When it comes to investment trading, I think most people have heard Warren Buffett's famous words: "Be fearful when others are greedy, and greedy when others are fearful." It sounds simple, but how many people can truly do it when operating in the market?

I have seen too many traders fall into the same dilemma. They make a little profit the day before and rush to take profits, fearing a pullback, only to see the market skyrocket and miss out on a big gain; the next day, they no longer want to take profits, hoping to let the gains run further, only for the market to reverse and wipe out all their profits. Then they start blaming human greed for their losses. Actually, everyone has experienced this kind of inner struggle; the problem is that most people never think clearly about when to exit and when to hold.

I’ve observed some unsuccessful traders, and they generally exhibit four typical behaviors. First is panic selling at the first sign of trouble, driven by fear—afraid of giving back profits and afraid of admitting losses, so they run at the slightest disturbance. Others do the opposite—they suffer a loss but add to their position against the trend, holding onto a lucky hope that the trend will reverse, only to end up losing even more. The other two behaviors are driven by greed: blindly chasing after rising prices and selling on dips, or heavily loading positions. These might seem to win a few times, but that’s mostly luck; eventually, the market teaches them a lesson.

Why does this happen? Simply put, it’s because they lack a trading system—relying solely on feelings and emotions. If you have a clear trading logic, with explicit rules for entering and exiting, and a plan for money management that you strictly follow without shortcuts, you can gradually overcome these human weaknesses. When others are fearful, your system helps you stay rational; when others are greedy and chasing the market, you can calmly act according to your rules.

Interestingly, human society has evolved—from agricultural civilization to the industrial revolution, and now to the information age—but human nature itself has not changed in thousands of years. However, individuals differ: professional traders, through practical experience and reflection, eventually conquer their fears and greed, evolving themselves. Most retail investors and beginners, however, remain stuck here forever.

My advice is: since human nature is hard to change, use tools and rules to constrain yourself. Respect the market, analyze rationally, and continuously refine your trading understanding within familiar and controllable boundaries. Only then can you truly transform from a market participant into a winner.