Topic: Do Not Lose Everything Youve Gained in One day, or One Trade (Read 657 times)

Holy shit, your friend forgot that he is trading and thought that he is investing. It is only investment that you will go and sleep, go on vacation and feel relaxed because your bitcoin will be lying in your wallet. Trading is different and you must be very vigilant because the market can turn in opposite direction at anytime. He should have used stop loss and risk management when trading the for whole day, which is not recommended as a trader if you don't want to run at big loss. Trading should be something that you give a break and rest the brain just like what your friend did but he did it the wrong way by not quitting from trading. I don't trade because I am a careless person that can get distracted with some many things around me, and the risk in trading is higher than the profit.

It's trading, not gambling, and there is no point in chasing the market just to recover the losses, even in gambling when someone tries to do that, they tend to lose all their bankroll. When it comes to trading, it's knowledge and experience that matter, and if one loses a trade even if they are knowledgeable and experienced about the market, they shouldn't take it on their ego and start making reckless trades just to recover that loss as quickly as possible because that will surely cause then more losses.

When you know what you are doing, a single trade cannot stop you from becoming profitable at the end of the day. If you are making a total of 10 trades per week and getting profit in 8 out of them, you will still be profitable despite the lost trades. So, as a trader, one should look at the longer picture.

Almost all business now is at his own risk, and before a person can achieve some success goals, he must pass through risk for him to achieve what he wants, but some people in terms of trading don't go through the skills of trade for them to acquire much knowledge about; some will just jump in to trade with the amount they cannot afford to lose, and some lack emotional strength, which is not proper.

Sometimes strength comes from gently letting go of what you most want to hold onto.

It's called revenge trading. I've yet to see anyone who chases the market to recover their losses and does it successfully. One may be lucky with a few wins chasing the market but ultimately one will lose out at the end if one makes it a way of trading. It's better to let the loss go and then crosscheck to find out why one lost for future trades. Unfortunately, many of us don't learn this from others mistakes until it happens to us. Just like you, I've also been a victim of this. Also just like many others reading this now, they won't take precaution of this until they experience it firsthand.

Best to avoid trading futures in times like this, but if you must, make sure you know what you are doing, and use proper risk management like the stop loss and take profit features, also ensure you are only trading with an amount of money you can afford to lose, and remember not to put all your eggs in one basket.

The worst mistake one can make as a trader is chasing the market to recover losses, If you lose a trade, learn from it and take it as your fault.
Trading really fucked with me back days as a newbie until when I got to know this secret, Which is protecting your trading capital.
I was this trader who never bothered that much when most time I blew my account because I was working and seeing money on a regular basis before my salary would drop, so it was just like I was trading with spare money so little did I feel it, But after that I changed a job and that regular money was no longer coming but mainly on monthly basis, that was when I understood the importance of protecting my capital and started proper management of risk, and stopped trading with high leverage that I was using, and since then, I never blew my capital.

 

No one is blaming anyone on this, at least not me. It's their place to lose. We're only advising from a place of experience so that those who are less experienced can borrow from such valuable lessons and make amends. There's no point constantly losing funds to the market when one can stand on the shoulders of those who know these things and navigate far.

Well, we can't blame others for chasing losses. As you said, you've experienced it, and I also experienced that situation.

Sometimes I'll let it go if what I've lost is not too much or if I stake a smaller amount. and I have the discipline or principle that "profit is profit," no matter how big or small it is. As long as I earn, that's enough for me. That's why I don't set a goal because I don't want to have something that I want to chase.

It's called revenge trading. I've yet to see anyone who chases the market to recover their losses and does it successfully. One may be lucky with a few wins chasing the market but ultimately one will lose out at the end if one makes it a way of trading. It's better to let the loss go and then crosscheck to find out why one lost for future trades. Unfortunately, many of us don't learn this from others mistakes until it happens to us. Just like you, I've also been a victim of this. Also just like many others reading this now, they won't take precaution of this until they experience it firsthand.

The worst mistake one can make as a trader is chasing the market to recover losses, If you lose a trade, learn from it and take it as your fault.

Risk management is crucial in the crypto market but why would someone go all in with their net worth trading? He could use Spot trading which is best and even if he wants to take the risk not with his net worth, he could try using a less risky method like Dual Investment or just not trade till he affirms the positivity of the market...

I feel sorry for him though

it is very important to be most careful while day trading when volatility is high, just as it has been in a few days now, this is specially for those who trade the futures market, trading futures is 10x more risky than trading spot, in futures trading, a simple miscalculation or failure to use proper risk management could lead to you being liquidated and all the money invested gone in a twinkle of an eye.

