Many novice traders often think that as long as they judge the correct direction, they can make money. In fact, this is the biggest misconception. In the world of short-term trading, the importance of price selection is often greatly underestimated.

To be honest, whether a trade is profitable or not is influenced by many factors, but the most critical and easily overlooked one is the price at which you enter the market. Price is not a static number; it fluctuates with different trading volumes at different times, showing upward or downward tug-of-war in various ranges. Choosing the right entry price can significantly reduce the probability of floating losses and avoid being stopped out; choosing the wrong one, even in the right direction, can lead to being trapped. If you are still trading with a capital preservation mindset, a precise entry price can help you maximize leverage efficiency.

Now, let's talk about some common high-risk trading methods.

The first type is to focus solely on the direction without regard to the price. These traders have a simple and crude trading process: glance at a candlestick chart, make a rough judgment in their mind, and then go all-in. They have no trading plan and no stop-loss setup, and they open positions at market price directly. If they use small leverage, they can still bear the psychological pressure; but once they use high leverage, even small fluctuations of 1-2% can create enormous psychological and financial stress. The final result is either a margin call or heavy losses.

The second type appears more professional, with a trading plan, target prices set, and orders placed as substitutes for market orders. But the problem is that the way these prices are determined is often very arbitrary, lacking real technical support or logical basis. This semi-professional approach seems to reduce risk on the surface, but in reality, it’s still gambling.

The core logic is simple: entering the market at a good price is like adding insurance to your trade. This money is well spent.