Common Trading Mistakes: Running Away When Profiting, Holding On When Losing

As a rookie currently in this state, this topic resonates deeply with me, and I want to share some insights.

Usually, when I make a small profit, I immediately secure it, after all, there have been many instances where my position turned into a loss in an instant due to market fluctuations. It’s not that this approach is wrong, but whether to close a position should be judged based on the situation. If the trend is moving in a favorable direction, it may still be worth waiting a bit longer.

The issue of holding on during losses seems to be more of a psychological problem for me; I can’t get past my own mental barrier. I need to convince myself to set stop-losses; at a certain point, if it’s time to cut losses, then I should cut them. Holding on is too dangerous, and if I’m not careful, I could face a margin call. Additionally, holding on while averaging down should be done with caution; since I'm already at a loss, averaging down brings me closer to the liquidation line. I’ve tried this many times before; holding on itself isn’t the problem, but after averaging down several times and not seeing improvement, I ended up getting liquidated.