Everyone in the crypto world has heard the saying—many have lost because they "hold on" too long. The moment you choose to stubbornly hold, the outcome of failure is actually already sealed.

Many people think that losing by holding on is just a misjudgment of the market, but in reality, the real problem stems from a deeper obsession: denial of one's mistakes.

I know a crypto enthusiast who kept making opposite trades in several consecutive transactions, gritting his teeth and holding on for an entire week. In the end, he still couldn't catch the rebound and was forced to cut his losses. The regret and anxiety were all drowned out by the thought—"how to get back to break-even."

During our chat, I didn't discuss market predictions but instead pointed to the core issue—the way you handle losses.

Holding on is essentially a form of avoidance. Reluctant to admit that your judgment was wrong, unwilling to face the improper timing of your entry, you can only pin your hopes on the illusion of "just a little longer, and it will rebound." But the market doesn't care about your feelings. It only moves according to price and trend, and your pain can't change that in the slightest.

Once caught in the vortex of holding on, your entire trading system becomes chaotic. The carefully crafted plan turns into a game of luck, rational decisions degenerate into blind gambling. You might have some short-term luck, avoiding a few minor pullbacks, but as soon as a deep crash hits, all your luck will vanish into thin air.

Those who have been in the crypto space for a long time share a surprisingly consistent mindset: misjudged the market, honestly admit mistakes, and limit losses to an acceptable range; if the direction is wrong, decisively close positions to avoid future trouble; if the trend is unfavorable, prefer to stay out of the market and wait rather than operate blindly.

These principles sound simple but can save you from emotional distress. Don't mask stubbornness as a display of willpower—that's just an excuse for not wanting to cut losses.

Making stop-loss decisions early, before the losses become too large, is the key to preserving capital and maintaining the ability to continue trading in the market. If you follow this path, your trading journey will become smoother and your room for growth will expand more and more.