THE GOLDEN RULE THAT HELPS ME SUCCEED IN TRADING AND SAVE THOUSANDS OF USD.
(This article summarizes what both new and old traders should read)!
When I started trading, money kept flowing out of my account non-stop. I used to blame the market, bad luck, or even the influence of experts. But then, I realized one thing:
👉 "Never enter a trade without an exit plan."
Surprisingly loud, yet most traders overlook this rule. Let's find out why it is so important.
🚨 Problem: Hope is Not a Strategy
Many believe that just 'hoping' the market will return to a favorable trend is enough. In reality, having no exit plan is like gambling without a fixed table:
Buying without a price target: You can hold forever, watching profits vanish over time.
Not placing a stop-loss order: A single wrong move can wipe out all your profits in an instant.
Ignore taking profits: It may seem like a trade has increased by 200%, but in the end, only 20% of the actual profit remains.
I once went through the painful lesson of buying $SOL, witnessing the price soar above $200… only to fall like rain, down to just $8. The valuable lesson is: If you don't proactively take profits, the market will 'take profits' for you!
✅ Solution: Smart Exit Strategy
Before entering a trade, always determine a clear exit path. Here are some strategies that I have successfully applied:
🎯 1. Ladder Exit Strategy
How to execute: Sell 25% of the amount at a 2x profit level, sell another 25% at a 3x level, and let the remaining part run with a trailing stop order.
For example:
Buy Solana (SOL) at $20
Sell 25% at $40
Sell 25% at $60
The remainder is protected by a stop-loss order, for example set at $50
🛑 2. Stop-Loss Order to Protect Capital
How to execute: Set the stop-loss level about 10-15% below the purchase price to limit the risk of heavy losses.
For example:
Buy LINK at $12
Set a stop-loss order at $10.50
This way, if the price drops, you won't incur heavy losses like when the price falls to $7.
💰 3. 'Moon Bag' Strategy
How to execute: Sell the initial investment part when reaching a profit level of 2x or 3x, then hold the remaining 'free' part.
For example:
Buy HBAR at $0.15
When it reaches $0.30, sell half of the amount
The remainder becomes 'risk-free money' because the initial capital has been recovered.
📊 4. Time-Based Exit Strategy
How to execute: If the trade does not show significant volatility within 3-5 days, consider exiting and looking for new trading opportunities that have a stronger trend.
Note: This strategy is suitable for highly volatile coins like DOGE, SHIBA, or XRP.
🔥 Conclusion: Plan – Not Planning Only Brings Risk
Trading without an exit plan is like betting against fate. When you haven't determined how to take profits or cut losses in advance, you are just 'hoping' instead of 'strategizing'.
Remember:
✅ Entering a trade must come with a clear exit strategy.
✅ Take profits timely while others are busy chasing hype.
✅ Cut losses early to avoid turning risks into disasters.
💜💜💜 However, limit chasing after purchases, swapping between coins when seeing rises and falls because you will always realize that good value coins will rise again just after you sell them for short-term profits or swap/change, and you will have to buy back at a higher price! Depending on the situation and position you participate in the market and the items you hold, I still encourage holding with risk management! 💜💜💜
