Common Trading Mistakes: Running Away When Profiting and Holding On When Losing

As a novice currently in this situation, this topic resonates deeply with me, and I’d like to share some insights.

Usually, when I make a small profit, I quickly cash out because I’ve often turned a profit into a loss in an instant due to market fluctuations. It’s not that this approach is wrong, but whether to close a position should be judged based on the situation. If the trend is moving in a favorable direction, it’s still worth waiting a bit longer.

The issue of holding on when losing seems to stem from psychological problems; it's difficult to overcome this mental barrier. One must convince oneself to set stop-losses, and at a certain point, if it’s time to cut losses, then cut losses. Holding on is too risky, and one misstep could lead to a margin call. Additionally, one must be cautious about averaging down; since you’re already at a loss, averaging down brings you closer to the liquidation line. I’ve tried this many times before; holding on isn’t an issue, but after averaging down a few times without improvement in the trend, I ultimately faced liquidation.