In the cryptocurrency trading world, there is one thing you must never do — holding onto losing positions.
Holding onto a losing position means stubbornly sticking to your wrong direction, not cutting losses or admitting defeat, and hoping that the market will 'reverse and save you'. But the reality is often: the more you hold on, the more you lose.
The consequences of holding onto losing positions can be fatal:
Small losses turn into big losses, and your account shrinks rapidly;
Your mindset collapses, you panic more the more you lose, and the more panicked you become, the messier it gets;
Your funds get trapped, causing you to miss real opportunities.
Truly mature traders never fight against the market. They understand how to admit mistakes, cut losses, and turn around in time.
Admitting mistakes is not shameful; holding onto losing positions is what is fatal. Only those who can cut losses deserve to make money.
