Recently, the gold market has skyrocketed, and the straight upward curve on the chart is impressive. But seeing this wave of market movement reminds me of an age-old topic – why do some traders choose to go against the trend, knowing that the trend is not in their favor yet still stubbornly hold on?

Yesterday, when the US market opened, gold once again reached a new high. Those traders who still hold short positions are mostly seeing their accounts shrink. Every time I see such a situation, I want to ask: is it really worth it?

**The Psychological Game of Turning Small Losses into Big Losses**

The common pattern is as follows: the trader enters a short position, and the price keeps rising. Initially, the losses are still within an acceptable range, thinking "I'll close when it retraces a bit." But the market doesn't give any opportunities, losses keep increasing, and the mindset changes accordingly—from "quickly cut losses" to "I don't believe it won't retrace," ultimately falling completely into the quagmire of holding the position.

Traders with large amounts of capital are particularly susceptible to being caught. Having sufficient margin in their accounts creates a false sense of security: "I can hold on." But they ignore a harsh reality—the power of the trend is infinite, and the cost of time is constantly accumulating.

**Those "lucky to bring back" stories**

If you're lucky this time and really manage to hold on, even making a small profit on the way out, that might just be the most dangerous beginning. Because this "success" will reinforce a fatal belief in you: that holding onto positions is feasible. The next time you encounter a similar situation, you will be even more determined to hold on, until one day the market no longer gives you a chance to turn back.

There have been too many bloody lessons in history: the veterans who were liquidated during the silver crash in 2011, the investors in the negative oil price event in 2020... Many of them experienced "luckily making profits," and it was this false sense of victory that ultimately led them to suffer a heavy loss.

**In the face of trends, stop-loss is the way to go**

In trading in cryptocurrency, precious metals, and any financial market, the most professional approach is actually quite simple: acknowledge your mistakes, set stop-loss points, and strictly enforce them. It's not because you can always predict the market, but because quickly admitting defeat when your judgment is wrong can help you survive longer.

Traders who have long-term stable profits never rely on the market "turning back". They only care about one thing: risk control.