$BTC Wrong Approach: Run when in profit, hold on when in loss

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

Usually, when I've made a small profit, I immediately secure it, especially since there have been numerous instances where my position has quickly turned into a loss due to market fluctuations. It's not that this approach is wrong, but deciding when to close a position should be based on the situation; if the trend is moving in a favorable direction, it might be worth waiting a bit longer.

Holding on to losses seems to be more of a psychological issue; I struggle to overcome this mental barrier. I need to convince myself to set stop-loss levels; at a certain point, if the loss is too great, it's necessary to cut losses, as holding on is too risky and could lead to liquidation. Additionally, being cautious about averaging down is crucial; I'm already in a losing position, and averaging down brings me closer to the liquidation line. I've tried this many times; holding on isn't a problem in itself, but after averaging down a few times, the trend still didn't improve.