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

It is difficult to imagine how people can make this mistake but it is very common, while both traders and investors look for the same and they use the very same tools, the way in which they do so is completely different, an investor should look for the very best assets and invest in them when they are undervalued and hold them, while a trader looks for the assets with the highest volatility and actively buys them and sell them, so a trader cannot simply decide they want to become an investor while still having their money on those volatile assets, or it will happen to them the same that happened to the friend of the OP.

People should be sticking into this principle because people would really be having those kind of switch ups on the time that they've been doing trading but in the end of approach they do become on doing gambling.

As a newbie then it would really be that normal that mistakes could happen yet impressions and beliefs are totally that something new which is normal but once you do able to get that sufficient experience or
awareness on how things works then it would really be that totally changing when it comes to approach. Its impossible that you wont really be able to find out for yourself on what are the things that should be needing to be done because if not then you arent really making any progress with your trading career on which it is something that you do need to pursue on.

You wont really be making out those advancement if you wont really be having that real experience and next to that then adjustment and adaptability would really be that crucial.
Speaking about gains on one day and trying out to lose everything in that moment? You are just basically doing YOLO which is really that known
that this behavior is really that connects with gambling which its never been that recommendable.

And those are the people that are having the conclusion that trading is easy and it is for everyone. Honestly, it is not for everyone to do because you'll never know if it's going to be working for you and if you're not good in decisions and analysis, you know where it is heading.

Strength comes from experience and it's up to you if you're going to apply that to your next trades.

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.

This is one of the mistakes inexperience traders always make I am also victim of such a mistake by trying to to take revenge trade consequently getting or incurred more losses, I believe it is more of emotion and Psychology of trading once it's is taken care of such a mistake wouldn't repeat itself again, meanwhile it's most appropriate to enter a trade with a fix percentage or part of the total portfolio rather than trading with the whole fund, some traders trade with  at most 5% of the total fund Incase of price hitting a Stop Loss there is more fund to trade with, this are issues every trader should take into consideration particularly using Stop Loss for every trade to be executed and adopting a trading strategy that has higher rate of reward compare to the risk.

I do agree that having a stop loss and not really caring about the loss is important. If you can do that then you can repeat the action again and hope that you can win it this time around. Not everyone will be able to do that and most people will lose their money, the chasing of the loss is the hardest and most wrong thing one could do. I think it's important to realize that you are not going to end up wit ha good result if you keep on trying the same thing. This dude didn't even do that, he put all into a single risk and that doesn't make sense, why would anyone do that, it is not going to make you any profit if you are wrong, and the return would be minimal compared to potential to lose.

I think it should not be all that easy to put all your money at risk for a small return, it doesn't make sense, if you are going to risk ALL your money, then you should at least have 10x possibility, that would make the only sense, and this isn't one of those situations. I think it is definitely a risky move, and doesn't deserve all your money.

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.

That's the best way to solve this. Just let go and wait for another opportunity. There are so many opportunities in the market.

Well, we can't blame others for chasing losses. As you said, you've experienced it, and I also experienced that situation. We know the feeling of losing a trade, and we know how much we want to recover the loss immediately. I've done it numerous times, and most of them end up losing more. Even now, with my long experience in trading, I often do that, but of course with minimal damage, or often I recover what I've lost. Sometimes I do a minimal lose trade, which means I trade again after the loss trade, not aiming to recover the loss completely but only to earn some, so it's not that hurt. 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.

Some people want to double their capital in the blink of an eye and actually this is where we start our losses. Everyone who trades in the crypto currency market knows that there are many risks involved in trading. We may get a good profit, but there is also the risk of losing our capital. the rate of profit in spot trading is low and it may take more time. Whereas futures have higher returns in shorter periods of time.

Yet they get greedy and take a decision that wastes all their capital. Another reason could be inexperience, even if someone sees only profit in the crypto currency market, they end up losing their capital by making such decisions. However, this is the main rule of the crypto currency market is to never invest all of your capital in one coin at a time. Yet we can call such a decision maker greedy or inexperienced.

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

But in my opinion greed also does not rule out the possibility that it can occur and have an impact on their increasingly large losses or even to experience MC. With this of course I will say that there are many factors that can make them experience unnecessary losses, and yes on the other hand I also agree with your assumption that maybe they apply the wrong risk management or for example not strict in its application. Of course anyone cannot skip risk management or that means every trader must have a lot of preparation before finally getting involved in the world of investment and one of them is very good risk management such as applying stop los and take profit. With that, I think they will know when to enter the market and when to exit when the situation is not favorable.

