One trick to stop stubbornly holding onto losing positions! A must-read for new retail investors
Crypto trading explosion prevention guide🚨｜Three tricks to eliminate the bad habit of 'stubbornly holding onto losing positions'!
A trick to eliminate the bad habit of stubbornly holding onto losing positions. 90% of new retail investors always struggle to hold onto winning positions and stubbornly cling to losing ones. They change trading rules on the fly and modify stop losses based on their mood, relying purely on impulse to trade. After reading this article, you'll learn three tricks.
🔍 First, let me wake you up with a sentence: Trend vs Countertrend is not fundamentally about 'buying breakouts' or 'buying on dips', but rather about—— ✅ Trend: Stop losses are not for taking profits, let profits run ❌ Countertrend: Taking profits without stop losses, stubbornly holding onto losses
Remember? Here are three tricks to help you implement this👇
1️⃣ First trick: Set an initial stop loss—decide your 'bottom line' before opening a position No matter if you enter on a breakout, buy on a pullback, or see resistance/support signals, you must clarify before opening a position: what's the worst-case scenario where I need to accept my losses and exit? This stop loss is your 'iron rule', if triggered, you must go, don’t make excuses for yourself!
2️⃣ Second trick: Determine position size based on losses—calculate your position before taking action This trick is well-known among experienced traders: based on the acceptable loss limit, backtrack on how much position you can open. Don’t go all in, and definitely don’t add to losing positions, or one big fluctuation will teach you a harsh lesson.
3️⃣ Third trick: Break-even stop loss—recover your capital before seeking profits Why do we always fail to hold onto our profits? Because we're afraid of giving them back! ✓ Solution: Once there's profit, immediately move the stop loss to the cost price ✓ The mindset changes immediately: capital is recovered, this is now a 'no-cost business', everything left is profit, are you still afraid you can’t hold on?
✨ Bonus tip: Trailing stop loss—profit protection tool Once you have profits, don’t just hold blindly, ask yourself: how much am I willing to give back? For example, if this trade makes 20%, I allow a pullback of 5%, then set a trailing profit stop at 15%. This way, you won’t exit too early, and you won’t ride a roller coaster for nothing!
💡 The crypto market lacks opportunities, but it lacks the discipline to hold onto profits. Set initial stop loss → Determine position size based on losses → Break-even stop loss → Trailing stop loss Take it step by step, and you will never face liquidation due to 'stubbornness' again, but instead, you can hold onto big trending trades!
