Cleo.finance: How to avoid crippling losses when trading?

thecryptogandalf

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Is this some kind of company? And there are so many of them, it's hard to say for a specific one. I don't think it's any different than the others.

The article is from a trading platform's blog and the post is a summary of an article about position sizing.

thecryptogandalf

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Quote from: tvplus006 on October 05, 2022, 09:14:52 PM

There will definitely be losses in trading, but using the basics of risk management correctly, you can reduce the size of the loss. In this case, in order for our trade to bring us profit, it is necessary to compensate these unprofitable deals with profit from successful trading deals.

Precisely and also not all losses are equal.
There are losses taken in accordance with your trading plan by setting stop losses and protecting your funds from further, larger losses.
And then there are losses that are taken out of panic, fear, and a result of deviating from the trading plan.

GatotKaca

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every trader must have a strategy to minimize the risk of loss. if you are day trading, of course, it requires better skills in trading. but it also does not reduce the risk of loss that we can get.
some traders if they experience loss problems due to market fluctuations, make short-term hold plans while waiting for the market to fix prices. or instead buy the asset when it declines and hold it long term to cover losses from the trade.
everyone has a different way. but I usually choose to hold the asset and wait for a better market moment.

tvplus006

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There will definitely be losses in trading, but using the basics of risk management correctly, you can reduce the size of the loss. In this case, in order for our trade to bring us profit, it is necessary to compensate these unprofitable deals with profit from successful trading deals.

Taskford

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Quote from: Xampeuu on October 05, 2022, 12:09:58 PM

Quote from: Wakate on October 04, 2022, 06:49:29 PM

Quote from: LUCKMCFLY on July 18, 2022, 12:09:05 PM

For me to operate without having many losses, what must be followed is the basics, put the Stop Loss first, because we have to protect our money, if it is done that way I think we are telling us, that if the price comes in We are against, it does not matter, that the stop loss is jumped and we assume the loss, otherwise if the price goes up, what we have to do is keep moving the stop loss and keep winning, I think that is a very simple way to win, but you have to have a lot of experience not to lose.

Making loses is inevitable in trading so we should to plan not to lose but for or loses to be lesser than our profits which is the reason why making traders are still trading till today while many had left trading because of continuous loses that had crumble there financial status.
Every traders always chose to make continuous winning but the market can be so tedious that we don't even know what to do or how to set our trade in a way that we will make better profit from what we do. Let's plan to always make sure that our profits is greater than the loses.

after planning or analyzing and placing targets and stop losses, then we must have good psychology to launch the framework that we have created. Without a good mentality, it is impossible for us to carry out the plans that have been made. Therefore, many people are good at analyzing but they lose because there is no good mental attitude, so greed and rush to respond to the market occurs.

To have good pose on trading we must have proper knowledge about fundamentals as well as with the news happening because from this for sure we can set our plans and stick with it. Because if we just trade around without having good plans set for the day for sure we lose because we want more profits together the probability to get hype by situation like thinking about getting more if the price will pump or even to recover if market dumps.

globalpain

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to be honest it is very difficult to avoid losses in trading, because the crypto market is very volatile,
even using technical analysis also often experiences stop losses, this is why trading in cryptocurrencies is much more risky than forex,
if you still don't understand it then stay away crypto currency trading.

Xampeuu

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Quote from: Wakate on October 04, 2022, 06:49:29 PM

Quote from: LUCKMCFLY on July 18, 2022, 12:09:05 PM

For me to operate without having many losses, what must be followed is the basics, put the Stop Loss first, because we have to protect our money, if it is done that way I think we are telling us, that if the price comes in We are against, it does not matter, that the stop loss is jumped and we assume the loss, otherwise if the price goes up, what we have to do is keep moving the stop loss and keep winning, I think that is a very simple way to win, but you have to have a lot of experience not to lose.

Making loses is inevitable in trading so we should to plan not to lose but for or loses to be lesser than our profits which is the reason why making traders are still trading till today while many had left trading because of continuous loses that had crumble there financial status.
Every traders always chose to make continuous winning but the market can be so tedious that we don't even know what to do or how to set our trade in a way that we will make better profit from what we do. Let's plan to always make sure that our profits is greater than the loses.

after planning or analyzing and placing targets and stop losses, then we must have good psychology to launch the framework that we have created, because we know psychology has the biggest role in determining trading success. Without a good mentality, it is impossible for us to carry out the plans that have been made. Therefore, many people who are good at analyzing but lose because they do not have a good mental attitude, so there is greed and haste to respond to the market, due to psychology that has been disturbed so that they cannot think clearly.
after we place a transaction, there are only 2 market reactions up or down, and the final result we leave to God, our job is only to manage risk in trading, sometimes loss is unavoidable, but we have to get a bigger profit, because as far as I know there is no traders who always profit, especially with the smaller time frame used

Zanab247

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I guess, purchase when the price is low in the market will really help you to avoid losses in the crypto market, because it's the best time many professional investors used to purchase some potential coins and hold for the bull season to come before they can sell to make a good suitable profits from the market. And sell when the price is high is another way people used to avoid losses in the market, because when you release your coins in the bull market, it will really help you not to involve in losses in the market.

