The Three "Don'ts" in U.S. Stock Trading — Lessons I Learned the Hard Way with Real Money

Although I only invested a small amount on Gate, I’ve lost quite a bit in traditional U.S. stock accounts over the past few years. Sharing these three "don'ts" in hopes you avoid the same pitfalls.

First, don’t try to short U.S. stocks. U.S. stocks tend to have a long-term upward momentum, especially tech giants like NVDA. Shorting requires precise timing, and most people’s timing judgments are wrong. I shorted NVDA in 2023, but got squeezed and lost over $3,000. Since then, I never short U.S. stocks again, at most reducing or closing my positions.

Second, don’t chase the highs or sell on dips. This is old advice, but few actually follow it. NVDA rose 6% on June 1st; if you chased at the end of that day, you’d be caught in a pullback the next day and lose money. The right approach is: watch the rally and enjoy the show when prices are rising, and buy the dip during sharp declines. Of course, averaging down should be done in batches, not all at once.

Third, don’t ignore exchange rates. Although Gate allows direct USDT trading without exchange rate issues, if you buy U.S. stocks through a traditional broker, currency fluctuations will affect your final returns. A 10% appreciation of the yuan against the dollar means your U.S. stock gains shrink by 10%. The advantage of Gate is that you already hold USDT, so you’ve taken on (or hedged) the exchange rate risk, and don’t need to consider it separately.

These three "don’ts" are lessons I paid for with my money. Each has a story behind it, which I may share in detail another time. In short, in the U.S. stock market, surviving longer is more important than making quick profits.

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