#币圈 90% of people have fallen into traps, have you?
How to avoid the 5 major "fatal pitfalls" of trading losses!
1. Holding onto losing positions without stop-loss → Slow suicide
When the market moves against you, holding onto the hope of "it will rebound soon" leads to account shrinkage like a dam bursting, small losses turning into huge ones, directly burying your "trading career".
2. Full margin with leverage → Playing with fire
Using all your principal + leverage to bet on the market, profits come quickly when the market is up, but once there’s a reverse fluctuation, your funds can be wiped out instantly, and the risk of "liquidation" will teach you a lesson in no time.
3. Chasing highs and cutting losses → The fate of the retail trader
Chasing high prices when the market rises, panicking and selling when it falls, perfectly stepping on the wrong rhythm, becoming a “retail trader” harvested 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, trading frequently, letting emotions dictate actions, the more you lose the more you gamble, and the more you gamble the more you lose, shoving money hard into the market.
5. Bottom fishing against the trend → Catching falling knives
In a clearly declining market, hoping to “buy at the lowest point”, the result is missing the bottom, instead catching the inertia of decline, and the account gets smashed to pieces.
Trading “Survival Rules” (Remember = Less Loss + Survival)
Single trade stop-loss ≤ 2% of principal: Each trade, lose at most 2% of the principal, strictly control risk to avoid being crippled by a single loss.
Only trade with the trend: Trade in line with market trends (buy when it rises, sell when it falls), make money by leveraging the trend, do not go against it.
Replace emotions with rules: Set trading rules in advance (when to buy, sell, stop-loss), strictly execute them, do not let impulse/fear ruin trades.
Reject high return fantasies: Do not believe in “getting rich overnight”, steadily making money based on probabilities is more important for long-term survival than short-term windfalls.
Core Logic of Trading
In trading, “surviving” > “making money”! The essence of a big loss is dismantling the “risk defense line” by oneself; the key to long-term profitability is not being eliminated by a single failure. Maintaining the bottom line allows you to “live longer and earn more” in the market!