Want to solve the “greed pain point”?

Why do we always say we’re sure we can see clearly but get it wrong? Why do we always say “don’t fear” and “don’t be greedy”? Why do we always talk about “unity of knowledge and action”? Between seeing → doing, there’s a gap of ten thousand miles.

The principle is understood by 99% of people; anyone who can read would be able to say it too. So where is the problem?

Mi Shen’s original work, not AI—only represents personal opinions.

One sentence about “greed”
Mi Shen believes: Greed is when you have something you want, but you don’t know how to get it—so you keep thinking about it all the time. That’s greed.

Let me give an example. When you reach your take-profit position, you move it a bit higher, but the take-profit doesn’t trigger—then later the profit sees a big pullback. So what’s the reason? When you reach your stop-loss position, you still want to hold on a bit longer, hoping you can ride it back—only to end up losing more and more.

Because you only see the chart helping you make money, and you think about earning even more money—but you don’t know how to get more money. Have you researched where the pressure levels are? Have you made a floating stop-loss plan? Have you used indicators to track the completeness of the trend? Most likely, you haven’t. Faced with the index jumping up and down, watching the numbers of floating profit keep increasing—your brain’s dopamine mechanism gets activated, suppressing the normal judgment of the prefrontal cortex. In neuroscience terms, it’s a coordinated series of effects from the impulsive system (nucleus accumbens seeking pleasure, amygdala threat sensitivity, and habitual behavior in the striatum). In the end, it will all lead you to make decisions you’ll regret later.

How to solve the problem?
Here, all I can say is a “fool’s method” (general). Advanced methods vary from person to person—you have to figure it out yourself; you can’t learn it and you can’t copy it. The fool’s method treats the symptoms first; the advanced method treats the root cause. Want to jump to the top in one step? Sorry, no way.

Before entering a trade, write down your logic for take-profit and stop-loss, and make it clear. Why take profit here? Is it because of your target position earlier? Is it because there might be movement right when the U.S. stock market opens? Is it because you have dinner with your girlfriend and don’t have time to watch the chart? As long as it’s a logic you’ve confirmed, you can write it down.

When closing positions, moving levels, or rolling over your position, please seriously review the logic you wrote down three times. If you want to overturn it, write the reasons for overturning it afterward, then decide whether to do it.

OK, that’s it—the fool’s method is done. It’s that simple.

Don’t keep doing everything wrong every day, then doing a fake post-trade review, and pretending you’re so hardworking, and then complaining about why you can’t get results despite trying so hard—because you’ve been stuck in your own comfort zone, standing still.

Once you can do this, you’ve already shaken off 90% of retail traders.
Follow Mi Shen and share original strategies + investment insights every day.