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Trading this way, you're destined to lose money‼️ Are mainstream market teachers who give signals trapped in a win rate trap? What's the paradox between doing traffic and trading?
This picture is a recent screenshot of a well-known expert resisting a trade. I’ve organized the content I discussed with him for everyone; it’s very helpful. I hope your serious trading mindset is the key to ultimately forming your own trading system. This is what I’ve been telling everyone.
I give you a point to open a position, ensuring you get the correct long or short signal for the moment, but I cannot guarantee that your profit curve will stay steadily upward.
This is why I’ve always emphasized the importance of risk-reward ratio, win rate, and position management in my articles.
Yesterday, during private messages with fans, I reiterated this issue again.
There are mainly two types of signal-based trading: one is to loosen stop-losses to pursue a high win rate, even not setting a stop-loss to resist a losing position and risking liquidation, just to chase a 99% win rate, winning 99 trades and losing the last one, which causes a margin call.
The second is what I mentioned—narrowing the stop-loss, lowering the win rate, and increasing the risk-reward ratio.
You can understand it this way: the width of the stop-loss and the win rate are inversely related. When your stop-loss is infinitely widened, your win rate will infinitely increase. When your stop-loss is infinitely narrowed, your win rate will infinitely decrease📉.
At the same time, there’s the take-profit issue. When your take-profit is infinitely small, your win rate is infinitely high. But every time you double your take-profit, your win rate at least halves📉.
This is the real truth of trading, and it’s why I keep emphasizing win rate and risk-reward ratio.
Mainstream traders in the market are actually very aware of this principle. But applying it to traffic generation is another matter. If you insist on this narrow stop-loss, wide take-profit strategy, your win rate will drop to an extremely low level.
There’s also another problem: a trade with a narrow stop-loss and high take-profit isn’t always executable.
You have to wait for the right moment—maybe days, maybe a week—before an opportunity appears.
This is also why sticking to correct trading prevents you from gaining traffic. I’ve persisted in doing this until today, and I still have traffic and followers, ranking among the top in the community. I feel very fortunate. But looking back, if I had chosen a high win rate signal strategy, maybe my followers and traffic would be bigger, and I could make more money by “cutting leeks.”
But I didn’t choose that. No matter what, people don’t beautify the unchosen path. So I believe that sticking to correct trading has brought me more growth in trading skills. Over the past two years, my trading level has improved as if I’ve been cheating, and I think it’s worth it.
But today, my trading ability has reached a peak. I am more willing to bring more valuable and meaningful insights to market newcomers and traders. So I speak more objectively and practically about this matter. Whether for KOLs or retail traders, I try to be as truthful as possible. I believe that a normal person—even a KOL—who reads this article will recognize and agree with this view and statement sincerely. Only a scoundrel who does anything for money would disagree.
So I want to tell many retail traders: the market always contains paradoxes. If you choose correct trading, you accept a low win rate. If you want instant satisfaction, then choose a high win rate.
The same logic applies to KOLs: if you want traffic, do short-term high win rate trading, loosen stop-losses, narrow take-profits. Traffic comes quickly. If someone wants to criticize you, just let them.