Holding a losing position feels good for a moment, but getting liquidated is a funeral pyre.

"I'll hold a losing position for a while and then 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 suffering a loss. "Endure once, and ten trades will be in vain."

Even if one ultimately profits by chance, it is still regarded by professional traders as a complete failure.

There is a saying in the trading world: money earned outside of the system is a curse. Holding a losing position is like dancing on the edge of a cliff. It may seem glorious for a moment, but it also buries a deadly hidden danger.

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

The market has no obligation to turn back according to your expectations. Once a trend is established, it is very difficult to reverse in the short term; the more you resist, the more you 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 wiped out. Holding a losing position is almost like actively courting death. Setting a stop loss is respecting the market, acknowledging mistakes is protecting your principal, and being flexible is the essence of trading.

The derivatives 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 leading to destruction. You might be lucky enough to endure countless small crises, but a single unmanageable volatility is enough to end your trading career. Successful derivatives traders are well aware of the importance of strict risk management, especially timely stop-losses and respecting market trends, which is far more important than having the courage to resist.

The 5 Major Sins of Holding a Losing Position.

First, risk is uncontrolled; holding a losing position means that the stop-loss plan has not been executed, the risk window is enlarged, and just one failure can lead to getting liquidated.

Second. Capital occupation, funds are locked, affecting liquidity, missing other opportunities, and reducing usability.

Third, psychological pressure; holding a losing position brings immense psychological stress, affecting decision-making and leading to emotional trading.

Fourth, violating discipline, undermining trading discipline, failing to develop good trading habits, and affecting long-term stability.

Fifth, a sense of luck; holding a losing position successfully may foster a sense of luck, and such situations may occur again in the future.