The era where stock trading cannot compete with AI.

CN
3 hours ago

Duan Yongping once again discussed a common topic in an interview: stock trading.

He directly stated that in the AI era, ordinary people cannot compete with Liang Wenfeng in stock trading.

I believe that those who hear this statement can understand what Duan Yongping means, but how many people truly resonate with this idea internally?

Liang Wenfeng and DeepSeek are likely familiar to most of our readers, and many readers may also be aware of the predecessors of him and his company: they come from quantitative trading. After making a certain amount of money, they invested their funds in developing large models out of interest.

In an earlier article, I specifically wrote about Simons and his Renaissance Fund. Simons and the Renaissance Fund can be considered pioneers of quantitative trading on Wall Street.

There is an autobiography of Simons available online. In that autobiography, the author not only introduces Simons' life but also his team members—mostly PhDs in mathematics, physics, and computer science from top American technical universities.

Liang Wenfeng's team is quite similar, with several Olympic gold medalists among them.

Why use such top-tier technical talent?

Because they are engaged in a high-risk business, needing to capture rapidly changing price fluctuations through algorithms to profit from the differences.

In the computer era, they had already left ordinary traders behind. In the era of artificial intelligence, they are even more unattainable for ordinary traders.

In this situation, do ordinary traders still have opportunities to make money from trading?

Of course, they do.

In my article, I listed two types of people: one is a genius, and the other is a lucky person favored by fate.

Apart from these, for others, trying to make money in this field is basically akin to going to a casino in Macau.

For ordinary people, the sooner they understand this truth, the fewer pitfalls they will encounter.

Generally speaking, almost everyone who enters the investment market will first test the waters in this field. Some people, after trying it out, realize they are neither geniuses nor lucky ones favored by fate and turn back immediately; however, most people may never admit they are not geniuses or lucky ones favored by fate, thus spending their entire lives struggling in this field.

In the crypto ecosystem, there are even more such examples, and they are even more sensational.

In every market cycle, we can always see various "stars." Crypto media frequently showcases their astonishing achievements.

But basically, every such "star" will shine like a meteor, with only fleeting brilliance; after their splendor, they disappear forever.

Recently, an article summarized eight major stars who shone brightly in the trading field during this market cycle. They all once created brilliant records, but now, without exception, their positions have either gone to zero or are close to zero.

One article detailed the experience of one of them: he once turned a principal of $3 million into $100 million in just one month, only to lose it all in a week on HyperLiquid. He ultimately admitted that he was just gambling.

The article concluded with this statement: "An unbreakable truth in the crypto market: remember to take out your principal when making profits, and avoid high-frequency trading."

In my view, this statement is actually empty talk because the trader's values and behavior patterns determine that he is inclined to gamble. Telling him "take out your principal when making profits, and avoid high-frequency trading" is akin to telling a gambler "gambling can lead to bankruptcy" or a smoker "smoking is harmful to health."

This path is truly not suitable for most ordinary players to invest themselves wholeheartedly.

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