I've been thinking about a long-standing problem in trading. We've all heard Warren Buffett's famous quote: "Be fearful when others are greedy, and greedy when others are fearful." It sounds simple, but in practice, almost no one can truly do it.

I've personally experienced countless moments of this dilemma. Sometimes, when a trade is profitable, I fear a market reversal and quickly take profits, only to see the market surge further, making me regret the small gains I took. At other times, with the same profit, I grit my teeth and refuse to take profits, hoping to let the gains run further, only to see the market reverse, giving back the profit or even incurring a loss. Then I start blaming myself, thinking I was too greedy.

Actually, this dilemma is everywhere in stocks, futures, and forex markets. Buying at a low point, seeing the price rise to a profitable level, then the market begins to correct, and you're stuck in a choice. Do you stay or exit? If you exit and the price continues to rise, you kick yourself for being too timid; if you don’t exit and the price drops further, you regret not taking profits earlier.

I’ve found that most unsuccessful traders share these common flaws. The first is taking profits and running, or cutting losses quickly—pure fear. The second, even worse, is adding to losing positions, holding onto the hope that the trend will reverse, often resulting in bigger losses. The third is blindly following the crowd—buying when prices rise, selling when they fall, with no plan. The fourth is over-leveraging or going all-in on a single trade. These approaches might occasionally make money, but mostly it’s luck, and in the end, they often end up with big losses.

What’s the key difference? The fundamental distinction between professional traders and retail traders is having a complete trading system. They have clear rules for entry, exit, and money management, and most importantly, they strictly follow them. Only then can they truly overcome the psychological traps of fear and greed.

I increasingly believe that human nature is very hard to change. Over thousands of years, human greed and fear have remained fundamentally the same. But individuals can evolve. Through practical experience, reflection, and continuous refinement of their trading systems, they can gradually overcome these human weaknesses. That’s how market winners are born—they evolve.

So my advice is simple. First, respect the market. Second, develop your own trading logic, especially following the principle of "cut losses short and let profits run." Third, strictly adhere to your rules and don’t let emotions control you. Fourth, continuously improve your understanding within a familiar and controllable scope.

When others panic, you need to stay calm; when others are greedy, you need to be alert. But the prerequisite is that you have a reliable system to support your judgment, not just relying on gut feeling.