Lets Brain storm on how to limit losses...

stomachgrowls

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Quote from: BitcoinBabbler on June 06, 2023, 02:16:02 PM

Quote from: omgitsmehehe on June 05, 2023, 05:02:46 PM

Quote from: LUCKMCFLY on May 29, 2023, 02:18:12 AM

To limit losses, you have to have enough Conviction to cut losses when you need to do it, have no doubts and do it without further ado, firstly because when you lose hope, hope enters our brains, that everything will turn out well, but when there is a trend or a specific rally and we are not in that direction, the best thing is to stop , cut the operation because only then can losses be cut, that is something that almost nobody does and it is a big mistake, that is why hope is sometimes It is not very good when there is already a defined direction , that is why you must cut losses Quickly.

Trades either result in a loss or a profit, and a single is triggered. Risk management should be our top focus, and we should avoid deals that have taken a long time with no possible screenshoot or sight of rewards, as this is hoping for earnings that have not arrived. Although losses are unavoidable, we can limit them to a bare minimum. Limiting losses is only possible when we have a sound trading technique, are always planning for bigger chances, and are prepared for the worst in case things don't go as planned.

This is very easy, if we think that when we trade and we are losing, what does our brain say? maybe he will say and we in profit and the truth against one stranded position and this reduce the profit and less the loss and it can stop the gain in profit only in the but instead close the Position because that was our take profit, and we do not let that take profit close at 25$% and that from then on we put a stop loss and run it, is the best.

Knows how to stop midway would be always the best and something that could call it a day on the time that you are seeing that your profits in a certain day is gradually decreasing because of current or recent losses
on which closing up the position wouldn't really that bad because it would benefits you out but it cant really be avoided for you not to think those "what ifs?" into your mind on which will really hinder you out on
situations that you would really be needing to do so or planned. This is why mental strength and discipline would really be the key.

Limiting losses is never been simple.There are various things that needs to be reconsidered first before you would proceed. We arent that dumb for us not to know and realize those learnings on the time that we do
deal up with the market. As the time goes by then it would be impossible that you wouldnt really be making out those realizations along the way on which it would really be just that right that you would really
be needing to apply it into your future trades. This is the most basic approach or concept on how you would really be dealing up with your investment or portfolio.

cute nmp

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Most of my losses from trading comes from poor Analysis and greed sometimes cause most of the time i refuse to take small profits and prefer to wait for the larger market moves resulting in taking too much break evens at the end.In terms of losses I limit them by putting stop loss on my trades positions and move to breakeven at a ratio of 1:1.

BitcoinBabbler

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Quote from: omgitsmehehe on June 05, 2023, 05:02:46 PM

Quote from: LUCKMCFLY on May 29, 2023, 02:18:12 AM

To limit losses, you have to have enough Conviction to cut losses when you need to do it, have no doubts and do it without further ado, firstly because when you lose hope, hope enters our brains, that everything will turn out well, but when there is a trend or a specific rally and we are not in that direction, the best thing is to stop , cut the operation because only then can losses be cut, that is something that almost nobody does and it is a big mistake, that is why hope is sometimes It is not very good when there is already a defined direction , that is why you must cut losses Quickly.

Trades either result in a loss or a profit, and a single is triggered. Risk management should be our top focus, and we should avoid deals that have taken a long time with no possible screenshoot or sight of rewards, as this is hoping for earnings that have not arrived. Although losses are unavoidable, we can limit them to a bare minimum. Limiting losses is only possible when we have a sound trading technique, are always planning for bigger chances, and are prepared for the worst in case things don't go as planned.

This is very easy, if we think that when we trade and we are losing, what does our brain say? maybe he will say and we in profit and the truth against one stranded position and this reduce the profit and less the loss and it can stop the gain in profit only in the but instead close the Position because that was our take profit, and we do not let that take profit close at 25$% and that from then on we put a stop loss and run it, is the best.

omgitsmehehe

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Quote from: LUCKMCFLY on May 29, 2023, 02:18:12 AM

To limit losses, you have to have enough Conviction to cut losses when you need to do it, have no doubts and do it without further ado, firstly because when you lose hope, hope enters our brains, that everything will turn out well, but when there is a trend or a specific rally and we are not in that direction, the best thing is to stop , cut the operation because only then can losses be cut, that is something that almost nobody does and it is a big mistake, that is why hope is sometimes It is not very good when there is already a defined direction , that is why you must cut losses Quickly.

