The Condor Trilogy can be regarded as the most famous classic Wuxia (literally ‘martial hero’) novels by Jin Yong. Based on literature psychology, this study attempts to analyze the good and evil characters, fantastic scenes and complicated plots in Jin Yong’s novels. Using Lacan's theory of the ‘mirror stage’, we can infer that: through the method of dual mirror-relation, the author constructed the important scenes in the novel, including the Peach Blossom Island and Unsympathetic Valley. That each of them contains the differences in similarity and the contradictions between exterior and interior is like the difference between the before and after the mirror projection. The scenes are the relative microcosm of characters. The temperament of characters is the radiative expansion of the scenes. And, the narcissistic and autistic personality, hidden under the mask of human skin, of the Peach Blossom Island chief called as ‘East Evil Pharmacist Huang’ is derived from the subconscious eternal scarcity and boundless desire. Through the narrative methods of back and forth crossing description and presentation of new ideas by repetition, Jin Yong has broken the randomized and repeated narration habits. That’s the reason why the majority of readers can’t help but indulging themselves in the adult fairy tales world created by Jin Yong.