I recall Warren Buffett's words: "Be fearful when others are greedy, and be greedy when others are fearful." It sounds simple, but in reality, very few people can truly do it.

In trading, the most common deadlock we encounter is this dilemma. You have a position and make some profit, but your heart starts pounding, fearing a pullback, so you hurriedly lock in the gains. As a result, the market turns and moves away, and watching the price rise makes you feel terrible. On another occasion, you might stubbornly hold on without taking profit, hoping the gains will run further, only for the market to suddenly reverse, and your hard-earned profits evaporate instantly. At this point, we start to regret, blaming our greed or human weakness.

Actually, the root of the problem isn't greed or fear itself, but that we tend to be armchair strategists after the fact. In stocks, futures, forex, the most common dilemma for retail traders is whether to exit or hold, and no one can give a definitive answer. If you exit and the price continues to rise, you regret being too timid; if you stay and incur losses, you blame yourself for greed. Even if you try again, most people find it very difficult to accurately judge when to be fearful and when to be greedy.

I've observed that unsuccessful traders typically exhibit four typical behaviors. First is taking profits quickly and cutting losses immediately—driven by fear. Second is adding to positions against the trend, also driven by fear, afraid to admit losses and hoping for a lucky rebound. The third and fourth are greed-driven: blindly chasing rallies and selling on dips, or over-leveraging and going all-in. These approaches might occasionally bring some gains, but that's often just luck, and the final outcome usually results in significant losses.

What makes successful traders different? They have a complete trading system. Entry, exit, and capital management all follow clear rules, strictly adhering to the logic of "cut losses short and let profits run." The phrase "others are fearful, I am greedy; others are greedy, I am fearful" is not just a slogan for them but has been internalized into their discipline and system.

Ultimately, human nature hasn't changed in thousands of years, but individuals can evolve. Professional traders succeed by practicing and reflecting, overcoming their fears and greed, and ultimately becoming market winners. Most people, however, remain trapped by human weaknesses, repeatedly stumbling in the market.

My advice is to always respect the market, trade within familiar and controllable boundaries, and use rules to discipline your mindset. Only then can you stay rational when others are fearful and remain vigilant when others are greedy. Not relying on feelings, but on a system.