Topic: How do you handle losses in trading? - page 6. (Read 1296 times)

Having a loss in trading is something that must be faced by all traders, so it must be mentally prepared when starting trading. The best way
to deal with losses is by using the stop loss feature, making repairs for any mistakes, using capital gradually and do your research before
starting trading. If the method I mentioned was successfully realized, then I'm sure the amount of loss experienced gradually decreases.
It can even rarely experience losses.

IMO, i think you can only trade this way if you have a good win rate.



You actually need to blame yourself to get better and improve.

The market is just there doing its thing, moving up and down!

This can be considered as risk management. This is very helpful for every trader, we should think that not all of our trade will succeed, that's why there is stop loss and it is MUST put stop loss for every trade especially you are in margin trading which is riskier and can lead you to liquidation.

One thing we can handle losses in trading is the total stake on every trade we do, like 5% - 10% per trade of our total available balance is good for me.

Having an edge in the market that makes you money should't make you think about  losses too much. (A good risk to reward ratio will cover up all your losses in one winning trade!)

...and also one needs to follow a good risk management plan that suits you.


Great point!

Everyone's method of getting over losses varies. Find that which works best for you. Just don't beat yourself up too much afterall, You don't expect to win everytime 


I refer to mine as the 3-5% rule! 

Once i lose this range of percentage of my account, i stop trading for the day, cool my head, do something else and probably comeback to check my mistake later in the night.

Some losses hurts badly though 


Every new trader is sold the dream of trading.

No new trader ever considers loss. All they do is calculation of what their compounded account will be in months without factoring in LOSS!


This is quite necessary.


This point is crucial!

Trading with your last cash/ money you can't afford to lose or a borrowed money will make you cry.



 Risk what you can lose.

What i do most times to avoid the psychological trauma that comes with a loss is that i deduct the amount i'm risking from my current account balance. so in my head, i know i have X amount left.
I take it like the money i risked is gone already.

I see losses in trading like the overhead in a business (amount used for general upkeep of the business)

This means that you only spend that you can afford to lose, the same on gambling.

Losses in trading can affect the trader either severely or mild depending on how the trader handles it. Pro traders think that they not get affected by any lost but in reality, all of us do it is just some of us can handle it in the most suitable and convenient to them that they can just simply accept or ignore it within a few minutes.

Traders should always know things that they love to do like playing online games or paling basketball for that when a trader loses then he can immediately divert his attention to a different thing and may provide him a positive outlook again. This strategy is applicable to me but some may not because all of us still have individual differences.

First, you should have a strategy and plans in gambling before you do it. Being knowledgeable and prepared on what are the possible outcomes of your gambling will make you more advance and successful. Limit your budge and stop gambling when your losses surpasses the limit, always think of your money and never be greedy about winning so bad. Do self-examination after a loss so that you can think of the things that you lack which made you lose your money. Sometimes you really need to let yourself to have some time to think about the things that will make you relax and confident at the same time. Gambling is just a game and you should not give your 100% to that. Always keep in mind that there are more things that you need to spend your time, not only in gambling.

Most of the trader are doing that just to relieve their stress and move on about the result of their trading. Sometimes we really need to have some time for ourselves so that we can relax and do self-contemplation or self-examination to know our mistakes. Once you left the market and reflect on your mistakes due to losses, that's when you need to learn more to prevent that losses to happen again.


Never trade when you don't have a back up money that you can use for yourself or for an emergency purposes. Forcing yourself to trade is never an idea, always trade when you are prepared enough depends on your speculation and after performing technical analysis.


All of us needs to refresh before going back and engaging again in the market, we need to become more prepared and confident again after a huge loss. Every trading transaction is essential and another lesson for you to grow more so as soon as possible, do your best every transactions.

You are having a bad shot mate on trading it is better if you will take a break because it is the hard times in trading and one of the things I usually do that you can adopt too is taking a break for meantime and analyze the situation why you lose up your funds and it is more convenient also it helps you to make understand what is your mistake. Also use the trading indicators those are one of the best things you should use on trading but we have different techniques for me I'm using the Moving Average Convergence Divergence (MACD) because it is easier for me to understand the next kind of market movement. Also losing is part of trading that all of the professional traders already experience that kind of problem. You should take a rest for a meantime.

I often to find the situation and usually I just left the market and find some entertainment like watching movie or hang around.

Because if I force myself to keep trade whereas I have lost a lot of money it can't make me got a lot of profit but it will be an opposite.

I need a clear mind when I see the market back. I have to make an evaluation as well for my experience later. At least I can avoid it and being a learning when I trade back.

