Futures Trading Survival Guide: Why Do Most Newbies Quickly Lose Money in Trading?



Many people enter the market full of confidence, but their accounts hit rock bottom in just a few months. You might say it's bad luck, but the real reason is actually quite simple – most people started off using the wrong methods.

I summarized seven of the most common trading traps that almost every losing trader has fallen into:

**The first trap: Can't stop, trading every day**. Traders who can't sit still often lose the fastest. Frequent buying and selling not only increases transaction fees but also disrupts your judgment rhythm.

**The second pitfall: one moment bullish, the next moment bearish, completely ignoring the trend**. The wavering direction makes you slap yourself left and right, and the continuity of the trend is completely overlooked by you.

**The third pitfall: liking to catch falling knives**. It's like trying to catch a falling knife with your hand; unless you're really skilled, blood is definitely going to flow.

**The fourth pitfall: hesitation when opportunities arise**. You see the right direction but don't dare to take action, resulting in watching profits slip away right before your eyes. Being decisive and going with the trend is a fundamental skill.

**The fifth pitfall: Always thinking there are big players against you**. This mindset will only make you more and more anxious; what can truly save you is calm analysis.

**The sixth pit: All In to chase the rise**. It's thrilling, but the risk is maximized. Poor position management can lead to liquidation with just one wave of correction; this is the most basic survival rule.

**The seventh pitfall: stubbornly holding without a stop loss**. Going against the market has never resulted in a win. Set a stop-loss point and execute it when it is reached; this is the bottom line of Futures Trading.

Traders who can truly survive have a common trait: a stable mindset, strict rules, and the ability to follow the trend. They are not the smartest, but the most disciplined. engrave these understandings in your mind, and you may stand out from the many who merely accompany the race. The market will never reward luck; it only rewards those who understand the rules and respect risk.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 4
  • Repost
  • Share
Comment
0/400
AirdropHunter007vip
· 12-23 14:45
To be honest, the first point is my Achilles' heel; I can't stop myself from getting itchy fingers every day. I'm the kind of fool who hesitates even when I've seen the right direction, watching profits slip away right before my eyes. I've used the all-in chasing the price strategy; only on the day I got liquidated did I understand what risk really means. Talking about stop loss is easy, but when it comes to cutting loss, it's still hard to let go. I feel like I've experienced all seven of these; living through this is really not easy.
View OriginalReply0
OldLeekMastervip
· 12-23 14:35
To be honest, I've fallen into the first pit and the sixth pit, and I still feel pain when I think about it. During that period of daily trading, I lost half of my profits just on fees, and later I realized that doing nothing is also a form of practice. The stop loss issue is the most heartbreaking; watching my account shrink is just holding on, and when I got liquidated, it was all too late. Actually, it's just two words: stick to the rules. Money that can't be earned isn't worth living for. In this article about the seven pits, I feel like there's one missing—a mentality that always wants to rely on luck for a turnaround.
View OriginalReply0
PoetryOnChainvip
· 12-23 14:31
To be honest, I have fallen into all seven pits, and I am still stuck in one... --- Frequent trading is really incredible; being impulsive can lead to quick bankruptcy. --- Buying the dip against the trend is ridiculous; some really think they can catch a falling knife. --- Everyone who went all in chasing the price ended up badly; I’ve seen too many get liquidated. --- The most heartbreaking is the fourth one; I saw the right direction but got scared, and the profit just disappeared. --- Sticking to it without a stop loss is simply suicide; no one can win against the market. --- Keeping a stable mindset + following discipline sounds easy, but it's really hard to do. --- This article is well written; it's just that there's a distance of an account getting liquidated between knowing and doing.
View OriginalReply0
ChainMelonWatchervip
· 12-23 14:30
You're not wrong; I'm that fool who frequently trades and then sees my account hit rock bottom. Going all in to chase the price was truly a waste. I've heard of stop loss, but I just can't execute it... I've given up on the idea of buying the dip; it was a bloody lesson. It's really just that my mindset wasn't right; I keep thinking about getting rich quickly. That All In move led to getting liquidated; I'm still reflecting on it. It sounds easy to go with the trend, but it's really hard to do.
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)