In trading, never hold a position
Holding a position means that when a transaction encounters an unfavorable situation, you are unwilling to stop loss and exit in time, but continue to hold it with a fluke mentality, hoping that the market will reverse. However, doing so often brings greater risks and losses.
Holding a position may lead to the following adverse consequences: First, it may cause losses to continue to expand, beyond the originally bearable range, seriously affecting the safety of funds; second, it will affect the trading mentality, making people fall into anxiety and entanglement, and it is difficult to make rational judgments; third, other better trading opportunities may be missed because funds are occupied on losing orders.
In order to avoid holding a position, it is necessary to strictly implement the stop-loss strategy, remain rational and calm, respect the market trend, and do not confront the market. At the same time, we must constantly improve our trading skills and risk awareness, learn to admit mistakes and make adjustments in time, so that we can walk more steadily and longer on the road of trading,