How many consecutive looses can you handle in trading? - page 2.

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Quote from: Pamadar on January 01, 2022, 01:53:14 PM

Practice your strategy using paper trading or demos will probably give you ideas about what to do when you already dealing using your money and in the other hand, using a small amount of investment to test if you are doing things correctly will enhance your chance to keep improving.

Your suggestions are good but I have seen some people were already too dedicated and hard working but they were unable to consistently make profits; in this case I am always suggesting them to take a break at least for temporary basis rather than keep trying because when you have already put all your efforts but you could not get the desired results then you should go for break because that would at least give you some emotional balance and more importantly will save your capital for time being.

Sometimes our skills alone will not be enough for making profits in crypto trading but we should be emotionally balanced so that we could apply all the principles of risk management at the right times. For such traders taking break must be a right solution.

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Quote from: gamer4156 on January 01, 2022, 12:56:03 PM

It's truly difficult to anticipate and make your own system, experimentation don't appear to work all things considered. I can make whatever number back to back misfortunes as could reasonably be expected less getting concerned. Possibly sequential misfortunes assuming that my past win rate was above 60% with a similar methodology.

Yupp but if you talking percentage ..

im sure everyone must have one! so you would know your limit .. not just do trade and let's see later. that's dangerous, that's not a healthy trading.
set your limit based on the bankroll you traded, keep it above the green lines , otherwise you have to stop for a while to avoid a random guessing in trading.
40% be my limit out of total bankroll i have, it was 50% before.. but its too tight to make a comeback for me personally , so no matter how many times as long as it's stay on the green line .. i keep going!

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Quote from: palle11 on December 30, 2021, 11:21:16 AM

Quote from: Webetcoins on December 30, 2021, 01:08:04 AM

But, when you are adopting a new strategy then you should not go using it right away. You should first test on paper trading; this way it seems you must have back up plans for your strategy so that you may not disturb your trading routines when you change your trading strategies.

Trading is one thing that we keep falling out of sometimes no matter the amount of care you implore in it, you make a single mistake and you may have big regret. Despite the paper trading which is same as practice, if we don't understand how to control our emotions, we may keep having difficulty in it. So as we are doing paper trading, we can still practice with small amount to build real trading emotions.

If I understand it right, both of you got that point in which will help traders to anticipate what the market will bring,

Practice your strategy using paper trading or demos will probably give you ideas about what to do when you already dealing using your money and in the other hand, using a small amount of investment to test if you are doing things correctly will enhance your chance to keep improving.

Both are useful, but yes, emotion is the thing that you really need to avoid whenever you are in this field.

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It's truly difficult to anticipate and make your own system, experimentation don't appear to work all things considered. I can make whatever number back to back misfortunes as could reasonably be expected less getting concerned. Possibly sequential misfortunes assuming that my past win rate was above 60% with a similar methodology.

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Quote from: palle11 on December 30, 2021, 11:21:16 AM

Trading is one thing that we keep falling out of sometimes no matter the amount of care you implore in it, you make a single mistake and you may have big regret.

Yes, one single mistake and you'll regret everything, trading is not simple and lots of people failed thinking that they can just easily made money out of it.

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Despite the paper trading which is same as practice, if we don't understand how to control our emotions, we may keep having difficulty in it.

You can work with practice or demo account but in real action or real trade, emotion is the killer, with uncontrolled
emotions you'll probably lose your investment.

Quote

So as we are doing paper trading, we can still practice with small amount to build real trading emotions.

best thing to do is to try a little and see if you are capable working with this business, if you see that you can enhance
adding little by little in your funding will help you to increase your profits.

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Quote from: palle11 on December 30, 2021, 11:21:16 AM

Trading is one thing that we keep falling out of sometimes no matter the amount of care you implore in it, you make a single mistake and you may have big regret. Despite the paper trading which is same as practice, if we don't understand how to control our emotions, we may keep having difficulty in it. So as we are doing paper trading, we can still practice with small amount to build real trading emotions.

Paper trading or demo trading is sometimes not effective because consciously we know that we aren't going to lose real money so the decisions we make are less thought and the panic is not there during market is down. On the other hand when you start trading with real money, even if in small amounts, there is a certain tension mounting on us that can't be learned or experienced during demo trading.

As most traders say, you cannot buy an experience in the market and that's what matters in crypto trading. No matter if you have a million-dollar bankroll/capital, it will evaporate like nothing if you lack experience and the pressure handling ability.

barbara44

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In general, I try to avoid losses. The second stage of protection against losses is a small size of trades. No more than 3% of the total deposit.

We all try and avoid losses haha, isn't it Wink

By the way, 3% is a big amount to trade each time if you are actually serious about trading and doing it with a decent enough capital. I am not a prolific or experienced trader but I can clearly see anyone losing 10-12 trades during a rough patch and that would wipe half the capital.

