These trading taboos can lead to serious consequences if you step on one!

In the trading market, the following mistakes are fatal errors often made by investors, which not only affect profits but may also result in severe losses. Remember to avoid the pitfalls!

1️⃣ High Leverage + Full Position Trading

Many beginners like to seek high returns through high leverage, even investing their entire capital. However, such aggressive operations often overlook the insufficiency of account margin, and once the market fluctuates violently, liquidation is imminent.

Suggestion: Control the leverage multiple, never blindly invest the entire capital, and allocate funds reasonably to cope with market fluctuations.

2️⃣ Greed or Reluctance to Cut Losses

Excessive greed: When in profit, always fantasizing about earning more, only to watch the price drop or even see profits vanish. Refusing to cut losses: When losing, unwilling to accept and cut losses in time, thus expanding the losses.

Suggestion: Develop a clear profit-taking and stop-loss plan, strictly execute it, and avoid emotional trading.

3️⃣ Out-of-Control Position Management

Putting all funds into a single asset is like putting all your eggs in one basket. Once this asset becomes trapped, even if other opportunities arise, there will be no funds available to adjust operations.

Suggestion: Diversify investments, allocate positions reasonably, and ensure flexibility and risk resistance.

4️⃣ Blindly Following Speculation

Seeing others making huge profits through high leverage, one rushes to imitate, blindly chasing rising prices and fully investing, often leading to trouble.

Suggestion: Stay calm, do not act impulsively, and always adhere to independent thinking and rational analysis.

💡 Summary:

There are many market opportunities, but even more traps. Only by planning funds reasonably, controlling risks, and discarding greed can one trade more steadily and further!