Many people often lose money in trading, and one of the fundamental reasons is not poor skills, but rather — you simply do not know what kind of trading you are doing.
📉 Signal mismatch, stop-loss placement, and inability to hold profits are essentially because you haven't clarified:
Are you doing day trading, short-term trading, swing trading, or trend trading?
🔍 What are the benefits of understanding your trading type?
1️⃣ Matching the correct time frame
You won't use a 1-minute signal to gamble on a trend that lasts for months.
2️⃣ Clarifying position rhythm and take-profit/stop-loss
Different trading types have completely different position sizing and risk management logic. Mismatching will lead to being washed out or getting stopped out prematurely.
3️⃣ Enhancing system stability and emotional control
Trading is no longer random; every trade aligns with the plan, making your mindset stable, and gains and losses become more logical.
❌ Warning of counterexamples: The root cause of most losses is entering with short-cycle signals while fantasizing about long-term trend gains, or the opposite — focusing on a long cycle to see trends but unable to withstand short-cycle fluctuations leading to stop-losses.
Take a look at this table👇