I think it's not about consecutive losses but we should focus on making more profitable trades than losses and while the profits can be small we must also cut down on losses using stop loss to avoid emotions getting into the mix of all.

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Quote from: Webetcoins on December 30, 2021, 01:08:04 AM

But, when you are adopting a new strategy then you should not go using it right away. You should first test on paper trading; this way it seems you must have back up plans for your strategy so that you may not disturb your trading routines when you change your trading strategies.

Trading is one thing that we keep falling out of sometimes no matter the amount of care you implore in it, you make a single mistake and you may have big regret. Despite the paper trading which is same as practice, if we don't understand how to control our emotions, we may keep having difficulty in it. So as we are doing paper trading, we can still practice with small amount to build real trading emotions.

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Quote from: Rruchi man on August 16, 2021, 03:31:41 PM

An important question i ask myself whenever i hear about people complaining or simply discussing a series of consecutive looses they have made while trading using a certain strategy is;

Yeah there will be no point of continuing with a strategy which is not capable of preventing consecutive losses. A strategy must be having more than 90% accuracy on profit making; which means if we trade for ten times then we may end up with losses only for one time. Otherwise, we need to stop trading immediately either for fixing the problem of your strategy or might look for an all-new strategy to adopt.

But, when you are adopting a new strategy then you should not go using it right away. You should first test on paper trading; this way it seems you must have back up plans for your strategy so that you may not disturb your trading routines when you change your trading strategies.

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Quote from: ?? on ??

In general, I try to avoid losses. The second stage of protection against losses is a small size of trades. No more than 3% of the total deposit.

That's too low if you lose 3% as the threshold. But that's a good measure if you try to avoid losses and you're too conservative with it.
There are traders that can bear as high as 50% and more than that until they've come to realize that they've lost too much already.
While some, 5%-10% are their threshold to stop and they would take the day to stop and continue it tomorrow and so on.

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In general, I try to avoid losses. The second stage of protection against losses is a small size of trades. No more than 3% of the total deposit.

When I started taking trading lessons and actually started to trade myself, I didn't follow these risk management rules about using 1-3% of portfolio size to trade. I didn't understand then because my portfolio size was not much so I had to risk even more in order to get something tangible as profits. I'm more of a swing trader so what I do to prevent losses is to ladder buy or sell g(since I also take leverage trades). That way, I get to average out my entry prices.

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Quote from: iv4n on December 28, 2021, 03:17:32 AM

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In general, I try to avoid losses. The second stage of protection against losses is a small size of trades. No more than 3% of the total deposit.

I am doing something similar, I am avoiding losses and cutting losses, it's why I trade only with top coins... if I get trapped I just move an amount on a side, and sooner or later I get to my goal! I don't/rarely trade with unknown and unpopular coins and tokens, my trades are usually mid and long, as I said with top coins is easier to trade in my opinion... it's a bit waiting so patience is needed, but it works for me!

Yes. There are less chances to lose if you trade with top altcoins than those new and unpopular coins. But if you still end up losing like three times or more, i think the problem is with your strategy already. It may become less effective as the time goes by and as the market keeps on changing. So its either you level up your strategy or you build a new one that will definitely work on you.

palle11

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In general, I try to avoid losses. The second stage of protection against losses is a small size of trades. No more than 3% of the total deposit.

You can only try to avoid it but it must come and I think 3% of our total capital in trade risk is cool but a little high if you can reduce it. The purpose for low risk taking is because when you record loss you don't have a bad feeling on it as much you may feel if you took a higher loss. Therefore it is better to reduce the risk to reward and gradually we can increase our capital.

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In general, I try to avoid losses. The second stage of protection against losses is a small size of trades. No more than 3% of the total deposit.

I am doing something similar, I am avoiding losses and cutting losses, it's why I trade only with top coins... if I get trapped I just move an amount on a side, and sooner or later I get to my goal! I don't/rarely trade with unknown and unpopular coins and tokens, my trades are usually mid and long, as I said with top coins is easier to trade in my opinion... it's a bit waiting so patience is needed, but it works for me!

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Quote from: Peanutswar on December 22, 2021, 04:31:46 AM

In my trading plan I always set myself on having 3 losses this is my rule to myself after that I will need to take some rest and take a deep understanding, analyzation and calculations with my previous trade it's not good to make a decision when you are mad or too much happy because of the profit always stick to the trading plan we don't want to lose most of our assets because of having a wrong decision. Remember the trading plan is a must.

