Do you think trading is just buying and selling? That's exactly the starting point of losses



Clicking "Buy" and "Sell" does not mean you can trade.
This is perhaps the most common and also the most dangerous misconception in financial markets.

Just as knowing how to hold a pen does not make you a writer, and pressing a shutter does not make you a photographer; in trading, placing an order is one thing, but being able to consistently and stably profit is another, separated by a gap that requires knowledge, systems, discipline, and mental strength to cross.

1. Placing an order is an action; trading is a decision

Pressing the buy or sell button is just a mechanical action in a moment. The core of trading, however, is a whole chain of decisions supporting this action:

· Why buy here? — Based on trend judgment or reversal expectations?
· How much to buy? — Position size determines life or death; this is the essence of money management.
· When to exit? — How to protect profits when winning, how to cut losses decisively when losing.
· How to handle unexpected events? — What is your contingency plan when the market suddenly changes?

If you only see the "buy and sell" and overlook the necessary decision-making system behind it, it’s like only seeing the tip of the iceberg but unaware of the huge risks beneath the water.

2. The complex game behind simple appearances

Simplifying trading to "guessing rise or fall" is a deadly misconception. True trading operates in three-dimensional or even multi-dimensional space:

1. Direction, timing, and position
Seeing the right direction but missing the timing can lead to significant drawdowns or missed opportunities; even if the timing and direction are correct, an overly large position can cause severe account damage with a single mistake.
2. Who are you competing against?
· Institutions with high-frequency systems and information advantages
· Disciplined, experienced professional traders
· Countless retail traders on the market
· The most formidable opponent: yourself (greed, fear, hope, arrogance)

3. Random rewards and probability games

Trading with feelings and occasionally making profits is like flipping a coin and getting heads repeatedly; this kind of random "reward" is precisely the most dangerous trap — it makes you believe success comes from your "intuition," not luck.

Long-term profitability depends not on single wins or losses, but on a system with a mathematical advantage:

· Accept the uncertainty of individual results
· Rely on the system’s risk-reward ratio and win rate to ensure a positive long-term expectation
· Strictly implement money management to avoid bankruptcy risks

4. The missing three pillars

Most losses are due to the absence of these pillars:

1. Knowledge system
Understanding the logic of market operation, price drivers, and tools for technical and fundamental analysis — the foundation for making non-random decisions.
2. Trading system
A clear, repeatable set of rules covering entry, exit, position sizing, stop-loss, and take-profit, enabling orderly action in chaotic markets.
3. Psychology and discipline
Markets amplify human weaknesses. Without discipline, no system can be effectively executed. You will keep repeating mistakes like "hoping at stop-loss points" or "exiting too early when holding."

5. A more realistic metaphor

· Knowing how to place orders = knowing how to pull the trigger
· Doing trading = becoming a special forces soldier, which requires:
· Intelligence analysis (market analysis)
· Combat planning (trading plan)
· Risk contingency plans (fund management and stop-loss)
· Skillful equipment use (tool proficiency)
· Calm execution under pressure (emotional discipline)
· Post-trade review (trading journal)

Conclusion: From "simple operation" to "professional cultivation"

Trading on the surface is the simplest buy and sell action, but in essence, it is a professional practice that integrates probability thinking, risk control, psychological management, and continuous learning.

Thinking that trading is "just buying and selling" is as naive and dangerous as believing that driving is just turning the steering wheel or that surgery is just making a cut. This misconception will keep most people stuck in the "beginner’s luck" stage, which then fuels their continued losses in the market.

The true entry point is to let go of the illusion of "simplicity."
This path is not easy, but it leads not only to financial possibilities but also to a profound understanding of market logic and self-awareness.

---

Remember: Before you click buy, the real trading has already begun.
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LuoBaoErvip
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· 01-05 05:13
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