Why are retail investors prone to crashing?

Ultimately, it's not a lack of skill, but simply not fully understanding the risks.

Recently, I restructured a risk framework for a follower. The capital size isn't large, but their execution is strong, and after half a year, the account has clearly stabilized.

The key point is: first, think clearly about how much you could lose at worst, then talk about how much you can earn.

Many people, once they enter the market, only think about "how high it can go," never considering "what if I'm wrong." When the market turns, their mindset instantly collapses.

My own trading logic is very simple.

When trading contracts, position sizes must be small, and stop-losses must be quick. It's like walking on a knife's edge—set clear boundaries for yourself, and exit immediately when hit. It may seem like each profit is small, but through repeated accumulation, the account naturally becomes stable.

Spot trading is different. To catch swings, you must accept the intermediate volatility. Place stop-losses at truly "survival points," and once the structure breaks, walk away without hesitation.

Take profits in stages, and let the rest follow the trailing stop-loss. No one can sell at the absolute top, but selling at a high level is already a win.

In the end, position size is the foundation of everything.

With a small position, your mind can still think; with a large position, even breathing becomes distorted. Trading large positions without stop-losses is gambling with your life.

Stop-loss isn't wasting money; it's insurance. Taking profits isn't greed; it's the market rewarding you.

Every trade should be treated as if the worst-case scenario will happen. First, solve the problem of "how to lose," then consider "how to earn."

Opportunities are always there, but if your capital is gone, no matter how good the market is, it doesn't matter to you.

Whether this round of market can repair your account ultimately depends not on the market itself, but on whether you have taken risk management seriously.