In the field of contract trading, 'holding a position' is considered one of the most dangerous operations, almost equivalent to pushing oneself to the brink. Contract trading itself carries leverage, and even minor fluctuations in the market can be magnified exponentially by this leverage, which means that the value of an investor's position is constantly subject to severe volatility. Once the market moves in the opposite direction of the position, choosing to hold the position without timely stop-loss is like continuously raising the risk of a 'blockage lake'.

The market changes rapidly; factors such as news events, macroeconomic conditions, and sudden policies can all become triggers for violent market fluctuations. Even if the fundamentals seem favorable, short-term market sentiment can still cause irrational ups and downs. For example, the cryptocurrency market often experiences dramatic price drops of 30% or more within hours due to regulatory rumors concerning a major exchange or significant sell-offs by institutional investors. At this point, if one blindly holds a position, not only will the paper losses quickly expand, but insufficient margin can also trigger forced liquidation, leading to a total loss of principal and potential debts to the platform.

The psychology of holding a position often stems from wishful thinking and reluctance, always hoping for a 'reversal' in the market. However, the market will not change due to individual will. Historical data shows that most instances of holding a position ultimately end in liquidation. Rather than sinking deeper into the quagmire of risk, it is better to cut losses and exit in a timely manner, preserving capital and waiting for a more appropriate opportunity. In this zero-sum game of contract trading, learning to cut losses and refusing to hold positions is the way to ensure the safety of funds and achieve long-term survival in trading.