Topic: How do you handle losses in trading? (Read 1318 times)
I'm calm about losses because it's an integral part
Most importantly, I believe greed/emotions vary based on individual personality and everyone needs to understand this about themselves.
Emotions should always be out of the door when you are trading, think yourself like a bot and act precisely on why you want to buy something and why you want to sell it. If you have a good logical reason to buy something, you should not be losing too much, if you put emotions into your trading the losses will be far greater and far more frequently. Plus if you do not think emotionally you will not remember last loss when doing the next trading as well.Handling losses would be in a manner like accepting losses. Just moving out of the scenario and focusing on next trade will definitely help anyone to become profitable over the time. When you are making more profits than losses and occasionally facing a loss and then moving out of it will become everything as a part of life. Yes, losing moments will lose its significance when you remain a profitable trader.
You made a whole lot of sense in this buddy!
The business spends more than it receives during an accounting period, it has made a trading loss. The stock market crash is by buying on margin. In this investment strategy, investors borrow money to make a profit. The strategy certainly works if the market goes up, but if the market crashes, the investor will be in a lot of trouble.
Most importantly, I believe greed/emotions vary based on individual personality and everyone needs to understand this about themselves.
Emotions should always be out of the door when you are trading, think yourself like a bot and act precisely on why you want to buy something and why you want to sell it. If you have a good logical reason to buy something, you should not be losing too much, if you put emotions into your trading the losses will be far greater and far more frequently. Plus if you do not think emotionally you will not remember last loss when doing the next trading as well.Handling losses would be in a manner like accepting losses. Just moving out of the scenario and focusing on next trade will definitely help anyone to become profitable over the time. When you are making more profits than losses and occasionally facing a loss and then moving out of it will become everything as a part of life. Yes, losing moments will lose its significance when you remain a profitable trader.
Yes, this is a possible development
However, let's picture a somewhat different situation. Again, you are a novice trader (emphasis yours) and just watch the price break past your expected "potential reversal zone". Will that FOMO be weaker or stronger, i.e. when you got nothing out of the market at all instead of getting something out of it? It can be said off the top of one's head that there'll be some minor differences or nuances in that feeling of missing out, but personally, I don't think they would amount to much anyway. Thus it doesn't really matter whether you closed your position prematurely or entirely missed an opportunity to open it in the first place. If anything, in the second case your greed will likely be even more painful and excruciating
However, let's picture a somewhat different situation. Again, you are a novice trader (emphasis yours) and just watch the price break past your expected "potential reversal zone". Will that FOMO be weaker or stronger, i.e. when you got nothing out of the market at all instead of getting something out of it? It can be said off the top of one's head that there'll be some minor differences or nuances in that feeling of missing out, but personally, I don't think they would amount to much anyway. Thus it doesn't really matter whether you closed your position prematurely or entirely missed an opportunity to open it in the first place. If anything, in the second case your greed will likely be even more painful and excruciating
I get your point actually. You are referring to the magnitude of the FOMO.
Both are FOMO.
Most importantly, I believe greed/emotions vary based on individual personality and everyone needs to understand this about themselves.
The losses in the market should be taken in the normal way, not as failures that lead to total disappointment in personal trade that lead to abandoning trading, what should be taken into account is that the losses do not exceed the profits.
Yes! Losses and wins should be treated equally. There's nothing special, it is just part of the business.
Just take a break if you can't handle your losses and call it a day. Don't try to push yourself too much or else you might be chasing losses if you force yourself. It's all about the discipline and patience that you give each time you are trading. There's no way a single person can get rich in a single day, it all takes time. I am not that a hard trader just like the dedicated one but I always make sure I will gain a profit each time I trade.
Everyone should avoid chasing losses and always remember Trading is not a get-rich-quick scheme.
To start with, the advice has always been to not stake what one can't afford to lose. Now to cope with the loss, just view it as one of those things in life and remember to focus your mind on millionaires who lost a lot of chances and finances before finally hitting gold. Think about the Ali Baba guy, Walmart owner, Bill Gates, or Mark Zukerberg and console yourself with their history in hope that one day your day of discovery will roll in.
But more importantly, don't trade what will hurt you if you lose it.
But more importantly, don't trade what will hurt you if you lose it.
The funny thing is that at times, it is not the loss that is painful but just the fact that you're not getting it right. (Especially when you have losing streaks)
to me, trading is a gambling game and it depends a lot on your performance and luck.
I don't see trading as gambling because you have a higher probability of one thing happening over the other.
Well, i do believe loses are part of trading and it's a way of helping us learn the more so i always take it as a lesson whenever i lose while trading and make sure I don't repeat such mistakes again. It's a bit hard seeing oneself losing while trading though but you just have to accept the fact that it's part of trading, that way you'll be able to handle it the more
In as much as losses are part of the game, we can always refine our edge in the market from time to time to reduce our loss rate and increase our win rates.
