Many intraday traders have fallen into one common trap — thinking that setting wider stop-losses can avoid whipsaws, but in the end, they just get themselves trapped and wiped out. Positions get smaller and smaller, and no matter how anxious they are, they dare not add to their positions. They watch the market run without being able to earn more than a few points. Over the years of trading, I’ve found that the real profitable strategies are actually the complete opposite of what most people think.

Today, I’ll clearly explain the practical logic I’ve developed, broken down into four core steps. Honestly, once you get the hang of this method, you don’t need to watch the charts all day — earning a 6%-12% monthly growth on your account is really not an exaggeration.

**Is the right direction still leading to being wiped out? Where’s the problem?**

Does this scenario sound familiar: you judge the direction correctly, but a small pullback hits your stop-loss, and then the price skyrockets in the direction you predicted? Or another situation, where you set your stop-loss too wide, and to control risk, you only open small positions, but the tiny gains you make can’t even cover your previous losses.

Where’s the root cause? It’s because risk and position size are not aligned. I’ve seen too many beginners fall into this trap: setting a 5% stop-loss makes them feel safe, but this means they can only open very small positions to avoid blowing up their account. When the market moves, they can’t get excited because the small gains can’t fill the gaps from their previous trial-and-error mistakes.

**My method is actually very straightforward**

Use tight stop-losses to protect against risk, then amplify your profits with reasonable reward multiples. In other words, even if your win rate is only 40%, as long as you aim to earn 2%-4% per winning trade and only lose 1% per losing trade, your account will steadily grow over time. This is not hype — it’s math.

**Four-step practical framework**

**Step 1: 1% is my risk ceiling**

This is the bottom line — never go beyond it. For each trade, you can only risk at most 1% of your total account. If your capital is 100,000, then your maximum stop-loss per trade is 1,000. Sounds small? But it’s the prerequisite for survival. Many people get wiped out by just one or two big losses.

**Step 2: Calculate your take-profit level before entering**

Don’t wait until you’re in the trade to decide; do the math beforehand. Based on risking 1%, work backwards to find the stop-loss point you can tolerate, then determine your take-profit target according to current technical patterns and support levels. The simplest approach is to keep the risk-reward ratio no less than 2:1 — meaning, if you risk 1%, you aim to make at least 2%.

**Step 3: Strictly follow discipline**

Take profits when your target is hit; cut losses when your stop is triggered. No exceptions, no luck-based thinking. Many people fall here, always wanting to wait a bit longer, but that often turns good trades into bad ones. The market speaks, the data speaks — no need to guess.

**Step 4: Continuous review**

After each trade, review the replay: Was your judgment correct? Was your execution consistent? Which trades felt good, and which felt unfair? This process may be dull, but it’s precisely this dullness that separates retail traders from professionals.

Ultimately, in a market with such volatility, relying on a couple of big bets to win back losses is the worst mindset. Small stop-losses, high frequency, strict discipline — this is the sustainable approach for retail traders.