Don't encourage multiple trading! - page 2.

iv4n

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Quote from: @sriyan on April 22, 2023, 10:14:21 AM

Quote from: Greggry on April 12, 2023, 12:39:24 PM

My friend loves opening different trades at a time, most at times is difficult for him to control what's should be. Trading on free chart with multiple opening can be very dangerous. Yesterday he experience unusual hit when bitcoin price drops again, four trades loss at once when the market go against him. Personally I don't advise multiple trade especially when you're not familiar with trade

It depends on your friend's risk and reward ratio. If you like to take a higher risk, then you can get a higher reward. So the better option is to control the risk and reward ratio.

Eg: Higher risk -> Higher Reward or loss

I wonder if his friend traded one or more pairs? It's different when people make multiple trades at a time with the same pair, and when people diversify and get into multiple pairs.

I guess that risk and reward ratio explains everything. It doesn't matter if someone goes with one or more pairs, single or more trades, it's about control of risk reward ratio! Those who chase big profits will face higher risks and probably will lose most of the time... those who have control can have fun and harvest profit here and there, maybe nothing big but at least something will come.

_BlackStar

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Quote from: Yamifoud on April 22, 2023, 07:30:17 AM

One at a time is advisable and it is more manageable than having multiple trades which makes you out of focus and priority.

Having several open trades is also not problem if the trader is able to understand good strategy, especially about TP and SL. These two option are mandatory for any trader who expects short-term returns, it is intended to prevent more losses when the market changes trend. So I don't think having 2-10 open trades is anything wrong.

The risk of losing lot of money is of course very high when the trader has several trades, but it will also be well worth the possible returns when the analysis is correct. But anyway, I don't like multiple trading even though I don't mind it being done by multiple traders.

slashz9

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actually it's worth the risk if only yesterday the market went up instead of going down then your friend gets a big profit instead of a loss, so it all depends on capital, and how many percent of the fund management for one trade.

@sriyan

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Quote from: Greggry on April 12, 2023, 12:39:24 PM

My friend loves opening different trades at a time, most at times is difficult for him to control what's should be. Trading on free chart with multiple opening can be very dangerous. Yesterday he experience unusual hit when bitcoin price drops again, four trades loss at once when the market go against him. Personally I don't advise multiple trade especially when you're not familiar with trade

It depends on your friend's risk and reward ratio. If you like to take a higher risk, then you can get a higher reward. So the better option is to control the risk and reward ratio.

Eg: Higher risk -> Higher Reward or loss

Bobrox

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I don't think bad when encourage multiple trading in cryptocurrencies, I know easy controlling when have one or two altcoin for trading but have position with trading several altcoins has bigger chance with two or three altcoin potential earn profit. Did you remember with some one said "don't put egg in one basket". I think its important basic trading in cryptocurrency we need separated investment in several kinds of altcoin, when have coins dropped still get chance with another coins on higher price.

Depend on personal trading kinds, if difficult with controlling when trading more than three until six coins kinds is better put assets in one altcoin or has decision investing in Bitcoin only, but many smart and experienced trader put their egg not only in one basket but also trading on several altcoin kinds.

Yamifoud

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Quote from: Greggry on April 12, 2023, 12:39:24 PM

My friend loves opening different trades at a time, most at times is difficult for him to control what's should be. Trading on free chart with multiple opening can be very dangerous. Yesterday he experience unusual hit when bitcoin price drops again, four trades loss at once when the market go against him. Personally I don't advise multiple trade especially when you're not familiar with trade

One at a time is advisable and it is more manageable than having multiple trades which makes you out of focus and priority.
If really wanted to do this, might having trading bots help it out but knows the consequences as well - higher chances of losing than profit. I'm not sure if this strategy is a kind of greediness or not but for me, that was impossible to work so well. Yes, the results are possibly disappointing that nobody wants to have it. Have to make it real, our mind doesn't function that fast and like a robot.

slaman29

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Quote from: DevilSlayer on April 22, 2023, 03:28:20 AM

That is why it is important to know the importance of diversification and also the importance of risk management, your friend is currently having a hard time to handle his portfolio because he is now considered having a overposition trading which means he needs to let go some of his positions. In terms of my rules, I usually have maximum percentage allocation of 20% of my capital.

