investors tend to make trading decisions based on their feelings and emotions. Take profit-taking as an example; faced with realized profits, people often worry about profit retracement, and thus most choose to take profits promptly. This behavior is essentially a response to the inner fear of retail investors. Looking at stop-loss, the painful feeling akin to cutting flesh makes it difficult for many retail investors to bear, so they choose to avoid stop-loss, which also caters to their inner fear. As for capital management, it is a task that is both cumbersome and complex, requiring constant adjustment of positions based on market changes, which demands high execution ability and lasting patience. However, the most basic characteristic of human nature is to seek benefits and avoid harm. With the fast pace of modern life, even patience for watching a movie has become scarce, let alone the patience needed for position management.
The complexity and pain of trading stand in stark contrast to the tendency in human nature to dislike complexity and pain. True "anti-human nature" lies in the ability to effectively manage one's emotions and feelings, and to maintain a calm mindset when facing each trade. To achieve this, the key is to establish a stable trading system that belongs to oneself. This system should guide our trading behavior, ensuring that each transaction is based on clear logic and rules, rather than blindly following the crowd or acting on emotional impulses.
Therefore, as retail investors, we need to continuously cultivate ourselves in trading, learn to act against human nature, and use rationality and rules to navigate the market's waves. $BTC $ETH #币安矿池FB联合挖矿 #DeSci热度上涨 #英伟达财报即将公布 #AVAX、ROSE、ADA大额解锁