1. Only focus on the 15-minute, 30-minute, and 1-hour small trends, ignoring the larger daily, weekly, and monthly trends. Often engages in high-frequency short-term trading chasing highs and lows without a strict trading plan, incurring large amounts in fees, making small profits, small profits, then large losses, and eventually violating the larger trend by delaying stop-losses and getting liquidated.
2. Lack of trading experience, unfamiliarity with technical indicators, inability to analyze the market, no personal trading system, entering trades randomly. A novice without over three years of trading experience rushes into the futures market, which usually leads to a dead end.
3. Mistaking luck for skill, feeling like a trading expert after several profitable trades, borrowing to trade cryptocurrencies, quitting a job to trade, ultimately leading to destruction under immense pressure and emotional instability.
4. Large capital contracts, betting big to make small profits, but holding on stubbornly to losses. Eventually, facing a one-sided market will lead to liquidation.
Therefore, it is essential to trade contracts with small amounts of money, looking for opportunities with high risk-reward ratios to enter the market. Either make small losses or earn big profits. A high risk-reward ratio with small losses and large profits is the core reason for making money in contracts, while small gains and large losses are the core reasons for losing money.
