"Small stop-loss, high take-profit" sounds very professional, but in reality, it is the chronic killer of countless novice accounts.

Where is the problem? The logic is actually very simple and crude:

Small stop-loss = repeatedly hit stop-loss
High take-profit = basically never triggered
The final result = losing small amounts many times, never catching the big gains

You think you're "precisely controlling risk and amplifying profit potential," but in fact, you're using the worst odds to trade the most frequent losing trades.

**Why is small stop-loss especially deadly in trading markets?**

What is the essence of Stop Loss and Take Profit? Traders use these two points to define an expected volatility range. If the market hits the take-profit first, you win; if it hits the stop-loss first, you lose.

Volatility is a daily norm in trading. 1%-2% swings happen every day. Setting your stop-loss in this sensitive zone is like handing your money directly to market noise.

Here's the key—large funds and market makers are well aware of where stop-loss orders are clustered. They don't need to predict trend direction; they just need to find the densest areas of stop-loss orders. Small stop-losses happen to be the "liquidity pools," making them prime targets for absorption.

**So where's the trap with high take-profit?**

High take-profit ≠ making big money
High take-profit = extremely low probability of being triggered

Every trade you make is a bet that "this time, the market will develop a big trend," but the harsh reality is—most markets simply won't reach your envisioned target.

The most common scenario looks like this:
- Stop-loss: -2~3% (getting hit several times a week)
- Take-profit: +10~20% (hardly hit even once a month)

If your account is still in heavy position mode, the outcome isn't a blow-up loss but being worn down gradually over time.

** Truly successful traders do the opposite:**

Stop-losses are not aiming for the smallest, but each has logical support
Take-profits are not aiming for the biggest, but are set to be repeatedly hit

It's about the overall odds structure, not the miraculous performance of any single trade.

Repeatedly hit by small stop-losses → constantly dreaming of "big trend recovery" → emotions become heavier, positions more chaotic → finally stuck with a parameter setup doomed to lose money. This is the dead cycle most beginners fall into.