The nature of humanity in trading is like this: when initially caught, everyone thinks they can hold on, but as the unrealized losses grow larger and the time spent holding on increases, the thought changes to: God help me, if this position can just break even, I’ll run as fast as I can.
Bottom fishing and top picking in trading are unprofitable trades; most people who attempt to bottom fish or top pick end up using the method of stubbornly holding without cutting losses, and the final outcome is liquidation.
Most importantly, during the process of holding onto a position, the mental pressure on traders can be very high. So, even if the market eventually turns after a long time of holding, they cannot make a profit because as soon as they break even, they will run.
This is normal human nature, so if you make a mistake, you must cut losses immediately;
Otherwise, if you don’t cut losses at the first moment, by the second moment you won’t be able to take action to cut your position, and the unrealized losses will keep increasing. During this process, the trading mindset undergoes a dramatic change.
When you reach the psychological and financial limits of holding, the real peaks and troughs will emerge. So, when you cut your position, you are either at the ceiling or at the floor. Don’t think that the main players are just waiting for you; in fact, a large wave of traders share the same mentality.
Even if you manage to hold on, the moment you break even, you will rush to run. It is absolutely impossible to maintain a good mindset to wait and make money again.
Can't find direction in the crypto market? Don’t know what to do in the upcoming market?
Then you can follow me, and I will help you seize opportunities in the upcoming market to recover losses, double your investment, and break even.
