Topic: Do Not Lose Everything Youve Gained in One day, or One Trade - page 5. (Read 673 times)

Always have you limit and always do risk management, better not to trade the whole day and know when to stop. Trading can be tempting most of the time since you tempted to trade more especially if you are making profit, but then again if you have your target and you already reached it better to stop and come back again with your new strategy. Day trader should also understand this and have their limit every time they trade.

Success for me is the combination of those factors - experience, skill, knowing how to manage risk among other things.
And every situation you are in will be unique as you need to apply different sets of techniques each time you trade.
Every project has their own features and so the strategies change. Sometimes you can't apply what you've learned because they have different movement or reasons why they are behaving such way in the market.
Thus, it is always best to be knowledgeable about the market you want to participate with, because it will limit your potential losses.

Risk management was what your friend failed to apply on his trade before going to sleep. Which trader that understands how risky that trading has and didn't use stop loss on his trade and he went to sleep, it means that he was the one that was the cause of his loss.

What makes a trader successful is not by his experience of skill in trading but it is how he can manage his risks when trading to avoid excess loss. When trading, we shouldn't allow our emotions to control our trading activities to prevent us from greed.

It must also be mentioned that leverage is supposed to be used only by expert traders which have mastered the markets and they can obtain profits all the time, and the case brought by the OP is the perfect example of this, who goes to sleep when they have opened a position in an altcoin without a stop loss? That is asking for trouble, which is exactly what that person got and got liquidated, so if someone does not want to use a stop loss then they need to watch their trades to the very end, or at least close their position once they go to sleep or they risk this happening to them.

Futures trading isnt really that for everyone or simply just speaking that futures could really be treated up like gambling even just making use of that or set on 10x then it isnt something that would really be recommended on doing so not unless you've been fully aware on how it works and how risky it would be but surprisingly there are really that still tons of people or trader who do really have that kind of choice and do those futures without trying out to weigh in in between risks and reward but well it is really just that understandable on that part and this what makes people do really get interested with
that matter.

If you dont have that proper money management or with your fund then you would really be ending up on a disaster because if you do let your emotions do boggle you up and ending on being impulsive in towards your decision making then it would really be messing up everything that you have started. Always stick on plans no matter what even though it might not that simple or
easy but this how things should really be dealing with.

You cant really just make out some impulsive solutions just because of those impulsive emotions that you are currently feeling on. Trade according
into your plans and stick with it. Mistakes are common and this is why back up plans would really be that relevant.

Either you are in day trading or not, it's always crucial to manage its risk wisely. Because if you just keep on leveraging because your greed tells you to do so, then you will never be good enough in trading, even in investing as well. The reality is that everything in trading takes risk and everything requires appropriate decision making so you won't fail your trades. But if you focus more on the profits rather than on the right strategy to be used, then you will never be successful and profitable in trading. Yes, trading can be a piece of cake for others, but it could also be very hard and distressful for other traders who are not able to manage the risks accordingly.

Your friend made a big mistake and lost a lot of money because he didn't have a stop loss in place. Stop loss orders are useful not just for new traders but also for experienced traders. It has assisted many people in avoiding large losses due to market volatility and uncertainty. Even if you're an experienced trader, market conditions can make it appear uncertain or make you feel like an amateur sometimes to the market; in such cases, a stop loss is crucial.  The best traders are those who understand how to manipulate stop loss and take profit levels to their benefit based on market projections.

The expectation of the regular retail trader to be logical is the biggest fall of anyone could make. Just this current period is a great example, we had a fake ETF news, not real, which took the price from its slumber sleep and made it 30k+, the news turned out to be fake just the very next day and yet the price kept going up anyway. Traders are not rational people and we should not expect them to do what they should be doing, sure they might, but that doesn't mean that they will, the difference is huge. I think its clear that we need to arrange a situation where its not going to be all that easy to make it work, we need to keep it going for as long as possible to make it happen one way or another, and just risk as little as possible.

Yeah, setting a stop loss saved me in a lot of situation, especially when you spend most of your time just monitoring the market, then you will take a nap then suddenly the market moves against your position. Being greedy after a winning streak in trading really triggers your greedy side, especially when you earn almost 100%, tendency would be you'll trade again in like an hour after taking profit.

Sometimes the leverage that exchange is offering is very high, which most of traders can take advantage of especially day traders, but this offer could be a strategic move from the exchange especially when they highly anticipate a certain type of market in coming weeks. Do you know any exchange that changes its leverage in season?

My trading career wasn't very charming though i have extensive knowledge about market behavior, risk management, chart analysis and everything related to trading. I have learned all this through experience but I stopped trading after taking a massive loss due to the Luna crash. The funny thing is that my biggest loss in the altcoin is my biggest gain in the altcoin as well. I think it's all about knowledge, experience and luck.

Moral Lesson: Use stop loss!   

He can still limit his losses if he uses stop loss on his trade even though he is all in. But the problem with trading when greed kicks in is it very hard to control trading especially if he is on a winning streak then later has a minor loss which pushes him to easily do a risky trade just to recover losses immediately.

Many traders commit this kind of mistake especially the exchange offers an insane leverage that will surely liquidate traders position with just one strong price swing.

You need to admit that, more profit comes with more risk. So if you demand for more profit from the market, then you have to also take more risk accordingly. If someone isn’t capable of this, then definitely no one can save him from getting into losses. I don’t believe that Day trading is hard. If a trader is capable enough to analyse the market correctly, then it doesn’t at all matter for him. For him everything is like a cake of piece and he does risk management perfectly.

Most people are simply not fit for using leverage, or even trading in general. Overall in my entire time in the crypto space, I made most of my money just trading altcoins using spot. Leverage always managed to mess me over due to those sharp wicks, despite me being directionally correct.

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.