Yes, it is not uncommon for newcomers to forget this important point, in my opinion maybe they come not because of good intentions like traders in general but they come no more just to make money with large amounts but on the other hand absolutely do not understand what they should prepare and do for the initial stage. I think they are nothing more than fools who expect profits but do not bring any fishing rods and preparations at all, obviously in the end losses will dominate, because they come only with luck.

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.

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.

Such inevitable scenario or thing on which a certain trader or person would really be able to encounter on which mistakes and errors is there, and its impossible that you wont really be able to made out some realizations basing up on the things on what you have done on which it would really be that normal that you would really be making out adjustments basing up on the things that you had encountered.
If you have ended up on wrong or losing money then you would really be that fully aware on next time and if you are really that still making the same thing then wrong things is already up to you.
You would really be needing to adjust and be wary on next time and this is something that human beings would naturally do on which on the time that you are knowledgeable on things then you would really
tend to adjust accordingly.

Making those kind of limits and moderation would really be that something that you will really be that seeing to be important on this career. If you have gained that much then it would be
normal that you should really be calling it a day and dont make yourself getting boost up because this is where usually people do end up on which they do getting wrecked.

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.

If you make a position after the market hits the ATH or the peak of the resistance theres a chance that could be a bounce back or dump to test around again in the support if the market can't manage to break it up. The thing here i see as mistake is you are trading against the market, like the market is in the fire sell but you insisting to have a buy long, don't chase too much the wave or the wave hits you.


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.

Not a form of investing, but it was another form of trading and I heard it's much riskier than the normal forms of trading. But as they say, more risk is equals to more win. So yeah, that was the only advantage there if you are skillful or lucky enough to make a good/winning trade. Not only in futures trading but even on other forms of trading, it is recommended to practice first.

Obviously, so that we can familiarize things and lessen our chances of losing, or increase our chances of winning, in other words. It's safe to go low but there are others who are seem not contented on the risk that futures trading has to offer, so they do yolo trades or go all in. If we are a beginner, it's always better to start on the basics of trading, not here in futures.

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.

Actually some people don't do not take a precautions while trading, I believe that they trade to make a profit and trading to make a larger profit is something that leads some people into something else and especially to lose the one they have gain already, so therefore what I us to understand in trading is that during trading do not be over greedy for making profits and any profits you make just cash it and end the trade and restart another trading again.

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. So it's advisable and encouraging to ensure as a trader you have to be satisfied with the any profit you make in you day trade because a minute in a trade can caused you to lose everything you have profited in your trading, so therefore you have to be careful and also monitor your trading and forget about been greedy in any profits you make.

Futures trading is not for everyone, obviously, but a lot of newbie investors don't take this thing seriously and they get motivated when they see screenshots of profits that some people manage to get through futures trading and then post on social media platforms such as Facebook and Twitter. Such people motivate new investors into taking very high risks and then losing all their money because they think it might be very easy to earn profit from futures trading.

A person without ample knowledge shouldn't even trade in the spot market which is relatively safer when compared to futures trading because in the spot, there is no concept of getting liquidated and you can hold the bought assets for as long as you want unless the cryptocurrency turns out to be a scam and the developers do an exit scam.

Bro I Feel it and sometimes I also give advice to another person to not trade in futures because of the risk, but the crazy is Last week I made a deposit to my forex account and you know that some broker forex usually are futures only without spot and I made the decision to long the bitcoin because the news from Cointelegraph that sec has approved bitcoin and boom it turned is fake news and all my position is at minus than I try to short bitcoin when bitcoin at consolidation price. and boom there another news and bitcoin touch 35K and all my position got liquidated and sad right now.

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.

One thing about risky things is that it is being talked about that it is risky and anyone going into it must first understand that it is risky. It is not something that is done ignorantly. I have got the opportunity to learn about Futures but because of how risky it is said to be, I didn't learn it again. This is because if I learn it, I will be tempted to practice it and maybe I will lose so much money.

I am not a fan of high returns in investment. That is why I love bitcoin. Some altcoins seem like risky and looks to me like gambling that is why I have sticked to bitcoin.

