đ¨đ¨Many retail traders make the same mistakes: holding onto losing positions out of stubbornness and selling their winners too quickly as soon as they see some profit. They focus too much on whether their balance is in the green or red, rather than paying attention to market trends or volume. This leads to accumulating losses, and even when profits come, theyâre too small to make a real impact.
Switch the Strategy: Hold Winners, Cut Losers The right approach is the opposite: let your winners run and cut your losses quickly. Here's a method I use:đąđą
When profits hit 15%, set a 10% trailing stop. If the market pulls back and your gains fall to 10%, lock in that profit and cash out.
If the price keeps rising, stay inâlet your gains grow.đąđ¨
On the downside, sell immediately if your losses reach 5%, with no emotions involved.
Why It Works By consistently securing 10% profits and limiting losses to 5%, you only need to win 50% of your trades to stay profitable. Even if only half your trades succeed out of 100, your overall profit could be as high as 300%.
The Real Challenge: Mindset Over Method Though this strategy is simple, the hardest part is managing your emotionsâletting go of losers and being patient with winners. Mastering your mindset is the real key to succeeding in crypto trading.đ¨đ¨