Taking consecutive losses in trading has led to a lot of blown accounts.
Losses affects us psychologically and doesn't make us think logically.
Just wanna know how you get yourself back in right state of mind after taking a loss or better still, how do you handle losses?
Share your experiences and techniques, this will be helpful.
Losses affects us psychologically and doesn't make us think logically.
Just wanna know how you get yourself back in right state of mind after taking a loss or better still, how do you handle losses?
Share your experiences and techniques, this will be helpful.
Well, i do believe loses are part of trading and it's a way of helping us learn the more so i always take it as a lesson whenever i lose while trading and make sure I don't repeat such mistakes again. It's a bit hard seeing oneself losing while trading though but you just have to accept the fact that it's part of trading, that way you'll be able to handle it the more
Always learn for those losses and make them motivation in order for you to start again and win for the next time. You have all the time to learn and study about the market trend and situation. Don't lose hope, consider it as a process for learning. Always cut your losses and don't be emotional to trade consecutively if your trades are not in condition. You will learn that taking back your money after losing will take some time so be also patience.
But in a way also that we don't need to push ourselves either if we think that we struggle hard in trading. Why we shouldn't give up and move-on. Trading isn't a perfect place for you if you just keep losing and we better accept the reality rather than to become hopeless enough even though we tried it hard. Give time to understand the situation and also tend to understand our limitations.
Taking consecutive losses in trading has led to a lot of blown accounts.
Losses affects us psychologically and doesn't make us think logically.
Just wanna know how you get yourself back in right state of mind after taking a loss or better still, how do you handle losses?
Share your experiences and techniques, this will be helpful.
Losses affects us psychologically and doesn't make us think logically.
Just wanna know how you get yourself back in right state of mind after taking a loss or better still, how do you handle losses?
Share your experiences and techniques, this will be helpful.
Well, i do believe loses are part of trading and it's a way of helping us learn the more so i always take it as a lesson whenever i lose while trading and make sure I don't repeat such mistakes again. It's a bit hard seeing oneself losing while trading though but you just have to accept the fact that it's part of trading, that way you'll be able to handle it the more
Taking consecutive losses in trading has led to a lot of blown accounts.
Losses affects us psychologically and doesn't make us think logically.
Just wanna know how you get yourself back in right state of mind after taking a loss or better still, how do you handle losses?
Share your experiences and techniques, this will be helpful.
Losses are not something I worry about these days because I mind how much I invest in trading. And I know for the fact that whatever I lose I will always recover them after some days, so it's never something to worry about. I only had serious problems when I was still a newbie. And the first time I lost big money it affected me seriously that I decided to quit from anything cryptocurrency for a long time.Losses affects us psychologically and doesn't make us think logically.
Just wanna know how you get yourself back in right state of mind after taking a loss or better still, how do you handle losses?
Share your experiences and techniques, this will be helpful.
I was also angry at myself for choosing to trade cryptocurrency, but I was wrong because I never took out time to learn how it works. After I decided to go back and the first thing I did was to learn everything that I'm supposed to learn but skipped at first. I think when you're losing, the best thing to do is to stop trading for the day and take time to go through everything and maybe you can continue trading tomorrow.
Always learn for those losses and make them motivation in order for you to start again and win for the next time. You have all the time to learn and study about the market trend and situation. Don't lose hope, consider it as a process for learning. Always cut your losses and don't be emotional to trade consecutively if your trades are not in condition. You will learn that taking back your money after losing will take some time so be also patience.
First of all, don't ever invest on same coin again after you lose it. Wait until everything is stable and then you are free to do anything. Investing on same coins after lost just makes you greed and rage because you want to get your money back, it would be better to just invest on something else for better method.
I think it depends on the conditions. if it's a popular coin, it's OK to choose the coin again. however, I think you need a moment for that. besides, you need to realize that risks that make you ever disappointed can be repeated again. so, when you are ready to trade, you need to prepare the risk. however, overcoming defeat in trading is to choose coins that have more potential than the previous coins, but the risk is very large. 
First of all, don't ever invest on same coin again after you lose it. Wait until everything is stable and then you are free to do anything. Investing on same coins after lost just makes you greed and rage because you want to get your money back, it would be better to just invest on something else for better method.
If you lose, like many of have at some point, you just have to analyze where you went wrong and next time try and do things better. Also you need to know yourself and your limits. How much risk can you handle without getting perturbed. As they say NEVER RISK WHAT YOU CAN'T AFFORD TO LOSE. One lesson I learned was NOT to give up, even when the market was flat and down in capitulation. That's the best place to find all the bargains and if you find a good project stick to it. I now play it safe, hedge with some stablecoins always and buy the dips to dollar cost average on my favorite investments. I keep it very simple now.
Taking consecutive losses in trading has led to a lot of blown accounts.
Losses affects us psychologically and doesn't make us think logically.
