Thinking of the time when Xiaomin dropped from 28,000 U to 6,000 U,
I always say: "It's not that she can't seize the rise, it's that she doesn't know when to exit."
Many people are like her; they actually trade quite well — they can catch the upward trends,
and also make profits, but in the end, they still watch their gains evaporate.
It's like someone buying BTC and making 20%, always thinking "I'll sell when it goes up a bit more,"
but when the market reverses, not only do they lose their profits, but they also incur losses.
The issue isn't with trading itself; it lies in the lack of the key action of "trailing stop-loss."
I often tell my students that trailing stop-loss is the "automatic bodyguard" in trading.
It isn't a stop-loss fixed at one point, but one that moves forward with the price increase,
helping you preserve profits while preventing you from missing out on a continuous upward trend.
For example, when I traded BTC last year, I entered at 100,000 U and set a trailing stop-loss of 1,000 U.
When BTC rose to 101,000 U, the stop-loss automatically moved to 100,000 U,
so even if it drops, at least I can preserve my capital;
later when it rose to 103,000 U, the stop-loss followed to 102,000 U,
and finally, when BTC fell back to 102,000 U, the system automatically closed the position, securing a steady profit of 20,000 U.
I didn't have to keep staring at the market in a panic, nor did I have to worry about "whether to sell."
Why is it important? Because emotions are the biggest enemy in trading.
When you make money, you're always greedy, thinking "just a little longer";
when it dips a bit, you fear "it will rise again," and the more you hesitate, the more you lose.
But trailing stop-loss can help you cut off this emotional interference,
once set, when it rises, you profit, and when it falls, you automatically protect your profits, without manual operation.
Here are a few practical tips I've used:
For short-term trading (like 1-3 days), set a trailing stop-loss of 0.5%-1%,
for example, if you buy coins worth 100,000 U, if it drops by 500-1,000 U, it will automatically sell, avoiding small fluctuations causing big mistakes; $BTC
For swing trading (like 1-2 weeks), you can relax it to 2%-3%, giving the market more space;
Another key point is to definitely wait until your account is profitable before opening a trailing stop-loss, $ETH
don't set it as soon as you enter, as it can easily get washed out by small fluctuations.
The experienced traders I know almost all rely on this trick to preserve profits.
Previously, a student of mine used trailing stop-loss,
and in one market wave, it went from 50,000 U to 180,000 U,
not like before when they "earned and then gave it back."
I always say: "It's not that she can't seize the rise, it's that she doesn't know when to exit."
Many people are like her; they actually trade quite well — they can catch the upward trends,
and also make profits, but in the end, they still watch their gains evaporate.
It's like someone buying BTC and making 20%, always thinking "I'll sell when it goes up a bit more,"
but when the market reverses, not only do they lose their profits, but they also incur losses.
The issue isn't with trading itself; it lies in the lack of the key action of "trailing stop-loss."
I often tell my students that trailing stop-loss is the "automatic bodyguard" in trading.
It isn't a stop-loss fixed at one point, but one that moves forward with the price increase,
helping you preserve profits while preventing you from missing out on a continuous upward trend.
For example, when I traded BTC last year, I entered at 100,000 U and set a trailing stop-loss of 1,000 U.
When BTC rose to 101,000 U, the stop-loss automatically moved to 100,000 U,
so even if it drops, at least I can preserve my capital;
later when it rose to 103,000 U, the stop-loss followed to 102,000 U,
and finally, when BTC fell back to 102,000 U, the system automatically closed the position, securing a steady profit of 20,000 U.
I didn't have to keep staring at the market in a panic, nor did I have to worry about "whether to sell."
Why is it important? Because emotions are the biggest enemy in trading.
When you make money, you're always greedy, thinking "just a little longer";
when it dips a bit, you fear "it will rise again," and the more you hesitate, the more you lose.
But trailing stop-loss can help you cut off this emotional interference,
once set, when it rises, you profit, and when it falls, you automatically protect your profits, without manual operation.
Here are a few practical tips I've used:
For short-term trading (like 1-3 days), set a trailing stop-loss of 0.5%-1%,
for example, if you buy coins worth 100,000 U, if it drops by 500-1,000 U, it will automatically sell, avoiding small fluctuations causing big mistakes; $BTC
For swing trading (like 1-2 weeks), you can relax it to 2%-3%, giving the market more space;
Another key point is to definitely wait until your account is profitable before opening a trailing stop-loss, $ETH
don't set it as soon as you enter, as it can easily get washed out by small fluctuations.
The experienced traders I know almost all rely on this trick to preserve profits.
Previously, a student of mine used trailing stop-loss,
and in one market wave, it went from 50,000 U to 180,000 U,
not like before when they "earned and then gave it back."