In the crypto market, those who experience ups and downs often share a common frustration: it seems that every time they go long, the price drops; every time they go short, it rises. Some blame luck, others blame market makers targeting their small funds. But the real situation might not be so dramatic—most issues stem from the trading method itself.
Successful traders who consistently profit in the market almost always have a clear trading framework. They don't operate based on feelings but follow established rules. According to risk-reward characteristics, common trading types can be divided into three categories: high-probability but low-return incremental trades, medium-probability but high-potential convex trades, and high-probability high-return professional trades.
Without such a framework, relying solely on intuition to trade is essentially gambling, with success rates mostly depending on luck. The market never targets anyone; it’s just that volatility itself will wipe out traders without a plan.
So, what should you do? Start with the basics—position management. Divide your capital into five parts, risking only one-fifth per trade, and set a 10-point stop-loss. The benefit of this approach is that even if you make a wrong judgment once, you only lose 2% of your total funds. Even if you are wrong five times in a row, the total loss is only 10%. And once your trading direction is correct, your profits will be proportionally amplified.
This method may seem simple, but it’s precisely this "simplicity" that allows many traders to survive longer and earn more steadily. The crypto market is unpredictable; those who survive multiple bull and bear cycles are often not the luckiest but the most disciplined in risk control.
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In the crypto market, those who experience ups and downs often share a common frustration: it seems that every time they go long, the price drops; every time they go short, it rises. Some blame luck, others blame market makers targeting their small funds. But the real situation might not be so dramatic—most issues stem from the trading method itself.
Successful traders who consistently profit in the market almost always have a clear trading framework. They don't operate based on feelings but follow established rules. According to risk-reward characteristics, common trading types can be divided into three categories: high-probability but low-return incremental trades, medium-probability but high-potential convex trades, and high-probability high-return professional trades.
Without such a framework, relying solely on intuition to trade is essentially gambling, with success rates mostly depending on luck. The market never targets anyone; it’s just that volatility itself will wipe out traders without a plan.
So, what should you do? Start with the basics—position management. Divide your capital into five parts, risking only one-fifth per trade, and set a 10-point stop-loss. The benefit of this approach is that even if you make a wrong judgment once, you only lose 2% of your total funds. Even if you are wrong five times in a row, the total loss is only 10%. And once your trading direction is correct, your profits will be proportionally amplified.
This method may seem simple, but it’s precisely this "simplicity" that allows many traders to survive longer and earn more steadily. The crypto market is unpredictable; those who survive multiple bull and bear cycles are often not the luckiest but the most disciplined in risk control.