Many people ask me why holding a position is so difficult. Actually, I think the essence of holding a position is gambling on probabilities. Let me share my own experience.

Suppose a leading cryptocurrency is quoted at 100,000. If you are bearish, you open a short position. When the price rises to 120,000, your liquidation price is around 130,000. At this point, your account already shows unrealized losses, and you think as long as the price drops back to 100,000, you will close the position and break even. But then the price jumps directly from 110,000 to 130,000—liquidation occurs.

I’ve found that there are basically three outcomes for people doing this kind of thing. The first is that they actually wait for a chance to break even and then close the position; the second is that they are directly liquidated and eliminated; the third, the most torturous— the market indeed declines, but human nature is problematic. When they make a little profit, they want to run, and they simply can't hold the position. In the end, they either take a small profit and exit or keep holding on.

To put it simply, the logical flaw in holding a position is this—since you are already in unrealized loss, you are gambling that the market will move in the opposite direction. But the market won't cooperate just because of your psychological expectations. Volatility will be much more intense than you imagine.