The lessons from three margin calls finally made me see a truth: the key to making money in trading isn't about how often you trade, but about the optimal use of the risk-reward ratio.
At that time, my account only had $1,800 left. I began to reflect— a trader's true ability isn't about how frequently they operate, but about judging when to act. When an opportunity with a significant risk-reward disparity arises, go all in; otherwise, patiently wait. This realization changed my entire trading career. I wrote it on a sticky note and stuck it on my computer screen, reminding myself every day.
Taking LYN and ARC as examples, before placing an order, I would ask myself three questions: Does this trade's stop-loss range and potential profit ratio meet my standards? Can I set the stop-loss at the extreme limit? Is the reward worth the risk of this gamble?
In my early days of day trading, I would quickly close positions after earning a small profit. But what happened? Transaction fees would eat into the profits, and the gains from one trade wouldn't even cover the losses from a stop-loss. Later, I changed my strategy to swing trading, focusing only on market trends that could generate returns over several months or even a year. This shift was crucial.
I still remember last year's Ethereum rally from $1200 to $4000. I set a $100 stop-loss but let it follow the price upward. When I exited near the cost basis, my account had grown by $23,000. A small account, multiplied more than tenfold, all thanks to my unwavering focus on the risk-reward ratio.
After switching to long-term holding, I learned true patience. I don't watch the charts every day, nor do I get anxious over small fluctuations. I wait for those big market moves that can change my life. Small profits are not worth my effort; I reserve my capital and energy for opportunities that can bring about a qualitative leap.
Now I deeply understand: the key to winning in trading is always the risk-reward ratio, not the number of entries. Using minimal risk to leverage the maximum profit potential—this is the only logic for small funds to achieve financial growth in the crypto space. No matter how hot the market is or how many are trading short-term, I see through it all—those who trade frequently end up drained by fees and emotions.
Traders who truly make money all follow the same methodology.
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BearMarketBarber
· 7h ago
That's right, you just have to be patient. I was also driven to doubt life by transaction fees, but now I've learned that waiting is the best.
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EthSandwichHero
· 22h ago
That's right, I used to be that impulsive trader, entering and exiting every day, with fees eating up half the profit. Now I realize, less is more.
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SurvivorshipBias
· 22h ago
It's easy to say, but unfortunately most people can't do it... I'm just that kind of fool who watches the market every day.
Wait, stop-loss follows the price... Isn't that trailing stop-loss? Why didn't I think of applying it to swing trading?
It sounds right, but I feel like this is just survivor bias. Those who survived three margin calls can say whatever they want.
The risk-reward ratio is indeed harsh, but the key is to withstand the psychological pressure. I've tried... but I haven't succeeded.
Turning $1800 into more than ten times that... easy to say, but what if a black swan event happens?
Frequent trading indeed leads to death, but watching the market take off during the waiting days is crazy...
It feels like saying: trade less, but when you do, you need to make enough profit.
This logic isn't wrong, but the premise is that you have to identify the right direction.
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ContractCollector
· 22h ago
That's true, but the idea of multiplying 1800 dollars by ten or more sounds easy. How many people can truly withstand the psychological pressure? I'm the kind of person who gets trapped by watching the market every day. I'm starting to learn how to let go now.
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GateUser-addcaaf7
· 22h ago
That's right, frequent trading is just working for the exchange, and the transaction fees are really high.
The lessons from three margin calls finally made me see a truth: the key to making money in trading isn't about how often you trade, but about the optimal use of the risk-reward ratio.
At that time, my account only had $1,800 left. I began to reflect— a trader's true ability isn't about how frequently they operate, but about judging when to act. When an opportunity with a significant risk-reward disparity arises, go all in; otherwise, patiently wait. This realization changed my entire trading career. I wrote it on a sticky note and stuck it on my computer screen, reminding myself every day.
Taking LYN and ARC as examples, before placing an order, I would ask myself three questions: Does this trade's stop-loss range and potential profit ratio meet my standards? Can I set the stop-loss at the extreme limit? Is the reward worth the risk of this gamble?
In my early days of day trading, I would quickly close positions after earning a small profit. But what happened? Transaction fees would eat into the profits, and the gains from one trade wouldn't even cover the losses from a stop-loss. Later, I changed my strategy to swing trading, focusing only on market trends that could generate returns over several months or even a year. This shift was crucial.
I still remember last year's Ethereum rally from $1200 to $4000. I set a $100 stop-loss but let it follow the price upward. When I exited near the cost basis, my account had grown by $23,000. A small account, multiplied more than tenfold, all thanks to my unwavering focus on the risk-reward ratio.
After switching to long-term holding, I learned true patience. I don't watch the charts every day, nor do I get anxious over small fluctuations. I wait for those big market moves that can change my life. Small profits are not worth my effort; I reserve my capital and energy for opportunities that can bring about a qualitative leap.
Now I deeply understand: the key to winning in trading is always the risk-reward ratio, not the number of entries. Using minimal risk to leverage the maximum profit potential—this is the only logic for small funds to achieve financial growth in the crypto space. No matter how hot the market is or how many are trading short-term, I see through it all—those who trade frequently end up drained by fees and emotions.
Traders who truly make money all follow the same methodology.