I used to actively trade perpetual futures on Bitcoin and alts, but after a few years I saw that they don't give huge positive difference comparing to spot. So I switched fully from futures to spot, and now trade on futures only when I'm sure that it's a good time for a short position or when I feel that leverage x2-x3 is okay to use because of some circumstances. But in general - futures is place where 99% of people lose and only 1% makes money in the long term. I definitely prefer spot and tell everyone to use it. Because in my opinion every derivatives trader finishes with one scenario - loosing gained money and even more, just on one unlucky trade, which he can't close because of greediness or other unpredictable situations. This is only my thoughts, you may agree or disagree, but I still think that spot in the best option for long term financial success.

Pretty sure that each one of us did really pass out on this kind of situation on which you are really that having those moments or times that you do make yourself greedy just because on the time that you make money or profits on trading then you would really be having those thoughts that this thing is really just that easy on which this would really be the primary thing that would come up into your mind
and on the time that you do make profits and then you do decide to continue then pretty sure you would really be that continuing no matter what because you do already have those kind of thoughts
on which you would really be continuing until you do bust up.

We know that mistakes and errors are common and this is something that like a stepping stone for us to have to make ourselves way more better. Im not saying that its necessarily to pass up with these kind of challenges but somewhat it is really that inevitable which it is why it is really that better that you do really be able to adapt accordingly and trying out to lessen those risks overtime.
Learning would really be coming up with our mistake on which it is really that a common approach that you would really be that to adjust accordingly.

This happens when someone takes a big loss from a bad trade and fears that if he can not recover that loss right now he won't get a chance to do that later on. Another most common scenario that happens is that some traders get so attached to a particular coin that they feel comfortable trading that same coin again and again though it is not performing well. If you are an investor, then you should always keep in mind that every coin you invest is only to make a profit. You don't love any project you only care about it and make a profit from that profit so if a coin you like is not performing well leave it and move on to another one. Don't be attached to it.

However, trading knowledge is number one and will influence any type of trading. Spot trading looks easy, but in fact spot trading will give panic when they are too high when buying or they are trapped in buying memecoins which end up dumping and not having any price. Futures trading may look easy, but actually when the leverage used is high and the price guess is wrong, then liquidity will come and take all the money at stake.

For those who have just started trading and experience losses, this is normal for them because they don't know much about market conditions and haven't mastered what they have learned well and also this can be a lesson for them to be able to improve it so they don't do it again, but for those who have trading for a long time and still experiencing losses, I think there is something wrong with the strategy they are using and they need to fix it so that they no longer experience losses from the trades they are making.
Everyone who is careful when trading will of course be able to reduce the risk of loss they will face, so for those who have a lot in the trading field, of course they use several strategies in trading to be able to make a profit.

Sometimes people can forget this stop loss at the moment because, their major target is to win big money from that trade that will help them to recover all the losses they have went through until they find themselves in such situations that will make them to regret like what his friend did to lose everything. Not only new traders experienced this losses from their day trading, I have seen some older traders regretting why they didn't apply stop loss on time but the money is gone already which there is nothing he or she can do about it that will bring the money back than to learn a lesson we are learning now to always apply stop loss at the moment.

Any traders that is cautious about the market situation before trading, it hard for such traders to fail at the moment because he will notice some things that will make he or she feel losses is ahead than to use stop loss to avoid such losses.

It’s funny sometimes when a newbie who is still supposed to learn decides to trade. Because of this, most people lose money repeatedly without gaining anything, and they don’t realise that they are the ones messing up with their funds, thinking that that is how it works and they will get profit as time goes on, which is not the case. We all know losing is something natural in trading because as far as we will trade, we must lose money. Therefore, to minimize these risks, we need to learn every aspect that will prevent us from losing too much.

However, newbies start getting frustrated because they don’t have the knowledge to think that there is something lucky like gambling, so they start chasing their losses, which will result in more losses because they will be unable to control their emotions anytime they want to trade. This is one of the most important things a trader needs to be aware of.

Even as a trader with far much experience, they could mess with you too.
The idea that follows always use your experience as a back up, beating your chest to use that and do a proper analysis on the market haven’t discovered what’s going on and use that to get back what’s been sucked up in the market but, your always going to be left in awe at what the results would be.

In few instances you might get yo catch your breath but, always recall that, no trader after a careful analysis on the first instance would trade in a wrong analysis. It’s always the right one until the market shows you otherwise.

Chasing loses is everywhere, not just trading but in gambling as well and non of them is ever a best practice.

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.