Just wanna know how you get yourself back in right state of mind after taking a loss or better still, how do you handle losses?
Share your experiences and techniques, this will be helpful.
to me, trading is a gambling game and it depends a lot on your performance and luck. When your trading system is not working well for a long time, you should stop and stabilize psychologically. Wait for the market to enter a new phase to continue trading. sometimes the losses don't come from the problem of your trading psychology or trading system, just because the market at that time was chaotic. get rid of that kind of market, wait for it to stabilize and then continue to make money. That's the way I usually do it. Losses affects us psychologically and doesn't make us think logically.
Just wanna know how you get yourself back in right state of mind after taking a loss or better still, how do you handle losses?
Share your experiences and techniques, this will be helpful.
Taking consecutive losses in trading has led to a lot of blown accounts.
Losses affects us psychologically and doesn't make us think logically.
Just wanna know how you get yourself back in right state of mind after taking a loss or better still, how do you handle losses?
Share your experiences and techniques, this will be helpful.
To start with, the advice has always been to not stake what one can't afford to lose. Now to cope with the loss, just view it as one of those things in life and remember to focus your mind on millionaires who lost a lot of chances and finances before finally hitting gold. Think about the Ali Baba guy, Walmart owner, Bill Gates, or Mark Zukerberg and console yourself with their history in hope that one day your day of discovery will roll in.Losses affects us psychologically and doesn't make us think logically.
Just wanna know how you get yourself back in right state of mind after taking a loss or better still, how do you handle losses?
Share your experiences and techniques, this will be helpful.
But more importantly, don't trade what will hurt you if you lose it.
Just take a break if you can't handle your losses and call it a day. Don't try to push yourself too much or else you might be chasing losses if you force yourself. It's all about the discipline and patience that you give each time you are trading. There's no way a single person can get rich in a single day, it all takes time. I am not that a hard trader just like the dedicated one but I always make sure I will gain a profit each time I trade.
Yeah, small break maybe a day or two will be the best way to handle the loss. In my personal experience, when I loss I am also losing my temper and going to trade high amount of money to get back the money that I loss, the ending is very predictable, I also loss that trade and ending up losing almost all of my capital. Taking a break is always be the best way for me to handle losing trade.
And also I highly suggest to avoid this kind of scenario is to always set up a stop loss.
Just take a break if you can't handle your losses and call it a day. Don't try to push yourself too much or else you might be chasing losses if you force yourself. It's all about the discipline and patience that you give each time you are trading. There's no way a single person can get rich in a single day, it all takes time. I am not that a hard trader just like the dedicated one but I always make sure I will gain a profit each time I trade.
I often loss many time but nothing happens, if you're loss right now today then keep your eyes next step i hope tomorrow your best day. Trade wouldn't make profitable everyday and you're loss because low quality skills. Therefore, go and keep some articles with video for increase your skills after that your loss time will less soon. Do you know every new traders facing same problems but after they're make well. Even i don't know you're a new trader or old but i want recommend try again your best, don't get feedback losser time.
The losses in the market should be taken in the normal way, not as failures that lead to total disappointment in personal trade that lead to abandoning trading, what should be taken into account is that the losses do not exceed the profits.
Then that has nothing to do with avoiding FOMO
FOMO refers to greed as it gets aroused when the prices start to rise and people are desperately trying to jump on the bandwagon when it is already too late most of the time (the opposite of jumping the ship when the prices plunge). So it is not about closing your position because it is more about opening one. Put simply, you can't avoid FOMO by closing your position as this is simply beyond the scope of the entire FOMO idea. Just to make things a little bit more clear
FOMO refers to greed as it gets aroused when the prices start to rise and people are desperately trying to jump on the bandwagon when it is already too late most of the time (the opposite of jumping the ship when the prices plunge). So it is not about closing your position because it is more about opening one. Put simply, you can't avoid FOMO by closing your position as this is simply beyond the scope of the entire FOMO idea. Just to make things a little bit more clear
It has something to do with FOMO.
Imagine I'm a new trader and after closing my position (most likely when price rallies and gets to a potential reversal zone), I kept on watching this pair and next thing that happens is price breaks past my presumed "potential reversal zone", It is very possible FOMO happens; making me wanna get back in that trade cos I didn't get the most out of the market
Yes, this is a possible development
However, let's picture a somewhat different situation. Again, you are a novice trader (emphasis yours) and just watch the price break past your expected "potential reversal zone". Will that FOMO be weaker or stronger, i.e. when you got nothing out of the market at all instead of getting something out of it? It can be said off the top of one's head that there'll be some minor differences or nuances in that feeling of missing out, but personally, I don't think they would amount to much anyway. Thus it doesn't really matter whether you closed your position prematurely or entirely missed an opportunity to open it in the first place. If anything, in the second case your greed will likely be even more painful and excruciating
Jump to: