Having been in this market for so many years, I’ve watched too many people go from dreaming to helplessly exiting. Every time someone complains to me, "How did I lose again," I always mention the same four things—these are forged through countless liquidations. Almost every losing trader ultimately falls into these traps.

**Frequent trading is the number one killer**

Many treat this like a casino. The moment they think "holding cash means losing," they start entering and exiting the market dozens of times a day. Staring at minute charts, watching candlestick fluctuations without blinking, feeling like they’re mastering the market. In reality, after accounting for fees and slippage, the principal shrinks by about 30% before even catching a big move. True opportunities always require patience; the more you rush to "make another trade," the more likely you are to be repeatedly educated by the market.

**Heavy leverage and full position are direct routes to liquidation**

I’ve seen too many people with a "Hail Mary" mentality, pouring 80-90% of their capital into a single coin, often with 10x or 20x leverage. I once knew a trader who, thanks to leverage, doubled or tripled his gains, but later, overconfident, he went all-in on a shoddy project. The project’s team ran away overnight, and his account was wiped clean. Leverage amplifies gains but also losses—if the market moves 5% against you, your position could be wiped out.

**Greedy take profit, overconfident stop-loss—common psychological traps**

Getting a 5% profit, rushing to lock in gains, but then refusing to cut losses when the account drops 30%. Some see the price break support levels and keep adding to lower their average cost, only to lose 80% of their capital, with no chance to recover. The market doesn’t fear your take profit; it’s your stop-loss that’s critical. When you wait too long to cut losses, any rebound is just a fleeting light.

**Lack of stop-loss awareness is like roulette gambling**

Too many trades are based on "feelings," without pre-planned risk management, blindly believing "the market will go my way." But in crypto, there’s no guaranteed trend. A sudden piece of bad news or a market plunge can cut your position in half instantly. Not setting a stop-loss is like driving without a seatbelt—nothing happens most of the time, but one accident can be deadly.

Almost all traders who survive truly treat "stop-loss" as an iron rule. Even if they get shaken out occasionally, it’s far better than liquidation.

**The underlying logic of the market is actually very simple**

Trade less unnecessarily, avoid high leverage, learn when to exit, and maintain respect for risk. Protect your capital, and opportunities will naturally come to you. This isn’t some advanced theory; it’s about surviving and watching the market.