Situation: the price has gone against you. Instead of a stop, you add funds to a losing position, hoping for a rebound. This is averaging down.
Why is it a trap?
You are obeying not analysis, but hope and pride ('I can't be wrong!'). The market can continue to move against you indefinitely until you lose your entire deposit.
Exit: If the price has reached your stop-loss, it means your hypothesis did not work. Accept the loss, exit, and reanalyze the situation. Do not save a bad trade.
SOLUSDT
Perp
127.07
+1.08%
ZECUSDT
Perp
449.3
-0.38%
ORDIUSDT
Perp
3.909
-1.46%