The 5 Major 'Pitfalls' of Big Trading Losses, 90% of Traders Have Fallen for Them! How to Survive?
The 5 'Deadly Pitfalls' of Big Trading Losses
1. Holding Positions Without Stop Loss → Slow Suicide
When the market moves against you, clinging to the hope of 'waiting for a rebound' leads to a shrinking account like a breached dam, small losses turn into massive ones, burying your 'trading career' directly.
2. Full Margin Leverage → Playing with Fire
Using all your capital + leverage to bet on the market, making quick profits when it goes up, but once the market fluctuates against you, your capital is instantly wiped out, and the risk of 'liquidation' teaches you a lesson in no time.
3. Chasing Highs and Selling Lows → The Destiny of Retail Traders
Chasing the price up at highs and panic selling when it drops, perfectly stepping on the wrong rhythm, becoming the 'retail trader' harvested by the market, repeatedly contributing to transaction fees.
4. Revenge Trading → Voluntarily Giving Money Away
After one loss, your mindset collapses! Eager to 'make it back', opening positions recklessly and trading frequently, letting emotions dictate your actions, losing more and betting more, forcing money into the market.
5. Bottom Fishing Against the Trend → Catching Falling Knives
In a clearly downward trend, foolishly imagining 'catching the lowest point', only to miss the bottom and instead catch the downward momentum, smashing your account to pieces.
Trading 'Survival Rules' (Remember = Minimize Losses + Survival)
✅ Single Trade Stop Loss ≤ 2% of Capital: For each trade, the maximum loss is 2% of the capital, strictly controlling risk, not letting a single loss cripple you.
✅ Only Do Trend Following Trades: Trade in the direction of the market trend (buy on the rise, sell on the fall), make money by leveraging the trend, don't go against it.
✅ Replace Emotions with Rules: Set trading rules in advance (when to buy, sell, and stop loss), strictly follow them, don't let impulse/fear ruin your trades.
✅ Reject High Return Fantasies: Don’t believe in 'getting rich overnight', steadily earn probability-based money, long-term survival is more important than short-term windfalls.
Core Logic of Trading
In trading, 'staying alive' > 'making money'! The essence of big losses is dismantling your own 'risk defense line'; the key to long-term profitability is not being eliminated by a single failure. Protect the bottom line to 'live longer and earn more' in the market!
(Follow me for continuous insights on trading knowledge, making more money with fewer pitfalls) $BTC