Many novice traders consider tight stop-losses and large take-profits as signs of advanced trading skills, but in practice, these often signal that the account is beginning to shrink.

Where is the core issue? It’s not in the concept itself, but in the incorrect application.

Placing stop-losses very close to the current price implies that you believe the price won't have normal fluctuations. But what is the reality? Price fluctuations are part of daily trading. It’s common to see several points of movement within a day. Putting a stop-loss within such a narrow range essentially means you’re repeatedly being knocked out by market noise.

What’s the result? Even if your market direction prediction is correct, you might be the first to exit. Small losses may seem insignificant individually, but accumulated over time, they cause continuous account drain.

On the other hand, take-profit targets sound attractive, but in reality, the market rarely hits your target price. Every time, you’re betting that the market will keep rising as you expect, but often it just moves a bit, then stalls, consolidates, or pulls back, never reaching your take-profit level.

Over time, stop-losses are triggered frequently, while take-profits remain elusive. If you also have a large position size, your account isn’t suddenly blowing up; it’s being gradually eroded over time.

Another practical detail: stop-loss levels close to the current price are often filled with retail orders. When the price moves slightly, these orders get swept away. This has little to do with your market judgment.

Traders who survive long-term tend to be more disciplined. They don’t set tight stop-losses but base them on solid reasoning. They don’t aim for distant take-profits but focus on consistently locking in profits. The key isn’t how much you make on a single trade, but whether your overall strategy can operate sustainably.

The essence of trading is to complete the rhythm amid repeated fluctuations, not to bet everything on a single move. What you lack isn’t effort; there are plenty of opportunities in this market. What’s truly scarce is finding a reliable method to profit steadily here.