When carrying a single is cool, the crematorium is bursting

"I will hold on for a while and come back" - The last words of a retail investor before getting liquidated.

Holding a losing position means not executing a stop-loss and insisting on a loss. "Endure it once, ten trades will go to waste."

Even if one ultimately makes a profit by luck, it is still seen as a complete failure by professional traders.

There is a saying in the trading world: money earned outside the system is a curse. Holding a losing position is like dancing on the edge of a cliff. It may seem glamorous for a moment, but it also plants the seeds of fatal hidden dangers.

Research shows that 87% of Get Liquidated cases directly stem from holding a losing position behavior, and among them, 63% of traders previously had successful experiences with holding a losing position. This precisely confirms that the success of holding a losing position is the beginning of greater failure.

The market is under no obligation to turn back according to your expectations. Once a trend is established, it is extremely difficult to reverse in the short term; the more you resist, the more you will lose, and you may Get Liquidated before a rebound.

Once the market continues to move in the opposite direction, your losses will be amplified by the leverage, which may ultimately lead to your account balance being completely wiped out. Holding a losing position is almost like actively seeking death. Setting a stop-loss is respecting the market, acknowledging mistakes is protecting your principal, and being flexible is the key to trading.

The contract market does not allow for reckless gambling. Holding a losing position may seem resilient in the short term, but in the long run, it is a one-way street to destruction. You might be lucky enough to survive countless small crises, but a single unbearable large fluctuation is enough to end your trading career. Successful contract traders are well aware of strict risk management, especially timely stop-losses and respect for market trends, which is far more important than the courage to resist.

5 major sins of holding a losing position.

First, risk is out of control. Holding a losing position means not executing the stop-loss plan, which expands the risk window. Just one failure can lead to getting liquidated.

Second, capital occupation, funds being locked, affecting liquidity, missing other opportunities, and reducing usability.

Third, psychological pressure. Holding a losing position brings tremendous psychological pressure, affecting decision-making and leading to emotional trading.

Fourth, violating discipline and breaking trading rules makes it impossible to develop good trading habits, which affects long-term stability.

Fifth, the mentality of taking chances; holding a losing position successfully may create a sense of luck, and this situation may occur again in the future.