The financial market may seem lively, but it's actually quite deep. Many people start by making a little money, but later lose more and more, only to realize how intricate it is inside. Today, let's discuss some real issues, examining the reasons we keep losing money and how to avoid these pitfalls.
Never set a stop-loss
Many people invest without setting stop-loss points, stubbornly holding onto stocks when they fall, and managing their positions whimsically, sometimes even going all-in with their entire capital. This kind of play can lead to losing all the hard-earned money in one unexpected event. The solution is actually quite simple: before placing an order, think clearly about the maximum amount you can lose, set a stop-loss line, and reasonably allocate your investment ratio based on your available funds. Don't put all your eggs in one basket.Can't stop trading
Without a clear trading plan, staring at the screen all day watching the ups and downs, and believing every rumor, such people are the easiest to be exploited by the market. Frequent trading not only puts your mood on a roller coaster with the K-line chart but also eats up your transaction fees. The truly smart approach is to only act when opportunities you are confident about arise; at other times, stay put and resist the urge to trade.Believe everything others say
Easily trusting those "insider messages" or "expert recommendations" in social circles often leads to being trapped the moment you jump in. These people may not even understand what they are doing; why would you trust them with your hard-earned money? Remember, investing can only rely on yourself; take others' words with a grain of salt, but before placing an order, make sure you understand the logic behind it yourself.Buy randomly based on feelings
Buying stocks just because they are rising, or heavily investing based on a rumor, is a trading method based on feelings, akin to gambling. The market is never short of opportunities, but what is lacking is discipline. Establish your own set of trading rules: when to buy, when to sell, how much to stop-loss, how much to take profit, write these down, and adhere strictly to them; you'll find trading is not that difficult.
Ultimately, investing is a form of cultivation. To avoid being exploited by the market, one must learn to control risks, restrain oneself, think independently, and establish a personal trading system. Remember, there are always opportunities in this market, but your capital is limited. Protecting your capital is a hundred times more important than rushing to make money; take your time, don't rush, and time will provide you with the best returns.
Focus for the day: OM SUI SOL FUN BTC