Wakate

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Quote from: LUCKMCFLY on July 18, 2022, 12:09:05 PM

For me to operate without having many losses, what must be followed is the basics, put the Stop Loss first, because we have to protect our money, if it is done that way I think we are telling us, that if the price comes in We are against, it does not matter, that the stop loss is jumped and we assume the loss, otherwise if the price goes up, what we have to do is keep moving the stop loss and keep winning, I think that is a very simple way to win, but you have to have a lot of experience not to lose.

Making loses is inevitable in trading so we should to plan not to lose but for or loses to be lesser than our profits which is the reason why making traders are still trading till today while many had left trading because of continuous loses that had crumble there financial status.
Every traders always chose to make continuous winning but the market can be so tedious that we don't even know what to do or how to set our trade in a way that we will make better profit from what we do. Let's plan to always make sure that our profits is greater than the loses.

Oilacris

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Quote from: thecryptogandalf on October 04, 2022, 09:31:54 AM

Quote from: xzy887 on September 17, 2022, 10:24:59 AM

The cryptocurrency market always goes up and down. But sometimes there is a situation in the market that the price is very decreasing more than the price at which we bought the token. And just then we eat los. And if you want to avoid this loss, you must use stop loss. The reason to use a stop loss is if you are worried about the token you bought and think it will go down further.One advantage of using a stop loss is that using it will reduce the loss rate, but by changing the stop loss repeatedly, you can increase the profit rate.

Precisely, every trade needs a bit of “wiggle” room. Tight stop loss means you will drain your account faster and too loose stop loss will make it impossible to succeed.
There is no one size fits all. I usually try:
- S/R line
- My favorite MA
- ATR indicator

When you do set out too shallow SL's then it would really be easily triggered out considering volatility level of certain coins then it would really be just too easy for it to be triggered.
I do agree on what you are saying specially people who do make out short trades who do really set out these limits but honestly, it isnt really that too necessary
if you are really that active on checking out price from time to time.

There are several indicators or tools which you could really make use and just what most people been saying on here that this is really just a matter of
mixing up various indicators and find for yourself on what do really suits you up.

thecryptogandalf

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Quote from: xzy887 on September 17, 2022, 10:24:59 AM

The cryptocurrency market always goes up and down. But sometimes there is a situation in the market that the price is very decreasing more than the price at which we bought the token. And just then we eat los. And if you want to avoid this loss, you must use stop loss. The reason to use a stop loss is if you are worried about the token you bought and think it will go down further.One advantage of using a stop loss is that using it will reduce the loss rate, but by changing the stop loss repeatedly, you can increase the profit rate.

Precisely, every trade needs a bit of “wiggle” room. Tight stop loss means you will drain your account faster and too loose stop loss will make it impossible to succeed.
There is no one size fits all. I usually try:
- S/R line
- My favorite MA
- ATR indicator

xzy887

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The cryptocurrency market always goes up and down. But sometimes there is a situation in the market that the price is very decreasing more than the price at which we bought the token. And just then we eat los. And if you want to avoid this loss, you must use stop loss. The reason to use a stop loss is if you are worried about the token you bought and think it will go down further.One advantage of using a stop loss is that using it will reduce the loss rate, but by changing the stop loss repeatedly, you can increase the profit rate.

jostorres

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Quote from: tygeade on September 14, 2022, 04:45:33 AM

That RRR is not known by most people and to be fair in crypto world it is not clearly indicated neither, you do not really know it. Like when you are stock trading you could look at how much cash they have, what's their revenue to profit ratio, look at the ownership and how much institutional ownership they have, you could look at the debt, and the personal number and many other things.

These data will show you if it is worthy of investment or not and it would show you what would be the risk of something like that. But in reality, crypto doesn't have these and we could have a great news today and end the day with 30k or have a terrible news and end it at 10k, it is wild and volatile.

They do not really need to know that exactly, all they need to know is they need some sort of reward at the end, yes risk to reward ratio is important but if there is a small reward then it doesn't matter even if the risk is little, hence it makes the rrr a mute point.

However, if there is a good reward then you can take a look at the risk, because even for something with a huge reward potential, you could literally end up with a too big of a risk so it would start mattering there. I personally believe that understanding the fundamentals of a project, and then making decisions based on that would be much better for the long term, but that is of course my idea of how to make an investment.

tygeade

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Quote from: thecryptogandalf on September 13, 2022, 08:18:07 AM

Quote from: LUCKMCFLY on July 18, 2022, 12:09:05 PM

For me to operate without having many losses, what must be followed is the basics, put the Stop Loss first, because we have to protect our money, if it is done that way I think we are telling us, that if the price comes in We are against, it does not matter, that the stop loss is jumped and we assume the loss, otherwise if the price goes up, what we have to do is keep moving the stop loss and keep winning, I think that is a very simple way to win, but you have to have a lot of experience not to lose.

And also it is better to ask yourself “Is the profit worth the risk? What’s my RRR?”

