Investment Philosophy: Four Principles to Master to Become a Top Trader

The key to trading is not in pursuing perfection, but in maintaining stability. This article is derived from a long post by Game, organized and translated by Shenchao. (Background: Lao Gao warns: Don't buy Bitcoin 'It could drop to zero in an instant', successful people don't rely on this to make money) (Background Supplement: Bitcoin 'Head and Shoulders' pressure formation, analysts: If key support is lost, it may drop to $75,000) The difference between excellent traders and top traders lies in the execution of exit strategies. Many traders focus too much on optimizing entry strategies; while entering is indeed important, it is not the main reason for trading failure. Especially in a highly socialized market like cryptocurrency, many people can often spot opportunities in advance. However, the real difficulty 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, holding their positions too long, trying to catch the last wave of increase, or fearing to miss out on more profit potential. There are also some who rush to exit due to panic during market pullbacks, without fully considering the overall market trend or fundamentals. Additionally, there is a common misconception: treating a particular trade as 'the opportunity that determines everything', thus falling into the mindset of 'must grasp it perfectly', even ignoring other potential trading opportunities. This psychological issue often stems from a trader's lack of confidence in their ability to execute their trading plan consistently. In contrast, top traders can avoid these traps because they firmly believe in their trading abilities and know that there are always new opportunities in the market. Why do traders have difficulties when exiting? Emotion-driven decisions: Many traders let greed or fear influence their judgment, failing to strictly adhere to pre-set rules. Lack of exit plans: Although entry strategies are carefully crafted, exits are often neglected. A successful trade requires not only a good start but also a good finish. Pursuing perfection: Some traders are obsessed with capturing the absolute top or bottom, which, although rare, often leads to suboptimal outcomes. The trap of betting everything: Treating a single trade as a decisive opportunity can create immense psychological pressure, resulting in execution errors or missing out on other better opportunities. What distinguishes top traders from the rest? Top traders place as much importance on exit as on entry. They know that market opportunities are endless, so no single trade can determine their success or failure. Their distinction is reflected in the following aspects: Formulating clear plans: They set clear profit rules in advance, whether it’s gradually reducing positions or exiting entirely when reaching stop-loss points, and they strictly adhere to them. Quick loss-cutting: When a trading hypothesis is proven wrong, they take action without hesitation, cutting losses in a timely manner. Avoiding the pursuit of perfection trap: They understand that it’s impossible to catch every top or bottom, so they focus more on consistency in trading rather than perfection. Maintaining rational objectivity: Each trade is merely a probability-based decision. With this mindset, they can face market volatility more calmly. Top traders never view any single trade as 'the opportunity that determines fate'. They focus on maintaining stable execution across multiple trades because they know that trading advantages only become evident over time, rather than relying on one high-pressure trade to achieve them. The key to trading is not in pursuing perfection, but in 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 can master the art of exit. Because they know that the key to long-term success is not perfection but stable execution and effective risk management. Related reports: AI Agent Investment Review: Hundredfold opportunities are not lacking, but decisive action is. JPMorgan: 'Devaluation trading' is in vogue, Bitcoin becomes a more important investment! Last year, $78 billion flowed into the cryptocurrency market, setting a record. Core investment themes in the crypto space for 2025: DeFi and AI 'Investment Philosophy: Four Principles to Master to Become a Top Trader' This article was first published on BlockTempo (BlockTempo - the most influential blockchain news media).