Many traders fall into the trap of holding onto losing positions, hoping the price will eventually recover to their entry point. On the flip side, when they're in a profitable trade, they often exit too early, securing minimal gains out of fear. To thrive as a trader, you need to reverse this approach: be more cautious when facing a loss, but allow your profits to grow when you're winning. Establishing a stop-loss strategy for your losing trades is crucial, rather than clinging to hope. Conversely, when you're in profit, let the trade ride and capitalize on those gains.

Let me illustrate with an example: Suppose you purchased #ETH at $3200 in the spot market, and the price starts to drop. Your mindset might be, "Since I bought it outright, I’ll just wait for the price to recover." But as the months go by, the price of #Ethereum continues to slide. Without a stop loss in place, you're stuck holding the asset, waiting for the market to rebound so you can break even or make a small profit.

After a considerable period—let’s say four to seven months—the price may finally return to around your entry level, and in a rush to avoid another downturn, you close the trade. Whether at break-even or with a small gain, you exit prematurely due to the fear of another dip.

While you might argue that you avoided a loss, the real issue lies in the time wasted. Holding onto that asset for months prevented you from seizing other lucrative opportunities or engaging in short-term trades. This approach can become a harmful cycle, where you repeatedly lock up your capital in underperforming positions, stifling your overall growth as a trader. Many of you may have bought various altcoins at unfavorable times and held onto them for far too long, hoping for a market recovery that may never fully materialize.

#Market_Update #MarketWatchMay2024 #BTCUptober #WeAreAllSatoshi #BTCReboundsAfterFOMC