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In the trading world, success often stems from the right attitude towards profit. Many traders face a common dilemma: hesitating during losses and rushing to exit during profits. This approach leads them to find that by the end of a year's trading cycle, their accounts are either stagnant or have shrunk.
This so-called 'steady profit-taking' strategy may actually be stifling potential massive gains. True trading wisdom lies not in pursuing profit in every trade, but in the ability to quickly exit from incorrect judgments while staying true to the correct direction.
The significant growth of an account usually comes from a few large profits rather than frequent small gains. This is a strategy based on the odds structure rather than the win rate. The ideal design of a trading system should be: to tolerate multiple small losses, but when the trend is clear, it can fully capture the entire upward cycle to achieve a substantial profit.
Many traders view floating profits as an unexpected delight and are eager to cash out. This mindset often leads them to exit at the most inappropriate times, turning potentially successful trades into unfulfilled losses. In contrast, successful traders do not gamble on individual trades making money, but rather believe that the overall system structure will ultimately yield profits. Those trades that can be held for the long term and fully realize their potential are the true source of profit for the account.
The secret to stable profits lies in not setting your take-profit point at a position where you feel panic, but rather deciding when to exit based on market structure. Remember, decisive stop-losses are for survival, whereas allowing profits to continue growing is the true way to achieve profitability. Limiting profit growth too early is, in fact, hindering the returns that should rightfully belong to you.
Successful trading requires not only excellent strategies but, more importantly, the consistency of strictly following established rules every day. Many traders fail not because their strategies are flawed, but because they cannot adhere to trading rules day after day. Sticking to consistency is often more crucial than the strategies themselves.