Many beginners, upon entering the trading market, their first reaction is to frantically learn various technical indicators. Candlestick patterns, death crosses and golden crosses, volume-price relationships, chip distribution... They think that mastering these "secret weapons" will lead to profits. But what’s the result? The more indicators they learn, the more they lose.
I have also taken this wrong turn. I spent a lot of time studying various technical tools, only to find that they are like playing a numbers game—no matter how sophisticated the indicator, it cannot save a trader without a trading system. Only later did I realize that technical indicators are not as sacred as they seem. They are useful, but definitely not decisive.
Trading is a systematic project; technical analysis is just one part of it. The real factor that determines whether you can survive in the market is someone else entirely.
**Risk control is the foundation of trading**
If trading is a building, then risk control is its foundation. No matter how good the technicals are or how precise the analysis, without risk management, a single huge loss can knock you out. Many people don’t understand this until they are painfully educated by the market.
The core of risk control is stop-loss. These two words sound simple, but for most beginners, implementing them is a nightmare.
The biggest common problem among beginners is refusing to set stop-losses. When they lose, they want to hold on, hoping the market will "show mercy," and that prices will turn around and rise again. Sometimes, there is indeed a rebound, which makes people even more convinced that "holding on stubbornly works." But in reality, stubborn holding often leads to ruin halfway through. Once a liquidation is triggered or the price breaks through a psychological threshold, regret comes too late.
The meaning of a stop-loss is like wearing a bulletproof vest. It might hurt when hit, but at least you survive. In the trading market, survival is the top priority. Only by surviving can you tell the story later.
**Take profit is equally important**
After solving the stop-loss issue, you still face the challenge of taking profits. Many people get the direction right and choose good entry points, but when a trend develops, they end up not making any money. What’s the problem? They take profits too early.
Market movements often follow a pattern of three waves and step-backs. When prices rise, beginners see floating profits and rush to close their positions. Little do they know, these fluctuations are normal adjustments within a larger trend. Acting this way, they are likely to miss the real big moves.
Without a large profitable position to support, small gains won’t accumulate into significant returns. The key is to hold onto your positions and allow profits to fully develop.
**What is a reasonable stop-loss and take-profit?**
There is no standard answer to this question. Different risk tolerances, trading cycles, and capital scales mean that suitable stop-loss and take-profit ranges vary. But one thing is certain: any reckless decision is more dangerous than a well-paced, thoughtful one.
Trading requires not luck for a moment, but a long-term system and discipline. Technical indicators are just auxiliary tools; true competitiveness comes from your trading system—whether it can effectively control risk and help you survive longer amid uncertainty.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
19 Likes
Reward
19
6
Repost
Share
Comment
0/400
ZKProofEnthusiast
· 23h ago
Well said. I'm the kind of person who loses money despite learning a bunch of indicators. Now I understand that armchair strategizing is useless.
View OriginalReply0
GasFeeLover
· 23h ago
Going all out can really get you killed; this is no exaggeration.
View OriginalReply0
WalletsWatcher
· 23h ago
To be honest, I used to be brainwashed by indicators too. I learned a bunch of stuff, but I still got beaten up by the market... Risk control is truly a matter of life and death.
View OriginalReply0
HashRateHermit
· 23h ago
Damn, this is how I was educated by the market. I learned a bunch of indicators but still lost money.
View OriginalReply0
UnluckyMiner
· 23h ago
Well said. I was previously cut by indicators like this, holding on through several risky moments and almost being liquidated before I finally understood.
View OriginalReply0
HalfIsEmpty
· 23h ago
Damn, it's the same old story. More indicators actually lead to losses? I feel like fewer indicators also lead to losses haha
---
Stop-loss is a good point, but only a few can really hold on
---
Small profits to run, big profits missed, everyone is familiar with this cycle
---
I've heard too many talks about system discipline, but the key is that no one can actually implement it
---
The bulletproof vest analogy is good, but most people simply can't wear it
---
The foundation of risk control is well explained, but no one wants to lay it out
---
The myth of technical indicators definitely needs to be broken, but without a system, there's no hope
---
Living > Making money, this hits the nail on the head
Many beginners, upon entering the trading market, their first reaction is to frantically learn various technical indicators. Candlestick patterns, death crosses and golden crosses, volume-price relationships, chip distribution... They think that mastering these "secret weapons" will lead to profits. But what’s the result? The more indicators they learn, the more they lose.
I have also taken this wrong turn. I spent a lot of time studying various technical tools, only to find that they are like playing a numbers game—no matter how sophisticated the indicator, it cannot save a trader without a trading system. Only later did I realize that technical indicators are not as sacred as they seem. They are useful, but definitely not decisive.
Trading is a systematic project; technical analysis is just one part of it. The real factor that determines whether you can survive in the market is someone else entirely.
**Risk control is the foundation of trading**
If trading is a building, then risk control is its foundation. No matter how good the technicals are or how precise the analysis, without risk management, a single huge loss can knock you out. Many people don’t understand this until they are painfully educated by the market.
The core of risk control is stop-loss. These two words sound simple, but for most beginners, implementing them is a nightmare.
The biggest common problem among beginners is refusing to set stop-losses. When they lose, they want to hold on, hoping the market will "show mercy," and that prices will turn around and rise again. Sometimes, there is indeed a rebound, which makes people even more convinced that "holding on stubbornly works." But in reality, stubborn holding often leads to ruin halfway through. Once a liquidation is triggered or the price breaks through a psychological threshold, regret comes too late.
The meaning of a stop-loss is like wearing a bulletproof vest. It might hurt when hit, but at least you survive. In the trading market, survival is the top priority. Only by surviving can you tell the story later.
**Take profit is equally important**
After solving the stop-loss issue, you still face the challenge of taking profits. Many people get the direction right and choose good entry points, but when a trend develops, they end up not making any money. What’s the problem? They take profits too early.
Market movements often follow a pattern of three waves and step-backs. When prices rise, beginners see floating profits and rush to close their positions. Little do they know, these fluctuations are normal adjustments within a larger trend. Acting this way, they are likely to miss the real big moves.
Without a large profitable position to support, small gains won’t accumulate into significant returns. The key is to hold onto your positions and allow profits to fully develop.
**What is a reasonable stop-loss and take-profit?**
There is no standard answer to this question. Different risk tolerances, trading cycles, and capital scales mean that suitable stop-loss and take-profit ranges vary. But one thing is certain: any reckless decision is more dangerous than a well-paced, thoughtful one.
Trading requires not luck for a moment, but a long-term system and discipline. Technical indicators are just auxiliary tools; true competitiveness comes from your trading system—whether it can effectively control risk and help you survive longer amid uncertainty.