How many people have you seen who only consider how much they can make before placing an order, never asking themselves how much they might lose? When the market suddenly turns, their mindset collapses first, and their accounts are gone immediately.

I once helped a trader outline a complete plan. The initial capital wasn't large, but after three months, the account was operating stably. The key point is: you must first anticipate the worst-case scenario, then consider the profit potential.

My trading framework is actually very straightforward. When doing short-term trading, light positions are a must, and stop-losses must be decisive. Take profits at 5%, and close immediately if you lose 3%. Don't leave any room for greed or fear. For spot swing trading, set stop-losses at key support levels; if broken, exit unconditionally. When making profits, take partial profits in stages, and let the remaining position follow a trailing stop to capture more gains.

Many people lose not because they see the wrong direction, but because their positions are too heavy. The danger of heavy positions is that any small fluctuation gets amplified into psychological collapse. When your position is light, you can stay clear-headed and make rational decisions.

Two rules you must remember:

Stop-loss is not about giving up, but about avoiding fatal losses at the smallest cost. From the moment you open a trade, you should calculate the maximum loss possible.

Taking profits is not greed taking over; it's about locking in gains within a controllable range. No one can sell perfectly at the top, but partial profit-taking can preserve most of the gains.

There are many opportunities in the market, but if your principal is gone, even the best market conditions won't matter to you. Whether you can turn the situation around this round depends not on how fierce the market is, but on whether you have managed risk properly upfront.