Golden Trading Rule: Always Have an Exit Plan

When I first started trading, I lost money faster than I could earn it. I blamed everything—the bad market conditions, bad luck, even the influencers giving 'harmful advice'. But after months of disappointment, I realized the harsh truth: 👉 I traded without an exit plan. Sounds basic, doesn't it? But most traders don't. They dive into trading based on strength, emotions, or FOMO and hope everything will go their way. Unfortunately, hope is not a strategy—and the market doesn't care about your emotions. 🚨 Issue: Why do most traders lose money If you do not plan to exit the order, you are inviting failure. Here's what happens when you trade without an exit strategy: ❌ Without a goal? You can hold on forever and witness the profit disappear. ❌ No stop-loss order? One wrong move can wipe out your investment portfolio. ❌ No profit-taking plan? A 200% profit can turn into a 20% loss in an instant. I learned this lesson the hard way with Solana (SOL). I bought at a great price, watched it skyrocket past $200, and instead of taking profits, I held... and keep... until it drops to $8. That was my wake-up call. If you don't take profits, the market will take them for you. ✅ Solution: The escape strategy has been proven To become a successful trader, you need to have a clear exit plan before entering a trade. Here are four strategies that have been tested in practice: 🎯 1. Escaping strategy according to the ladder This strategy helps you lock in profits while letting the rest run. 🔹 Sell 25% at 2x, another 25% at 3x, and keep the remaining amount with a trailing stop order. 🔹 Example: Buy SOL at $20 → Sell 25% at $40, 25% at $60 → Hold the remainder with a stop loss order at $50 to protect profits. 🛑 2. Stop loss to protect capital Your first job as a trader is not to lose money. The stop-loss order ensures that you can trade another day. 🔹 Set a stop loss of 10-15% for each trade to avoid large losses. 🔹 Example: Buying LINK at $12 → Stop loss at $10.50 → Avoid the drop to $7 and preserve capital. 💰 3. The "Moon Bag" Strategy This is the optimal risk-free trading strategy. 🔹 Sell enough at 2x or 3x to cover your initial investment, then leave the rest free to profit. 🔹 Example: Buying HBAR at $0.15 → Selling 50% at $0.30 → Currently holding the remaining part with no risk. 📊 4. Exit from time to time Not every transaction needs to be kept forever. If the price stops, keep going. 🔹 If the transaction does not fluctuate within 3-5 days, exit and switch to a stronger trend. 🔹 Operates best with volatile coins like DOGE, SHIBA, XRP, where momentum is a crucial factor. 🔥 The Bottom Line: Plan or Lose Trading without an exit strategy is gambling. The market will punish you if you do not manage your trades properly. ✅ Always participate with a strategy. ✅ Take profits when others chase the frenzy. ✅ Cut losses before they turn into disasters. Next time you participate in a transaction, ask yourself: Where am I exiting? If you don't have an answer, you shouldn't trade.