#山寨币季节即将来临？ So, what exactly is trading?

Many people ask me this before entering the market. My understanding is: in a market full of uncertainties, you need to actively identify and defend against risks within your limited knowledge, rather than passively taking hits.

Let's first talk about which is more important—making money or avoiding losing money—seems like no one would say losing money is important, but in actual trading, all surviving traders understand: staying alive is more crucial than making big profits. Minimizing losses always comes before maximizing gains. This is a mindset issue and also a survival issue.

Trading has no universal formula. You’ll find some rely on short-term volatility to make a living, others profit from long-term holdings, and some just like to open and close positions repeatedly. All these people can do well. Why? Because they each find a logic that suits them and stick to it unwaveringly. So asking "what method is the most profitable" is a false proposition; the real question is "how do I find the method that belongs to me."

Before turning trading into a livelihood, you must think through this thoroughly. This is the same as the bottom-line thinking in risk management. Specifically, you need to first understand how much leverage your trading instrument (like a certain trading pair) offers, and how much of your account you can open in positions. These are not details—they are a matter of life and death.

Mature traders don’t initially put their entire account limit at risk. The usual approach is to use only one-third or even less. What to do with the remaining funds? Reinvest profits, expand positions, or keep it as a safety cushion. This way, even if the first few trades lose, the account can still hold up.

Initially, you will definitely lose money—that’s the tuition fee, unavoidable. But if you understand how to use the risk-reward ratio well—say, risking 1 dollar to make 3 dollars—and ensure your win rate isn’t too low, a few big wins can offset earlier small losses. That’s the game rule of trading.

In essence, trading is about making decisions with imperfect information and constantly adjusting. When market sentiment changes or fundamentals shift, your strategy parameters must also change. The only constant is the core philosophy that keeps you alive.