 

Spot trading in my experience is more relaxed. I'm probably one of the many people who doesn't feel comfortable trading using leverage.
I often experience what you said. I mean it's almost similar because the profits I get when trading altcoins on spot trading.
Maybe I am familiar with spot trading rather than using leverage. For those who are more familiar with leverage, they can easily gain profits when doing so.

Chasing our losses in gambling is equivalent to a trap, or like a disease that we only think is a simple disease, but we don't know that if we just let it get worse, it turns out to be a danger to our personal health. Let's not let it be done again and again because maybe one day our lives will have something like a chronic disease.

So it's still really important to be responsible when gambling. Even if you have been gambling for a long time, you don't let it ruin your life or ruin the family you have if you have one. So in doing trading, we must also give value to the assets we have here.

Future trading is not something you should just start easily, your chances of losing money when it comes to future trading are higher. I don't recommend anyone to go into future trading, and if you will be going into it, always make sure you are using small leverage with a small amount of money. Don't be desperate to make big money, or you will end up losing everything you are having. I know some people are pushed to trade futures because of the high reward that's there, but if you are not careful, you might end up losing everything.

Your friend is funny, i guess he was trying to make use of opportunity to make big money. Your friend is supposed to know about risk management, why will he decide to use his entire crypto net worth on a trade? It doesn't make any sense to me. No matter the news which I hear, I can't use all my money to trade on future. I once wasted money on future trading when I was learning how to trade, since then I don't even go close to future trading. When trading, always make sure you use a small percentage of your money. In case something goes wrong, you will always have backup, and always maintain small leverage.

I totally agree with you in fact if we expect a more profit in every matter it is natural that we have to take a more risk we actually do not want to understand that we only expect a profit profit profit in fact the word loss is what we do not think In my opinion the amount of a risk might be too high for newbies that are getting ready to trade with extreme excitement like me for an example i am not saying that newbies cannot, in fact it requires a lot of knowledge, keen understanding of market systems is essential, but we invest with overzealous enthusiasm and cry in despair at the loss of everything.

Both of them are hard and as you have said requires risk. The risk is just much higher in futures.
In spot, it's true that it doesn't guarantee you'll win your trades there because it's also hard just how it's risky with the futures although it's just lessened in that manner.

It's just best to avoid it.

Spot and futures trading both have risks. In the futures you'll need more knowledge compared to the spot but that doesn't mean that spot trading is easy because as others said buy low sell high but without any knowledge you'll lose. Also in the futures even if you have the fundamentals like a learning indicator you still do not have a 100% winning percentage so both of them have risks and only to lessen them with experience and knowledge.

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.

What a mistake your friend did.

He shouldn't do leverage when he's not going to monitor it. That is why when I'm always doing stuff and not leaving my trades, I keep track on it wherever I go.

And putting all of your networth on a single trade is a crazy thing. I'd always do the trades that it's not going to cost me that much so I am safe.

While the entire networth of me is on a safe place where I wouldn't touch it for so long.

That is how important to know our capabilities as many traders underestimate the volatility of the market and then try futures trading not knowing how risky it is especially for newcomers. Many of us have been taught that Futures trading is more profitable compared to spot trading and that brings to our attention and courage to choose this one until they realize that it was not. Our common mistake is that we easily believe those people saying this without reading feedback from other traders who tried this. Even though some of them will say that they become successful but it doesn't mean that we can be like them. 

I have taken a break from future trading for a while now. I don't have that much advance knowledge about trading that I can make profit in this volatile market. So instead of trading right now, I am focusing more on doing DCA to accumulate more. And in the upcoming event of bitcoin halving, we will see a great pump in price for the potential bull run. You can say that day trading is not for me. I have tried it several times but wasn't that much profitable. So I am focusing more on hodling.

The story shared in the OP is a great example for people who are not using risk management. Risk management is a crucial thing when it comes to future trading. The market is volatile and anything could happen at any time. For that reason, if we use stop loss than the losses we make could be minimized to a certain level where it won't affect our future trades. This is a great choice if you don't want to have regret for your decisions.

It's literally true that it can happen to any one in times when volatility is very high. In  Losing so much just in one trade, Because I've also   experience such thing due to false news and miscalculations too.

