The Anti-Human Nature Game — Financial Trading

In real life, almost all traders inevitably take detours and develop bad trading habits. It seems predestined—just as babies stumble while learning to walk, every trader must go through struggles to become mature and rational.

Trading is a game that goes against human nature. As long as you’re human, you’re prone to universal flaws: fear and greed. And where these exist, mistakes in trading are inevitable.

1. Overtrading
The market rises and falls every second, making it easy to feel like opportunities are everywhere—whether prices go up or down. If you look hard enough, the screen is full of "chances," fueling the urge to profit constantly. Thus, overtrading emerges.

Most people fear missing out (FOMO) and are driven by an innate impulse to chase profits. In the face of疯狂 profits, risks are forgotten. This leads to excessive trading—for example, after a long position hits a stop-loss, the mind still craves "one more try." If the price then rallies, the itch to jump back in grows unbearable…

2. Refusing to Cut Losses
A wise saying goes: "Profits can take care of themselves, but losses must be managed." Take the 2008 financial crisis—those who refused to cut losses learned the hard way. Many stocks still haven’t recovered their pre-crisis prices, and some currencies took years to rebound. Life is short; how long are you willing to wait for a loss to break even? Without止损, losses can spiral infinitely.

3. No Trading Rules
Many fall into this trap: wanting profits but neglecting to learn or think independently. They win by luck and lose by luck. A society without laws descends into chaos; trading without rules does the same. Even if you swear, "Next time I’ll chop my hands off," without a system, you’ll repeat the same mistakes. Those who trade blindly or follow hearsay often act timidly, fleeing at the first sign of trouble.

4. Trading Against the Trend
This means taking positions opposite to the market’s momentum—e.g., buying more as prices drop. In favorable conditions, you might escape unscathed. But if the trend worsens,逆势交易 becomes a nightmare, triggering a chain of bad habits: no stop-loss, relentless averaging down, and overleveraging. Or attempting to "catch the bottom" during a crash, only to face连续跌停—like "locking the door and beating the dog."

In short, many traders unknowingly "contract" bad habits. Once entrenched, these habits are hard to break and may sabotage an entire trading career, eventually forcing abandonment. Never underestimate their hidden toxicity!