In the trading market, 99% of retail investors blow up not because of poor skills, nor because of inaccurate indicators.

The real reason is: You don't understand defense at all.



In the trading market, 99% of retail investors blow up not because of poor skills, nor because of inaccurate indicators.

The real reason is: You don't understand defense at all.

You spend time studying MACD, KDJ, Bollinger Bands, chip distribution... none of this is wrong. But these are merely offensive tools. What truly determines whether you can survive in the long run is always the defense mechanism, which is your own and a complete trading system.

1. Retail investors only learn offense, professionals only think about defense

99% of retail investors in the market are thinking, 'How should I make money in the next wave?' A mature trader is always thinking, 'How can I avoid dying?'

Do you know the 'best strategy is to retreat' from the 36 stratagems? How many deceptions have you seen between emperors in history? You will find that those who survive are never the strongest, but those who are best at defense.

The market is also a war; the only difference is that there are no smoke and fire here, only the slaughter of capital. You think this is a game to make money, but in fact, it’s a matter of who can survive the longest.

2. Not understanding stop loss = Not worthy of trading

Have you ever thought that your so-called 'averaging down', 'Martingale strategy', 'not setting stop losses', and 'going against the trend' are not actually errors on a technical level, but inevitable manifestations of human nature being manipulated?

You are not losing to the market, but to yourself.
You are not losing due to technique, but due to unwillingness, stubbornness, and refusal to admit mistakes.

Every time you modify your stop loss, every time you hold onto a position and refuse to accept the loss, that is not trading — that is gambling.

3. The bottom line of defense: If losses exceed 5%, forced exit!

Scientific research shows: Once an account loses more than 15%, it is highly likely to go to zero.

So:

If losses exceed 5% on the same day, immediately stop trading for 3 days.

You can't do it? That's okay, you first 'know' this rule. Trading is a road to maturity; if you don’t listen at the beginning, after walking a lot, you will believe it.

True growth is never in profit, but in each time you endure the impulse to trade and force yourself to calm down for those few days.

Do not place orders, but continue to observe the market and reflect on your mistakes.
This period of 'watching without acting' is when you grow the fastest.

4. All technical indicators serve the purpose of 'surviving'

I can say with confidence:

All technical indicators and analytical methods fundamentally serve one purpose — to keep you alive.

There will always be someone in the market saying, 'I recently watched which forum, which teacher, which strategy, should I learn it?'

Have you ever thought that what you really lack is not 'strategy'? What you lack is a human firewall that allows you to 'resist adding to your position' when losing money, and 'decisively exit' when losing two trades in a row.

A trading system is not a tactical issue, it is a philosophical issue.
It's not about how much you want to earn, but whether you can avoid losing everything.

5. Etch these three sentences into your bones

  1. "All stop losses are for survival."
    — This sentence is worth 100,000.

  2. "Plan your trade, trade your plan."
    — Don't rely on others, rely on yourself. Don't casually ask in this group or that group; you should ask yourself.

  3. "Fools are always in groups, while the strong are lonely."
    — Experts do not join the fun; they evolve in silence.

6. Do you want to survive, or do you want to show off?

I know that many people now are 'crazy about making money', thinking every day 'I want to double my next trade', without considering 'If this trade goes wrong, how much capital do I have left?'.

But let me tell you one thing:

Trading is never about who makes more money, but who loses less and who survives longer.

A sniper can wait ten hours just to hit a target with one bullet.
What about you? After 5 minutes without a trade, you start getting itchy, opening one position after another, only to be taught a lesson by the market.


So, fellow students, the road ahead is long, let's work hard together 💪

[Every night at 9 PM Beijing time, Binance Square live stream. If Binance doesn't offer cashback, feel free to contact me for cashback, join the BiYou community] Love you all ❤️