 What most of us want is to catch the bigger fish without much  experience in catching any fish at all. What I'm trying to say is that, For instance you know that increasing your leverages to 10X or beyond will trigger your liquidation to take place very fast and increasing your risk in losing, just to gain more profit.When you're not too sure about the market you're jumping into. There's a high chances you may  end up losing the  money you use to enter the market With  liquidation.And the funny thing is  that  after losing that much you will stop thinking and planning, at that moment your only aim will be getting that money back. And that's when the losses begins.
   You just need to focus in risk management, and mind the kind of leverages you're using. Focus more on earning more profit, less losses Than bigger profit and high losses.

Futures trading provides an opportunity for traders who want to profit significantly without having a large capital. It is not suitable for new traders who are not yet profitable. If you're new to trading, spot is a preferable option because the risk is lesser than with futures. And if you can be profitable with spot trading, then you can try futures trading. As you mentioned, it's advisable to utilize a small amount of money to avoid large losses.

Stop lose is an important tool that will aid our earnings and not make us to lose funds any how due to market volatility. Those that understand how the market works will know that trading is not just about the skill alone of the portfolio of knowledge we have acquired.

We need to understand the market and how to be safe while trading because it is better to keep the fund available than to lose it due to market volatility we never prepared for. Those that have been in market for many times will understand that trading is more about maintaining a good startegy and discipline to follow trading plans without altering it.

Before trading futures, one must be familiar with spot trading because the rhythm is not very fast. If the market is in a normal condition where it does not rise or fall too quickly, he can trade without a rush. But if the market moves quickly and he can't keep up, he will make wrong decisions and if he is inexperienced, it will only make his losses bigger.

Futures trading is riskier because if he puts all his capital in the trade but the market suddenly changes direction before closing the trade, he could lose all his money. But it depends on what mode he uses, isolated or cross. If he uses the cross method, it will use up all the money in his balance until the market moves in the direction he is trading. And he must also understand when to place a stop loss to reduce the amount of his losses.

Nowadays, we have to be more careful because there are sudden reversals in direction and if we are inexperienced, we can make mistakes in analyzing and making decisions. If he wants to trade in futures trading, it is best not to use too large capital. That would be better because he wouldn't lose as much if he lost.

I won't argue that futures trading is likely to make traders lose everything if they are too eager to get rich overnight. I prefer to avoid futures trading even though I am optimistic that I can make a profit through the right strategy, but I will not try that trading so that my long-term plans are not damaged.

Of course there is no harm in taking advantage of futures trading if they understand it well. You also need to limit your budget to start with rather than putting all your honey pot in one fell swoop, even if only 5x can certainly put you at high risk of losing. Spot trading is certainly better to avoid the risk of losing everything, but I tend to believe that long-term investing is a sensible choice.

Yes, when I was trading without sufficient experience before especially when I was trading with leverage and I didn't use the stop loss I lost all the profits I had made in a single trade or several different trade and the profits I had made from previous trades. Nowadays, even though I use the stop loss if I make several trades during the day, I lose my money or my earnings from previous trades. This is actually a situation that is frequently encountered by everyone who trades with leverage especially those who use high leverage and unfortunately even if we are a very experienced trader it is a possibility that we are likely to encounter frequently when we cannot control our emotions.

From what you describe, your partner was probably successful in his first few trades and he became confident with his subsequent trades. I'm not saying your friend doesn't have trading skills, but maybe he lacks experience in dealing with market news. what was clear was that it destroyed the trading plan he had made.
especially if you open a trade with high leverage, you may hope to catch up on losses. but he may unknowingly have increased his risk of greater loss. even draining all his money.
tell him to stop and try DCA for Bitcoin. maybe he will know a little about how to make a profit.

Everyone into their lives does commit out mistake on which it is really just indeed normal since there's no one on this world would really be that perfect specially on dealing things that we are really that in first time on doing it or something that do talks about trading then we cant really be able to make ourselves profitable or even on investment in our first tries. You would really be needing tons of time and effort before you would really be able to to have a good grasps.You would really be passing tons of failures and mistakes before you could really be able to make yourself that good into this field. Dont make yourself act like a gambler because if you do then you would definitely fail into this field. Never ever chase up losses and you should really know on when to call it a day and stop completely midway if you do see that trading now is not really that good.

Gains could really be taken back if you would really be continue on doing the same mistake. You should really be that mindful on whatever steps that you would really be making. There's no such thing
about having no risks and this is something that  you should really be targeting on,because on the time that you would really touching up this floor then
there's no easy way on dealing with it.Every steps do matter and the actions would be made.

