One is using all capital. Beginners like to use all their capital, and when the account incurs losses, they increase their positions, leading to larger losses and an imbalanced mindset. It is recommended to divide the principal into at least 10 parts, preferably 20 parts, to reduce personal emotional interference.
Two is frequent trading. After learning a few indicators, they frequently place short-term orders and often get stuck. The market trend requires liquidity, and retail investors' orders provide that liquidity. It is recommended to analyze the K-line on a 15-minute or 1-hour basis, looking for continuous breakthroughs, with substantial entities above 1000 points, and ensure that both the 1-hour and 15-minute charts confirm trends above 4 lines, such as a golden cross in the 4-hour MACD and also in the 1-hour, which strongly validates the trend's effectiveness.
Three is that trading funds affect personal life. Many retail investors borrow money or have too much capital, which can easily impact their families and create psychological pressure.
Four is increasing positions on floating profits. Blindly increasing positions on floating profits reduces the ability to withstand risks. For example, if there is a rise of 1000 points in one hour, one can exit after a pullback of 1000 points; blindly increasing positions can lead to profit retracement or even losses.
Five is blindly chasing highs. Experts always enter the market on pullbacks; waiting patiently is safer than chasing highs and getting stuck.
