The true dilemma faced by most traders: the fundamental difference between unrealized gains/losses and actual losses

Many people like to follow various trading bloggers’ profit and loss statements, but there is a truth that most people overlook: seemingly huge losses or gains are often the result of cross-exchange hedging operations.

Don’t Be Fooled by the Illusory Numbers on Bloggers’ Accounts

Most well-known bloggers’ large trading accounts actually employ cross-platform hedging strategies. This means they go long on Exchange A while short on Exchange B, and the final profit and loss on paper is just a surface number. Even if it shows a loss of millions, the actual real loss is limited to the transaction fees on each exchange. This mechanism has become standard practice for traders with sufficient capital and technical skills.

Every Dollar You Have Is Real Money

But you and I are different. As ordinary traders, even losing 10 USDT is a real loss. No cross-exchange hedging protection, no concept of tiny transaction costs—every wrong trading decision directly translates into real capital loss. This difference determines that we cannot withstand the large fluctuations on paper like bloggers do.

Stop Gossiping, Start Learning and Controlling

Instead of spending time analyzing whose account has a faster increase or whose strategy is more impressive, it’s better to focus on truly valuable areas: systematically studying trading books, deeply understanding market logic, and most importantly, establishing your own risk management system. For most retail investors, strictly controlling position sizes, setting reasonable stop-losses, and continuously learning trading knowledge are far more effective in protecting your funds than tracking bloggers’ updates. Remember, capital preservation is the top priority for profit.