These mistakes must not be made, the consequences are severe!
1. High leverage and full-position trading
Many novices tend to use excessively high leverage and like to invest all their funds, while the margin in the account is insufficient to support such operations, leading to a high risk of liquidation.
2. Greed or unwillingness to cut losses
After making some profits, they often become greedy and are unwilling to sell in a timely manner, always hoping to gain more returns, only to watch the price fall back, or even drop to zero. Alternatively, after incurring losses, they are reluctant to cut losses out of unwillingness, resulting in further losses.
3. Improper position management
When opening positions, they often invest all their funds into a single trading target. When this target is stuck, even if they discover other potential targets, they have no extra funds to operate, which is like putting all eggs in one basket.
4. Blindly following the trend
When they see others making huge profits with high leverage, they impulsively want to get rich quickly, investing all their funds without thinking, which is often the beginning of getting into trouble.