Effective 3-Step Trading Strategy Anyone Can Use in Any Market
Writer: Abdullah Yasin (Date :29/05/2025)
Today’s financial markets move very fast, and relying only on luck won’t help you make consistent profits. To succeed, you need a clear plan with smart risk management. Here, I’m sharing a simple but powerful trading strategy that works across any market or platform.
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The Core Idea of the Strategy
This strategy groups every 3 trades into one complete cycle. Each trade is designed to work in different market conditions. When combined, these 3 trades help reduce risk and increase the chances of making a profit over time.
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Trade 1: Breakout-Based Long Trade
Enter this trade when you see a strong breakout signal in the market (meaning the price is suddenly moving up with volume).
The goal is to capture the upward momentum and make profit.
Aim for around 7.5% profit, with a 10% stop loss (meaning you limit your loss to 10% if the price goes against you).
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Trade 2: Short Trade on Overpumped Asset
Sometimes, an asset or coin pumps up very quickly beyond its normal price. This trade takes a short position expecting a price correction or drop soon after.
This trade works well especially during market crashes or when prices fall sharply.
The profit target and stop loss remain the same: 7.5% profit target and 10% stop loss.
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Trade 3: Long-Term Passive Position
From the profits of whichever trade closes first, you open a small, low-risk, long-term position.
The liquidation or stop price is set far away so that short-term market dips do not close this position.
This trade is designed to be held indefinitely, growing slowly over time without frequent changes.
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Managing Risk Smartly
Statistically, only about 1 out of every 3 trades hits the stop loss (i.e., loses money).
Profits from winning trades cover fees and fund the next set of trades.
The long-term trade is “liquidation-proof” by keeping its size small and growing it only from profits, not new money.
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What Happens Over 100 Trades? (Simulation)
Out of 100 trades, assume 33 losses and 67 wins.
Each winning trade gives about 2.25 units of profit (including margin fees).
Each losing trade costs about 3 units (including fees).
After 100 trades, the net profit is about 51.75 units, which means roughly 35% return on investment.
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Why This Strategy Works Long Term
1. Protects Your Capital: The third, long-term trade acts as a safety net, surviving big market drops.
2. Self-Funding Cycle: Profits from winning trades are reinvested to fund future trades, so you rarely need to add new money.
3. Built-In Hedging: Losses from one trade are often balanced by gains in another, reducing overall risk.
4. Less Stress: Lower risk of losing everything helps you stay calm and disciplined in trading.
Final Thoughts
This 3-step trading strategy is more than just a method — it’s a system that sustains itself by smartly balancing risk and reward. Any trader, beginner or experienced, can apply this in any market to grow their capital steadily and safely.
