The two biggest tragedies that traders find most heartbreaking—90% of retail investors fall into these traps

Having been in the crypto space for so long, I've seen too many come and go. The most lamentable thing is never losing money, but the vicious cycle caused by cognitive dissonance. Clearly stepping into a trap, yet still believing oneself to be the chosen one.

Let's talk about the first major tragedy for retail investors: mistaking luck for their own skill. Everyone has had one or two times:

Accidentally hitting the jackpot, blindly holding a heavy position, and the account suddenly turning red-hot—no one would think it's luck. Looking in the mirror, feeling like a trading genius, starting to admire luxury cars, calculating profits, and even considering quitting your job to trade full-time. But you have no idea why you’re winning; the money made by luck is never sustainable.

When the market trend shifts, that “cat hitting a dead mouse” strategy completely fails. Not only will you not stop, but you’ll be carried away by a false sense of strength, wildly adding positions and holding on stubbornly. In the end, not only do you give back your profits, but you also lose your principal—completely wiped out.

Even more ironic is the second major tragedy: mistaking skill for luck.

Professional traders say, “I lost this trade but the logic was sound; it was just a matter of probability triggering the stop-loss.” Retail investors will just sneer: “Losing means you lack ability; don’t make excuses!”

They never understand that true trading strength is never about winning every single trade, but about having a system with a positive expected value that can generate long-term profits. The kind of execution based on probability and calm discipline—what experts call “execution power”—to them is just “bad luck.”

Meanwhile, their gambler-like occasional bursts of wealth are mistaken for “natural trading talent.”

This cognitive gap is like hamsters running desperately on a wheel— the faster they run, the deeper they sink.

You think you're moving forward, but in reality, you're just exhausting yourself in place. Luck is merely a bait the market uses to trap you; the rules are only revealed to those who see through them.

After trading for a long time, you realize that money earned through luck will eventually be lost through skill.

They never understand that true trading strength is not about winning every trade but about having a system with a positive expected value for long-term profitability. The kind of calm, probabilistic execution that experts possess—what they see as “bad luck”—

And their gambler-style occasional riches are mistaken for “innate trading talent.”
This cognitive gap is like hamsters running desperately on a wheel— the faster they run, the deeper they sink.

You think you're moving forward, but in reality, you're just exhausting yourself in place. Luck is merely a bait the market uses to trap you; the rules are only revealed to those who see through them.

After trading for a long time, you realize that money earned through luck will eventually be lost through skill.