Why is making a deal against humanity?

Answer 1

There were several reasons why making a deal was inhumane.

First of all, from the perspective of psychology and behavior, human nature likes comfort and laziness. The brain tends to save resources and try not to think. Trading requires constant analysis and decision-making, which is an activity that goes against the natural laziness of human nature. At the same time, human nature had a herd mentality and liked to blindly follow the masses. However, in transactions, the thinking of the masses often led to losses. Successful transactions often required independent thinking and operations against the behavior of the masses.

Secondly, in terms of the attitude towards risks and benefits, human nature was afraid of losing, but also greedy. In trading, the psychology of loathing losses made many traders unwilling to stop losses in the face of losses. Even if they had reached the stop loss level, they might hesitate and hope to recover their losses instead of rationally operating according to the trading plan. At the same time, greed would cause the trader to hold too much when he made a profit, expecting more profits and not being able to stop the profit in time. Moreover, people hated uncertainty and liked the sense of security brought by certainty. In trading, many traders liked to take the initiative to stop profits and put their pockets in peace. Trading itself was uncertain, and they needed to embrace this uncertainty to grasp the big trend. This was contrary to human preferences.

Moreover, from the perspective of outcome preference, human nature was more willing to believe in the outcome rather than the process in the transaction. They believed that profitable transactions were correct and losing transactions were wrong. They did not care about the logic behind the transaction at all. But in fact, successful traders paid more attention to trading logic. If the logic was correct, even if a single transaction lost money, it was reasonable. If the logic was not correct, the profit order was also wrong. For example, the perception of a preference for the outcome of a fight to the death could cause a person to be defeated by a wave of market conditions that could not be recovered one day.

Finally, in terms of the execution of the trade, it was difficult for human nature to strictly follow the rules and trading signals. It was easy to suffer in the process of holding a loss, not daring to stop the loss, or constantly looking for a point in the chart that complied with oneself, ignoring the exit signal. A successful trade needed to execute the plan like a machine, strictly executing the stop loss and take profit operations.
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