The majority of traders tend to focus mainly on timing the trade's entry perfectly, while proper risk management and position sizing is an afterthought.

That RRR is not known by most people and to be fair in crypto world it is not clearly indicated neither, you do not really know it. Like when you are stock trading you could look at how much cash they have, what's their revenue to profit ratio, look at the ownership and how much institutional ownership they have, you could look at the debt, and the personal number and many other things.

These data will show you if it is worthy of investment or not and it would show you what would be the risk of something like that. But in reality, crypto doesn't have these and we could have a great news today and end the day with 30k or have a terrible news and end it at 10k, it is wild and volatile.

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Quote from: Mpamaegbu on September 13, 2022, 01:58:54 PM

I like the way OP titled it, "crippling losses" indicating that they're in the know that one can't completely escape losses in trading. It can only be mitigated but not completely ruled out. In fact, loss is a major part that makes trading what it's; an excitement. Otherwise, it would be an all comers' affair. Every trader should know the relevance and place of Stoploss (SL) and Money Management (MM) in trading. Those two are unarguably account savers. The real trading begins with them.

But surprisingly there are people whom do really believe that there are people who could make up some trades without any losses which is really something a bullshit belief of someone which they could possibly able to attain it but once reality would slap into their faces then this is where realizations do happen.
Money management and risk handling would be the main things that you should need to get serious on because these are things which would really help you out on at least lessening
the possible losses if you do know on what you should gonna do with these times.
Be prepared and always set plan B's whenever your plan A had failed.

Mpamaegbu

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I like the way OP titled it, "crippling losses" indicating that they're in the know that one can't completely escape losses in trading. It can only be mitigated but not completely ruled out. In fact, loss is a major part that makes trading what it's; an excitement. Otherwise, it would be an all comers' affair. Every trader should know the relevance and place of Stoploss (SL) and Money Management (MM) in trading. Those two are unarguably account savers. The real trading begins with them.

pgbit

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To avoid losses during trading it is important that you know about cryptocurrencies. To avoid losses it is important to choose coins that have a strong project and an experienced team.Coins should always be bought at low prices. The support and resistance points of the coins should be known. Stop loss should be used to minimize the loss. You should keep an eye on the news of the tokens you are investing in. Always buy the top ranked coins.Coins with high volatility, low circulating supply and high market volume should be bought while trading.In case of falling market should be patient and hold the coins because after the bear market there is always a bull market. But the condition is that your choice of coins is right.

thecryptogandalf

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Quote from: LUCKMCFLY on July 18, 2022, 12:09:05 PM

For me to operate without having many losses, what must be followed is the basics, put the Stop Loss first, because we have to protect our money, if it is done that way I think we are telling us, that if the price comes in We are against, it does not matter, that the stop loss is jumped and we assume the loss, otherwise if the price goes up, what we have to do is keep moving the stop loss and keep winning, I think that is a very simple way to win, but you have to have a lot of experience not to lose.

And also it is better to ask yourself “Is the profit worth the risk? What’s my RRR?”

The majority of traders tend to focus mainly on timing the trade's entry perfectly, while proper risk management and position sizing is an afterthought.

LUCKMCFLY

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For me to operate without having many losses, what must be followed is the basics, put the Stop Loss first, because we have to protect our money, if it is done that way I think we are telling us, that if the price comes in We are against, it does not matter, that the stop loss is jumped and we assume the loss, otherwise if the price goes up, what we have to do is keep moving the stop loss and keep winning, I think that is a very simple way to win, but you have to have a lot of experience not to lose.

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Quote from: sana54210 on June 30, 2022, 01:28:21 PM

Quote from: kamvreto on June 29, 2022, 09:33:19 AM

mistakes in the past being the best teacher, an experience that should really make us able to avoid the same problem. It takes several tries to avoid the same problem, every trader has their own strategy, but what is certain is that avoiding losses is something that must be done. We also have to have control over the trades that are being made, lest the traders only get losses.

Making losses is fine, not letting them get to us is the real treasure in the trash. If we could keep our heads high and keep on doing something that is profitable for the future, then we will be fine. Those losses should become our school books, we should be able to learn from them so well that in the future when we are about to make a mistake, we should remember the mistakes we did in the past and avoid doing them again.

This isn't hard, sometimes you make the same mistake two or three times or even maybe more before you learn to avoid them. But as long as you learn, and you do not make it again, they are still our lessons and they are valuable.

If you are really that dedicative on pursuing your goals then losses and failures wouldnt really be a hindrance for you to stop just because you had experienced unfortunate events but for those who are dedicative

or trying out to pursue their goals then they are the ones who do able to sustain for too long.Im not saying that they arent making themselves get affected yet we are just humans and seeing our investments
failed or have losses then its normal to have these kind of reactions which not all would really be that having that kind of mindset or behavior.

Some do sustain and some do fail and eventually quit which it does really depend on personal goals and mindset and handling out on particular conditions whether you do
survive or completely stop.

Topic: Cleo.finance: How to avoid crippling losses when trading? (Read 819 times)