I had set some rules before trading so I know how much I can loose it or have capacity. Also I have a stop loss always set so that even it triggers it is a limited loss . In trading , one always can’t make money and you will incur losses as well and should be ready for it .

The new traders will not concern about the losses because they attracted to trading after they read many success stories. They are not ready to get losses in trading, but they have a passion for trying trading. Perhaps, we can suggest them to be aware of the consequences of the trading itself, and we always tell them that trading has two option, profit and loss. They need to prepare for anything that might happen in the market, so they know what they need to do if they are in hard situations.

I know and realize the consequences to get lost in trading because I already make many losses before. I only say to myself that I need to calm down first if I get lost, keep trying to analyze the other coins and don't regret the loss that I got. I am sure that if this day we lost, it doesn't mean that we will get another loss in the next hours or next days. Managing our money will be necessary if we can not see a big loss happen to us in a second, so we still have money to buy more amount if the price is down.

True! I always set a loss-limit for myself at 8% of the transaction. At the time I lost more than 8%, I'll cut the loss - jump out of that transaction and wait until it's stable to re-join in again. You have to do your mind-set, having a strong mindset helps a lot in cryptocurrency trading!

I have read Dr. Elder's book and he always has a 6% rule. If you trade continuously but the entire order is at a loss, your account number has decreased by 6% then he advises that we should leave the market briefly. The first is to stabilize the mentality and look back on your mistakes. Then review your trading system and correct those mistakes. When the psychology stabilizes, we return to the market again to trade.

Have a limit, set a goal to achieve, and well, accept that anything you've started trading is already lost. Especially having a limit and a goal, those are especially important if you aim to trade in the long run. It wouldn't matter much if you're a rich kid aiming to become richer by trading since losses can be neglected cause of your rich-kid status, but if you aren't, losses are something you have to accept, you have to take in, and you have to understand. Don't avoid losses but rather study them and prepare measures to ensure that you won't turn crazy by doing so.
Or you can just do this. Honestly most tips are absolute bs since most people have their own way of coping up to losses, even I can't handle my losses that well even though I follow the tips I just said. Bottom line is you should do something to make yourself calm down after losing so much. That's basically it. The way you do it isn't probably important, as long as you know, it doesn't go over line like killing people to calm down, but anyway, as long as you calm down, you can basically do anything. If trading after losing so much calms you down, you can do so tbh.

As you mentioned losses effect is psychologically, I am agree with it and that's why it's quite complicated overcome losses. Because all logical thoughts become inactive for quite sometimes after lost fund. But the main thing to overcome losses is patience, cool mind traders probably gainer than normal traders who couldn't control emotions. We should explain yourself during losses that we will gain on another trade, so just learn from your past mistake that you have done with lost trade.

I know it's easy to say but difficult to do, but fortunately there is no other way. Don't trade a single with your all portfolio funds, at least divide it by four and trade different coins or just hold your funds rather than buy single coin. You may trade multiple coins but more than three isn't suggested at a time  (depends on funds limit) and better play with only couple of your favourite coins. Besides that study more and learn market analysis by yourself, don't depends on signal providers.

I can't preach enough of this.
The need for proper risk management.

I disagree with changing your strategy or method of analyzing the market. You are meant to be consistent with your approach in the market.


Exactly!
More the reason Journaling is necessary in order to look back on past mistakes.
Understanding and handling oneself is crucial.

Speaking of blown accounts then i experienced several times but i did never give up to go further not on the sense of desperation but i do make myself trying to look on what are my mistakes that i have done when im doing trading and causes for me to have losing position.When you do figure it out then try to overhaul everything and reinvent other ways.This would really involved lots of trial and error because not every strategy would really work if you do tend to make use of it.It is up to a person on how he handle up his self when he experience loss because emotion is always there and discipline into your self and handling out your capital
is the most crucial in trading career.

Losses in trade should be seen as normal taking into account that it does not exceed 10%, in trade you win and lose, the important thing is to learn why it was lost and why it was won, that is the correct way to grow in trading. I always make 3 trades, of which at least 1 must be successful, this to guarantee success always, now if the 3 trades are lost, the strategy or the way of analyzing the market must be completely changed.

I feel almost the same way.

In my case, i just dont want to see anything that looks like a chart not even a candlestick till i feel better 

Sad, Regret, Sat at the corner, Sleep, Energized. Come back the other day - when I lose big.

Trading losses make me feel dehydrated and want to break for at least 24 hours. I will just allow those regrets and disappointment to come to me. After I came back to my feet, I will now analyze what's wrong. On what action I messed up. Then I will prepare again for a comeback.

But again, that only applies when I lose big. For those average losses, it can't really affect me at all. I called it just another day in the office.