Many people believe that retail investors can't make money because they don't understand the market. Actually, that's not the case.
The real killers are not here, but in four deadly psychological traps: greedily chasing high during rallies, getting scared and cutting positions during dips, trying to go all-in after a few losses to recover, and suddenly changing rules when the market moves against you. Sounds familiar, right? This is not a personality issue; it's human instinct in high-volatility environments—essentially unavoidable.
But how do automated trading systems work? It's very simple, just three points:
First, execute predetermined conditions—act when it's time to act, observe when it's time to observe, with no hesitation.
Second, risk control is fixed—stop loss when the limit is reached, never try to "prove yourself."
Third, rules are executed uniformly and never changed.
What is the effect of combining these three points? No greed, no fear, no rush, and no sudden desire to gamble everything. It may sound less clever, but in fact, it's more stable—and stability is everything in trading.
The future differentiation in trading is no longer about who has stronger analysis skills, but about who can minimize emotional interference. This is where the game rules are changing.
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TradingNightmare
· 19h ago
That's right, I was killed by my own mindset. Chasing highs, cutting positions, going all-in, changing rules—one combo after another, and it's all gone.
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Automated trading sounds easy, but how many actually follow through? I've tried, but I still can't resist manually adjusting parameters.
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Those who consistently make money are always emotionless machines. As for us sentimental traders, we're doomed.
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They promised not to change the rules, but as soon as they lose money, they start making excuses. That's the fate of retail investors.
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Emotions are the killers, not analysis. It's about time to recognize this clearly.
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I think automated trading systems are just cages for human greed, but the problem is, I can't even fit myself into one.
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Those three points seem simple, but once the market reverses, you forget everything. Every time, you think this time will be different.
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Read but don't reply. I understand these principles, but I just can't do it. Maybe it's really a personality issue.
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PumpBeforeRug
· 19h ago
Well said, robots won't cut positions while looking at the K-line at 3 o'clock.
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LadderToolGuy
· 19h ago
That's right, the hardest thing to control is mindset; even bots are smarter than humans.
The moment I go all-in, my brain just shorts out, and I can't stop it.
Automated trading sounds simple, but the key is that very few people can stick with it.
It feels like betting on how long your discipline can last.
Emotions are indeed the biggest enemy in trading, I agree.
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GasFeeBarbecue
· 19h ago
You're right, execution is the hardest part. I personally got stuck on the second point—being reluctant to stop losses when in a loss, always hoping for a rebound, but the rebound never came.
Many people believe that retail investors can't make money because they don't understand the market. Actually, that's not the case.
The real killers are not here, but in four deadly psychological traps: greedily chasing high during rallies, getting scared and cutting positions during dips, trying to go all-in after a few losses to recover, and suddenly changing rules when the market moves against you. Sounds familiar, right? This is not a personality issue; it's human instinct in high-volatility environments—essentially unavoidable.
But how do automated trading systems work? It's very simple, just three points:
First, execute predetermined conditions—act when it's time to act, observe when it's time to observe, with no hesitation.
Second, risk control is fixed—stop loss when the limit is reached, never try to "prove yourself."
Third, rules are executed uniformly and never changed.
What is the effect of combining these three points? No greed, no fear, no rush, and no sudden desire to gamble everything. It may sound less clever, but in fact, it's more stable—and stability is everything in trading.
The future differentiation in trading is no longer about who has stronger analysis skills, but about who can minimize emotional interference. This is where the game rules are changing.