The era where stock trading can't compete with AI

Duan Yongping once again talked about a well-worn topic in an interview: stock trading.

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

I believe that those who hear this sentence can definitely understand what Duan Yongping means, but how many people can truly recognize this principle in their hearts?

Liang Wenfeng and DeepSeek are familiar to most of our readers, and many readers will also be familiar with him and the predecessor of his company: they came from quantitative trading. After making a certain amount of money, they invested their funds in the development of large models out of interest.

In an earlier article, I specifically wrote about Simmons and his Renaissance Fund. Simmons and the Renaissance Fund can be considered a pioneering quantitative trading team on Wall Street.

There is an autobiography of Simmons online. In that autobiography, the author not only introduces Simmons's life but also introduces his team members—most of whom are PhDs in mathematics, physics, and computer science from top engineering schools in the United States.

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

Why do we need to use such top-notch engineering and science talent?

Because they are engaged in a risky business of taking nuts from the fire, trying to capture the rapidly changing price fluctuations through algorithms to profit from the price difference.

In the computer age, they had already left ordinary traders behind. In the era of artificial intelligence, they have become an existence that ordinary traders can only look up to.

In this situation, do regular traders still have the opportunity to make money from trading?

Of course.

I have listed two types of people in the article: one type is geniuses, and the other type is the lucky ones favored by heaven.

Aside from that, others trying to make money in this field is basically similar to going to a casino in Macau.

The earlier ordinary people understand this principle, the fewer pitfalls they will encounter.

Generally speaking, almost everyone who enters the investment market will first dip their toes in this field. Some people, after trying it out, realize they are not geniuses and certainly not the lucky ones favored by fate, and they immediately turn back; however, it is likely that most people may never admit in their lifetime that they are not geniuses and certainly not the lucky ones favored by fate, thus spending their entire lives struggling in this field.

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

In every market cycle, we can always see various big “stars”. Their astonishing achievements are frequently displayed on crypto media.

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

Recently, an article online summarized eight big stars that have shone brightly in the trading field during this round of market fluctuations. They all once achieved brilliant performances, but now, without exception, their positions have either gone to zero or are close to zero.

An article detailed the experience of one of them: he once turned a capital of 3 million dollars into 100 million in just one month, and then lost it all in a week on HyperLiquid. He himself ultimately admitted that he was just gambling.

The end of this article wrote this sentence: “An unbreakable truth in the crypto market: remember to take back your capital when making profits, and avoid high-frequency trading.”

In my opinion, this statement is actually just empty talk, because the values and behavior patterns of this trader determine that he is just looking to gamble. Telling him “make a profit and avoid high-frequency trading” is like telling a gambler “gambling can lead to losing everything” and telling a smoker “smoking is harmful to health.”

This path is really not suitable for most ordinary players to fully immerse themselves in.