Topic: Do Not Lose Everything Youve Gained in One day, or One Trade - page 3. (Read 569 times)

Like the other people believes about experiencing something to tell whether it's worth it or not, let them be.
Those that learns from the advise of the experience of others are paying them well. And those that are adventurous and don't like to just learn it from the others but also from themselves will have to see it and they will react on it accordingly.

I do agree that a bit more "laissez faire" approach is not really bad for people to learn, if we keep on interrupting them and telling them what to do, they will not know why they are not doing something, they would be not doing it just because we told them to, and they would always have that "maybe it could work" mindset at the side of their brain. However, if we let them do whatever they want, then the yare going to test and learn why it's a bad idea themselves and that's an important learning opportunity for them.

I would say that the best thing about this would be just making sure that they are making a profit based on what they are approaching it like, and that is not a bad idea at all, it would give them a chance to learn. Learning all by yourself and gaining experience is the best way to make money, and I believe that if we are going to end up with something big about this, then we are going to end up with a result that should be very important in the end.

It's for them to experience that, if they're not going to notice the risk that they will take, it could pay them a lot.
Those that are not used to futures much better not to get involved on it. Or if they want to try, just do it as if you're gonna lose the money no matter what happens.

For a person who is doing day trading, TP might not be an issue since profit can be taken at any given time if the market goes in positive after the position is taken, but stop-loss is definitely important for all the trades they take in a day or a week because even if there is no risk of losing the money, if the coin dips after the purchase, the capital or a part of it will be locked in that trade and it won't be released until the coin manages to recover and get back to the position where it was bought and this wastes a lot of time.

That's why, it's important to use stop-loss so that just a small amount is lost but the capital is free and it can be used for making more trades and possibly recover what's lost and some profit on top of it. One should also not put all their eggs in one basket just to be on the safe side in case something goes wrong.

Even if a trader has sufficient knowledge for futures trading, but does not comply with risk management, then will eventually lose all your money. This is exactly what happened in the case described by the OP: a stop loss was not set, the transaction amount allotted for opening an order was exceeded.

I agree with this: if you know what you are doing as an individual trader, you or we know ourselves that we can really get a profit; it is really easy to achieve, and we can do it if we have extensive knowledge of chart reading analysis.

So, losing everything we have earned in one day will not happen to someone with enough knowledge. That will only happen to those who lack knowledge of trading skills; this is true. It's something that others don't understand well because their only thought is to make money, so the end result is always not good.

As one of the famous lines says, "even the high priest messed up". Shit happened even for professional traders.

Saying do not lose everything in a single day sounds simple to say but it's hard to cope up on any advice once on the situation. We are able to say that advice because in most cases, it resulted in the worst but what if the other way happened?

Let's just charge that worst experience into a useful reference and try our best to improve our future strategies.

Honestly this is what I'm still struggling to understand too. Which serious trader will open a trade and go ahead to sleep without setting the necessary limit? That's a very classic mistake mate. He was just too confident in his strategy but that is not the right way to go. The best way to avoid this is to always set stop losses before going to sleep so that your trade will close automatically if the market moves against you. He needs to do more research and learn more about risk management before he should starts trading again. Sometimes the best way to help someone is to let them learn from their own mistakes and I hope your friend has learned from this mistake and is being more careful now. It's always painful to lose money but it is more painful at this period of economical surge. Lesson is being learnt in hard way.

But unfortunately, many new traders seem to ignore this and it will actually increase the risks. Sometimes, they even ignore the risks because they feel very confident that they will get high profits from what they place when doing future trading. In fact, future trading will never be free from risk. And honestly, it is quite difficult to minimize risk, especially if we still don't really understand the various appropriate strategies when trading.

Indeed, Greediness. Yes, this happens very often, greed is one of the things that makes many traders miss the moment to take profits and end up losing the money. I've experienced this several times and it's not easy to let go of our desires and hopes that are too high for the profits we set. However, when the target has been achieved, it's not taking profits that we do, but there is a feeling of wanting to go higher and higher, yes, this greedy nature will actually destroy and make us get disappointing results

The risk remains and there could be some ways to lessen the risk but it's gonna stay there as you've said.

The risk in spot, is not that much compared to the futures and many think that futures is going to be the one that they will choose more than it. They're wrong if they want to have a safer way to trade and risk in spot is no doubt lesser and lower than futures.

The future market is indeed very high risk, in any market conditions. Especially if there is news sensitivity which causes price volatility to become higher or the market changes drastically. Trading in the Future market could be said to be not for everyone. In fact, only traders who have truly prepared themselves with emotional maturity, understanding, insight, analysis, strategy and experience will probably have much better results. This alone does not mean that they are exempt from those risks. But usually, they already have several plans if the market changes direction, there are several techniques they can apply. Meanwhile, for newbies who don't really understand this, they might only think of a 1-way market, which when its volatility changes, it looks like it will end because of reduced liquidity.

On the other hand, trading in spot may be less risky in the future. but then again, nothing will be zero-risk. Everything is at risk, it just depends on how much risk we can take, and how prepared we are to minimize that risk. In spot, maybe this is not as risky as the future market, because after all, we ourselves can regulate the prices we set, especially for short terms, if they are not hype coins which might turn to dust quickly, this will be safer if one day the market changes drastically just just wait, or do it with SL/CL.