Trades either result in a loss or a profit, and a single is triggered. Risk management should be our top focus, and we should avoid deals that have taken a long time with no possible screenshoot or sight of rewards, as this is hoping for earnings that have not arrived. Although losses are unavoidable, we can limit them to a bare minimum. Limiting losses is only possible when we have a sound trading technique, are always planning for bigger chances, and are prepared for the worst in case things don't go as planned.

TheUltraElite

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So anyway, I applied as a merit source :)

Quote from: AnonBitCoiner on May 26, 2023, 02:22:48 PM

It is necessary that if a person does not get success for 4 5 time so he should stop it until he learn each and everything about it because if we just say that this time I will recover this loss so in such situations you will not be able to get success but you are taking decision according to your emotions which should be avoided.

A trader should questions "what is going wrong" when they are incurring losses consequently and not try to rush through them like a mad gambler. The mistakes are often very easy to spot but difficult to correct and can cost a lot of money which if learnt today will save a lot of money in future.

Most traders cannot analyze their market mistakes. That is why I suggest dummy trading to newbies before actual money trading. But not everyone can correct these mistakes in which case they should stop trading because it is not for them.

LUCKMCFLY

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To limit losses, you have to have enough Conviction to cut losses when you need to do it, have no doubts and do it without further ado, firstly because when you lose hope, hope enters our brains, that everything will turn out well, but when there is a trend or a specific rally and we are not in that direction, the best thing is to stop , cut the operation because only then can losses be cut, that is something that almost nobody does and it is a big mistake, that is why hope is sometimes It is not very good when there is already a defined direction , that is why you must cut losses Quickly.

AnonBitCoiner

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Quote from: Russlenat on May 14, 2023, 12:58:40 PM

This is very common to most of the traders that even if we experienced a lot of losses, still we end up see ourselves trading in the market again hoping to finally be favored of the market condition. But all we incur are just repetitive losses and there’s nothing new to it. The more you trade for greed, the bigger chances you’ll lose more. That’s why I’ve come to realized that greed has no real place in trading, though it can motivate us to learn more so we can be profitable from trading, but trading with greed and high emotions will only make us prone into losing our trades than profiting from it.

It is necessary that if a person does not get success for 4 5 time so he should stop it until he learn each and everything about it because if we just say that this time I will recover this loss so in such situations you will not be able to get success but you are taking decision according to your emotions which should be avoided.

Greedy people never succeeded but always faces troubles so it's important to be thankful for that what you have and don't loss that amount which is even little but better than everything.

Mahanton

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Quote from: Zilon on April 22, 2023, 10:15:03 AM

Every trader has come to that point in their trading history where the had to battle many things when the made their major loss. Some might have had so many bad thoughts flying through their minds while others struggled with emotional trauma. Losses is what no body ever plans for but it happens to be one of the major experience every trader must taste.

Most traders have also had their greedy moments turn out too hash on them. Some out of taking revenge on the market made tribble loss and many who feel extremely confident even when they are making wrong analysis have also tasted losses. Some even jump into trading premature maybe after getting an overview of what trading entails the feel confident and wants to explore themselves.

What led to your major loss in the market as for me it was staying too long on a trade i was making good profit before it turned all red and while waiting for the market to finish the correction moves i ended up losing everything. How about you?

Losses are inevitable and instead on freaking out and getting afraid of it, it would be better that you should really be accepting that fact and keeps learning from those mistakes that you have done.
Come to mainly think that market is really that unpredictable and there's no way that we could be able to make out precise trades every single time on which no matter how hard you would really be making out
those technical analysis and fundamentals, it wont still give out that 100% sure profit in regarding with your trades. Dont make yourself that a perfectionist because this would be mainly be the reason
that would really be pushing you to make immediate action or simply would really be affecting your emotion because you would really be that desperate.

One thing you should really be that mindful is that you should really be setting those risks management in tact on where despite of those losses you would be still ending up profitable in the end of the day.

LUCKMCFLY

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This is very easy, if we think that when we trade and we are losing, what does our brain say? maybe he will say: "wait for the trend to change because you will be in profit" and that hope is what keeps us clinging to a position, and that hope is what does not make us lose, that is why it is good to "cut" the losses and Maximize profits, because when we are losing we are not able to stop winning, but instead close the Position because that was our take profit, and we do not let that take profit close at 25$% and that from then on we put a stop loss and run it, is the best.

tjtonmoy

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Quote from: doomloop on May 16, 2023, 12:43:10 PM

Yours happened in futures, and that happened with me in spot trading and in spot, if you don't sell on time, your money just gets stuck forever since once the price dips from your target and from where you've bought, you will then just keep waiting for it to recover back and that hardly happens.

