When the market is volatile, instead of feeling anxious, it's better to calm down and reflect on your trading system. Recently, while reviewing my trading records, I discovered a common point that runs through most of my losing trades.

It seems that there are countless reasons for losing money in trading, but they all point to the same trap: taking profits too early when the market moves slightly in your favor, and rushing to cut losses when the market moves slightly against you, resulting in repeated cuts. This is not two isolated mistakes, but a symptom of an imbalance between greed and fear.

I often hear this saying: "Novices die chasing highs, veterans die holding onto losing positions, and most people actually get wiped out by panicking after small gains or fearing small losses." This statement is harsh but true.

Why do we fall into this cycle? When prices rise, greed tells you "it can go higher," so you keep holding your position. When the market reverses, your unrealized profits turn into unrealized losses in an instant. When prices fall, fear screams "Will I lose even more?" and you panic and cut your losses hastily. Ironically, right after you cut your losses, the market rebounds.

Repeatedly doing this, you don’t make big trend profits; instead, transaction fees, slippage, and stop-loss losses accumulate into a bottomless pit that devours your capital. The most profound experience recently was during the DASH rally, from 55 to over 90. I could have enjoyed a good upward move, but due to repeated friction and the correct direction, I ended up with a big loss. It’s incredibly unfair.

Thinking carefully, most people's stories of losing money follow this template. After realizing the problem, I am working hard to overcome this psychological trap, and I also suggest you pay more attention to this in your trading. Only then can you walk this path more steadily and further.