These trading taboos, stepping on one can have serious consequences!

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

1️⃣ High leverage + full position operation

Many beginners like to seek high returns through high leverage and even invest their entire account. However, such aggressive operations often ignore the insufficient margin of the account, and once the market fluctuates sharply, liquidation is imminent.

Recommendation: Control the leverage ratio, do not blindly go all in, and allocate funds reasonably to cope with market fluctuations.

2️⃣ Greed or unwillingness to cut losses

Excessive greed: Always fantasizing about earning more when in profit, only to watch the price decline or even return to zero. Refusal to cut losses: When in loss, unwilling to accept it and cut losses in time, instead expanding the losses.

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

3️⃣ Position management out of control

Investing all funds in a single asset is no different from putting all your eggs in one basket. Once this asset is trapped, even if other opportunities are discovered, there are no funds available to adjust operations.

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

4️⃣ Blindly following the trend to speculate

Seeing others making huge profits through high leverage, one rushes to imitate, blindly chasing prices and going all in, often leading to difficulties.

Recommendation: Stay calm, do not be impulsive, and always adhere to independent thinking and rational analysis.

💡 Summary:

There are many market opportunities, but even more traps. Only by reasonably planning funds, controlling risks, and avoiding greed can one walk more steadily and far in trading!