First, risk control failure; holding onto a position means not executing the stop-loss plan, which expands the risk window. Just one failure can lead to liquidation.
Second, capital occupation; funds are locked up, affecting liquidity, causing missed opportunities, and reducing utilization.
Third, psychological pressure; holding onto a position brings immense psychological stress, impacting decision-making and leading to emotional trading.
Fourth, violation of discipline; breaking trading discipline prevents the development of good trading habits, affecting long-term stability.
Fifth, luck mentality; a successful hold may create a sense of false luck, making it likely to happen again in the future.