Yesterday I chatted with a young lady who has been trading for 11 years. She can make 200,000 U a month. I asked her how she made it. She said that one of the biggest challenges in trading is managing your profits and losses. Most people focus on strategy, profit rate or timing, but the real problem is often your mentality.
Letting profits run and knowing when to add to a position is where most traders fail.
This is especially true under current conditions.

On winner management.
When you are making a profit, you often want to lock in the profit quickly. You think, "If I take a profit now, I can keep the money I made today or yesterday." This is a mistake. By taking a profit too early, you will miss out on bigger opportunities. The fear of losing the money you have already made will stop you from trading before it reaches its full potential.

When you're losing money, hope sets in. You don't think about how low it will go, but instead hope for a turnaround. Hope always fades last. You hold on, telling yourself, "If I can just get back to break even, I'll be OK." But this mentality can lead to even bigger losses.

Adding to Losses: This happens all too often. People keep hoping for a rebound and get stuck in bad trades.
Increased Profits: This is rare. However, this is where most profits are lost because traders fail to capitalize on their best trades.

Instead of taking profits from your winning trades to cover your losing trades, think about it another way. What if you added to your winning trades and moved your stop loss up to breakeven? Give it a try and see what happens.

Identify winners and increase winners

Winning often does not guarantee that you will make money. The key is not how often you win, but how much you win. Many top traders only win 55-65% of the time, but they make sure to maximize their gains and stop losses quickly when they win.

This is also where the Pareto Principle (or 80-20 rule) comes into play. The majority of your profits will come from a small number of trades. The key is to let those few big winners grow as much as possible. You need to evaluate these trades and add to them when they are in your favor. The fear of losing money prevents many traders from taking full advantage of these rare opportunities.

One way I improved my trading mentality was to review my winning and losing trades regularly. I would imagine myself in a losing position and learn to control those emotions. Over time, the losses became less severe.
As Ray Dalio said, “Pain plus reflection equals progress.” For me, reflection has become a daily habit.
The article ends here. I hope you can learn knowledge from the article. Let us earn our own assets in this bull market. Click on the avatar to see the homepage pinned

#大的要来啦 #加密市场反弹 #美联储11月降息预期升温 $BTC $SUI $ORDI