The 5 Major 'Fatal Pitfalls' of Trading Losses, 90% of Traders Have Fallen Into Them! How to Survive?
1. Holding Positions Without Stop Loss → Chronic Suicide
When the market moves against you, holding on with the luck that 'it will rebound soon' leads to account shrinkage like a dam breaking, small losses turning into huge damages, directly burying your 'trading career'.
2. Full Margin with Leverage → Playing with Fire
Betting the entire capital + leverage on the market, profits come quickly when winning, but once the market reverses, capital gets wiped out instantly, and the risk of 'liquidation' teaches you a lesson in minutes.
3. Chasing Highs and Selling Lows → The Fate of a Retail Trader
Chasing high prices when the market rises and selling at a loss in panic when it falls, perfectly stepping into the wrong rhythm, becoming 'chopped' by the market, repeatedly contributing to transaction fees.
4. Revenge Trading → Actively Giving Money Away
After a loss, the mindset collapses! Eager to 'make it back', opening positions randomly and trading frequently, allowing emotions to dictate actions; the more you lose, the more you gamble, shoving money into the market.
5. Counter-Trend Bottom Fishing → Catching Falling Knives
When the market is clearly in a downtrend, hoping to 'catch the lowest point', results in not catching the bottom but instead getting caught by the downward momentum, leading to a smashed account.
Trading 'Survival Rules' (Remember = Less Loss + Survival)
✅ Single Trade Stop Loss ≤ 2% of Capital: Limit each trade to a maximum loss of 2% of your capital, strictly control risks, and avoid being crippled by a single loss.
✅ Only Trade with the Trend: Trade in the direction of the market trend (buy on rises, sell on falls), profit by leveraging the trend, and do not go against it.
✅ Replace Emotions with Rules: Set trading rules in advance (when to buy, sell, stop loss), and strictly adhere to them; do not let impulse/fear destroy your trades.
✅ Reject High Return Fantasies: Do not be superstitious about 'getting rich overnight'; steadily and cautiously earn money with probabilities, long-term survival is more important than short-term high profits.
Core Logic of Trading
In trading, 'staying alive' > 'making money'! The essence of large losses is dismantling the 'risk defense line' by yourself; the key to long-term profitability is not being eliminated by a single failure. Stick to your bottom line to 'live longer and earn more' in the market!
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