Many people enter the market with the hope of turning things around quickly, dreaming of achieving financial freedom through all-in bets. But I’ve seen those who truly last in this industry—they share a common trait—they prioritize risk management above all. Why? Because only by surviving longer do you have the chance to encounter major market opportunities.
The method I personally use is called position splitting, in simple terms, "diversified entries." Divide your account funds into five parts, and each time only use one part to open a position, which means a single trade accounts for 20%. The corresponding rule is to set a stop loss of about 10 points. This calculation is very realistic: even if this trade turns out to be a mistake, the loss only accounts for 2% of the total funds. Even if you make five consecutive wrong calls, the overall account drawdown remains within 10%, which won’t seriously damage your capital. Conversely, as long as you get one trade right and hold onto the profit, it can offset the costs of several stop losses. Essentially, it’s about using small, controllable risks to gamble on larger potential rewards.
So how can you improve your win rate? My insight is: never fight against the trend.
"Follow the trend" may sound old-fashioned, but it’s actually the simplest and most effective way to increase your win rate. Look, trading against the trend—for example, trying to buy the dip in a clearly declining market—is like walking into a gunfight with a knife; the success rate is extremely low. True opportunities are actually hidden in every pullback within an uptrend.
How to identify the trend? I use moving averages, and the method is very straightforward. When the 3-day moving average turns upward, it indicates short-term momentum is recovering; when the 30-day moving average is rising, the medium-term trend is healthy; if even the 84-day and 120-day moving averages start to turn upward, it’s basically a signal that a long-term major rally is about to begin. In a clear uptrend, each pullback often presents a good entry point.
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ZKProofster
· 19h ago
honestly the 2% loss per trade math checks out, but let's be real—most people can't actually stick to it when they're down 5 in a row
Reply0
CommunityWorker
· 19h ago
After all these years, this is truly the only method that makes money, nothing else.
View OriginalReply0
ProbablyNothing
· 19h ago
You're not wrong; only by living longer do you have a chance to enjoy the big gains. Those who go all-in are all trying to get rich overnight, but they also die quickly.
View OriginalReply0
rugpull_ptsd
· 19h ago
Positioning is really a lifesaver. I used to go all-in with my entire funds and lost 30,000 yuan before I understood... Now, I limit each trade to 20%, strictly enforce stop-loss, and there's hope to break even.
Many people enter the market with the hope of turning things around quickly, dreaming of achieving financial freedom through all-in bets. But I’ve seen those who truly last in this industry—they share a common trait—they prioritize risk management above all. Why? Because only by surviving longer do you have the chance to encounter major market opportunities.
The method I personally use is called position splitting, in simple terms, "diversified entries." Divide your account funds into five parts, and each time only use one part to open a position, which means a single trade accounts for 20%. The corresponding rule is to set a stop loss of about 10 points. This calculation is very realistic: even if this trade turns out to be a mistake, the loss only accounts for 2% of the total funds. Even if you make five consecutive wrong calls, the overall account drawdown remains within 10%, which won’t seriously damage your capital. Conversely, as long as you get one trade right and hold onto the profit, it can offset the costs of several stop losses. Essentially, it’s about using small, controllable risks to gamble on larger potential rewards.
So how can you improve your win rate? My insight is: never fight against the trend.
"Follow the trend" may sound old-fashioned, but it’s actually the simplest and most effective way to increase your win rate. Look, trading against the trend—for example, trying to buy the dip in a clearly declining market—is like walking into a gunfight with a knife; the success rate is extremely low. True opportunities are actually hidden in every pullback within an uptrend.
How to identify the trend? I use moving averages, and the method is very straightforward. When the 3-day moving average turns upward, it indicates short-term momentum is recovering; when the 30-day moving average is rising, the medium-term trend is healthy; if even the 84-day and 120-day moving averages start to turn upward, it’s basically a signal that a long-term major rally is about to begin. In a clear uptrend, each pullback often presents a good entry point.