In the cryptocurrency world, a margin call is a nightmare that every investor does not want to face, but surprisingly, almost 99.9% of people will make the same mistake, leading to a margin call. The biggest "dead spot" among them is holding orders.

Holding orders: a fatal trap for investors

Whether they are novices or veterans, the most difficult gap for many people to cross when facing wrong investment decisions is holding orders. When the investment direction is wrong, the correct approach is to stop losses in time, admit mistakes, and reduce losses. But many people choose not to stop losses, increase positions, or even cancel or change stop losses. They think the market will rebound and they will pass it by holding on, but the final result is often a bigger and bigger loss until the margin call.

Why is there such a mentality? Because many investors are overconfident and think they can judge the direction of the market, they think they can't be wrong, and the market will definitely pull back. As a result, the market does not follow their ideas at all, and the losses are getting bigger and bigger, but they are reluctant to admit their mistakes and continue to increase their positions.

Imagination and obsession: the invisible killer in investment

The most terrible enemy of investment is not the market, but the investor's own imagination and obsession. Confidence is a good thing, but overconfidence is a double-edged sword. When the market does not match their own judgment, many people stick to their own judgment and think that the market will soon reverse.

So, not only do they not stop loss, but they continue to increase their positions, modify the stop loss position, and even open new orders immediately after the stop loss, trying to operate against the trend. This approach will only make oneself fall into a deeper quagmire of losses, getting deeper and deeper, until the position is completely blown up and the principal is lost.

How to avoid a blowup?

1. Stop loss in time: admitting mistakes is more important than anything else. Stop loss is to protect the principal. Don't hesitate.

2. Avoid adding positions and carrying orders: When the market is not right, don't add positions or change stop loss positions, which will only increase losses.

3. Stay rational: The investment market does not operate according to personal wishes, and overconfidence will only increase risks. The market is always right, and discipline is the only way to avoid a blowup.

Remember, investment cannot always go smoothly, and making mistakes is not terrible. The important thing is to stop losses in time, don't carry orders, and don't let imagination and obsession destroy you.