In the turbulent waves of the Crypto Assets market, there is a common phenomenon: whenever there is a severe Fluctuation in the market, a large number of traders end up losing everything. This is not just the market's ruthlessness; it is more about the weaknesses of human nature at play. Let's analyze the pitfall of "hold a losing position," which is the most common trap that traders fall into.

1. The Myth of a Volatile Market

The market is in a state of fluctuation about 70% of the time, which creates an illusion for many traders that holding a losing position is a good strategy. Indeed, in a fluctuating market, holding a losing position can sometimes turn danger into safety. However, the remaining 30% of trending markets often ruthlessly destroy the profits brought about by this lucky mindset.

2. The psychological shackles of loss aversion

Psychological research shows that the pain of loss is much greater than the pleasure of equivalent gains. This mentality can lead traders into a vicious cycle of "holding a losing position until breaking even," ultimately turning small losses into big losses.

3. Decision bias brought by self-ownership

Overconfidence is a trader's worst enemy. Some people believe that their judgment is infallible after conducting research for a period of time, equating stop-loss with being wrong, and stubbornly sticking to their views. This mindset often leads traders to pay a heavy price.

4. Emotionally Driven Revenge Psychology

After consecutive stop losses, some traders develop the illusion that "the market is targeting me." This mindset leads them to hold a losing position to fight against the market, trying to prove their correctness. However, the market is ruthless, and this behavior often results in greater losses.

5. The Risk of Unplanned Trading

The lack of a clear trading plan and relying solely on instinct is a common problem among many novice traders. They often do not consider stop-loss when opening positions, and once they are stuck, they find it difficult to let go, ultimately ending up in a passive situation.

Conclusion:
Recognizing these psychological traps is a key step in improving trading skills. Successful traders not only need to master market analysis skills but also learn to control their emotions and cognitive biases. Remember, in the Crypto Assets market, rationality and discipline are often more reliable than intuition.