Insights On Trading Psychology Highlight Self-Reflection Challenges

According to Odaily, a recent post by Shen Yu on the X platform delves into the psychological aspects of trading, emphasizing the introspective nature of investment decisions. Shen Yu suggests that each transaction driven by the 'buy more as prices rise' mentality is less about market dynamics and more about personal value assessment. He argues that increasing one's investment is not necessarily based on new market insights but rather on the need for greater profits to sustain a grander self-image. Shen Yu describes the market as a mirror, reflecting not just financial gains but the image of an 'invincible' self that traders become enamored with. This perspective highlights why advice on trading discipline and systems, although accurate, often fails to alter behavior significantly. The core issue, he notes, is existential rather than technical, suggesting that technical solutions cannot address existential problems. The irony, Shen Yu points out, is that while traders believe they are exchanging money for wealth, they are, in reality, trading wealth for an illusory self-identity. From the outset, this approach to trading positions individuals as inevitable losers.