Trading is not a simple game of making money, but a practice concerning human nature.
First layer: the illusion of technology
Those who are new to the market almost always start with 'technical' analysis. They study candlesticks, moving averages, patterns, and indicators, striving to find that holy grail that will allow them to 'turn the tables overnight'. They believe that as long as they master enough technical analysis, they can see through the secrets of the market.
So, the screen was filled with various indicators: MACD, RSI, Bollinger Bands, moving average systems... They stayed up late watching charts, diligently took notes, and searched everywhere for the strategies of 'masters', but ultimately found: with the same chart, some go long, some go short; with the same market condition, some make money, some get liquidated.
Because at this level, technology is only superficial. The real market is not a logical game, but a clash of emotions. Every candlestick you see is a collection of countless emotions. When you try to predict emotions with rationality, you are destined to fall into traps time and again.
This layer is the entry into trading, and also the beginning of illusion.
Second layer: Cage of emotions.
Most people stop here. After experiencing losses and setbacks, they begin to realize: the problem is not in the technology, but in themselves.
So they turned to psychology: learning to control emotions, avoid greed and fear, and learn to stop losses and maintain discipline. They understood 'not to predict, but to react', learned to 'go with the trend', and began to find calm strength in losses.
But the cruel reality is—even at this level, 90% of people are still trapped here. They can understand the market, but can't make correct decisions; they know how to stop losses, yet hesitate when it’s time to exit; they know they shouldn't trade out of revenge, yet still double down after losses.
Because they understood the rationale, but couldn't transcend themselves.
They try to suppress emotions with rationality, but do not realize that true masters are not 'emotionless', but instead 'make emotions work for them'.
Second layer traders are like eagles trapped in a cage—wings are strong but they dare not truly fly.
Third layer: Awakening of cognition.
Very few can step into the third layer.
They finally understood that trading is not a contest of technology, nor a restraint of emotions, but an 'evolution of cognition'.
They began to understand:
The market has no right or wrong, only choices from different perspectives;
The market has no good or bad, only cycles of repetition;
Losses are not a punishment, but part of the cost of trading.
They let go of the impulse to 'make quick money' and instead pursue a stable thought structure.
They no longer care how much they earned today, but instead contemplate: Is my system validated? Does my behavior align with probability?
They begin to accept 'uncertainty', even embrace it.
Because they realized that trading is not about predicting the future, but about finding certain advantages amidst uncertainty.
At this step, they have transformed from 'traders' into 'executors of systems'.
They rely not on feelings, but on models;
Relying not on emotions, but on discipline.
They rely not on luck, but on the compounding of time.
This is the third layer—free traders.
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