In the contract trading market, investors who suffer liquidation or heavy losses often have the following common characteristics. If you don't work hard to overcome these problems, losses may become your norm.
1--Heavy position trading: Excessive position is the main reason for liquidation. Investors often pursue quick profits and use a large proportion of leverage to carry out heavy-position transactions. Although this may bring huge profits in the short term, its ability to resist risks is extremely low. Once the market trend goes unfavorably, you will face huge losses.
2--Be stubborn and refuse to admit mistakes: Once some investors suffer losses in trading, they always take a chance and hope that the market will correct. This mentality makes them unwilling to stop losses in time, and as a result, they often sink deeper and deeper.
3--Do not set a stop loss and close the position manually: Setting a stop loss is an important part of trading. It can help investors leave the market in time when they lose money and avoid greater losses. However, manual closing often does not respond in time, especially in extreme market conditions, and the best exit opportunity may be missed.
Remember, the get-rich-quick mentality is often a big no-no in investing. A sound investment strategy is key. The investment method of light position, small amount and following the trend is more conducive to long-term and stable income accumulation. Remember the principle of "a small amount of money will make a small amount of money". When the funds in your account double, remember to withdraw the principal, so that your mentality will be more relaxed and the speed of profit will be accelerated.
