I am a female analyst in the cryptocurrency field, and I don't like beating around the bush. Today, I want to discuss a heart-wrenching question: Why does your trading start with a bang but end up like a disaster?
I have seen too many people who analyze perfectly when entering a trade, but once they hold a position, their rationality is hijacked by emotions: anxious to give back profits when winning, fantasizing about rebounds when losing, and in the end, what should have been a profitable trade turns into a loss. Ultimately, it's not that you lack the vision to spot opportunities; it's that you lack a solid 'exit logic'.
1. The gap between professional and amateur lies in the 'exit strategy'.
New traders focus on 'how much can I earn', while seasoned traders first calculate 'how much can I lose'.
Emotions are the cancer cells of trading: greed makes you want to gamble more when in profit, fear makes you play dead when in loss. The result? Profit withdrawal and expanded losses.
Don’t treat trading as a 'gamble with fate': some people place too much weight on a single trade, as if missing this one means losing a billion. But the market is never short of opportunities; going all in will only distort your judgment.
The discipline of top traders is: set exit rules in advance and execute them like a robot. For instance, take profits in batches when profits reach 20%, and decisively stop loss if it falls below the cost line. They do not pursue selling at the peak, only the accumulation of probabilistic advantages.
2. Your exit logic only needs to answer two questions.
When holding a position, market volatility amplifies emotional noise. At this time, don’t get entangled in the candlestick trends, just ask yourself:
Is the market still following your script?
For example, if you enter based on BTC breaking previous highs, hold if it continues to rise with volume; if it consolidates with low volume or breaks key support, it indicates that the assumption may be wrong, and you should exit.
Is the risk still within a controllable range?
Assuming you set a maximum loss of 5% per trade, once the unrealized loss approaches this line, even if you think 'it can still rise', you must cut your position. Protecting your principal is more important than fantasizing about a comeback.
As long as one answer is negative, the trade should end. This is not giving up, but replacing emotional decision-making with rules.
3. Practical skills for exit strategies: using cryptocurrencies as an example.
Cryptocurrency is highly volatile, making it easier to trigger emotional fluctuations. My habit is:
Take profits in batches: for example, sell 1/3 when profits reach 30%, another 1/3 at 50%, and set a trailing stop for the remaining position (e.g., exit if it retraces 10% from the highest). Avoid the regret of 'selling all at once' or 'giving back profits'.
Execute the stop-loss line resolutely: especially for altcoins, where projects may run away and exchanges may delist, unexpected events are frequent. Once it falls below the preset stop-loss level, even if you have to take a loss, you must exit; don’t fall in love with your position.
Beware of the 'high FDV trap': primary market projects often raise funds at high valuations, but after going live, liquidity is insufficient, and prices are prone to collapse. For such projects, even if the 'logic is perfect', set stricter exit conditions.
4. Why do you always fail to execute well? Because you lack 'exit test' thinking.
Vitalik once proposed the concept of an 'exit test': if a project team disappears, can users safely withdraw their assets?
Your trading strategy should also be tested this way: assuming the exchange crashes tomorrow and analysts collectively fall silent, can you exit solely based on your own rules?
Dependency on tools is a hidden danger: don’t overly rely on exchange alerts or others' calls. Write your plan in advance: what signals trigger your exit? What tools to monitor (e.g., price alerts)?
Decentralized like a protocol: trust your own rules enough that even in a panicked market, you can act according to plan.
Entry determines how much you can earn, exit determines how much you can keep. There are always opportunities in the market, but your capital won’t always be there. Mature traders don't lack emotions; they let rules be louder than emotions.
Next time you feel anxious while holding a position, consider turning off the screen and only looking at your trading plan: if the rules say go, don’t look back. Follow Ake, who will help you understand more first-hand information and accurate points in the crypto circle, becoming your navigator in the crypto world; learning is your greatest wealth! #加密市场观察 #巨鲸动向 $ETH
