"I took the profit, maybe the loss will turn back..."



Because of this sentence, so many accounts have been wiped out in this market that they could write tombstones. The end is the same for everyone who can't protect their earnings and can't cut their losses:

Psychological fatigue + financial collapse.

Being quick when making profits and patient when in loss... This is not a strategy. This is a model of emotional collapse. And most traders are not even aware of this.

📊A simple example:
• 10 transactions
• 7 of them +50$
• 3 pieces -150$
Result: -100$

So it looks like you're winning, but in reality, you're constantly losing.

Let me open a parenthesis: This behavior is referred to in the literature as "negative expectancy". Even if the win rate is high, as long as the average loss > average gain, the system will move you backward rather than forward. That is why taking profits early and delaying losses is one of the slowest forms of self-destruction.

Profitable systems do not necessarily have to have a high winning rate.

But they do this:
• Losses are closed before they grow.
• An area is recognized for profit potential
• The balance of average earnings and average losses is maintained.
So the issue is not how many times you've won; it's how much you've won when you win and how much you've lost when you lose.

Finally, don't forget this sentence:

Limiting profits, letting losses run, is to die slowly in this market. And those who die slowly always say goodbye with "I was actually doing well."
IN-14.36%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)