Topic: How many consecutive looses can you handle in trading? - page 7. (Read 830 times)
There's no exact number for but if I lose about 50% of daily trading fund that I impose when I trade, I would probably stop trading that day and collect my thoughts and ready myself for the next day. I think that will be the only way to survive in trading, you blew off big time, you stop early to prevent losing too much.
Some of the losses experienced when trading are due to ineffective strategies and the wrong way of trading. people who continue to lose don't learn from their previous mistakes. It's not just strategy that matters, psychology when trading will also affect the final decision made.
Do good management before trading. Everything has to be thought about. Don't trade without good planning. study technical analysis and fundamentals so you know where the market is going.
Do good management before trading. Everything has to be thought about. Don't trade without good planning. study technical analysis and fundamentals so you know where the market is going.
I divided my whole portfolio into two parts. In first i have invested on long term coin like Doge,Ada,Eth,Bnb. I have no tention whether market grow or dump.
In Second part i invested on high volatile coin which can give me 2× to 20×. I can afford only 4 consecutive losses. But still i am safe from 4 consecutive loss.
In Second part i invested on high volatile coin which can give me 2× to 20×. I can afford only 4 consecutive losses. But still i am safe from 4 consecutive loss.
Every unprofitable transaction requires identifying the reasons that led to the loss. And if, after such an analysis, the next trade is also unprofitable, it is necessary to take a break in trading until the market becomes more understandable for you. The main thing in trading is not to give in to emotions in the hope of quickly recovering what you have lost, otherwise your losses will become even greater.
People have different tolerance levels for loss, personally, 2-3 is the region I start questioning things. As many people are aware, the success rate depends on the strategy used and timing as well as use of a stop-loss.
I mainly do long-term trading and a few short-term trading and I try to not be market reactive - I've learnt over time that this is when you lose most of the potential profit! So as long as the loss can be justifiable I keep at it - sometimes might also be due to the nature of the market involved - so being aware of these factors helps tease out where the error occurred to avoid next time.
I mainly do long-term trading and a few short-term trading and I try to not be market reactive - I've learnt over time that this is when you lose most of the potential profit! So as long as the loss can be justifiable I keep at it - sometimes might also be due to the nature of the market involved - so being aware of these factors helps tease out where the error occurred to avoid next time.
In my assessment, as an individual traders here in cryptocurrency you can only loose if you sell your assets at the lower price of your bought price value. But if you are not selling your assets in the exchange platform even the price goes down I cannot say your losing your capital, of course not. And if you think that the value of your assets is not progressive better for you to find other coins that are much better than you are holding it at the moment.
If I were to be asked like that, I could handle at least 2 to 3. However if I treat the money that I’ve traded as “dead money” or an amount that I can afford to lose, it could be a bit more than 3, 4 or so. It applies to all types of trading. In copy trading, I’ve even experienced losing up to 5 times and I just stopped.
5 failures can be your luck in copy trading as since this feature was just launched, many people have become slaves to a few experts on commissions, they are the ones who get ad invitations from trading apps and these apps pay and improve their win rate, aim is to target newbies and no time to trade, entrust opportunities and ultimately, burn user's money. The number of losses to determine the effectiveness of the trading strategy, I also think 3 times is enough, testing more than just exhausting our selves 
This question confuses me because if I lose in trading, let say the price is down, I will not sell the coin instead will hold for some time. I do not consider that is lost because the price will increase again, no matter if it takes some time to increase.
When I trade, I do not use too big of funds to buy because I know that I do not have to chase a big profit but a small profit is enough for me, especially if I can take the next profit. So, whenever if the price is down, I only need to wait until the price increase back.
If in one trade I lose, I will use the other money and move to the other coin and if I got another loss, I would just stop for a while because I guess the market moves is unpredicted and if I still trading, I can get more losses. But sometimes, I only trade in one time to check how good the market move.
When I trade, I do not use too big of funds to buy because I know that I do not have to chase a big profit but a small profit is enough for me, especially if I can take the next profit. So, whenever if the price is down, I only need to wait until the price increase back.
If in one trade I lose, I will use the other money and move to the other coin and if I got another loss, I would just stop for a while because I guess the market moves is unpredicted and if I still trading, I can get more losses. But sometimes, I only trade in one time to check how good the market move.
If I were to be asked like that, I could handle at least 2 to 3. However if I treat the money that I’ve traded as “dead money” or an amount that I can afford to lose, it could be a bit more than 3, 4 or so. It applies to all types of trading. In copy trading, I’ve even experienced losing up to 5 times and I just stopped.
HOW MANY CONSECUTIVE LOOSES IN TRADING CAN YOU HANDLE BEFORE YOU ACCEPT THAT YOUR CURRENT TRADING STRATEGY IS BECOMING LESS EFFECTIVE?
I think until all my money is gone i will stop doing trading. But i rarely do future trading so maybe i still can hold coins that i already bought. Because in future, big chance if we can get liquidated and it can made all our capital in future balance gone. But in spot, as long we not sell our coins, we still have chance and only need to hold our coins for better price.
