Secrets of Successful Trading: Profit, Plan, and Exit Strategy

When I first stepped into the trading world, I used to think that just "buy and hold" would be enough to make a profit. However, a conversation with a professional trader opened up a completely new perspective for me - and from there, everything changed.

1. Why Do We Need a Profit Strategy? In trading, it's not only important to know how to 'buy', but also how to 'sell'. One valuable advice I received is: “If you don't know when to take profit, you will easily get caught up in emotions and lose control.” This statement may sound harsh, but it has helped me realize a truth: there needs to be a clear profit plan from the moment of opening a trade. Otherwise, every trading decision will become vague and susceptible to panic or greed in market fluctuations.
2. Determine Specific Profit Targets a. Set Clear Goals Before opening any trading position, ask yourself: "What is my profit target?" "I will take profit when it doubles (2x), triples (3x), or at any other ratio." For example, when I invested in Ethereum ($ETH), my initial goal was to sell a portion of my position when the price doubled. This helped me avoid emotions when there were unpredictable price fluctuations, while retaining the remaining portion to take advantage of the long-term uptrend. b. Plan Profit Taking in Portions Instead of waiting for an unpredictable 'peak', an effective strategy is to take profits in stages: Step 1: When reaching a 1.5x - 2x increase, sell about 25-30% of the position. Step 2: If the market continues to rise, consider selling additional small portions at the predetermined ratio. This 'scale out' strategy helps you minimize risks and ensure you don't miss out on profits when the market undergoes a correction.
3. Plan for Every Situation One of the most valuable lessons I have learned is to always be prepared for any scenario: If the market increases sharply: Identify profit levels to sell a portion and lock in profits. If the market decreases sharply: Determine a suitable stop-loss level (stop-loss) to protect the investment capital. If the price fluctuates: Keep calm, do not change the strategy constantly based on emotions. For example: When I invest in Chainlink ($LINK) - a project that I have long-term trust in - I still set clear profit-taking targets. Despite believing in long-term potential, I do not let emotions dominate and always have a plan in place when the market experiences unexpected fluctuations.
4. The Importance of Discipline and Planning A trading strategy relies not only on market knowledge but also on personal discipline. Trading plan notes: Write down profit targets, stop loss levels, and exit strategies. Follow the plan: When the market is volatile, remember that the pre-established strategies are the 'compass' to keep you from getting lost. Thanks to having a specific plan, I have avoided many impulsive trading decisions - thereby protecting capital and increasing profits sustainably. Conclusion Talking to a professional trader has completely changed the way I approach trading. Instead of just "buying and holding", I learned that a successful trading strategy must have a clear profit plan, partial exit plan and careful preparation for every situation. Start right now: Set specific profit goals. Plan to take profits in increments. Always be prepared for any market scenario. Have you ever received any 'bitter' but extremely effective advice in trading? Share your experience in the comments section! Hopefully this article will help you have more motivation and knowledge to trade smarter and more effectively. Wish you success on the path to conquer the financial market.