Covering positions, the invisible killer of retail investors’ losses
To put it bluntly, there are three “don’ts” when it comes to covering positions:
1. In the cryptocurrency circle, following the trend is the best way. Just like the river flows to the lower place, you have to follow it to save effort. Covering positions to save those falling coins is like sailing against the current, which is thankless.
2. Once the coin falls, where is the bottom? No one knows. Covering positions to buy at the bottom may result in lower and lower prices, and the hole will become bigger and bigger, which is not worth the loss.
3. The coins you bought fell, which means that you made a wrong judgment or the timing is wrong. What you should do at this time is to stop loss decisively, just like you have to stop when you see a red light when driving, don’t force it. Stop loss is to protect your seat belt, how can you not wear it? Only by knowing how to stop loss can you have a chance to win back.
Right?
