The 5 Major 'Fatal Pitfalls' of Heavy Trading Losses, 90% of Traders Have Fallen for Them! How to Survive?

The 5 Major 'Fatal Pitfalls' of Heavy Trading Losses

1. Holding Positions Without Stop Loss → Chronic Suicide

When the market moves against you, holding on to the hope of 'just wait a bit longer for a rebound' leads to account depletion like a breached dam. Small losses turn into huge losses, burying your 'trading career' directly.

2. Full Margin with Leverage → Playing with Fire

Using all your capital + leverage to bet on the market means quick profits when winning, but once the market turns, your funds are instantly wiped out. The risk of 'liquidation' teaches you a lesson in seconds.

3. Chasing Highs and Cutting Losses → The Fate of Retail Traders

Chasing high prices when the market rises, panicking and cutting losses when it falls, perfectly missing the rhythm and becoming 'chopped' by the market, repeatedly contributing to transaction fees.

4. Revenge Trading → Actively Giving Money Away

After a loss, your mindset collapses! Eager to 'make it back', you open positions recklessly and trade frequently, letting emotions dictate your actions. The more you lose, the more you gamble, and the more you gamble, the more you lose, stuffing money into the market.

5. Bottom Fishing Against the Trend → Catching Falling Knives

In a clearly declining market, you foolishly hope to 'buy at the lowest point'. In the end, you neither catch the bottom nor avoid the downward momentum, and your account gets smashed to pieces.

Trading 'Survival Rules' (Remember = Less Loss + Survival)

✅ Single Trade Stop Loss ≤ 2% of Capital: Limit each trade to a maximum loss of 2% of your capital, strictly controlling risk to avoid being crippled by a single loss.

✅ Only Trade with the Trend: Trade in line with market trends (buy when prices rise, sell when prices fall), making money by leveraging the trend. Don’t go against it.

✅ Use Rules Instead of Emotions: Set trading rules in advance (when to buy, sell, stop loss) and strictly adhere to them. Don’t let impulse/fear ruin your trades.

✅ Reject High Return Fantasies: Don’t be superstitious about 'getting rich overnight'. Steadily earning probability money is more important than short-term windfalls for long-term survival.

Core Logic of Trading

In trading, 'staying alive' > 'making money'! The essence of heavy losses is dismantling the 'risk defense line' yourself; the key to long-term profitability is not being eliminated by a single failure. By maintaining your bottom line, you can 'live longer and earn more' in the market!

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