I have found that most fan losses are for a reason; a bad habit can be fatal later on. There is one particularly serious habit: losing from 50,000 U to just a few thousand U in the market, all due to these habits.
When the coin starts to drop, I can't bear to sell, always wanting to wait for a rebound before selling.
Then today it rebounds, I didn't buy, it drops two points, I didn't sell.
Tomorrow it rebounds then drops, and I say I have no chance to sell, it drops three points, I didn't sell.
The day after tomorrow it rebounds one point, and I say it hasn't bounced back so I won't sell.
Now it’s worse, slowly dropping dozens of points, all the money I made before is gone, I'm at a loss.
This is not the correct trading method; as long as you don’t cut losses, even if you made a lot before, just one mistake and it’s all gone.
I have studied that all the successful traders cut losses when the market drops, immediately recognize their mistakes, and start anew.
I am the same; unless it's a super confident value investment, I dare to buy more as it drops.
Otherwise, every time before placing an order, I must prepare a stop-loss plan in advance; otherwise, one mistake means it's over. This is not the behavior of a mature trader.
Trading is a lifetime endeavor.
If you want to survive in the market for the long term, you must change this deadly bad habit and prepare a stop-loss plan in advance for every trade. Instead of hoping “I’ll sell when it rebounds” after it drops.
The market is still brewing, and if you still don’t understand how to play, it’s okay, let’s quickly layout together and become rich together in this bull market!
