The Bloody History from 100,000 to Zero: These 5 Deadly Mistakes Are Devouring Your Capital
Core Life-Saving Rules (Must Read!)
✅ 2% Iron Rule: No single loss should exceed 2% of total capital; preserving your capital gives you a chance for recovery
✅ Follow the Trend: Only operate in clear trends, do not predict or guess
✅ Mechanical Execution: Strictly execute your trading plan after formulating it; eliminate emotional interference
✅ Stability First: Pursue stable compound returns, reject the fantasy of quick profits
5 Major Trading Taboo (Root of 90% Losses)
1. Allowing Losses to Escalate → Digging Your Own Grave
- Typical Behavior: Fantasizing about a rebound during losses, resulting in small losses turning into liquidation
- Bloody Case: A trader held a position of 1000U, ultimately left with only 50U
- Solution: Set hard stop-losses; exit immediately when touched
2. All-In Trading → Suicidal Behavior
- Harsh Reality: Full-margin leveraged trading, one mistake leads to total loss
- Data Speaks: Under 10x leverage, a 10% reverse fluctuation leads to liquidation
- Correct Approach: Do not invest more than 10% of capital in a single trade
3. Emotional Trading → Money-Sending Machine
- Vicious Cycle: Losses → Eager to recover → Bigger losses
- Psychological Analysis: Gambling mentality driven by dopamine
- Solution: Force a 24-hour break after losses
4. Counter-Trend Trading → Licking Blood on a Knife Edge
- Market Truth: In a downtrend, 90% of “buying the dip” is actually halfway down
- Classic Lesson: An investor bought the dip three times in a row, account shrank by 80%
- Survival Strategy: Wait for trend confirmation before re-entering
5. Chasing Highs and Cutting Losses → Standard for Retail Traders
- Trading Trap: Buying at highs, cutting losses at lows
- Data Statistics: Doing this three times essentially halves your capital
- Improvement Plan: Use breakout pullback entry methods
Upgrading the Understanding of Trading Essence
- Survival First: Ensure you are not eliminated by the market before considering profits
- Discipline Above All: No matter how good the strategy, not executing equals zero
- Probability Game: Pursue long-term positive expected value, not one-time windfalls
Avoid these 5 traps, and you have already outperformed 90% of traders!
I am @Crypto 反卷祖师爷 , skilled in medium and short-term contracts, mid to long-term spot layouts, sharing investment tips daily; detailed strategy teaching point @come!