Aya was almost in tears when she found me: "Bro, I lost 20,000 U and only have 1,800 U left. The more I trade, the more I lose. I can't hold on any longer!"
After reviewing her trading records, I genuinely felt anxious for her — this girl is a classic case of "losing big and making small profits": she held on through a floating loss of 125%, only to lose even more; yet when she made a profit of just 25%, she panicked and closed her position, afraid of losing her gains.
Isn't this just taking huge risks for small profits?
Mathematically, it's a guaranteed losing strategy!
It's not that she's foolish; it's human nature at play.
When in a floating loss, one often feels like "I haven't really lost," and to avoid the pain, they prefer to bear greater risks waiting for a reversal; but once the account shows a profit, they panic about losing it and rush to secure it, missing out on the larger market moves.
I told her: "Trading isn't about betting high or low; the core principle is 'bet small to win big' — cut your losses quickly when you're wrong, and hold onto profits when you're right."
At first, she struggled to change. Once, when ETH rose from 2,800 to 2,940, she wanted to close at a 5% profit. I held her back: "The trend hasn't broken; don't cut a big opportunity short!" In the end, she held it to 3,200, making nearly 30%, finally tasting the sweetness of "letting profits run."
My win rate is only 46.51%, but I can achieve stable profits, and the key lies in the risk-reward ratio. We aim for a risk of 1 point to gain 3 points or 10 points, rather than the other way around with random actions.
After practicing for 3 months with the rhythm, A-Zhe completely changed his habits of stubbornly holding on and closing too early.
8,000 U gradually rolled to 25,000 U. Later, he told me: "I used to think the market didn't favor me, but now I understand it was me pushing away the big results."
In trading, what's more important than being right or wrong is "losing small amounts and making big amounts."
Accepting the inevitability of stop losses and resisting the urge to take profits prematurely is the only way to break out of the vicious cycle of large losses and small gains, to achieve real returns. @juice13
