Why do we say that holding a position will lead to ruin?

You must always remember — your liquidation price is actually your stop-loss price.

By blindly averaging down to lower your liquidation price and waiting for a so-called miracle, the result is that whatever amount of money you originally had, you could end up losing it all after being blinded by greed.

Setting your liquidation price equal to your stop-loss price is a mental suggestion that you need to prepare for before opening a position; you must assume that you will face liquidation, so you can only try to minimize the distance to the liquidation price by controlling your position size and leverage before entering the trade!

At the same time, you need to think about what to do if you do get liquidated?

Only then will you deserve to earn the result that the market proves your directional judgment was correct.

Do you understand? #交易认知