None of that is as important as discipline. Anybody cand iversiy and "manage risk" but the discipline to follow through when everything is red.

Allow stop loss to hit. Allow take profit to hit.

If price does not take the limit order, don't do anything.

If a trader can do this consistently, that is the biggest achievement to make, everything else can be learned.

DevilSlayer

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That is why it is important to know the importance of diversification and also the importance of risk management, your friend is currently having a hard time to handle his portfolio because he is now considered having a overposition trading which means he needs to let go some of his positions. In terms of my rules, I usually have maximum percentage allocation of 20% of my capital.

Which means that if I will buy bitcoin and I have $200, the maximum money that I should use is just $40. I still have $160 that I can use to buy 4 more coins. If you want to have many assets, make sure to just limit it at maximum of 5 position for you to easily manage and not make mistakes that can lead you to incur huge losses. Avoid having overposition because it is one of the major causes of failure in trading.

Bushdark

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There are people who are good at multiple trading and they don't have a problem with that. We need to know what works for us so that we can try our best to make sure that we get the best from the market as a trader. I have tried multiple trading and it looks cool for me but to some beginners, they might be finding it as a bug problem readimg multiple charts at the same time. If we utililize our understand and do what works for us, we are not going to have problems as a trader and WI always making good profits from the market.

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Quote from: Inwestour on April 19, 2023, 06:02:43 AM

Quote from: Greggry on April 12, 2023, 12:39:24 PM

My friend loves opening different trades at a time, most at times is difficult for him to control what's should be. Trading on free chart with multiple opening can be very dangerous. Yesterday he experience unusual hit when bitcoin price drops again, four trades loss at once when the market go against him. Personally I don't advise multiple trade especially when you're not familiar with trade

I find it very difficult to keep track of many coins, it is even more difficult to trade all of them, especially if you are at an early stage. If you have the desire and confidence that you will be able to control everything qualitatively, then try, but remember the importance of using stop loss. When there is a rapid fall, then you simply will not have time to exit all trades without losses, and this happens quite often. After several such mistakes, your friend may simply not have a trading deposit left.

Tracking them is easier when you use a portfolio app. I have one of them and I even connected it to my account in a way, it doesn't have any right to do anything but just read. This means that it can follow how much profit I made or how much loss I have.

This is how I keep track of it because anytime something goes down 5%, it sends me a notification and when that happens I take a look at it and make a decision. Either I sell it and get out, or I will keep holding it, and rarely even buy more if it is bitcoin because I love it when bitcoin price goes down, it means I can buy more when it is cheap. Long story short there are ways to trade 20+ different coins if you want, as long as you are willing to be a bit more careful about what you use to do that.

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Quote from: Greggry on April 12, 2023, 12:39:24 PM

My friend loves opening different trades at a time, most at times is difficult for him to control what's should be. Trading on free chart with multiple opening can be very dangerous. Yesterday he experience unusual hit when bitcoin price drops again, four trades loss at once when the market go against him. Personally I don't advise multiple trade especially when you're not familiar with trade

The issue with your friend isn't that he placed multiple trades. What happened was that he didn't apply Money Management principle. Everyone who trades multiple pairs at the same time knows how to reduce and control their risk. He should determine whatever he's going to lose (in case it goes wrong) or it goes well in profit. The major issue in trading isn't the profit but the loss side of it.

death69

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Quote from: CarnagexD on April 20, 2023, 09:10:05 PM

Quote from: Greggry on April 12, 2023, 12:39:24 PM

My friend loves opening different trades at a time, most at times is difficult for him to control what's should be. Trading on free chart with multiple opening can be very dangerous. Yesterday he experience unusual hit when bitcoin price drops again, four trades loss at once when the market go against him. Personally I don't advise multiple trade especially when you're not familiar with trade

It depends ono their trading methodology and strategy. Maybe he's a high-frequency trader or probably just an impulsive trading gambling on every kind of move and fluctuation in price.
If his risk management is aligned with his frequency of trading and most importantly he is not overtrading, then there is nothing to worry about.

