The key to trading is not to pursue perfection, but to maintain stability.

  • Author: Proxius Founder Game

  • Compiled by: Shenchao TechFlow

The difference between a good trader and a top trader is the execution of an exit strategy.

Many traders focus too much on how to optimize their entry strategy. Although entry is indeed important, it is not the main reason for failed trades. Especially in a highly social market like cryptocurrency, many people are often able to spot opportunities in advance. However, the real difficulty often arises in the exit strategy – or rather, the lack of a clear exit strategy.

I often see traders encounter similar problems when exiting. When it is time to take profits, some people will hesitate and hold positions for too long, trying to catch the last wave of gains, or fear of missing out on more profit opportunities. There are also some people who leave the market in a hurry because of panic when the market pulls back, without fully considering the overall trend or fundamentals of the market. In addition, there is a common misunderstanding: treating a certain transaction as an "everything-determining opportunity" and therefore falling into the mentality of "must grasp it perfectly", and even ignoring other potential trading opportunities.

This psychological problem usually stems from traders' lack of confidence in their ability to stably execute their trading plans. Top traders avoid these pitfalls because they have faith in their trading abilities and know that there is never a shortage of new opportunities in the market.

Why do traders have trouble exiting a trade?

  • Emotions drive decision-making: Many traders let greed or fear influence their judgment rather than strictly following pre-set rules.

  • Lack of Exit Plan: Despite a well-planned entry strategy, exit is often overlooked. A successful transaction must not only start well but also end well.

  • Pursuit of perfection: Some traders are obsessed with catching the absolute top or bottom. Although this behavior is rare, it often leads to sub-optimal results.

  • The all-or-nothing trap: Treating a single trade as a decisive opportunity can cause tremendous psychological pressure, leading to poor execution or missing other, better opportunities.

What sets top traders apart?

Top traders place as much emphasis on exits as on entry. They understand that the market opportunities are endless, so no one transaction can determine their success or failure. Their differences are reflected in the following aspects:

  • Develop a clear plan: They will set clear profit rules in advance, and they will strictly implement them whether they are gradually reducing their positions or leaving the market when the stop loss point is hit.

  • Stop losses quickly: When trading assumptions are proven wrong, they take action without hesitation and stop losses promptly.

  • Avoid the perfection trap: They understand that they can't catch every top or bottom, so they focus more on trading consistency than perfection.

  • Stay rational and objective: every transaction is just a decision based on probability. With this way of thinking, they can face market fluctuations more calmly. Top traders never view any trade as a "destiny" opportunity. They focus on maintaining consistent execution across multiple trades because they understand that trading advantages need to be accumulated over time to truly emerge, rather than relying on one high-pressure trade to achieve it.

The key to trading is not to pursue perfection, but to maintain stability. As the saying goes: "Amateurs focus on how much money they can make, professionals focus on how much money they can lose."

Good traders master the art of exiting. Because they know that the key to long-term success is not perfection, but stable execution and effective risk management.

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This article is reprinted from Shenzhen Chao TechFlow with permission

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