Topic: Constantly burning out my trades. What do I do to avoid this? (Read 265 times)

You are driven by your emotions and can't decide the right thing to do, I suggest you stop doing it. This is not really meant to you. Accept the fact that not all had tried trading have become successful, many also suffered big losses and market rejections.

Those losses that you've worried about and wanted to recover will be considered as a part of trial and error. Remember that, all successful traders had also difficulties and struggle first before they reach the top. It can't be instant and there is no such way to make shortcuts, all it needs to work on.

I think I will need to stay away, of course. I clearly have a problem, but I was desperate.
Once you're in a deep hole, it's hard to get out.

What have you learned? Lots of people had burned up their capital or money with trading but doesnt mean that this is already the end of the world.You can always go back and try to be wise and smart again with your trades.

Remember that only risk on the amounts that you can afford to lose and dont go overboard because this will really make out mistakes even more.Learn on past mistakes and be careful in the times you are being too greedy.

Next time where you should only spend a dime or sufficient amount to make some sort of practive.Is this decision of yours final? Would you trade again in the future?

UPDATE:

I have burned myself. I am officially penniless.
Thanks for advice and taking the time to respond anyway, much appreciated.

I feel sorry for your lose, don't panic with what happened to you. Because many people experience greater losses when trying to
make up for losses already experienced. My advice is to stop trading immediately for a few days, please do something to amuse
yourself first. So that your mind can forget about trading for a while and become more relaxed.

Because to be able to successfully recover your losses, the first thing you need to do is have a clear and calm mind. Don't be too
obsessed with getting profit in trading immediately, you can become addicted and this will create greater losses.

Great. That is a wise decision. I hope that you can get an idea to start or learn more lessons about trading when you can enjoy your time. It will help you improve your skills, and I am sure you will have a better analysis than before. Don't forget to learn about controlling your emotion, no matter if you want to back to trading or in your daily life because controlling the emotion will be the important thing that can help you make a better decision in the future. Don't hesitate to back here if you are ready to start trading, of course, after you learn more lessons.

When you do find out things to be stressful to you and comes to a point on where you dont understand on what youre doing and its not bad to had some break and
mind things carefully and prepare yourself for the next step you would make.

Avoiding losses? Its impossible but somehow it can really be lessen via your own experience and knowledge that you would gain overtime.
Im once on this situation where i gave up and later on after a long break i consider to go back to the market and try
again with more precaution and having that very strict bankroll management.

Just want to thank everyone for taking the time to respond. I have decided to stop and take time away, and focus on other things in my life first. Hopefully, this will bring my mindset down, and help me mentally recover, so that I can go into trades in a calmer mindset, eliminating fear, greed, and urgency.

I'll continue to read and re-visit this post, so please feel free to keep posting.

Thanks again!

The sense of urgency to recover the loss in a short period of time is one of the reasons why you make a hasty and wrong decision.
You should set the goal, how much (percentage) you want before selling the coins, and vice versa set the stop loss, don't let your coins in bleed position for a long time and fall too deep, if your research indicates it will fall and will take a long period to recover, sell it at once.
And the main point is to choose the right coins, it's something that we have to do, due diligence, to determine which coin to buy and sell at the right time.

To avoid loosing to trades or burning out trades. My advice for you is to use low leverages.. And always set stop loss below more than one support level.. If you gain profit with time, you wont need high leverages to earn more and this will reduce your risk of losing in trades.

Chasing your loss from trading isn't a good practice, you should set first an amount that you willing to put at risk, no matter what happens win or lose you will never chase it.  That's why in trading, there's a saying that trade an amount that you can afford to lose and accept those consequences ahead once there's a failure.

Just move on and accept your losses, just sit back and analyze very well your failure which should never happen again.  That's my personal advice IMO even though ain't a regular trader but I know how to control my feelings and emotions.

Anyway, if you were really desperately wanted to recover your losses it will probably take time for you to do that.  There's no way to gain massive profit in just a short period of time, there's a process in it.

