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Many people treat trading as a mystical art, but in reality, it's a game of probabilities. You don't need to be right every time; you just need to protect your principal and manage risk at critical moments. Frankly, predicting rises and falls isn't the most important—what matters is staying alive, making money, and securing your profits.
I've compiled three proven strategies from practical experience that can help you avoid most traps.
**First Trick: Profit Halving Method—Make the Earned Money Truly Yours**
Setting clear take-profit and stop-loss levels is crucial. Suppose your account capital is 10,000 units. When your profit reaches 1,000 units (10%), immediately withdraw 500 units to a cold wallet—that's your real profit. The remaining 500 units can continue to grow in the market.
This method seems simple, but it actually avoids a common dilemma: during a bull market peak, everyone is driven by FOMO, watching their account numbers grow and finally dumping everything in one go—turning paper millionaires into losers. The profit halving method forces you to lock in gains regularly, preventing greed from wiping out your profits, while still leaving room for further growth.
**Second Trick: Three-Period Dislocation Positioning—Bidirectional Profit in a Range**
Markets are always oscillating; the key is whether you can position yourself across different timeframes simultaneously. Using multi-timeframe analysis: look at the daily chart for the main trend, the 4-hour chart for medium-term oscillations, and the 15-minute chart for specific entry points.
This allows you to place two orders at once:
- A trend-following order—wait for the daily chart to break through key support or resistance levels, then follow the breakout, with a stop-loss below the previous low. This order aims to capture directional opportunities.
- A counter-trend order—when the 4-hour chart shows overbought or oversold conditions, place limit orders in advance, ready to execute on minor pullbacks. This order extracts profits from range-bound movements.
What’s the critical discipline? Keep each stop-loss within 1.5% of your principal, and set take-profit targets at least 5 times the stop-loss. Even if your main trend judgment is off, market volatility can allow you to profit in both directions. Making gains on one side and some on the other ensures your account keeps growing.
**Third Trick: Use High Reward-to-Risk Ratios to Compensate for Low Win Rates—Aim for Big Wins, Small Losses**
Win rate isn't as crucial as you might think. Many fall into the trap of believing they must have over 70% accuracy, but that's unnecessary.
The key metric is the reward-to-risk ratio. If your profit target is five times your loss (for example, earning 500 units while risking only 100 units), then even with a win rate of just 35%, your account will grow in the long run. Here's the math: success rate 35% with 5x reward, failure rate 65% with 1x loss, expected value = 0.35×5 - 0.65×1 = 1.75 - 0.65 = 1.1, which is positive.
How to implement this practically?
**Capital Management:** Divide your account into 10 parts; each trade uses only 1 part. Hold at most 3 positions simultaneously. Even if all three hit stop-loss, losses are limited. If one position hits big, it can cover the others.
**Emotional Management:** After two consecutive losses, stop trading immediately and step away from the screen—do something else. This breaks the cycle of revenge trading—many traders try to recover losses by doubling down, only to deepen the hole. Staying calm is more important than anything.
**Profit Locking:** When your account doubles (say from 10,000 to 20,000 units), withdraw 20% (4,000 units) into stable assets—be it bank savings, financial products, or stablecoins. This locks in part of your gains and keeps your mindset steady.
**Ultimately, what is trading?**
Trading is not about prediction; it's about survival. Staying in the market long-term is more valuable than making a quick profit. You don't need to watch the charts constantly or chase insider tips—just follow your discipline: lock in profits when appropriate, adapt to market changes with multi-timeframe strategies, and use high reward-to-risk systems to offset lower win rates.
Opportunities are always present, but only if you're still at the table. Live long enough, and your accumulated profits will naturally grow.