We've all heard Buffett's words: "Be fearful when others are greedy, be greedy when others are fearful."

It sounds simple, but very few people truly practice it.

The most painful thing is that many traders can't distinguish when they should be greedy and when they should be fearful.
Sometimes, they see profits on their trades and rush to take profits, fearing the gains will be lost, only to find later that the market has moved far away, leaving them full of regret.
Another time, they stubbornly refuse to close their position, hoping to let the profits run further, only for the market to reverse, wiping out all gains, and then they start blaming themselves for being too greedy.
This repetitive struggle ultimately boils down to poor emotional control.

I’ve found that most unsuccessful traders have four typical flaws.
The first is taking profits too early and cutting losses too soon—any small change triggers them to flee, driven by fear.
The second is adding to losing positions against the trend, refusing to admit defeat even when in the red, stubbornly holding on, hoping for a reversal, which often results in bigger losses.
Both of these stem from fear.
The other two are driven by greed—chasing after rising prices and selling during dips, with no plan, blindly increasing positions.
They might occasionally win on these trades, but mostly due to luck, and the final outcome is usually significant losses.

The real problem is that most retail investors and beginners are armchair strategists after the fact.
Even if they get another chance, they find it hard to accurately judge when to follow greed when others are fearful, and when to cut their losses.
Why? Because market participants are often tense and unable to think rationally.
In trading, it’s either excessive greed or overwhelming fear, and in the end, they waste their investments and play for nothing.

So, what’s the solution?
The key is to have a complete trading system.
This system must align with the logic of cutting losses and letting profits run, with clear rules for entry, exit, and capital management, and strict adherence to these rules.
Only then can one truly overcome greed and fear.

Interestingly, human society has evolved—from agriculture to industry to information technology—material wealth has increased, and technology keeps advancing,
but one thing that hasn’t changed for thousands of years is human nature.
However, individuals can evolve.
Professional traders become winners through continuous practice and reflection, overcoming inner fears and greed, ultimately winning in the market.
Most people, however, can never conquer their weaknesses.

Therefore, what we can do is respect the market, view it rationally, and systematically work to overcome human weaknesses.
Within familiar and controllable boundaries, continuously improve trading understanding.
Sometimes, thinking in reverse can be helpful—analyzing the overall greed index of the market to gauge the general sentiment, thereby reducing personal risk.
Ultimately, trading is a contest with one’s own humanity—win, and you are a winner; lose, and you are just cannon fodder.