The most common mistake of beginner and experienced traders is to argue with the market.
When instead of analysis and a clear system, we open a trade with the thoughts "well, it definitely won't go below this level. Impossible".
You enter a promising coin with a potential of $100. It will definitely grow.
And you see 95, 90, 80.
— I’ll move the stop, average down the position.
The price drops to 70 — unpleasant, well, it’s okay, it will grow back. There is potential. I’ll buy a little more.
And then comes the point of no return.
The price is plummeting.
65, 60, 50🩸.
I average down. If the loss isn't realized, it's not a loss yet.
And then the finale without a happy ending.
45, 30, 25 — more than 50% of the deposit is gone on one trade because you thought you were smarter than the market and could argue with the price.
And how do you tell your wife that you lost money again, money set aside for vacation?
What do I do in such cases to avoid getting to that point?
I never average down a losing position more than once.
I know that the price is always right. The only one who can be wrong is me.
And I always protect my deposit with a stop and never move it. )))
Who has had a similar experience?
Share your emotions and what these actions led to?