Is unrealized loss not considered a loss? As long as you don't get liquidated, you can hold on forever?
Doesn't that sound particularly free? Many newcomers are captivated by this statement.
But in this so-called freedom, there are all pits.
Think about it: you can add positions at any time, if you make a profit you want to chase it, if you incur a loss you want to hold on,
with leverage, the temptation of doubling your returns goes straight to your head,
What about the risks? They have long been thrown to the back of your mind.
The magic of unrealized loss lies here——
When the numbers are red, you feel comfortable and want to go for it again;
When the numbers are green, you are unwilling to accept it and think about holding on a little longer.
Repeated actions seem to be seizing opportunities,
But in fact, you are being led by emotions.
I have seen too many people,
With unrealized losses of ten thousand, twenty thousand, a hundred thousand……
Each time telling themselves, "It's okay, as long as I don't get liquidated,"
But in the end, the principal is slowly eroded,
The psychological pressure is more lethal than liquidation.
Experts play contracts and understand one thing:
Unrealized losses are just a psychological game,
Both profits and risks must be calculated.
They won't be blinded by unrealized gains, nor will they be scared into weakness by unrealized losses.
The most common mistake retail investors make is:
Treating unrealized losses as "opportunities,"
Leveraging as a "shortcut,"
Emotions as "mentors."
And the market never shows mercy.
Once you forget the rules, forget to set stop-losses,
The so-called freedom will only turn into a nightmare.
So I always say:
Contracts are not a free paradise,
Unrealized losses are not a safety net.
True freedom is when you can control your positions, control your mindset, and follow your plan in and out.
