When trading contracts in the crypto world

One thing you should never do: Holding onto losing positions

Holding onto a losing position means being unwilling to cut losses and exit when a trade goes against you, instead hoping for a reversal.

However, this often brings greater risks and losses.

Holding onto a losing position can lead to the following negative consequences: First, it may cause losses to continue to expand, exceeding the originally bearable range, severely affecting the safety of funds;

Second, it can affect trading psychology, causing anxiety and confusion, making it difficult to make rational judgments;

Third, it may cause you to miss other better trading opportunities, as funds are tied up in losing trades.

To avoid holding onto losing positions, it is essential to strictly implement stop-loss strategies, maintain rationality and composure, respect market trends, and not fight against the market.

At the same time, continuously improve your trading skills and risk awareness, learn to recognize mistakes and adjust promptly, so that you can progress more steadily and sustainably in your trading journey.