Four "fatal traps" of liquidation

Lao Wang often warns everyone that when investing, you must be careful of the four deadly pitfalls of liquidation, which are extremely harmful.

1. High leverage - the source of losses

Although high leverage has high returns when it is done right, it is easy to liquidate when it is done wrong. It will be addictive when you taste the sweetness at the beginning. After losing money, you want to make up for it with higher leverage, but the result is often getting deeper and deeper. To survive in the market, you have to stay away from high leverage.

2. Carrying orders - the road to self-destruction

If you don't stop loss when the direction is wrong, you still increase your position, cancel or change the stop loss position, which will make the loss continue to expand and accelerate the liquidation.

3. High leverage + frequent trading - crazy loss mode

If you lose a lot once, you are eager to make it back on the same day. If you open a position with high leverage and make a mistake, you will stop loss, and then repeat the operation, and lose more and more until you lose everything.

4. Imagination and obsession - psychological pit

If you don't admit that the market is wrong, you firmly believe that the turning point is coming soon, continue to increase your position, change the stop loss to hold on, or immediately open a new order against the trend after stopping loss, and finally you can only lose everything.