I think the same, I also have a limit of 3 trades, if I do not win the first trade, I must win the second to recover and exit with profit and if I lose all 3 it is because I am not seeing the trade or the market with the correct sense and it helps me to reflect on where the possible failures are and why I failed, in my last attempt if I do not come out with a neutral balance it is because I really do not understand a bit of what is happening in the market, it should be noted that there are times that you win by pure luck, but sometimes that kind of profit I say is luck, which is a factor that is always missing.

palle11

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No amount precisely, it depends on your capital and how much you are risking. Sometimes the market can be funny to battle you out of the right spot you have seen for profit, it hits your stoploss but that doesn't mean you should give up but to understand that it is the market strategy to chase after traders stoploss first before giving you your winning. So for me I might try a particular trade three times if I believe in it and most times I can win back part of my losses on that market at the end of the third try

Quote from: Rruchi man on August 16, 2021, 03:31:41 PM

It is popular opinion sometimes that a trading strategy might no longer be effective if one begins to loose money while trading instead of gaining.

I notice that the December season is a hard season to market profit. This is because the market is unstable and not consistent. So looking for a better strategy to beat this season is better or to avoid it

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Quote from: Rruchi man on August 16, 2021, 03:31:41 PM

It is popular opinion sometimes that a trading strategy might no longer be effective if one begins to loose money while trading instead of gaining.

An important question i ask myself whenever i hear about people complaining or simply discussing a series of consecutive looses they have made while trading using a certain strategy is;

HOW MANY CONSECUTIVE LOOSES IN TRADING CAN YOU HANDLE BEFORE YOU ACCEPT THAT YOUR CURRENT TRADING STRATEGY IS BECOMING LESS EFFECTIVE?

I don't think it this way atleast for my trading strategy, number of losing trades, i generally look for a mental break from the trading, I mean if I consecutively having 3 losing trades, I will stop trading because I know I am carrying the emotional baggage of those 3 losing trades with me,a I take a long enough break to remove that baggage before I jump back in again. For checking the effectiveness of my trading strategy I generally look at a longer term scenario like how much is the winning %age in last 50 trades or 100 trades or last market phase. This is how I decide whether it's time to change the trading strategy.

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Quote from: sherenikaw on December 22, 2021, 05:25:10 PM

A good strategy in trading will help us avoid losses. Don't forget to upgrade your strategy so you can follow the market movements. a trader should be able to determine for himself what to do whether it's a strategy or a moment to be able to avoid losses. for people who are still beginners, it would be better if you use a small capital first while learning to understand the market.

Upgrading starts from having those great experiences with your trades. Win or lose, you're going to have an additional learning and that will make you upgrade from your strategies.
The upgrade shall start from avoiding the same mistake that you've committed and you'll correct that.

Quote from: sherenikaw on December 22, 2021, 05:25:10 PM

do not be careless and in a hurry in trading because most people fail in trading because they are too hasty and not careful. do the best in trading as best we can and avoid the losses.

Those who are rushing, they're likely the ones to chase their losses and prone to adding more losses. It's a good suggestion that you've given not to rush always be wary of being careless so you won't do that.

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Quote from: tygeade on December 24, 2021, 02:23:47 PM

Quote from: Mpamaegbu on December 24, 2021, 03:30:32 AM

as for the number of consecutive losses; five will be the alarming figure to make me take a pause.

Five? That must be a dangerous approach as it may risk most of your capital.

Quote from: Finestream on December 24, 2021, 03:33:39 PM

I think 4-5 consecutive losses will already be unacceptable if you are a trader. Even 2-3 losses are alarming already and you should be ...

Yes, five! The first thing every trader should do is take care of MM (Money Management) and their emotion. We all have different temperaments and that seem to show while trading. Trading is more of practical reality than paper work. A profitable trader is supposed to be stoic and stick to their trading plans and not jump from pillar to post in confusion at every little shake in the market. You don't have to start panicking when you lose two mere trades if your MM is right. As a profitable trader, you don't have to win all trades to be profitable. Traders who panic at every little thing are those who've their MM messed up and over trade. Losing on a second count and then you start panicking means you expect to win all trades. Nah! That mindset is what makes a lot of traders panic trade. Always make room for losses as a trader. Whether you do that or not, losses will come. The market is no respecter of anyone.

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Quote from: Rruchi man on August 16, 2021, 03:31:41 PM

It is popular opinion sometimes that a trading strategy might no longer be effective if one begins to loose money while trading instead of gaining.

An important question i ask myself whenever i hear about people complaining or simply discussing a series of consecutive looses they have made while trading using a certain strategy is;

HOW MANY CONSECUTIVE LOOSES IN TRADING CAN YOU HANDLE BEFORE YOU ACCEPT THAT YOUR CURRENT TRADING STRATEGY IS BECOMING LESS EFFECTIVE?

Trading is a risk management that you may be able to control easily but before that you need to be knowledgeable enough and have previous experience. Without experience you can never expect anything better from trading.

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