[Red Envelope] Brother Hundredfold reads Chapter 13 of the "Tao Te Ching": How to control greed and fear? Don't let emotions ruin your investments!

Some people have been messing around in the market for years, looking at countless indicators, learning a bunch of techniques, listening to a pile of news, but in the end, still can’t make big money, and even lose more and more.

The problem with these investors is often not the market or the method, but their emotions, their human weaknesses. Once greed and fear take control, no matter how clever the strategy is, their mindset can be completely destroyed.

Today, we’re going to talk about the most deadly weakness in these investors’ hearts, as Laozi clearly states: “Pet and insult as if startled; valuing greatness as if it were a danger to oneself.”

This article is about teaching these investors how to break free from emotional traps, remain calm during ups and downs, and keep their profits and losses steady.

Chapter 13 Original Text

Pet and insult as if startled; valuing greatness as if it were a danger to oneself.
What does it mean to pet and insult as if startled?
Pet is the lowest, gaining it feels like a surprise, losing it feels like a shock,
This is called pet and insult as if startled.
What does it mean to value greatness as if it were a danger to oneself?
The reason I have great worries is because I have a body,
And when I have no body, what worries do I have?
Therefore, valuing the body as if it could be entrusted to the world;
Loving the body as if it could be entrusted to the world.

In the previous chapter, we thoroughly examined various desires—distractions from colors, sounds, tastes, wild pursuits, and rare goods. Most fundamental losses stem from out-of-control desires.

If the previous chapter was about avoiding greed externally and preventing external disturbances, then this chapter, Laozi again turns inward, focusing on mindset.

For those who have already understood the Dao, the Dao itself is not complicated, but it’s hard to explain outwardly. That’s why Laozi says: “The Dao that can be told is not the eternal Dao.” The 81 chapters of the Dao De Jing are essentially Laozi repeatedly explaining what Dao and virtue are from different angles.

People are different—cognition varies, learning abilities differ, personalities vary, and human nature is strong or weak to different degrees. The environments they face are also different.

In the market, some people have learned a lot of techniques, looked at many indicators, listened to many news, but still can’t make money or even consistently draw down.

Their problem isn’t the method or the market; it’s their mindset. Their human weaknesses are too strong—they are more easily influenced by external colors, sounds, and tastes.

Their mindset is weak, their human weaknesses are too strong, caused both by innate factors and acquired ones, from family or education. Their life path is destined to be more difficult than others!

What about you? Do you get carried away after a win, panic after a loss, jump out when you sell, get trapped when you buy? Let’s see what Laozi says.

1. Pet and insult as if startled: Overly attaching importance to market ups and downs

Laozi said, being surprised by gaining favor or suffering disgrace—this is typical inner instability.

In investing, “pet” means making money, hitting the limit up, floating profits; “insult” means losing money, getting trapped, hitting stop-loss.

Retail investors often show pet and insult as if startled: they get ecstatic over a couple of points, want to sell but can’t hold; panic and anxiety over a couple of points loss, can’t resist cutting; when hitting the limit up, they think they’re a stock god; when hitting the limit down, they feel the world is collapsing; they regret missing the opportunity, lose sleep over being trapped.

Gaining favor as if startled, suffering disgrace as if startled—these inner emotions are driven entirely by market fluctuations. How can their actions not distort? How can their mindset not collapse?

Over two thousand years ago, Laozi vividly depicted the mindset of such investors—they’re not really investing; they’re being hijacked by market ups and downs. No matter how their social roles change, their inner instability and pet-and-insult as if startled remain unchanged.

Whenever the market moves slightly, their mindset collapses first; before the trend finishes, they’re already out. Profit or loss, it’s all painful; holding or selling, it’s all suffering. This creates a vicious cycle of human weakness—pet and insult as if startled.

2. Pet as the lowest: True masters don’t attach too much importance to floating profits

Laozi said, “Pet” is actually a lower state, not something to be overly valued.

The market gives you profits not out of special favor, but because it follows rules and laws; it causes retracements not to punish you, but as part of normal rhythm.

Don’t think that making money means you’re exceptionally capable or lucky; don’t see losses as a complete negation of yourself or as the end of the world—these are just parts of trading.

Some investors, when facing normal floating profits or losses, become overly concerned with the results, ignoring the reasons, even excessively denying themselves or wanting to constantly modify their systems. That’s wrong.

Masters don’t greedily chase “pet,” nor fear “insult,” especially they don’t greedily chase floating profits or fear rule-compliant floating losses. Because they know, profit and loss are not the focus; whether they follow the rules is.

Making money doesn’t necessarily mean the operation is correct; losing doesn’t necessarily mean the operation is wrong. The standard for right or wrong is whether rules are followed.

3. Valuing greatness as if it were a danger to oneself: Your fear stems from attachment to self

Here, “body” doesn’t refer to the physical body but to the self, obsession, gains and losses, face, emotions.

Why do you panic when facing losses? Because you care too much about your money, your profits and losses, your feelings, and you ignore the process and reasons.

You only see “my money lost,” “my account looks bad,” and become anxious and fearful, leading to reckless actions. This is “having a body”—attachment to self, attachment to gains and losses.

Masters achieve “no body,” stepping outside of the self, forgetting costs, profits, and losses, only focusing on trends, rules, and systems. Profits and losses are not unimportant; what matters is to distinguish between the result and the cause. Beings fear the cause, mortals fear the result.

Masters may also lose money, but they don’t deny themselves; losses don’t affect their next move. They may also profit, but they don’t get carried away or forget the rules after earning.

Do masters have emotions? Yes. But they don’t treat profits and losses as personal judgments, nor do they see account fluctuations as a measure of self-worth. They see trading as a game of probabilities, rule execution, and system repetition. Thus, market ups and downs are just data, not emotions. How can there be panic? Collapse? Fear?

4. Loving the account as if it were the world: Entrusting the “Dao” instead of emotions

This is the ultimate elevation of trading mindset.

Only when we cherish our rules, systems, discipline, and risk control as much as we cherish our lives can we truly stand firm in this market for the long term.

Valuing the body is not about valuing profits and losses, but valuing rules. Loving the body is not about loving quick gains, but loving rules. Making the account the “world” is not about self-centeredness, but about trusting the system and rules.

Top investors don’t control the market; they rely on laws and rules. They don’t control ups and downs; they stick to their systems.

Respect the market’s laws, and they will protect you; adhere to trading rules, and they will reward you; cultivate your mindset, and you won’t be affected by human weaknesses in understanding and following rules.

Chapter 13 is the ultimate method for calming the mind in investing. Understand this chapter, and your emotions will no longer be an obstacle or enemy in your investing journey, but a stepping stone for cultivation.

Writing is not easy. If you find it helpful, please like, “add to favorites,” and share with friends still troubled by emotions. The readership is too low. Your recognition is my greatest motivation to keep sharing.

In the next chapter, Laozi will teach us: The invisible Dao is the true power of investing.