This is called a vicious circle by some traders, the first thing thag will don by new trader is spending money to make his capital for trading. He only has money for trading but he has no strategy and some factor that can make him comfortable to trade, he just ignoring them. They trade just only on their lusty, make an entry with high levarage with have no intention where he should buy and sell, just come in any market situation.

If they speculation come to make him get a profit they will be euphoric and think that he can beat the market with all the crazy predictions he has. And as my experience when I just new to trade I'll choose as a scalper because I can make money per day and I targetted $100 in every trade I made. But I just thinking now the strategy is bad, trading is not about how many trade you made in one day but you have to see how many profit that you get. Now, I'll choose one entry and make $100 rather than I make 20 entries and make $100, my psychology will be bad facing that.

Yeah, I guess as some people above me suggested you that you have to stop your habit now. Save the rest of your money, I ever met like your situation now, at that time I made a decision to spend the rest of money to buy some books about trading especially about psychology trading. New trader just focus on their strategy to trade but they will forget about mind and money management. The method just one factor that can make you get a profit, you need two factors to support that.

It's better to reset and not chase that losses of yours. Just sit down and analyse your trading activity and see where you made your mistakes. Trading is already a journey and you need to re-learn things, you are doing TA, maybe something is not right with your analysis that's why you keep on losing.

I know, it is depressing if you lost around £10,000, but you need to stop at this point to stop the bleeding. Otherwise, your losses will keep piling up and then you will loss control of everything if you keep on trying to recover all your money. Take it step by step again and see how it goes.

When you do still have funds to trade and even if its low then that would be an another challenge and dont or try to remove that sense of urgency because that will really be a major problem.

Dont add funds until now because you would lose even more.Try to take up the challenge on growing that little amount of money that you do currently had.

Most users who posted on this thread are actually true.We all had experienced the same scenario w hen we are still starting and as mentioned that you do learn up from those mistakes
and taking notes will be ideal.

Actually this is a common cycle of traders on this market.
First, you will trade in a very lucky way and you will make a lot of profit from this market.  After that, you will fall into a subjective cycle and become greedy;  And I'm sure you are on this cycle.

Honestly, trading to get back £ 10,000 that you have lost in a short time is impossible.  Because your greed will rise again and you will lose again.

My advice now is that you should rest for a while, trading in a stressful mindset, the more you will lose.  Keep your mind clear and create a new safe trading plan, if you are serious, you will soon get your money back.

To recover your losses you must know where your mistakes were in the past. I am sure you experience a loss, there must be an error in your trading technique, try to observe it and also fix it slowly. although you cannot recover quickly at least you can recover slowly but consistently. so do not rush to recover and use all kinds of means, choose the right and right method in the best time

You should, before starting to trade crypto, you should first consider the crypto you want to trade, before the losses get bigger and you will be trapped in one of the cryptos that you are trading.

You are too quick to conclude to trade, you should, first ask here about the best crypto and good quality on the market, then you make a trading decision.

If as you are experiencing at this time it is difficult to say to 'recover' only you can wait and patiently the crypto you are trading rises in passing a little in the level you bought at that time, that's the common way, And you can sell to cover your current losses, if you are impatient and sell, of course the losses will increase over time.

If i may know, what kind of crypto are you trading until you have a big loss....!

First of all, aiming to recover losses in a short period of time is already a losing mindset. That type of mindset would cost you a lot more. Because if you chase your losses, you are going to get more of it. If you have a different type of goal, many of which fails to, it's to ensure that you aim for long-run trading, the steady growth of capital, and risk management to be successful. You have become a gambler, and you traded with your emotion.

If you behave like that, it's better to gamble and not trade because trading requires professional discipline to be successful. Emotionless is the ideal part as well.

First is you have to chill up, take things slowly. Second is, you don't have to set a period of time to recuperate your losses, you have to take your time and not rush things out to perform your strategy smoothly. If you last strategy didn't work out, then you have to improve it by studying more and focus only on certain coins to avoid overloading your brain. You need also to to set an amount of how much you can lost to avoid losing even more.

