The Golden Rules Helped Me Become a Successful Trader and Protect Capital

When I first stepped into the trading market, I consistently suffered losses. I blamed the market, luck, and even advice from experts. But then I realized a simple yet extremely important rule: “Never enter a trade without an exit plan.” Although it may seem obvious, many traders still overlook this. Here’s why having an exit plan is important and how you can apply it to your trading strategy. Why Is Escaping Order Important? Hope Is Not a Strategy Lack of profit target: If you buy without specifying a specific selling price, you may be driven by emotions and hold onto the stock for too long, leading to a gradual loss of profit. Not using stop-loss: Not setting a stop-loss level can turn a small fluctuation into a large loss, negatively impacting capital. Ignoring profit-taking: Sometimes, the market can fluctuate rapidly. If you do not take profit in time, a trade can turn into a serious loss. Real-life example: I once bought SOL hoping for a big profit. When the price surpassed $200, I didn’t take profits in time. As a result, the price dropped to only $8. The lesson learned is: if you don’t know when to take profits, the market will “take” profits for you in a different way. 4 Smart Order Exit Strategies

1. Order Exit Strategy by Level (Ladder Exit Strategy) Method: Divide the transaction into multiple parts and sell at different price levels. For example: Buy SOL at $20. Sell 25% of the quantity at $40 for (2x profit), Sell another 25% at $60 for (3x profit), maintain the remaining part with a gradually adjusting stop loss level (trailing stop). Benefits: Help you lock in profits incrementally and minimize risk when the market suddenly reverses.
2. Stop-Loss ( to Protect Capital Method: Set a stop loss level about 10-15% below the initial purchase price to limit losses. Example: Buy LINK at $12, Set stop-loss at around $10.50. Benefits: Helps you avoid shocks from large price fluctuations and protect your investment capital.
3. Moon Bag Strategy Method: Take profit of the initial investment when reaching 2x or 3x profit, and keep the remaining part as “priceless” because the profit is guaranteed. For example: Buy HBAR at $0.15, Sell a portion when it reaches $0.30 for 2x profit, Keep the rest and benefit from any price increase. Benefits: When locking in the capital profit, you only need to worry about the profit part, helping to reduce trading pressure and psychology.
4. Time-Based Exit) Method: If the transaction does not show positive developments within 3-5 days, consider closing the deal and moving on to another opportunity. Benefits: Suitable for currency pairs with strong fluctuations such as DOGE, SHIBA, and XRP, helping you avoid getting ‘stuck’ in unprofitable trades. Conclusion: Plan Ahead or Miss the Chance Trading without an exit strategy is like gambling. If you don’t know when to take profit, you are simply “hoping” the market will move as desired without a specific strategy. Remember: Plan ahead before placing an order. Take profit at the right time to protect profits. Set a stop loss to limit losses. By applying these intelligent exit strategies, you not only optimize profits but also protect your investment capital from unpredictable market fluctuations. 💬 Have you applied any exit strategy in trading? Please share your experience below!