After observing many traders' account curves, I discovered a cruel pattern—most losses are not due to misjudging the market, but rather losing to one's own emotions.

You will see scenes like this: the moment the account turns green, heart rate spikes, fearing a reversal, and hurriedly closes positions to lock in profits. But then you realize it's just the beginning of a trend. During a bull market, Bitcoin often gains up to 20% before entering the mid-stage, yet traders are scared off by a 5% small profit and exit early. Conversely, when the account turns red, a different logic takes over—self-hypnotic "long-term holding," stubbornly holding through a 10% floating loss until the decline widens to 50%, at which point they panic-sell, missing the subsequent rebound.

**The Fragility of Trading Plans**

Most traders prepare thoroughly before opening positions—fund allocation, risk limits, entry and exit points are all in place. But in actual trading? When the K-line starts moving, rationality is instantly drowned by adrenaline. Essentially, fear and greed are at play—fear of losing profits when making small gains, and fear of increasing losses when losing big. Every market fluctuation tests your psychological bottom line.

**Two Iron Laws That Change Trading Outcomes**

My strategy is straightforward and brutal—break human instincts:

**Let profits run.** Establish a clear take-profit framework—for example, after buying a coin that rises 15%, set a retracement stop-loss. As long as the price doesn't fall back to the 10% support level, hold firm. If it continues upward, gradually raise the stop-loss, trailing the trend. The benefit of this approach is that you won't be scared out by minor pullbacks, nor will greed cause you to get caught on the wrong side of a reversal.

**Cut losses decisively.** Once the decline exceeds 5%, stop-loss immediately—no averaging down, no lowering the cost basis. This line may seem strict, but it forces you to precisely judge support levels when entering positions. For example, setting a stop-loss 2% below Bitcoin's previous low can effectively prevent being shaken out by oscillations.

**Why these two numbers?**

A 5% stop-loss is enough to filter out noise while being tight enough to alert you early if your judgment is flawed. A 10% or 15% stop-loss sounds more lenient, but often becomes an excuse for self-deception.

A 15% profit target suits most tokens' moderate volatility. This range won't cause you to miss the main upward trend nor trap you in greed. Mid-cap coins rarely double instantly, but 15%-30% gains in stages are common.

**Execution Is More Difficult Than Planning**

Knowing what to do and actually doing it are worlds apart. When your account shows floating profits, the urge to "wait a bit longer to earn more" is very strong. When floating losses grow, the psychology of "I've already lost so much, might as well hold on" easily takes over. Overcoming these requires constant discipline to fight human nature.

The volatility of the crypto market is already high; if you let emotions dominate your trading, you're fighting your biggest enemy (yourself) against the toughest opponent (the market).