Having navigated the ups and downs of cryptocurrency trading for years, I’ve accumulated some insights. Today, I want to honestly discuss a topic: why do experts follow the fundamental logic of "not chasing small profits, avoiding huge losses"?

Many people ask me how I manage to keep my trading relatively stable. The answer is quite simple—it’s about sticking to major market trends. Weekly and monthly charts serve as a lighthouse for ordinary investors.

We don’t have insider information, nor can we keep pace with institutional players. The only thing we can trust is the market itself. When the weekly or monthly charts show clear reversal signals, entering the market decisively at that moment can significantly increase the chances of success.

In contrast, shorter timeframes like daily or especially 15-minute charts are as volatile as unruly horses. Constantly watching these small fluctuations and trading on them often results in frequent stop-loss triggers, increasing losses, damaging your mindset, and eventually trapping you in a vicious cycle.

When I first started, I was quite confident, thinking I could catch every subtle rebound—whether it was a fraction of a percent or a short-term correction—and wanted to profit from them. But the market taught me a lesson—after repeated setbacks, I shifted from "overconfidence" to "extreme caution."

Later, I realized that the market itself is a collection of uncertainties. Humans are naturally risk-averse and tend to fantasize about "winning every battle." The result is constant trading and continuous losses.

Trying to make small profits but being too lazy to set stop-losses, hesitating when it’s time to cut losses, ultimately leads to small losses turning into big ones—this is a classic case of "greed for small gains, losing big."

Trading ultimately is a battle against human nature. If you fear losses, set stop-losses early at high-risk points and refuse to hold losing positions; if you want big gains, you need patience and give profits enough room to run; if you always try to pick up tiny gains, you will inevitably miss out on bigger opportunities.

Everyone who has been in this industry for a while understands one principle: stay away from the temptations of short-term fluctuations, focus your energy on major trends and larger timeframes, and only trade opportunities that meet your rules.

The key to successful trading isn’t complicated: cut small losses quickly and let big profits grow. As long as you resist the temptation of tiny gains, you can avoid falling into the trap of huge losses. Walking this path correctly, the power of compound interest will gradually reveal itself.