Remember when I used to trade like this: setting stop-loss points very tightly, afraid that the principal would go down another point; but setting profit targets way too high, dreaming of doubling a trade every day.
And then reality would slap me in the face. Either the stop-loss I just set would get wiped out, and the market would rise as expected; or I’d hold a position with substantial unrealized gains but be too greedy to exit, only to end up losing money. This vicious cycle repeated so many times that I finally realized I was trapped in a classic pitfall.
**Why are small stop-losses so easily hit?**
Market volatility is much more aggressive than most people estimate. When you place a stop-loss at what seems like a "reasonable" level, you're actually putting it within the normal breathing range of the market. The market makers can easily shake you out with a round of stop hunts. After being shaken out several times, your principal gradually erodes.
**Then why is it so hard to realize high take-profit targets?**
Very few trends move in a straight line. Most of the time, it’s a rhythm of two steps forward, one step back. You expect to ride the entire trend, but during a pullback, you start to waver—either cutting early and exiting or watching your profits evaporate. The only truly stable gains are often just from the most confident segment of the trend.
**The later changes**
I adjusted my stop-loss strategy. No longer fixated on "minimal loss," but placing it at the point where the "structure is truly broken." For example, in an uptrend, I set the stop-loss below the previous valid low. This gives the market enough room to breathe and allows me to genuinely judge whether I’ve fundamentally misread the direction.
My profit-taking logic also changed. Instead of chasing huge single-trade profits, I now take profits in stages. I reduce part of my position at the first expected target, recovering my principal first, and then go all-in to chase the trend with the remaining position. This approach reduces psychological pressure and makes it easier to hold onto subsequent trends.
Trading is not about who can make the most exaggerated single-trade profit, but about who can survive longer in the market. Stop-loss is to preserve strength and stay in the game; take-profit is to ensure every bit of profit continues to grow.
If you’re also caught in the cycle of "stop-loss being hit, missing out on take-profit," consider stopping and re-evaluating your trading rules.
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GhostWalletSleuth
· 11h ago
Oh no, isn't this my blood, sweat, and tears? Getting washed out to numbness.
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The tactic of taking profits in batches is really ruthless. Once the principal is back, my mindset relaxes a lot.
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That's right, living a long life is the key. That's how I play it now.
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I really wanted to smash my phone when my stop-loss was wiped out. Now I think I was just too greedy.
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Breaking the structure is the standard for stopping losses. I need to ponder this carefully.
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Once clinging to the dream of doubling, I was later taught a harsh lesson by reality.
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Gradually reducing positions in batches truly changed my mindset. I'm no longer concerned about whether I can get the last penny.
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The market breathing space metaphor is excellent; it hit my pain point perfectly.
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The logic of the previous effective low point is interesting; it's much more reliable than setting random stop-losses.
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Your experience is exactly the same as mine. Looks like everyone has stepped on a mine.
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ZkProofPudding
· 22h ago
This is the process of being educated by the market, it's heartbreaking.
Setting stop-loss too tight is indeed like serving the market makers, I've lost many times because of it.
Gradually taking profits is a very practical strategy, first recover your capital and then chase profits, the mindset is indeed much better.
To put it simply, living longer is a hundred times more important than going all-in on one shot.
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RugDocDetective
· 22h ago
Setting stop-loss too tight is really just asking for death. After a few washouts, you'll have no principal left.
I'm also using the method of partial take-profit now, and my mindset has definitely improved.
Damn, I just remembered the last time I got washed out and the market took off immediately afterward...
Longevity is the key; otherwise, going all-in and losing everything is pointless.
Greed is already a loss in that moment, no doubt about it.
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GasSavingMaster
· 22h ago
Stopping losses too tightly gets washed out, taking profits too greedily leads to missed opportunities. I've experienced this cycle too many times.
Gradually taking profits is really the remedy; getting the principal back changes the mindset.
That's right, living longer is the real winner, not just a quick gamble.
That's why so many people lose money; their psychological preparation hasn't kept up.
Structural damage followed by stop-loss sounds simple, but actually doing it is another matter.
Instead of chasing single big profits, it's better to focus on stable earnings, which can be more profitable.
I'm stuck in this vicious cycle, and after reading this article, I feel like I've been hit hard.
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NftBankruptcyClub
· 22h ago
The pain points hit the mark perfectly, this is my blood, sweat, and tears from last year.
That washout phase was truly amazing, every time I was perfectly played.
The idea of taking profits in batches is enlightening, I need to try it.
It's really a mindset issue; greed is truly the biggest enemy in trading.
Setting stop-losses at the point of structural breakdown feels like I finally found the secret.
Living long is the real way to succeed; it's much better than dreaming of getting rich overnight.
After being washed out a few times, I finally understand that the market will never follow your script.
Dividing the principal into batches is brilliant, it directly reduces psychological burden by a hundred times.
How much tuition do I need to pay to truly understand this lesson?
It feels like the past two years I've been stuck in the same vicious cycle that this article repeatedly talks about.
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ETHmaxi_NoFilter
· 22h ago
Oh no, this is a painful lesson for me, being washed out to the point of doubting life.
Bro, I’m now using this batch-by-batch profit-taking logic too. Only those who live long are truly the winners.
Setting stop-loss too tight is asking for death; the market makers love these leeks.
That’s right, greed often causes you to give back all the profits you made earlier.
Adjusting this mindset is the hardest part of trading, even harder than finding good coins.
I used to dream of doubling my investments, but now I just want to survive steadily.
Breaking the structure and then stopping out sounds simple, but in practice, it’s really exhausting.
Remember when I used to trade like this: setting stop-loss points very tightly, afraid that the principal would go down another point; but setting profit targets way too high, dreaming of doubling a trade every day.
And then reality would slap me in the face. Either the stop-loss I just set would get wiped out, and the market would rise as expected; or I’d hold a position with substantial unrealized gains but be too greedy to exit, only to end up losing money. This vicious cycle repeated so many times that I finally realized I was trapped in a classic pitfall.
**Why are small stop-losses so easily hit?**
Market volatility is much more aggressive than most people estimate. When you place a stop-loss at what seems like a "reasonable" level, you're actually putting it within the normal breathing range of the market. The market makers can easily shake you out with a round of stop hunts. After being shaken out several times, your principal gradually erodes.
**Then why is it so hard to realize high take-profit targets?**
Very few trends move in a straight line. Most of the time, it’s a rhythm of two steps forward, one step back. You expect to ride the entire trend, but during a pullback, you start to waver—either cutting early and exiting or watching your profits evaporate. The only truly stable gains are often just from the most confident segment of the trend.
**The later changes**
I adjusted my stop-loss strategy. No longer fixated on "minimal loss," but placing it at the point where the "structure is truly broken." For example, in an uptrend, I set the stop-loss below the previous valid low. This gives the market enough room to breathe and allows me to genuinely judge whether I’ve fundamentally misread the direction.
My profit-taking logic also changed. Instead of chasing huge single-trade profits, I now take profits in stages. I reduce part of my position at the first expected target, recovering my principal first, and then go all-in to chase the trend with the remaining position. This approach reduces psychological pressure and makes it easier to hold onto subsequent trends.
Trading is not about who can make the most exaggerated single-trade profit, but about who can survive longer in the market. Stop-loss is to preserve strength and stay in the game; take-profit is to ensure every bit of profit continues to grow.
If you’re also caught in the cycle of "stop-loss being hit, missing out on take-profit," consider stopping and re-evaluating your trading rules.