First, a high win rate ≠ making money. Don't be numb to small profits while ignoring huge risks. For example: trading 10 times, winning 1000 yuan each of the first 9 times, and losing 20,000 yuan on the 10th — a win rate of 90%, resulting in a net loss of 11,000 yuan.
Second, the more it drops, the more you buy? This is a typical gambler's fallacy. The leveraged market never cares about your cost; only the market knows where the bottom is. Your guess is just an illusion.
Third, becoming arrogant and increasing positions after making profits. Mistaking luck for skill, removing stop losses, increasing leverage, and encountering a black swan on the next trade could lead to direct liquidation.
How to reverse your perception? You must master these three points:
When the risk-reward ratio is >3:1, a win rate of only 28% can still lead to profits.
After a single profit, actively reduce positions by 50%. Additional positions can only be added on the basis of existing profits, and each additional position should not exceed 50% of the previous position.
When facing consecutive losses, decisively pause trading to break the cycle of revenge.
Only by overturning cognition can one survive in this market.
There are no myths of instant wealth here, only the survival rules of steady progress.
Old Chen wishes you smooth trading.$ETH $BTC #币安HODLer空投HEMI
