'Retail investors' often think they are playing a 'zero-sum game', so they almost transform into a different species the moment they enter the market. Upon close observation, this view is not mocking at all.


The short-sellers (sellers) and long-buyers (buyers) pass each other by, each secretly cursing the other: 'Fool...'

Why do they insult each other as 'fools'? Because they believe it is a zero-sum game. In simple terms:
In this game, someone has to lose; and since I am smart, you are definitely the one who will lose! In reality, politeness and upbringing are products of thought, and not merely a matter of whether or not to use foul language. As we mentioned before, the most accurate criterion for distinguishing speculators from investors is actually their way of thinking.


If a person makes a wrong judgment or has a flawed way of thinking, they can instantly become a crude person. Those who truly engage in zero-sum games compete on 'I am stronger than you'; winning makes them the winners, while losing means accepting defeat. But those who treat non-zero-sum games as zero-sum games often go astray from the very beginning, and their outcomes are usually:
Originally, there might have been a fifty percent chance of winning; but due to misunderstanding, the probability of losing greatly increases; they will misinterpret the reasons for their loss; the incorrect interpretations lead them to make further erroneous judgments; as a result, their probabilities of winning and losing continue to be distorted by themselves. Thus, retail investors ultimately become filled with resentment, and this resentment is something they have created for themselves.


So, what is the truth?


Buying and selling is never a one-sided act. Buyers have the demand to purchase, but without the cooperation of sellers, they cannot buy anything, no matter how high their offer is. Conversely, if sellers do not have the demand from buyers, they cannot sell, regardless of how high the price is.


At any point in time, if the thoughts, judgments, and needs of both parties in a transaction are completely aligned, no transaction will occur. Essentially, the occurrence of a transaction is precisely because the thoughts of both parties are not aligned. In other words, the core of a transaction is to find someone whose views differ from yours and whose conclusions are opposite, in order to complete the transaction; otherwise, you can only 'place an order' in the market, waiting for the other party to respond.
Therefore, once the transaction is completed, both parties should be grateful to each other. Why insult each other? Even if there is no need for gratitude, at least a word of respect can be exchanged.


In the end, many 'retail investors' are trapped in their own misconceptions, treating the market as a zero-sum game, but the market has never been a zero-sum game. The market is a process of cooperation and mutual benefit; however, many people, due to cognitive biases, live in the dark corners they have created for themselves. What a shame!


As a psychologist mentioned in a paper: there are no 'bad people' in this world, only good people, fools, and sick people. Often, incorrect ways of thinking can lead people into 'pathological' states—these illnesses are, in fact, 'foolishly' created. After reading that paper, I suddenly felt that the world became more sunny.

PS: The above content is from Teacher Li Xiaolai.