Why is it said that trading is anti-human?

Molecule focuses on foreign exchange derivatives trading

The most difficult thing in trading is human nature!

The market is uncontrollable, but the strategy is controllable, the risk is controllable, but people are uncontrollable.

Why is it said that trading is anti-human?

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Cut losses and let profits run! Many people say this passage, and many people understand it, but how many people can "cut losses and let profits run!" in the true sense? Why are there so few people who can really do it? There is no other reason, the transaction is anti-human.

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"Truncate the loss", the order has caused a loss after entering the market, does it mean that there is a mistake in the direction of the order in the short term? The floating loss of the order in the account is not the real loss of money, but the floating loss. The stop loss is the real loss after the position is closed. The stop loss is anti-human. In terms of trading psychology, the stop loss is more important than the floating loss. The pain is greater.

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The same profit of $100 and loss of $100 will bring investors a completely different psychological gap. A loss of one hundred dollars has a much greater impact on psychology than a profit of one hundred dollars has on mentality.

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"Let the profit run", after the order enters the account, the floating profit means that the order is done correctly, let the profit run, and the order should be held if the order is done correctly. But for traders, after the account list is profitable, they can't help but want to settle down. You can recall whether you have encountered the above situation in the process of trading. Letting profits run is also anti-human in terms of trading psychology.

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The most difficult part of trading is not the trading strategy, which can be customized. However, transactions are executed by people, which will inevitably be affected by mentality. Even systematic transactions will be less efficient in execution. This is one of the reasons why EA quantitative trading is so popular. EA trading can avoid the influence of trading psychology to a certain extent.

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If the transaction can make you uncomfortable, it is right, the transaction is anti-human. Take it if you do it right, and stop the loss if you do it wrong. Although it will make you uncomfortable in the short term, in the long run, I believe you will gain a lot.

Molecule focuses on foreign exchange derivatives trading, public account: Molecular Trading​