Some just only need one instrument to trade and make profits in the market.
Some prefer to trade many instrument all at once.

But I would say be very careful, especially in trading crypto. It is very volatile and watching 3 positions and more all at the same time would be hard to manage and operate with.

Well, my friend, their trading modus operandi and grand scheme could hold the answer. Perhaps they're a high-octane, frequency-obsessed trader or just a thrill-seeking gambler, riding the rollercoaster of price shifts. As long as their risk-management game is in sync with their trading tempo, and they're not drowning in overtrading quicksand, it's all good in the hood.

For some, a single instrument plays a sweet profit-making symphony, while others prefer a diverse trading orchestra. But let me tell you, proceed with caution in the wild crypto jungle. Volatility is its fierce predator, and juggling 3 or more positions simultaneously can be a Herculean task.

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Quote from: Greggry on April 12, 2023, 12:39:24 PM

My friend loves opening different trades at a time, most at times is difficult for him to control what's should be. Trading on free chart with multiple opening can be very dangerous. Yesterday he experience unusual hit when bitcoin price drops again, four trades loss at once when the market go against him. Personally I don't advise multiple trade especially when you're not familiar with trade

It depends ono their trading methodology and strategy. Maybe he's a high-frequency trader or probably just an impulsive trading gambling on every kind of move and fluctuation in price.
If his risk management is aligned with his frequency of trading and most importantly he is not overtrading, then there is nothing to worry about.

Some just only need one instrument to trade and make profits in the market.
Some prefer to trade many instrument all at once.

But I would say be very careful, especially in trading crypto. It is very volatile and watching 3 positions and more all at the same time would be hard to manage and operate with.

Quote from: molsewid on April 15, 2023, 05:07:55 PM

Quote from: Greggry on April 12, 2023, 12:39:24 PM

My friend loves opening different trades at a time, most at times is difficult for him to control what's should be. Trading on free chart with multiple opening can be very dangerous. Yesterday he experience unusual hit when bitcoin price drops again, four trades loss at once when the market go against him. Personally I don't advise multiple trade especially when you're not familiar with trade

Do you mean futures? If yes, I don't recommend futures as well it will make your investment gone in a seconds. Futures needed to be set according to your thing I mean it is better to set it in isolated with small multiplier only but then you can advice him to stop for awhile and make some research about how to futures and trades so he will not lose too much because it will be a regret of him soon.

Because in futures, you are trading with leverage. You can make money fast and lose money faster. Trade on spot if you're practicing many instruments.

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Quote from: Peanutswar on April 15, 2023, 10:19:41 PM

For me, it's not ideal to make a trade over three positions because there's a possibility you can't manage to watch those price movements unless you execute all trades according to the plan like having a take profit and stop loss already to make sure you can manage to have multiple trades. Just wondering if this is futures trading or just long-term trading if the long term you can hold as much as you want and you are heading for over a month and year, in the future that's quite hard to handle to have more than three trades open. Always manage your risk.

Even if he does but can't be sure that it will work fine, some of them make a mess.
In order to avoid this possible scenario, we better focus on a single trade or maybe two traders together still okay but more than 2, we can't really imagine having passive results.

And even pro-traders and those who are in trading for several years never practiced this strategy as they know that it gives no benefits rather than just losses.

GreatArkansas

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Quote from: Greggry on April 12, 2023, 12:39:24 PM

(....)
Yesterday he experience unusual hit when bitcoin price drops again, four trades loss at once when the market go against him. Personally I don't advise multiple trade especially when you're not familiar with trade

I am not against this, especially if you found a good entry on other pairs, it's all good. It's just another strategy to potentially maximize gains while minimizing losses on cryptocurrency trading involves opening multiple trade positions.
But right now, most altcoins are just correlated with Bitcoin, so expect that altcoins will drop too once Bitcoin drop.

