Previously Overpaying Due to Blindly Holding Positions, Now I Stabilize Thanks to the "Profit-Driven" Mindset

A new day stepping into the crypto market, I used to believe that just by correctly identifying the trend, I would make money. In reality, it’s quite the opposite. I would stare at the daily price charts, my heart pounding with each candlestick. When the market moved in the right direction, I’d be afraid to increase my position. When it went against me, I’d panic and keep averaging down until my account couldn’t withstand one final wipeout. Some days, even drinking water felt bitter. I doubted myself: am I truly suited for this market? Everything changed when someone who had been in the game before told me one thing: “Your problem isn’t that you can’t see the trend, but that you don’t know how to let profits generate more profits.” That statement awakened me, and from then on, I started to seriously learn how to trade properly.

1. Misunderstanding the Profit Wheel: Many People Turning It Into Gambling When hearing about “the profit wheel,” many immediately think of going all-in, using high leverage to hope for a life-changing overnight success. But that’s not the profit wheel; it’s disguised gambling. Most accounts that get wiped out aren’t due to incorrect trend predictions but poor risk management. Common mistakes include: taking profits too early, holding losses, averaging against the trend, overtrading which erodes profits, and letting emotions dictate decisions. Consistent earners aren’t smarter; they’re more disciplined.
2. The Essence of the Profit Wheel: Use Only Profits, Never Touch the Principal The core principle of the profit wheel is simple: the principal must be protected at all costs, and risk should only come from the profits earned. I divide this method into three clear stages: Exploration Stage: For example, you have 10,000 USDT, and only use about 5% to enter the initial trade. Always set clear stop-losses, risking only about 1–2% of the total capital per trade. The mistake is to cut losses immediately without negotiation. Profit Wheel Stage: When an exploratory trade shows profit, don’t rush to withdraw. Instead, use a portion of the profit to increase your position when the price breaks important levels. All additional positions come from profits, never from the principal. Creating a Safety Zone: When total profits are substantial enough, start locking in risk by moving stop-loss points or using small positions to protect gains. At this stage, trading psychology becomes much lighter.
3. Practical Experience: Making Money in a Sideways Market The first time I applied this method was during a period when the market was not very clear. I entered small trades, gained short-term profits, then used those profits to increase my position when the trend was confirmed. When the trend truly formed, that trade not only yielded significant profits but also covered all previous losses. I realized: making money doesn’t have to be stressful; just follow the trend.
4. Why Small Capital Should Also Use the Profit Wheel? Many newcomers only have a few thousand USDT and think they can’t do much. If trading with traditional safety methods, it’s indeed very hard to grow quickly. The profit wheel is a way for small capital to leverage strong market trends. However, this doesn’t mean using high leverage. I always recommend starting with low leverage, increasing only when the market has generated profits and the total leverage remains manageable. Most importantly: follow the trend to let profits run, and retreat immediately when going against it.
5. Mandatory Condition: Only Use the Profit Wheel When There’s a Clear Trend The most dangerous mistake is trying to use the profit wheel in a sideways market. In fact, most of the time, the market lacks a clear trend. During these periods, trading less is the wiser choice. The profit wheel should only be applied after the market has gone through a long accumulation phase and begins to break out strongly. That’s when the probability of a long-term trend is highest.
6. Trading Psychology: The Profit Wheel Is a Process of Discipline This method often has a low win rate because many breakouts will fail. But on the other hand, each loss is very small, and when correct, the profits are large enough to cover all losses. This requires you to accept small losses regularly, patiently waiting for the few big opportunities. It’s the biggest psychological challenge. Rules like limiting daily trades, pausing after losses, and automatically locking profits when targets are reached will help you stay calm.
7. Final Advice for Beginners If you’re in a panic when prices fluctuate, constantly averaging down, or often see the right trend but still can’t make money, the problem isn’t with indicators or entry strategies. You need the right capital management mindset. The profit wheel won’t make you rich overnight, but it helps you build your account sustainably. Just remember a few core principles.