A couple of nights ago, a friend who’s followed me for quite a while messaged me in the middle of the night, his tone full of frustration: “I clearly got the direction right, so why can’t I hold my position? Every time I get shaken out, I can’t even catch a piece of the rebound.”

I stared at the screen for a long time, and finally replied with something that might sting a bit: “It’s not that you misjudged the direction—you just don’t know how to hold onto profits.”

Many traders think they lose to the market, but in reality, it’s their own trading habits that drag them down.

They cash out as soon as there’s a slight gain, rush to add to their positions at the first dip, and panic every time there’s a pullback. The slightest price fluctuation chops their positions into pieces. They make a dozen trades a day, looking busy, but it’s really just slow bleeding.

I’ve seen too many people—spot on with their market calls, yet they end up losing badly. There’s only one reason: they don’t have a systematic approach to pyramiding positions.

Those who truly survive and make money in the market never rely on going all-in or making perfect predictions. What they have is a clear position management logic: how to hold, how to pyramid, and how to protect themselves.

Recently, the market was especially tough, and I only had a $10,000 trading limit. At the time, I felt strongly that the market would drop, but I resisted the urge and just dipped in with $500 to test the waters.

If I got the direction right, I’d keep rolling with the profits; if not, my principal was intact, no real harm done.

When profits start showing up, that’s actually the most dangerous stage. Most people want to double down as soon as they see unrealized gains. I’ve seen too many blow up their accounts like this over the years. I do just one thing: only use profits to increase my position—never touch the principal.

When I’m up 50%, I add half of the profit; break through a key level, I add more profit. Let the market carry me forward, instead of chasing with emotion.

When your profits surpass your principal, you suddenly get what it means that “the steadier you are, the more you end up with.” Pull out your principal and trade with profits—once the market opens up, it’s like charging ahead with a safety net.

Later, someone asked me: “Have your judgment skills improved?”

I said no. I just finally learned that in trading, making money isn’t about getting the direction right—it’s about holding onto profits.

Getting the direction right just gets you in the door; having a pyramiding system is the real key to making money. Once you grasp this, your losses will start to change at the root.