An old buddy DM'd me: "I've got the right direction, my timing isn't off, but my account just won't grow—when I make a little, I panic and bail, but when I lose, I stubbornly hold and refuse to cut."

I took a look at his trading records and just said two things: be more ruthless with your stop-losses, and more disciplined with your take-profits. Three months later, this guy went from $4,000 to just over $50,000—a more than 12x increase.

The logic is actually really simple—first, lock in "the most you can afford to lose," then think about "how much you can make." Too many people focus on fantasizing about returns right from the start, completely ignoring risk limits. No wonder they wipe out.

**For short-term trading: stop-losses need to be razor-thin**

As soon as you use leverage, losses must be capped to the limit. When I trade ETH short-term, I stick to fixed profit targets, and the moment my loss line is hit, I cut immediately—never giving myself a chance to make excuses. Small profits add up over time; consistency is key.

**For mid-term positions: let rules handle the volatility for you**

Want to catch a move of dozens of points? Then you have to withstand the chop. Mark your key support levels as "lifelines" in advance; as long as the structure isn't broken, hold on for dear life. Take partial profits at high levels, and set trailing stops for what's left. Don't trust your feelings, trust your rules.

**Position sizing: risk management is more important than being right**

With $3,000 to test, your mindset is relaxed. Go all in with $9,000, and your margin for error is zero. The heavier your position, the more likely you are to get shaken out by minor swings, leading to reckless trades. Your loss tolerance determines your position size—this is a hard rule.

Stop-losses are insurance for your principal; take-profits are the market's reward for you. For every trade, figure out your exit plan first, then calculate potential gains. The market will always have opportunities, but your capital only has one "can't lose" chance.

What you might be lacking isn't skill, but a trading system that keeps you alive.