The Impact of Human Weaknesses on Trading Series — Chasing Gains and Selling Losses in Cryptocurrency Exchange Platforms

To succeed in trading, one must possess the appropriate qualities,

Qualities include self-cultivation,

One important part of self-cultivation is controlling human weaknesses.

One of human weaknesses: chasing gains and selling losses: there are correct and incorrect understandings

Incorrect understanding: human weakness causes chasing gains and selling losses

What is selling losses? Cutting losses when the loss has become unbearable, instead of stopping the loss.

The mistake is not stopping the loss when you should,

Missing the optimal stop-loss point,

Continuously expanding losses,

Leading to a big loss.

What is chasing gains? After a big price rally, greed causes you to chase higher.

The mistake is that at this point, a pullback should occur, but you chase in,

Who are you trapping?

Correct understanding: it is a rational pursuit of gains and cutting losses required by the trading system

What is selling losses? When breaking through support levels, bravely short.

Capture profits from the trend.

What is chasing gains? When breaking through key points, open long positions.

Capture profits from the trend.

Two different understandings lead to two different results,

One is a big loss, the other is a big profit,

Chasing gains and selling losses depend on how you understand and operate.