Traders holding $RIVER or $SOL, have you ever experienced this—despite having a guaranteed profit opportunity, you turn around and cut your position out of fear of volatility, only to see the market surge later, making you feel heartbroken? Conversely, when losing, you’re reluctant to admit defeat, dragging it out until your capital is completely wiped out.

Why does this happen? A common fatal mistake among beginners is over-focusing on the win or loss of a single trade. Staring at the candlestick chart, feeling uncomfortable with a small loss, eager to take profits with a small gain. The end result of this approach is your account being gradually eroded without even realizing it.

But what truly determines whether you can survive is not whether a single trade makes or loses money—it’s your overall profit and loss ratio.

So the solution is simple: before placing each order, force yourself to ask these three questions. What’s the maximum loss if I’m wrong? What’s the maximum profit if I’m right? Does the risk-reward ratio exceed 1? As long as this ratio isn’t attractive enough, no matter how tempting the market, you must hold back.

Of course, this ratio varies in different market environments. In a clear trending bull market, you can pursue more aggressive ratios like 2:1 or even 3:1, but in choppy markets, you need to be more conservative—1:1 or 1.5:1 is sufficient. My personal preference is 1.5:1—it’s not overly conservative, aligns with human nature, and is the easiest to execute without discomfort.

The key is to change your mindset. Professional traders never focus solely on how much they can earn from a single trade; they look at the long-term expected value of their system. As long as your trading system has a positive expectation, a few short-term losses won’t shake the overall picture.

Detach your mind from the gains and losses of individual trades and focus on long-term planning—you’ll be able to navigate the market more steadily and go further.