Franctoshi

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Quote from: Greggry on April 12, 2023, 12:39:24 PM

My friend loves opening different trades at a time, most at times is difficult for him to control what's should be. Trading on free chart with multiple opening can be very dangerous. Yesterday he experience unusual hit when bitcoin price drops again, four trades loss at once when the market go against him. Personally I don't advise multiple trade especially when you're not familiar with trade

Multiple trades up to 4-5 isn't that bad when you're a profitable trader, but what matters here mostly, is the leverage that you are using in trading. But multiple trades is highly discouraged for someone who is managing a small dollar account. so, if one is good in trading, you can use multiple trades at your own advantage because it gonna reduce the number of time you will trade by helping you reach your profit target with lesser amount of time.

For instance, let's assume you are a kind of trader that's wins 3-4 trades out of every 5 trades it will definitely be in your advantage. But for a newbie trader, it's always best to stick with maximum 2 trades at a time.

Oilacris

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Quote from: Greggry on April 12, 2023, 12:39:24 PM

My friend loves opening different trades at a time, most at times is difficult for him to control what's should be. Trading on free chart with multiple opening can be very dangerous. Yesterday he experience unusual hit when bitcoin price drops again, four trades loss at once when the market go against him. Personally I don't advise multiple trade especially when you're not familiar with trade

You mean multiple orders in one pair, yes it could be that possible but something that adds more risks into your entire capital considering you would really be having those huge losses.
Somewhat it would really be varying if you are neither dealing with Spot or futures which we know that on spot where you could really still able to hold up your negative position
unlike on futures which once your account been liquidated then there's no way on getting it back.

One position would be enough but since you do make out some multiple then you are really that somewhat sure in regarding into your position.

Issa56

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Quote from: Greggry on April 12, 2023, 12:39:24 PM

My friend loves opening different trades at a time, most at times is difficult for him to control what's should be. Trading on free chart with multiple opening can be very dangerous. Yesterday he experience unusual hit when bitcoin price drops again, four trades loss at once when the market go against him. Personally I don't advise multiple trade especially when you're not familiar with trade

The first question I will be asking is if your friend is a newbie? If he is a newbie then I will advise him to stop opening multiple trades because you will easily get confused. Also I think your friend should have set stop lose in four trades he opened, incase if the trade goes against him, it will definitely reduce the amount of money he will be losing. Your friend shouldn't be in rush, you don't have to open four trades before you can make money, one trade is also enough, just make sure you do your analysis well before entering a trade.

Danydee72

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Quote from: Greggry on April 12, 2023, 12:39:24 PM

My friend loves opening different trades at a time, most at times is difficult for him to control what's should be. Trading on free chart with multiple opening can be very dangerous. Yesterday he experience unusual hit when bitcoin price drops again, four trades loss at once when the market go against him. Personally I don't advise multiple trade especially when you're not familiar with trade

I can't see the point. Why should one not open multiple trades? For me I often practice DCA in spot trading, when BTC moves. Up or Down. It's nothing special about opening 20 or more trades that way. Some get hit, some not. It's very easy to check them once a day and place new orders. Tools nowadays are good enough to handle this. Sometimes multiple trades are part of a strategy. If your friend has no strategy, he should not trade at all. If he run out of time, something is wrong about his strategy. Does he invest in futures? In spot trading you may place limit orders, trailing orders, stop losses and so on. With these instruments you may avoid stress and it's an easy instrument to keep emotions out. Beginners should not trade in future markets. I still avoid these kind of markets, even after years of trading.

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Quote from: Greggry on April 12, 2023, 12:39:24 PM

My friend loves opening different trades at a time, most at times is difficult for him to control what's should be. Trading on free chart with multiple opening can be very dangerous. Yesterday he experience unusual hit when bitcoin price drops again, four trades loss at once when the market go against him. Personally I don't advise multiple trade especially when you're not familiar with trade

I find it very difficult to keep track of many coins, it is even more difficult to trade all of them, especially if you are at an early stage. If you have the desire and confidence that you will be able to control everything qualitatively, then try, but remember the importance of using stop loss. When there is a rapid fall, then you simply will not have time to exit all trades without losses, and this happens quite often. After several such mistakes, your friend may simply not have a trading deposit left.

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