I am sharing this based on a story a friend of mine told me yesterday about how he lost crypto NetWorth in just one trade on one faithful day way back last upper year which is 2022.

According to him, he went long with all of his entire crypto NetWorth on an Altcoin because he was expecting the price of the altcoin to jump back up, after a news (which was later confirmed to be fake) caused the cryptocurrency to go down, but unfortunately for him, by the time he woke up from sleep the next day, on checking on this trade, he discovered that he had been completely liquidated because the price of the crypto currency ended  up dumping even harder than before.

Anxiety and fear made me deposit more money and he try to see if he could DCA the dip and make some of the money he lost back, and at a point, the price reached his take profit target but unfortunately, the take profit did not fill before the price of the altcoin shoot up again and at end, he was liquidated again.

This experience for me showed that he was really inexperienced when it comes to trading futures, but the truth is that, such a thing can happen to anyone in times when volatility is very high, when price runs become really high, it makes sure to liquidate both long and short position in a matter of seconds and minutes, most especially, if you open a position with a very high leverage.

Best to avoid trading futures in times like this, but if you must, make sure you know what you are doing, and use proper risk management like the stop loss and take profit features, also ensure you are only trading with an amount of money you can afford to lose, and remember not to put all your eggs in one basket.

Happy trading ya all.

I think this has less to do with greed and much more to do with wrong (or even worse: no) risk management. Risk management also includes planning your re-investments correctly and also when to enter which trades in the first place and how to get out of failed trades as quickly as possible. If all this is missing, failure is actually already pre-programmed.

Risk management in particular is criminally neglected by newcomers to the trading market, which then also leads to these people losing everything relatively quickly - and then also blaming the losses on the "wild" and "hardly predictable" crypto market.

So from my point of view I understand that trading have to do with taking precautions and continuous practice in a trading, you can only lose whatever you have gain in trading at once when you are greedy and also open or venture into trading with what you can not afford to lose.
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Learning from our mistakes is one of the key ingredients so a trader can finally become any good, with the other being minimizing the size and the rate of our mistakes, however despite how critical this is there are many traders that simply disregard it and actually believe they can obtain different results despite not improving their strategy or themselves, a grave mistake as if anything making money out of your competition is getting harder as more professional traders come to this market.

Some traders apply their mistakes and prevent those things from happening again making them more stronger and knowledgeable but some traders just ignore those mistakes continuously making the same mistake makes lossing their asset. People now are using the copy trading to make less hassle and let other people make trade to them without too much effort, but for me its ideal if you make trade on your own and not being dependent in other traders.

The worst mistake one can make as a trader is chasing the market to recover losses, If you lose a trade, learn from it and take it as your fault....~

Through the losses we experience in trading, we are sharpened as traders. Because of this mistake, our minds work on how to sharpen them. And because our minds work in these situations, we can now think of or create ways that we think will bring profit.

And when we get a profit, the strategy that we have made is that we will keep doing it, and while we do it, we will explore new methods to earn in other ways apart from the method that is already giving us profit here in crypto trading.

Trading futures is a very serious form of investing that can lead to big wins or losses. I have tried it myself in the past with mixed results and I would recommend anybody interested in it to first try their strategies in demo accounts. We are facing again a period of high volatility, which usually means that traders can make a decent profit. Trading futures just means that we have leverage on our positions and don't need to put all our money down to buy an asset. Just because we start trading futures doesn't mean we need to go into debt. After developing a successful trading strategy in simulations or a demo accounts it's good to start small. I would recommend anybody at first to make sure that we have enough capital to cover the notional of the futures contract. Once the strategy proves to be profitable it can always be scaled up with additional money. The biggest risk is the fear of missing out just because prices jumped up 15% in a short period of time. I would always prefer to follow my own research and strategy than following the herd and be late to the party.

The worst mistake one can make as a trader is chasing the market to recover losses, If you lose a trade, learn from it and take it as your fault.
Trading really fucked with me back days as a newbie until when I got to know this secret, Which is protecting your trading capital.
I was this trader who never bothered that much when most time I blew my account because I was working and seeing money on a regular basis before my salary would drop, so it was just like I was trading with spare money so little did I feel it, But after that I changed a job and that regular money was no longer coming but mainly on monthly basis, that was when I understood the importance of protecting my capital and started proper management of risk, and stopped trading with high leverage that I was using, and since then, I never blew my capital.