The pitfall of covering positions
When covering positions, you can easily step on three big mines:
First, it goes against the principle of "following the trend". In the digital currency world, you can only make money by following the right direction. If you see the price of the currency falling and still rush in, and cover your position on the way down, you will be asking for trouble.
Second, covering positions also love to compete with the "guessing the bottom game". As soon as the currency falls, you want to buy the bottom? Let me tell you, where the bottom is, even gods can't guess. Randomly covering positions will only make you lose more and more, and you will have trouble with money.
Third, covering positions also forget the principle of "quit when you see a good profit". If you buy a currency and it falls, you should think about running away, don't hold on. Stop loss means setting a safety line for yourself, and withdraw when it crosses the line, so that you can keep your wallet and make money in the long run. Without stop loss, it's like driving without a seat belt, and something will happen sooner or later.
