The root cause of trading losses: lack of plan execution and emotional management
In the turbulent financial market, many investors often face a common problem-why do they lose money? The core reason is often the failure to strictly adhere to the established trading plan. Although many investors are well aware of the importance of stop loss and carefully set the stop loss line when opening a position, facing the immediate market fluctuations, especially when the price just hits the stop loss point and then quickly reverses, the psychological defense line often collapses instantly. In this situation, investors often rush to cover their positions because they are unwilling to miss profits, but ignore resetting the stop loss. The result is often that they fall deeper and deeper into the market's trap of luring more, and eventually suffer the pain of liquidation.
At present, investment in cryptocurrencies such as ALT is no exception. As the market inflection points continue to appear, the stop loss line needs to be adjusted dynamically. However, when the price hits the newly set stop loss point and then rebounds briefly, many investors impulsively chase high prices because they can't stand the missed "opportunity", but the result is that they are stuck at high positions and suffer heavy losses.
Therefore, we strongly recommend that investors stick to their plans in trading, especially after stop loss, they should stay calm and avoid emotional operations. Patiently wait for the market trend to be clear before making decisions, so that you can move forward steadily in the ever-changing market and avoid unnecessary losses. Remember, trading is a marathon, not a sprint. Only by adhering to principles can you laugh at the end.
