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Unity of Knowledge and Action: Bridging the Greatest Distance in Trading
In the trading market, there's never a shortage of people who 'understand the principles.' Just grab any trader, and he can explain a set of coherent theories to you: trade lightly, follow the trend, set stop-losses, let profits run. Some even possess analytical skills comparable to professional analysts. Yet, when you open their account, what you see is full position trading against the trend, deep losses without exit, and frequent trading. This is the harshest divide in trading—easy to know, hard to do.
Why do we keep jumping into pits we know are dangerous? Because 'knowing' is rational thought from the cerebral cortex, while 'acting' is often driven by the instinctive emotions of the limbic system. When the market fluctuates violently and red and green numbers jump wildly, the greed (fear of missing out) and fear (fear of loss) deeply embedded in human genes instantly break through the defenses of reason. At that moment, you're not a rational investor, but a gambler controlled by dopamine and adrenaline. #Amber宋宋 #交易心理