To survive in the market long-term, you gotta go with the flow and avoid trading against the trend. Protecting your capital is the top priority; never hold a losing position against the trend.
Six deadly sins of trend trading:
1. Holding onto losses (not cutting your losses)
2. Averaging down on losing positions (doubling down on a mistake)
3. Adding to winning positions recklessly (over-leveraging can turn a winner into a loser)
4. Chasing pumps and dumps randomly (just because you think it's right doesn't mean you can execute it right)
5. Trying to catch the bottom or the top (big mistake)
6. Not cutting losses in a downtrend (if things look bad, it's time to bail)
Remember this mantra, read it every day.
Six deadly sins of trend trading:
1. Holding onto losses (not cutting your losses)
2. Averaging down on losing positions (doubling down on a mistake)
3. Adding to winning positions recklessly (over-leveraging can turn a winner into a loser)
4. Chasing pumps and dumps randomly (just because you think it's right doesn't mean you can execute it right)
5. Trying to catch the bottom or the top (big mistake)
6. Not cutting losses in a downtrend (if things look bad, it's time to bail)
Remember this mantra, read it every day.