I have faced this too. But with spot trading, overtime you can get the profit, or you can get back the amount you have invested. So it is somewhat safer than future trading. I still do spot trading. Feels safe to me for the long run. In future trading, the moment you lose, you will lose the focus and confidence to carry on to your next trading. I like to play it safe, so if you can stick to the analysis and do it right with the right coin, you can make profits. I have made that mistake in the past and have learned my lesson.

doomloop

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Quote from: tjtonmoy on May 15, 2023, 11:54:38 AM

Same thing happened to me too. My mistake was that I had put all my assets in one trade and was constantly watching every 5 minutes movements. I was only focusing on profits and were not giving any thoughts on loss or risk managements. So I didn't use stop loss on that trade either. And also before that I was comparing my analysis with signals, and they are the opposite to mine. So I did my analysis, and it was almost the same with the signal, so I had this thought in my mind that I should trade the opposite this time. I did, and I was making profits for some minutes and some % at that moment. Later on, it took a U turn and went the other way. So I was in loss. I thought to myself, in the beginning I was making profits, so it will be on the green again. But thinking that, I kept that trade open and in the end it got liquidated. I took an emotional decision out of fear and greed and in the end, not choosing the right time to close it made me regret that decision later on.

Most people lose money only because of greed, their trades might be in profit but they start thinking that they might get more profit if they wait, and that is a very big mistake because they start getting in loss once they start waiting and don't close their trades on time and take profit. Greed is our enemy but we don't realize it on time.

Yours happened in futures, and that happened with me in spot trading and in spot, if you don't sell on time, your money just gets stuck forever since once the price dips from your target and from where you've bought, you will then just keep waiting for it to recover back and that hardly happens.

xen1oph

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I made the classic mistake of overtrading. Every day I was buying and selling, trying to eke out a little more profit. Eventually, the fees and commissions ate up all my gains and then some. Slow and steady wins the race, I guess.

Alisha-k

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Greed it is for me, its funny getting to realize that more than 50% of us are also victims of the same reason.

After a bad market situation and probably 1 or 2 losses, we try to make judicious use of the good market when it's up.

carlfebz2

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Quote from: savetheFORUM on May 15, 2023, 12:55:22 AM

Quote from: Majestic-milf on May 10, 2023, 07:34:03 PM

I think you'd agree with me just like others have honestly said, that greed is majorly the reason people incur losses after a good day's trade. Most times we don't know when to draw the line, while other times, we keep repeating the same things that caused the first loss but hoping for a better result.

I remember putting money in a business a friend told me about. Because I was too gullible and greedy to a point, I didn't bother to do my research and ignored the tiny voice in my head telling me it could be a scam since the expected profit was too good to be true. Lesson learned and now before making hasty decisions, i make research or I try to draw the line by limiting my loss to a fraction of the profit target each day.

It's actually human nature, as soon as you hear about an opportunity that can provide you with huge profits you start thinking and making up your mind by saying to yourself that it might be legit and maybe you are lucky that you've got this opportunity but that is a very wrong mindset to have since it is the basic cause of us losing money in scams.

In trading, one should always have a limit and even if you didn't reach that limit but you are still in profit, it's better to just exit the market with profits instead of becoming greedy and thinking you can get more profit as the prices can always fall since cryptocurrencies are volatile by nature.

If you do find yourself on being that kind of impulsive type of person or on whose do easily get hooked up when you do see something that fancied out your interest because earning money is there, then you would

likely be able to dive in right away without having those reconsiderations on thinking whether its a scam or something not that legit or something realistic at all.Be realistic on whatever you are really that dealing with then you should really be fine. It doesnt really need that crucial or critical thinking whether these things do good than harm. It is really just a matter of using up your own common sense on whats happening around.
This is where people do usually miss out on making good decisions just because they do really let themselves get blinded by greed.

Losses are inevitable specially if you are dealing on a market which doesnt really have any assurance but with due experience then you would be finding yourself be able to handle yourself on this kind of conditions.
It might not precisely telling that you would be successful but at least you do know on what you are doing to do.

