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Top-tier trading insights for practical traders, a must-watch for loyal fans‼️ If the chief's analysis is so accurate, why do I still like to set stop-losses during trading? How to maximize trading profits
Today I received a question: what is the most profitable way to trade, and how to balance accurate analysis with making money in trading
I also wanted to take some time to talk to everyone about this, and I’ve repeatedly discussed it with the big players around me
This statement is worth a thousand gold pieces. Roughly, today I saw a retail trader ask me, and last month another retail trader asked me the same: "Chief, your analysis is so accurate, why do you still set stop-losses in your group trades? Are you lying to me? Are you fooling me?"😂 Sometimes I hear this question and feel both helpless and heartbroken. Helpless because I can't change everyone's perception of trading; heartbroken because I share my most passionate and best trading system with everyone, yet I still have to face the distrust of newcomers who are unaware
First, I want to answer with a premise: I can publicly share a full month of market forecasts in advance through online posts. Do you think I need to fake anything? I post these analyses in an internal community, then set a threshold for entry. I could harvest profits from naive traders, but I choose to share these precise, professional analyses for free publicly. That answers the first question.☝🏻
Second✌🏻: Why is it that you see me openly sharing analysis ideas so impressively, but when you come to me for some trade signals, you see stop-losses? Because accurate analysis and maximizing profits after accurate analysis are two different things. I might identify resistance levels, support levels, how to trade after a breakout, whether to place pending orders, or trade on the right side—multiple trading methods.
In other words, a single analysis can lead to multiple trading approaches. Which are left-side trades and which are right-side trades? To maximize profits, they differ. Left-side trades can have narrow stop-losses and large positions to maximize profit, while right-side trades can only have small positions with wide stop-losses to maximize win rate.
This results in different trading styles with varying profit sizes. In actual trading, more important than analysis is the size of the position and the width of the stop-loss. We aim to find a long-term strategy where position size and stop-loss are harmonized to produce the highest profits, rather than changing the entire mature trading mindset just for one analysis.
All these points—due to word limits—ultimately, analysis is just surface-level. Truly maximizing profits from analysis is another matter. I will write more about this when I have time.