The market often runs counter to human nature, making it difficult for many retail investors and beginners to experience a true empty position. They tend to operate fully invested when trading spot and want to frequently open positions when trading contracts. However, a wise trading strategy should include a clear profit plan: for example, setting a weekly profit target of 5%, a monthly target of 10%, and a quarterly target of 15%. Once these targets are reached, trading should stop, and one should patiently wait for the next opportunity.
Beginners and retail investors may wonder, since they have started making profits, why not continue trading? Their initial intention of entering the cryptocurrency market was to make money and to continuously earn profits. They believe they should make as much money as possible during a bull market rather than in a bear market. But ultimately, they often end up giving back profits or even incurring losses due to a lack of self-discipline and a reasonable exit strategy. Therefore, setting reasonable profit targets and exiting the market at the right time is crucial for protecting investment returns.
