Understanding market risk starts with knowing what risk actually is.

We often talk about policy risk, systemic risk, trading risk, liquidity risk, operational risk, among many others. But at the end of the day, from a technical perspective, all risks ultimately manifest in one place—price fluctuations. For example, a certain coin might look very attractive based on its P/E ratio, but if its price keeps surging, the only way to assess risk is through trend charts; other parameters take a backseat.

However, there's a crucial premise that cannot be ignored: the asset you are trading must continue to exist within a foreseeable timeframe. Take daily chart trading, for instance—if trading stops after a week, all theories become useless because the fundamental condition no longer exists. Conversely, if you're trading on a 1-minute chart, even if the asset is delisted after a week, technical risk can still be managed.

What truly cannot be defended against is the sudden halt of trading. This is the biggest weakness of technical analysis. Some markets even go further—canceling trades outright. Sounds like a fairy tale? In immature markets, this is not uncommon.

Therefore, when trading with technical methods, the only two issues to watch out for are: Will trading continue uninterrupted? And do unrealized gains and losses finally count? For assets at risk of being delisted soon, no matter how good your technical analysis is, it’s all in vain.