From a trading perspective, there is no such thing as “expensive” or “cheap” price. Therefore, whether the price is higher or lower than where I took profit yesterday is meaningless. Will it go up or down right now? At most, you can look ahead a day, two days, maybe a week? Even that week is just about holding the position with a trailing stop after reaching your take-profit target. In other words, simply buy and sell based on the current market price. The advantage is flexible thinking and adaptable perspective. Trading stress is often low, and maximum drawdown (MDD) remains stable. If you hold a crypto position for more than two weeks, one of two things is true: You got caught in an unexpected downtrend— or you accidentally caught a swing trade while aiming for a scalping move. But from a trading perspective, there’s no such thing as “getting caught.” There is no trading without a stop-loss. Similarly, from an investing perspective, there’s also no such thing as “getting caught.” The stop-loss criterion should always be when the original rationale for entry is invalidated. In trading, price becomes the benchmark. In investing, the entry rationale involves multiple factors— and price is often not even the primary one. What does that mean? Simply put: If you entered because you believed the price was below your assessed value, then as long as your fundamental valuation hasn’t changed, a price drop becomes a buying opportunity. So if you got caught unexpectedly: 1. You don’t know what you’re doing. 2. Because you don’t know, you have no stop-loss. 3. Eventually, you’ll lose. 4. Even if you understand everything, you can still lose. If this doesn’t make sense to you, then index accumulation investing is the right answer. If your personal return is lower than the index’s appreciation rate, reconsider whether individual stocks or futures trading are worth pursuing.
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