What is the root cause of contract liquidation?

As a veteran in the cryptocurrency space for 10 years, I have gained three profound insights through investing my hard-earned money: chasing highs and selling lows, frequently switching coins, and over-trading. These three stubborn ailments are the main culprits that devour investors' profits. If one can completely rid themselves of these bad habits, achieving steady profits in the market is not difficult.

The most painful lesson I remember occurred when I first entered the crypto space. I was attracted by a strong rising altcoin (FIL) and impulsively bought in at a high price. Little did I know that I was entering at the peak, and the coin subsequently entered a continuous downtrend. Due to my lack of experience, I panic-sold during the ongoing decline, resulting in significant losses. This unforgettable experience has forever taught me that "impulse is the devil"—a hard rule in the crypto world.

What do you brothers think is the root cause of losses? Give a thumbs up and leave a comment, let's discuss in the comments section!