First, summarize the main reasons for the losses, some of which I have also committed myself.
Leverage is a double-edged sword; if used well, you can run faster than others; of course, conversely, if used poorly, you can die faster than others.
After playing contracts for a long time, you will find that trading spot becomes very easy. Many beginners hope that one trade can yield huge profits, turning 10,000 into 1,000,000, then from 1,000,000 to 500,000, losing 50%, returning to 1,000,000, needing to double it, and returning to 0 is just a multiple.
Therefore, beginners are most likely to become self-absorbed, thinking they are exceptionally gifted after making a few profits, and in their excitement, they go all-in, only to return to zero.
Traders who truly want to survive in the cryptocurrency market never put themselves in a desperate situation. From the moment they are fully invested or heavily invested, they are destined to be losers.
I hope friends are sufficiently vigilant in leveraged trading! Experienced players choose absolute cash positions when the market trend is uncertain about rising or falling, and will not rush to act, entering quickly only when the trend is clear.
Moreover, it is also a small position entry, while many ordinary retail investors frequently trade and take large positions in unclear market conditions, leading to continuous losses. When faced with fierce market makers, the losses can be even greater.
Going against the medium and long-term trend, holding positions against the market leads to death. Many people believe they lose money in futures because the trading period is too long, and that playing short-term is fine.
However, when losses reach a point that is clearly opposite to the market and require stopping losses, there is always a mental struggle: should I stop losses? Sometimes, there is always a lucky mentality that prices will come back, leading to prolonged holding against the trend and eventual death.
Even worse, inexperienced beginners hope to increase positions to average down costs, but later, as the market trend diverges further from their position direction, the heavier the position becomes, the faster they die.
They have embarked on the first path to death. Not taking large positions, not holding onto trades, frequently trading, chasing highs and cutting losses. After many twists and turns, the profit they can take becomes smaller and smaller, and eventually, there is nothing left to take, leading to death.
Most reasons for losses and liquidation can be summarized into the three above; being too greedy is basically being heavily invested.
Take a detailed look at the top ten blind spots in futures trading. Full positions in trading - full positions must lose. Frequent trading - lacks technical guidance.
Going against the trend - low probability but high risk.
Locking positions in trading - not accepting the reality of losses.
Lowering and raising the average position price - one mistake leads to another.
Guessing tops and bottoms, not setting stop losses - finding reasons for mistakes.
The more you complete, the more empty it becomes; pursuing perfection excessively is aimless. Believing in rumors and blindly following the trend - lacking understanding of the market.
Not good at self-reflection, doubting the market - generates fear of the market.
Establish a long-term trading plan + --- the future is uncontrollable.
Many times, trading in the cryptocurrency market is just like driving on the road.
First, go to driving school to learn how to drive. Once you can drive, if you don't follow traffic regulations, sooner or later, you will have an accident.
Even if you drive according to traffic regulations, if you don’t hit someone, someone might hit you. There are pitfalls everywhere, so if you want to drive safely, you must learn to avoid these pitfalls.
These days, I am preparing for the launch of a divine trade!!!
Comment 168, get on board!!!
Impermanence brings impermanence brings impermanence!!!
Important things must be said three times!!!