From the narration of this your story, I could guess that the trader did not use stop-lose loss which led to his account being liquidated, Secondly, he as well did not use proper risk management, he might have used high leverage which he would not really tell you was the actual cause for the account liquidation, So these two things to me majorly will lead to such liquidation of an account. There is a leverage that you will use, no matter how the market parades you won't get liquidated.

From my personal experience, all the times I have been liquidated was as a result of

1. Using high leverage or lots size to trade.
2. No use of trading stops (stop loss).

What the market hates most is to see greedy traders, and to deal with them, the market moves to ensure they get liquidated.

The higher the profit the higher the risk, that's life if you can't take the risk you can't get the higher reward or profit. This kind of action can be an expensive lesson, this is the reason why you must have a trading plan and stick with it or else you will suffer like this For example, people make a lot of trades and once they lose trade has a bigger lose they are trying to make a risk to earn those backs. Consistency is the key at the end of the day your profit counts even though it's just a small trade. Know your limit, know your budget. Its not hard to set a TP/SL in trades people always tired to use this feature.

I think the friend learned his lesson here. Everyone has their mistakes to learn from right? It is just very unfortunate of him because he made so many wrong things at once. First off, putting all your money into one cryptocurrency is like going all in at a poker game, its  super risky. Also he acted on unverified news he should have calmed down first and did his research.I think he also let his emotions prevail as he wanted to recover losses by pouring in more money. It might seem like a good idea in the heat of the moment but it just made things worse for him
We all need patience in this crypto world. Prices can swing wildly so jumping the gun and not waiting for the right moment can burn anyone.

Leverages are for gamblers and I say so because most of traders are not professional traders. They are not winners but losers and if they can not get profit from Spot trading, how do they get profit from Leverage trading?

I am sure they will lose more money to Leverage trading and even lose at faster rate than with Spot trading.

Trading altcoins are risky too and you have to choose altcoins will less risk of rug pulls, sudden inflation from their Mint functions to protect your capital. I am not sure what you did but with me, I prioritize Proof of Work altcoins than Smart Contract altcoins for Spot trading. I usually wait for each bull run to start trading altcoins when risk is smaller and at least I know most of coins will rise or don't fall in a market bull run.

Well, it's really not a best practice in trading when you go YOLO (You Only Live Once) trade or like an all-in trade just like gambling.
Because for me, capital preservation is extremely important in trading, the more you have available capital, the more you have a chance to make more successful trades in the future.

Experienced or not, unexpected things would really happen as the market is always the master. But yes, experience has the edge when it comes to reading the TAs, possible scenarios, etc. However, there are no promises or guarantees that our analysis and/or insights would be accurate especially that the market is so highly volatile due to the recent rally.

If I were in his shoes to have lesser disappointment, it's much better to "avoid going all-in" with my hard earned savings, assets, etc. In my own insight about that guy you've mentioned, I think risk management is what he is lacking and was not prepared for this scenario.

I think he is also greedy by not setting the stop loss and take profit, but correct me if I'm wrong though. Always acknowledge the risks and managing at the same time would be very essential so that you won't run out of funds especially for emergency purposes.

It can happen to anyone who under gauges the important and necessity of having experience before trying out some forms of trading. It takes time and practice to get experienced and master some kinds of trading. New traders who usually have this understanding about the need for experience save themselves from some discouraging trading experience that can make them to want to stop trading. If you lack experience, try to tap from the experience of another trader who has been longer in the market, by asking them reasonable and sensitive questions, and then paying attention to answers.

Crypto trading is not for the faint hearted reading all these stories we read about trading, and it's unfortunate your buddy was caught up in a bad trade, imagine what would have happened had that trade gone his way...it would mean next time he might be twice as confident and would have lost more money !!! If you ask me its good that it happened now for him/her to use risk management in his trading.

Secondly to trade Altcoins takes a special skill to be profitable because these are easy to manipulate as they have low liquidity...and to avoid losses go for high liquid trades to avoid being used as the liquidity.

Lastly experience is the best teacher and it's good he went through this class to be more prudent, good luck to our friend hope he recovers his losses...

Day trader must know this, and understand the risk of being too exposed everyday and I’d hope that they still have a balanced life. Having a target is always advisable and if you really want to make profit, then is about being responsible. I did mistakes before about being greedy and losing everything at one trade before, and now I already know what to do and know how to approach the market, trading can be more profitable if you are responsible.

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.