Many people ask me, in the markets of cryptocurrencies, stocks, and futures, if they want to earn stable, genuine, long-term profits, where do they usually get stuck? My answer is usually two words: human nature.
On the surface, these markets require professional knowledge. In reality? The threshold is not that high. Technical indicators, candlestick patterns, risk management—these are essentially a combination of common sense and routines. Even those without much talent can systematically master these by spending about a year. So, the real challenge isn’t a technical problem.
What is the true enemy? It’s yourself. There’s a chasm between knowing and doing. Most people lose money not because they don’t understand, but because they can’t execute. Emotions, greed, fear—these can turn your trading plan into chaos at critical moments.
It is precisely for this reason that quantitative trading exists. Replacing human decision-making with computers, leveraging programs that have no emotions or greed, and executing rules mechanically—that’s the most fundamental and purest value of quant trading.
But this also raises a new issue—the quality of the quantitative tools themselves. If you just stack a few statistical indicators, tweak some parameters, and write a formula, you’re fooling yourself. Truly usable quant tools require scientific design and professional validation.
Moreover, tools are just tools. You might have a top-tier CNC machine, but if you don’t know how to operate it, it’s useless. Similarly, many people own quantitative trading tools, but few truly understand how to use them well. This requires a deep understanding of the market and practical experience. The threshold for quant trading is actually on the application side.
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MetaEggplant
· 10h ago
That's right, it's the hurdle of human nature. I have deep personal experience with that.
This is the core—technology is not really hard to learn; the difficulty lies in execution.
Speaking of which, quantification is not a silver bullet; you also need to know how to use it properly.
It seems most people are just messing around with tools; once they change parameters, they start gambling.
Human nature is truly the biggest enemy in trading, there's no way around it.
You've heard this theory many times, but few actually execute it.
Having tools alone is useless; what's crucial is market sense.
That’s a bit of a punch to the gut—I guess I’m the type who knows I can’t do it.
Quantitative trading sounds advanced, but in reality, it also requires constant adjustment; it can't be static.
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MoneyBurnerSociety
· 10h ago
Human nature really hits the sore spot, but my human nature is to consistently lose money haha
They say quant trading has no emotions, but I still find ways to lose money using quant tools—that's real skill
There's more than just a gap between knowing and doing; my understanding is it's separated by a liquidation price
Changing parameters and thinking you're quantifying it—so true. My professional experience of over ten years of pitfalls is trustworthy
Many people use tools, but not many use them as badly as I do. I still have confidence in this
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RugPullSurvivor
· 10h ago
That's right, I just got caught up in emotions. I clearly have a plan but just can't execute it.
Quantitative trading sounds appealing, but I've seen too many big scams that package their formulas as divine strategies to make money.
No matter how good the tools are, without brains it's all useless. The key is to understand the market.
That's why most people end up losing money in the end. Being smart or not isn't the issue; it all depends on who can endure.
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LiquidatorFlash
· 10h ago
Human nature is indeed a real issue, but quantitative tools also need to be aware of liquidation risks. When parameters fail, it can instantly drop to zero—it's not that simple.
Many people ask me, in the markets of cryptocurrencies, stocks, and futures, if they want to earn stable, genuine, long-term profits, where do they usually get stuck? My answer is usually two words: human nature.
On the surface, these markets require professional knowledge. In reality? The threshold is not that high. Technical indicators, candlestick patterns, risk management—these are essentially a combination of common sense and routines. Even those without much talent can systematically master these by spending about a year. So, the real challenge isn’t a technical problem.
What is the true enemy? It’s yourself. There’s a chasm between knowing and doing. Most people lose money not because they don’t understand, but because they can’t execute. Emotions, greed, fear—these can turn your trading plan into chaos at critical moments.
It is precisely for this reason that quantitative trading exists. Replacing human decision-making with computers, leveraging programs that have no emotions or greed, and executing rules mechanically—that’s the most fundamental and purest value of quant trading.
But this also raises a new issue—the quality of the quantitative tools themselves. If you just stack a few statistical indicators, tweak some parameters, and write a formula, you’re fooling yourself. Truly usable quant tools require scientific design and professional validation.
Moreover, tools are just tools. You might have a top-tier CNC machine, but if you don’t know how to operate it, it’s useless. Similarly, many people own quantitative trading tools, but few truly understand how to use them well. This requires a deep understanding of the market and practical experience. The threshold for quant trading is actually on the application side.