There are only two things that we could really be able to experience out on trading or investment whether;

Gaining up profits
Consecutive losses

This two scenarios does really need up that wise dealing and stopping and taking a break would really be that recommended.
It might be that more sensible or something that it is really that needs to be done on losing situation but it is also that relevant if we do speak about on winning scenario too.
If you are really just that too greedy then you would really be ending up on having bad decisions which it might causes up for those wins to lose it up once again.
Control is relevant and if you arent having that control then things turns out to be messy.

Slowly taking up the pace so that you would really be able to assess which it would really be that wise on taking a break or would really be proceeding with
having more caution and meticulous trading approach but as long you arent stressing yourself then it is really that recommended to have that kind of behavior
instead on really that make yourself that too forceful.

To much chasing for more big gain is somehow the most worst decision we could ever take since we will just come up on wrong situation where luck fades and unlucky strikes will follow after than. This is commonly happened that's why we need to be more careful upon deciding to extend our game time since if we always do this for sure that we can't get a best result for what we do. So we must know how to end up our game to avoid any huge damage and instead we can secure all our winnings so casino will not have a chance to recover the money they lost from us. Chasing losses is the worst situation which we ever take since this attitude is addictive and we cannot get anything good for doing this since its so stressful to see how the game will end up to us especially when seeing those stats which is currently at heavy losing so for sure that person who done this action will be in huge stress if they decide to gamble for more and ignore other consequences that can possibly destroy them.

Yeah that is definitely not an easy thing to do and I understand the logic and I understand why it looks so difficult for a lot of people. I am not saying that you shouldn't do it, all I am saying is that if you really want to do it at least be aware that you could lose all your money if you do it, that would be the most logical thing. I know that we are going to want to do something that would get us a lot of return and the greedy nature of the people could make them trade like this.

So, the middle ground is that if you really want to do it, then you should simply just end up doing it with very little money so that you wouldn't end up with losing all of it at the single trade. The mistake there was that OP's friend invested ALL his money to a single trade, that is way too much risk, there is no need to put that much money into that much risk. If you really want to try it, then just do like 5% of your portfolio into a single trade and learn the hard way that it can be gone, and all you would end up could be 5% loss.

People are greedy.

I also experienced this once, because my mindset is that if I won a trade using my technical analysis, I can win the next trade that I'm going to make with a higher leverage for an easy profit, but it's not as simple as that, because trading is not always Christmas. We always forgot the risk management and the right management of our funds and profit, that's why we always lose everything and the rage trading will start.

Chasing the losses is the most case scenario for newbie traders, trading randomly because of their frustration hoping to make profits without any plan at all.

More precisely, avoid futures trading in any market conditions when you do not understand the magnitude of the risks of this type of trading, especially when opening a position because you believe in news because it means the trader has not carried out an analysis first.
Spot trading will be safer and novice traders will be better off learning this type of trading, because they can learn it slowly, and futures trading is not suitable for everyone because many are successful in spot but in futures the results can be different.

Leverage completely changes price action in the underlying asset, this is as true for fiat products as it is for crypto assets.

Regardless of what your own preferences are, if futures or any leveraged derivative is being widely offered in the asset you are interested in, you have to factor in the sentiments and the targets of the leveraged traders into your own calculations, as they will usually dominate and dictate the price action in the spot market.

If you want to really stay away from leverage and still would like to pursue exponential gains without ever risking liquidation, you might want to include DEX tokens in your list that are only offered in 1-2 markets, and which definitely don't have any derivatives based off them yet...

I have a similar friend like this who just opted for a 20x long right now. I mean that should be proof enough how silly these people are, the price already went up like crazy and he is getting in now, after all the increases, all because he thinks it will continue. What if this was all that it went up to and not going to end up any higher than this? Shouldn't you want to invest when it is going up, not after it goes up? Why be so late to the party?

And this is also such a big risk that one wrong move and all of your money is gone, I wouldn't invest like that at all, there is no possible way that I would ever do something like that. I could very well be wrong, I am not 100% perfect at trading, and never seen anyone who is that perfect, which means that anyone can be wrong, and that means anyone could lose their money. So in a market that anyone could be wrong, betting ALL of your money into just one thing doesn't really make sense to me, it is not really that smart.

Knowledge will indeed be very important before we start trading because without having good knowledge we will lose the money we use to trade. To be able to make a profit in trading, we have to understand the trade we are doing well, don't just hear from people that it is very easy to make a profit from trading, so we try it straight away, of course this will make us unable to avoid the losses that we will incur in trading, we cannot possibly trade to make a profit without understanding it well, so it is very important to learn it first before trading.

This is true, gaining higher profits will require higher risks as well.
But for the people who don't understand the risks, they only focus on the potential profits. They use all the capitals at once, then they regret it when they get losses. They don't know that there is no guarantee for profits. They think it is safe, but it is a big mistake to assume crypto is safe.

Consistency isn't the only key for success. We must be smart and wise, these will have a big role in determining the every decision we do. These can be mastered if we have good knowledge and mentality.