Last weekend, a friend came to my house. The coffee was just served and still steaming, but he silently slammed his phone onto the coffee table.
The screen was still on, full of red lines that made one's eyes sore. He smiled bitterly and said: “With a principal of 110,000, now only 21,000 is left.”
After a two-second pause, he added: “I clearly only play spot trading and have never touched leverage. How could I have lost this much?”
At that moment, I was not surprised at all. Because I clearly remember — when he just entered the circle last year, he patted my shoulder and vowed: “I won’t be greedy, I’ll just play spot trading. No matter how bad spot trading is, I can’t lose too much.”
This sentence has been said by too many people. And too many people have been harmed by it.
Spot trading indeed won’t clear out overnight, but it has a more insidious lethality: a slow knife cutting flesh.
Not willing to sell when prices rise, and constantly adding positions when prices fall;
Seeing a rebound and fantasizing about new highs, telling oneself “just wait a bit” whenever there’s a pullback.
Positions get bigger and bigger, costs get lower and lower,
but the risk is quietly amplified by oneself. You think you’re stable,
but in fact, you’ve long been fully invested, standing on the edge of a cliff.
What’s more cruel is that spot trading won’t remind you “it’s dangerous.”
No liquidation line, no forced liquidation,
it will only slowly drain your patience and principal over time.
By the time you come to your senses, your account has already shrunk to an unbelievable state.
