The difference between excellent traders and top traders lies in the execution of their exit strategies.
Many traders focus too much on optimizing entry strategies. While entry is indeed important, it is not the main reason for trading failures. Especially in a highly socialized market like cryptocurrency, many people can often discover opportunities in advance. However, the real challenge often lies in the exit strategy—or more precisely, the lack of a clear exit strategy.
I often see traders encounter similar problems when exiting. When it's time to take profits, some hesitate and hold their positions too long, trying to catch the last wave of gains, or fear missing out on more profit potential. Some rush to exit due to panic during market pullbacks without fully considering the overall market trend or fundamentals. Additionally, there is a common misconception: viewing a single trade as 'the chance to decide everything,' leading to a mindset of 'must perfectly grasp it,' and even ignoring other potential trading opportunities.
This psychological issue often stems from traders' lack of confidence in their ability to execute their trading plans consistently. Top traders can avoid these traps because they have faith in their trading abilities and understand that there are always new opportunities in the market.
Why do traders have difficulty exiting?
Emotions dominate decisions: Many traders let greed or fear influence their judgment, rather than strictly following pre-set rules.
Lack of exit plans: Although entry strategies are carefully designed, exits are often overlooked. A successful trade needs not only a good start but also a good finish.
Pursuit of extremity: Some traders are obsessed with catching the absolute top or bottom, a behavior that, while rare, often leads to suboptimal results.
The trap of putting all eggs in one basket: Viewing a single trade as a decisive opportunity brings huge psychological pressure, leading to execution errors or missing out on other better opportunities.
What makes top traders different?
Top traders place as much importance on exiting as they do on entering. They know that market opportunities are endless, so no single trade can determine their success or failure. Their distinctiveness is reflected in several aspects:
Establish clear plans: They set clear profit rules in advance, whether it's gradually reducing positions or exiting entirely when hitting stop-loss points, and strictly enforce them.
Quick stop loss: When a trading assumption is verified as incorrect, they take action without hesitation and promptly stop loss.
Avoid the trap of perfection: They understand that it is impossible to catch every top or bottom, so they focus more on the consistency of trading rather than perfection.
Stay rational and objective: Each trade is just a decision based on probability. With this mindset, they can face market fluctuations more calmly. Top traders never view any single trade as a 'fate-determining' opportunity. They focus on maintaining stable execution across multiple trades because they understand that trading advantages need to accumulate over time to truly manifest, rather than relying on one high-pressure trade to achieve.
The key to trading is not pursuing perfection but maintaining stability. As the saying goes: 'Amateurs focus on how much money they can make, while professionals focus on how much they can lose.'
Excellent traders master the art of exiting. Because they understand that the key to long-term success is not perfection but stable execution and effective risk management.
This article is reproduced with permission from: (Deep Tide TechFlow)
Original author: Game
‘How to exit an investment? Amateurs only care about making money, while top traders pay attention to these 4 key factors’ was first published in ‘Crypto City’