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**Frequent trading is a money sink**
The 7×24 nonstop trading mechanism is the easiest way to fall into the "operation trap."
Check your trading records—every impulsive order comes at a cost. Slippage eats into your profits, accumulated fees drain your capital, and emotional swings wear you down. These invisible costs gradually chip away at your principal.
Observe the most experienced traders— their secret is actually simple: spend 80% of the time doing nothing, keep cash idle, and wait for that 20% of truly promising opportunities. This isn't laziness; it's discipline.
**Cognitive blind spots are the deadliest killers**
Chasing gains and panic selling hide psychological traps. Seeing the coin price skyrocket makes you jump in, and when it drops, you panic and cut your losses. This isn't stupidity; it's the brain's instinctive search for "certainty" amid uncertainty— the more certain it seems, the more likely it is to be wrong.
Look at those who make quick money on "good news." When news is announced, it's often the riskiest moment—there are always some insiders who already know the news and are waiting for retail investors to take the bait. Information asymmetry is the sharpest tool for harvesting profits.
There's also the problem of overconfidence: studying MA lines, MACD, candlestick patterns all day, or following others' recommendations blindly. But they overlook the most fundamental market factors—supply and demand, capital flow, institutional movements. Overanalyzing minor details can obscure the big picture.
**Stop-loss isn't giving up; it's survival**
Those who stubbornly hold onto losing positions often end up deeply trapped. Instead of hoping for a miracle, set a proper stop-loss. For example, set it at 3% of your capital, and once broken, exit unconditionally.
It may sound like you're losing money, but you're actually buying yourself a chance to "make mistakes and restart" at minimal cost. Technical analysis doesn't need to be fancy—master two or three patterns, like volume breakouts or moving average supports, and you'll be more reliable than blindly switching strategies.
**Position sizing is the line between life and death**
When your account is small, don't risk more than 20% of your capital on a single trade. This leaves room for averaging down if needed. If your capital isn't flexible enough, it becomes difficult to handle market fluctuations.
After making profits, take profits in stages. Especially when your gains exceed 30%, be sure to withdraw the principal. The remaining is your real profit, which helps you stay calm and rational about future trends.
One last iron rule: never use living expenses for trading. Those who use rent money to speculate are nine out of ten times emotionally unstable. When your mindset collapses, your decision-making goes haywire.
Market opportunities are always present, but your capital won't regenerate infinitely. Every time you avoid a pitfall, you're one step closer to truly surviving.