For example is if you're entering on a price of $19,000, and the price decreases in $18,900 then you have to sell it then wait for even more dump and wait for another pump to make profits. Because it is risky if you're going to wait for it to pump again after it dropped on $18,900, it might even drop more that'll cause you a loss profit.

The more you chase your losses the more you'll go down.
 Haven't you integrate stop loss whenever you make an entry?
 
 Also, higher leverage is not recommended if you are not really sure about your technical analysis. Lower leverage is less risky and safer than choosing high leverage. Slowly recover your loss by starting with changing the way you read your indicatoes. Perhaps there is a mistake predicting or reading your technical analysis.
 
 Make a trading plan like making a goal profit in every trades you make. You will then see that you'll be recovering from your losses slowly.

Recovering that much money in such short time definintely gonna be hard and if any the risk would be the same as gambling. Why don't you just try to stake your money and wait for the profit to recover your loss although slowly, isn't it better than losing your money altogether considering as you already said higher risk and leverage?

It seems you're too hasty in your movement and that could spell your doom. Think twice first before doing anything.

Check out my latest live scalp trade 73 % in 4minutes

https://youtu.be/8509W4dJDbY

Since you are just starting to trade, try to use small trade position size first, also a small leverage.
No need to stop trading, treat those losses as learnings. You need to study more, just like the Risk Management.
There are lot of lesson about risk management, blogs or YouTube videos.
Since you already have some knowledge in technicals, I think you need more on the psychological sides or emotions as trader. Risk management is a must!

No no, that's pretty fair.

My trading system mainly consists of looking for breakouts on charts. Lots of lines, and reading the MACD/RSIs. I'll admit, i'm not very good at it, and a lot of it consists of hope; but sometimes, I am right...
Correct trades will normally net me a decent profit, but the bad trades I never understand how to close, and I am always scared to take losses early, and often let my positions bleed.

Stop what you're doing right now. Seriously. This kind of mindset will only result in you continually blowing up accounts and flushing all your money down the drain. It's the same way gambling addicts double down until they lose their shirt.

The first thing you need to acknowledge is that trading is a grind. It is very difficult and most people are not cut out for it. It takes very hard work and extreme amounts of patience. That's essentially what markets are: impatient and emotional traders giving their money away to patient and well-capitalized traders. And this is why retail traders are always getting fleeced by institutions.

Nobody is going to come into this thread and hand you a profitable trading system on a silver platter. That's just unrealistic. The vast majority of traders lose money and exit the market. With that in mind, what exactly is your trading system? Have you done any sort of back testing, anything that would suggest you are capable of beating the market? How do you manage risk and preserve trading capital?

I don't mean to be a dick but it sounds like you have a long road of learning, hard work, and most of all steadfast risk management ahead of you before you have a chance at recouping those losses.

The most important thing right now is to stop the bleeding. Stop trading. Start learning.

Thanks. I'll have a look and make some notes. My only issue is that funds are low, so it's very difficult not to go 100% in on high leverage. It is possible that I feel a sense of urgency to get these funds back.

Just be calm and if needed then better to stop and mind of or check on where you do commit some mistakes. Observe your trades and realize on what you had done
because if you do tend to make up trades with that kind of motive where you do need to chase up your losses then this will really just in result with some gambling-type like of trading
or basically you arent on the right mind on making serious analysis or would able to follow it. So my suggestion? this is a trial and error thing and dont make use of large amounts
into your trading positions. Try to find out on where you do made bad calls and learn from it.Dont rush up and dont get panic yet you can make use of smaller amounts-
it isnt needed or necessarily to be big and if you do really like to trade then try to find out.

Hey,

I believe I have caught myself in a loss-chasing cycle. It's gotten to a point where I am now using my overdrafts and my final cryptocurrency investments to try and recoup any losses I have previously made.
The lower my funds get, the riskier my trades get, and the higher the leverage used. In total, I have lost just under £10,000. This is becoming more and more depressing as time goes on.

How do I safely recover my losses, preferably over a short period of time?