Lately I've been thinking about a question: why do some people never make money in cryptocurrency trading? I realize that many people simply don't develop the habit of setting take-profit and stop-loss orders.

Honestly, the concepts of take-profit and stop-loss seem simple, but they can truly change your trading results. Take-profit means decisively exiting when you're making money, not being greedy and waiting for a bigger rally. Stop-loss is about facing reality—cutting losses at a certain point to prevent losing even more. These two seemingly opposite actions are actually based on the same logic—protecting your principal.

I've heard too many stories. Some see the price go up and think it will rise further, only to see it fall back down, wiping out all their gains. Others stubbornly refuse to stop-loss, ending up with losses they can't bear. All of these are caused by a lack of discipline.

If you set your take-profit and stop-loss levels, the system will automatically handle your trades, completely eliminating human greed and fear. When the price hits your preset conditions, the order executes automatically, so you don't have to stare at the screen and hesitate. The benefit of this is that you can gradually find your own trading strategy because you have clear numerical records, which help you judge whether your strategy is effective.

Here's a practical example. Suppose you buy a coin at 1,000 yuan and want to make 200 yuan profit, so you set your take-profit at 1,200. But if you can only accept a maximum loss of 100 yuan, you can't just place a sell order at 900, because at the current market price of 1,000, it would execute immediately. Instead, you need to use the trigger price concept: set a trigger at 900 and a stop-loss at 890. When the price drops to 900, the system will place a sell order at 890.

There's also an advanced method called trailing stop-loss. Instead of sticking to a fixed price, you set a relative distance. For example, set a trailing stop-loss of -200. If the price rises to 2,000, the stop-loss moves up to 1,800. When the price later drops to 1,800, the stop-loss triggers, and you've effectively gained 800. When the price moves favorably, the stop-loss moves along to protect your profits—that's the smart way to do it.

Many trading platforms offer take-profit and stop-loss functions, which can be set when placing orders. Some platforms even distinguish between market orders and limit orders: market orders execute immediately at the current market price, while limit orders only execute at your specified price. Which to choose depends on your strategy.

Most importantly, take-profit and stop-loss are not just risk management tools—they also help stabilize your trading mindset. Because everything is preset with specific numbers, there's no room for last-minute changes of mind. Persisting with this discipline over the long term allows you to see whether your strategy is truly effective and helps you survive longer in the market.

If you're still struggling with how to set your take-profit and stop-loss levels, my advice is: set your take-profit where you feel satisfied with your gains, and set your stop-loss where a loss would make you feel pain. This isn't a math problem; it's about your risk tolerance.