If i make consecutive 2 to 4 losses within a period of a week, I am likely going to stop and clear my head and restrategize! These kind of scenerio happens when I must have made good call consistently over a period of two to three months. At some point, I begin to get profit apathy, and I could start making wrong call from that point forward!
I do not think 2 or even 4 losses in a row invalidate your strategy,,, that is what stop loss is for, you still have to try a long sample for all strategies and in all market conditions only then can you see if it is working out or not.
Nevertheless taking a break is always good to sit back and reconsider how you felt and why it happened.
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?
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?
Well that depends on an individual. For me, it is not based on the numbers of trade but it is based on the amount of money I've lost from trades. If any particular day I see more 20% loss from my capital trading amount I stop my trading activities for that day. So there is no straight forward answer.
Also, in crypto trading it is very difficult to follow a certain strategy as the market is super dynamic. So it is wise to take decisions as per the market dynamics rather than depending on a particular strategy. The only strategy is to safeguard the capital in case anything goes wrong.
If i make consecutive 2 to 4 losses within a period of a week, I am likely going to stop and clear my head and restrategize! These kind of scenerio happens when I must have made good call consistently over a period of two to three months. At some point, I begin to get profit apathy, and I could start making wrong call from that point forward!
Back when I was doing short trades, I can handle around 2-3 losses since I tend to quit early when I see (or at least my read says) that the market would go down and I wouldn't profit anymore. I never lose that much since I make sure to take a closing position where I wouldn't lose out that much but would still be able to handle a small dip that wouldn't make my position close. It sometimes make me lose out on possible profits though since I want to minimize my losses, but hey, that's how I go.
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?
one or two losses is enough.. And that's very obvious tho, that your strategy isn't working anymore .. So better to stop trading and take a break instead of pushing your strategy even it didn't work because you will end up nothing with massive loss.. 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?
Make another technical analysis in order to build new strategies because that's the most important, for me 1 to 2 hours of studying the graph perhaps its enough to make new strategies.
But just relax or take a break before making decision to refresh your brain and never force the situation.. Try your luck in other day because if it's not working well you cannot do anything with that.
HOW MANY CONSECUTIVE LOOSES IN TRADING CAN YOU HANDLE BEFORE YOU ACCEPT THAT YOUR CURRENT TRADING STRATEGY IS BECOMING LESS EFFECTIVE?
I think two is enough, or maybe three, just in case you feel you should go further and try. You shouldn’t try too much, because if you keep trying you will be losing too much of your money that you would have used the right way. So, two or three is enough for you to take a break and then start looking for a solution to develop a better strategy that is going to work out for you. Though another thing you have to know is that the way you use that strategy matters a lot. And it’s good to not forget to make use of important tools that will help to reduce your risks.Well that's a quick exit and I think I cannot recover my losses by doing that since its really hard to earn if you quit quickly that's why I set some amount to trade and if all of my capital for that day has been drained that time I stop and comeback on the next day. But actually we have different strategies upon handling our losses and we should stick to our plan then never try to break it so that we will still at a good phase even if we are losing.
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?
Most times the issue is not with the strategy but with the analyst. There is this excessive confidence that comes with trading for longer time and this is where lots of traders get stucked. A trader might have a sweet strategy but patience to get a confluence before taking a trader becomes the issue and end up getting stucked which result in losses.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?
For me once I have three consecutive losses at a stretch I suspend trading for one week go back to review my trades , take up new trading courses, correct my mistakes then bounce back to the market
For me, every loss will give us insight into where we made a mistake while trading. It might not be useful for the next move but it can be applicable for the future one when the time calls for it. Still, to be precise, it's a maximum of 2-3 losses because by then I came to know that my strategies aren't working and what to do for next. To not make the situation complicated, I will start to apply different strategies for one coin to another. Everyone in the crypto industry must have experienced the loss at least a time still we all stands here and trading. We shouldn't stop trying until we succeed.
HOW MANY CONSECUTIVE LOOSES IN TRADING CAN YOU HANDLE BEFORE YOU ACCEPT THAT YOUR CURRENT TRADING STRATEGY IS BECOMING LESS EFFECTIVE?
I think two is enough, or maybe three, just in case you feel you should go further and try. You shouldn’t try too much, because if you keep trying you will be losing too much of your money that you would have used the right way. So, two or three is enough for you to take a break and then start looking for a solution to develop a better strategy that is going to work out for you. Though another thing you have to know is that the way you use that strategy matters a lot. And it’s good to not forget to make use of important tools that will help to reduce your risks. legendary
Activity: 2450
Merit: 4295
eXch.cx - Automatic crypto Swap Exchange.
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.
If this be the case then take a break instead of quiting, we have many traders that give up so early and easily which has alot to do with them not trading in their safe zone (that's using funds that won't cause much damage if the trade don't get their way). Someone using a trading capital of $1000 or above doesn't have to wait for much number before he realizes his trading strategy isn't effective anymore for him.
My consecutive losses to take a break is three, like I always say to myself three is a pattern. If I missed a trade, I'll consider that a mistake, two will just be a coincidence but three has to be a pattern which means I'm heading in the wrong direction and my strategy isn't working anymore. It doesn't matter what your conservative loss number has to be to rethink your strategy but do learn from everyone of them to avoid making similar mistakes in the future.
Jump to: