# Why Trading is Against Human Nature and How to Overcome It

First, let's understand: the core manifestations of human nature in trading

Human nature is fundamentally driven by profit-seeking and harm-avoidance, pursuing comfort and avoiding risk. While these traits help us survive better in daily life, in the trading market, they become obstacles to profitability. Specifically manifested as:

1. Greed: Pursuing unlimited profits
When the stocks or futures we buy start to rise, human nature makes us hope they will continue rising forever so we can make more money. As a result, we choose to hold positions or even add to them rather than take profits in time. The result is often that after the price peaks and begins to fall, our original profits are wiped out or even turn into losses.

2. Fear: Afraid of losses and missing opportunities
When the stocks or futures we buy start to fall, human nature makes us feel fear and worry that losses will expand further. As a result, we choose to cut losses and sell, only to watch the price rebound after we've sold at the bottom. Additionally, when we see others' stocks rising, human nature makes us fear missing out, so we blindly follow the crowd and buy in, only to find we've bought at the peak.

3. Laziness: Pursuing simplicity and comfort
Human nature makes us pursue simplicity and comfort, unwilling to spend time and energy learning about trading knowledge, analyzing market conditions, or developing trading strategies. We prefer to believe in "insider information" and "expert recommendations," hoping to make easy money. The result is often that we're misled by false information and suffer heavy losses.

4. Herd mentality: Following the crowd's choices
Human nature makes us like to follow the crowd's choices, believing that "if everyone is doing it, it must be right." In the trading market, when most people are buying stocks, we follow them in buying; when most people are selling stocks, we follow them in selling. The result is often that we buy at market peaks and sell at market bottoms, suffering heavy losses.

Next: The conflict between trading's core logic and human nature

The core logic of trading is "buy low and sell high"—buying at low prices and selling at high prices to profit from the difference. However, human nature's profit-seeking, comfort-seeking, and risk-aversion traits make us make the wrong decision of "buying high and selling low," which contradicts trading's core logic. Specific conflicts manifest as:

1. Trading requires "contrarian thinking," while human nature prefers "herd mentality"
In trading markets, when most people are buying stocks, it often means the market is near its peak, and we should sell; when most people are selling stocks, it often means the market is near its bottom, and we should buy. However, human nature's herd mentality makes us follow the crowd and make opposite decisions.

2. Trading requires "delayed gratification," while human nature prefers "immediate gratification"
In trading markets, we need to wait for the right buying and selling opportunities without blindly trading. However, human nature's immediate gratification psychology makes us want to see results immediately, so we trade frequently. The result is often that our trading costs increase significantly and profits are consumed by commissions.

3. Trading requires "accepting losses," while human nature abhors "risk and losses"
In trading markets, losses are inevitable. We need to accept losses and establish stop-loss strategies to control risk. However, human nature's aversion to risk and losses makes us unwilling to accept losses, so we choose not to stop out. The result is often that losses continue to expand until we lose everything.

4. Trading requires "discipline," while human nature prefers "freedom and spontaneity"
In trading markets, we need to follow trading discipline and strictly execute trading strategies without being swayed by emotions. However, human nature's desire for freedom and spontaneity makes us unwilling to be constrained, so we randomly change trading strategies. The result is often chaotic trading decisions and heavy losses.

Finally: How to overcome human weaknesses in trading

Although trading is against human nature, we can overcome human weaknesses and improve trading success rates through various methods:

1. Develop a trading plan
Before trading, we need to develop a detailed trading plan, including entry timing, exit timing, stop-loss levels, and profit-taking levels. A trading plan can help us avoid being swayed by emotions and make rational decisions.

2. Strictly enforce trading discipline
We need to strictly enforce trading discipline and cannot randomly change our trading plan. Even if the market exhibits unexpected situations, we need to execute according to our plan unless we have sufficient reason to modify it.

3. Control position sizing
We need to control our position sizes and avoid using full leverage. Reasonable position control helps us manage risk and avoid significant losses.

4. Maintain calm and rationality
During trading, we need to maintain calm and rationality without being swayed by emotions. When we feel greed, fear, or anger, we should stop trading, adjust our mindset, and resume trading only after our emotions stabilize.

5. Continuously learn and reflect
Trading is a process of continuous learning and reflection. We need to constantly learn trading knowledge, analyze market conditions, and summarize trading experiences. Through continuous learning and reflection, we can improve our trading skills and overcome human weaknesses.