⚖️ Actor-Observer Bias — You attribute your losses to 'the market being a scam', while you think others' losses are due to 'lack of skills'.
🎭 Actor-Observer Bias — The same mistake, when it happens to you it's 'an accident', but when it happens to others it's 'their nature'.
📖 This issue's term: Actor-Observer Bias
🎯 Difficulty: ⭐⭐ (Intermediate Entry)
🔥 Emotional Danger Index: 🔥🔥🔥 (Level 3)
💡 Key Insight | One sentence to break it down for you
Actor-Observer Bias is when you use two different explanatory systems for yourself and others:
Lost myself → "The market is too extreme" "Who can dodge that spike?" "Just bad luck."
Others lost → "His risk management is terrible" "He's too emotional" "He doesn't understand trading at all."
Same behavior, when it happens to you it's "understandable", when it happens to others it's "what they deserve". You're not analyzing, you're being hypocritical.
🎧 Real Case | Listen to the double standard scene of the veteran
"Last week, my friend and I both went long on ETH. My position got stopped out by a spike, losing 5%. I thought to myself: 'No way, that spike was too sudden, pure luck.'
At the same time, my friend's position also got stopped out, losing 8%. I thought: 'He's too stubborn, with such a wide stop-loss, risk management is zero.'
Later during the review, I felt embarrassed—I realized my position was heavier than my friend's and my stop-loss was looser than his. Just because 'it's me', I automatically sought external reasons; because 'it's him', I automatically sought internal reasons.
Same operation, completely opposite explanation. This is the actor-observer bias, and I commit it every day.
⚠️ How does this thing screw you over? | Three fatal tricks
Makes you unable to recover: Every loss is blamed on "luck", "the market", "black swans", and you'll never discover your risk management gaps and psychological weaknesses. The same mistake can be repeated for ten years.
Not learning from others' mistakes: When you see someone lose money, you just say, "They just don't have the skill" and move on without analyzing where they went wrong—after all, "I'm different from them." Eventually, you'll step into the same pit.
Makes you float higher: Attributing profits to "I'm awesome", while attributing losses to "the market is dumb". This asymmetric attribution will inflate your self-assessment, leading to larger positions until the market slaps you awake.
Makes you the "blame-shifter" in the circle: In discussions about losses, you always think "the market is targeting me", while others are always "getting what they deserve". Over time, no one will want to talk trading with you.
🔧 What to do? | Three tips to correct your double standard
Mandatory "perspective shifting" exercise
After every loss, write two reviews:First version: Evaluate yourself using the standards you apply to others. If this loss was your friend's mistake, how would you critique him? Honestly apply those "internal reasons" (no stop-loss, heavy positions, emotional) to yourself.
Second version: Use the standards you forgive yourself with to forgive others. If a friend loses, what external reasons (luck, spikes, news) would you find for him? Then ask yourself: Do these reasons really hold up?
Once both versions are written, your double standard will be crystal clear.
Use a "third-person" review
During the review, avoid using "I". Always write as "Trader Awent long on BTC at 60000 without a stop-loss and then got liquidated." This writing style will cut off your self-defense instinct, forcing you to view yourself as you would someone else.Establish an "attribution scoring table"
After every trade (regardless of profit or loss), score on two dimensions (1-10 points):Internal factors' share (planning, execution, risk management)
External factors' share(luck, market fluctuations)
Rule: Internal factors + external factors = 10 points. If you're rationally attributing, both should hold a certain share. If you always score internal a 2 and external an 8—sorry, you're being hypocritical again.
🧘 Take 30 seconds to calm down | Don't be the blame-shifter
When you think "this time it's not my fault, it's all the market's doing"—
Close your eyes, take a deep breath. Mentally repeat:
"For myself and for others, the same standard applies. I will use the standards I apply to others to examine myself."
Then open your eyes, review your trading records again, and identify at least one of your own issues.
📝 Remember this | engrave it in your mind
Be lenient with yourself, strict with others—it's human nature. Breaking the double standard is key to seeing your true self.
💬 Come to the comments | Share your story
"Do you ever blame luck when you're losing and laugh at others when they lose? Then realize you're just the same? Let's chat in the comments about your 'double standard' moments."
⏭️ Next episode preview
Issue 99 — "Familiarity Bias": Why do you only dare to trade coins you've heard of?
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