Mr.right85

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Quote from: Baoo on May 15, 2023, 03:54:58 PM

Well said OP. Regrettably, the majority of traders specifically beginners could not control their emotions in tough moments, they literally make hasty and wrong decisions when a bad event occurs for example sudden bear market.

Emotions are not an easy thing to control because, these are your thoughts and these thoughts constitutes you, it expresses the possibilities in what is before your eyes and how it could serve some means to mitigate loses.
Sadly, we tend to incure more loses each time we listen to that inner voice of our thoughts, telling us to give it another trier.

One means I could suggest to work is, having a trading plan. It would serve a regulatory purpose and even puts your emotions in check. One who is always in the market and trading always is bound to have the opportunities to make regrettable mistakes. Have control over when you trade and when to say its okay.

Baoo

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Well said OP. Regrettably, the majority of traders specifically beginners could not control their emotions in tough moments, they literally make hasty and wrong decisions when a bad event occurs for example sudden bear market. In addition to that, the negative character traits could terribly effect on traders for example, greediness, over confidence, rashness… etc. In fact, It is preferably to not trade too much even when you’re expert. Otherwise, you will end making mistakes and consequently lose money. In conclusion, the more you trade, the more you make mistakes. Moreover, traders must take responsibility for wrong decisions instead of blaming themselves and complaining about the market’s condition

Distinctin

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Quote from: blockman on May 11, 2023, 05:22:24 PM

Staying too long is the same as being greedy. And that is because you're waiting for better profits and that's why you stay. I guess everyone has this problem when we can't control ourselves thinking that there's something better is about to happen. We tend not to leave the market and will just wait a moment or two until we see that opportunity flies away and we're out of it. But with that experience, it teaches us to secure our profits while we can because the market is so fast in movement and with some split seconds, anything can happen and it can compromise our profits that are visible as of the moment. So if someone don't want to experience that, learn to be grateful whenever you see profits on your dash.

I guess it’s a human nature that we always chase for better results, we always hope that something big will bound to happen in the next days or months that’s why we tend to wait for long, not knowing that if we keep on doing that, we will miss another opportunity on hand and the expected profits will turn again into missed profits. This is one of my regrets in the past not taking advantage every opportunity that comes. Now, I’ve realized that regardless if the profits can be big or small, but as long as it will make us profitable, then it’s best to take that profits and then just buy again when there is good market entry.

tjtonmoy

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Quote from: Zilon on April 22, 2023, 10:15:03 AM

What led to your major loss in the market as for me it was staying too long on a trade i was making good profit before it turned all red and while waiting for the market to finish the correction moves i ended up losing everything. How about you?

Same thing happened to me too. My mistake was that I had put all my assets in one trade and was constantly watching every 5 minutes movements. I was only focusing on profits and were not giving any thoughts on loss or risk managements. So I didn't use stop loss on that trade either. And also before that I was comparing my analysis with signals, and they are the opposite to mine. So I did my analysis, and it was almost the same with the signal, so I had this thought in my mind that I should trade the opposite this time. I did, and I was making profits for some minutes and some % at that moment. Later on, it took a U turn and went the other way. So I was in loss. I thought to myself, in the beginning I was making profits, so it will be on the green again. But thinking that, I kept that trade open and in the end it got liquidated. I took an emotional decision out of fear and greed and in the end, not choosing the right time to close it made me regret that decision later on.

savetheFORUM

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Quote from: Majestic-milf on May 10, 2023, 07:34:03 PM

I think you'd agree with me just like others have honestly said, that greed is majorly the reason people incur losses after a good day's trade. Most times we don't know when to draw the line, while other times, we keep repeating the same things that caused the first loss but hoping for a better result.

I remember putting money in a business a friend told me about. Because I was too gullible and greedy to a point, I didn't bother to do my research and ignored the tiny voice in my head telling me it could be a scam since the expected profit was too good to be true. Lesson learned and now before making hasty decisions, i make research or I try to draw the line by limiting my loss to a fraction of the profit target each day.

It's actually human nature, as soon as you hear about an opportunity that can provide you with huge profits you start thinking and making up your mind by saying to yourself that it might be legit and maybe you are lucky that you've got this opportunity but that is a very wrong mindset to have since it is the basic cause of us losing money in scams.

In trading, one should always have a limit and even if you didn't reach that limit but you are still in profit, it's better to just exit the market with profits instead of becoming greedy and thinking you can get more profit as the prices can always fall since cryptocurrencies are volatile by nature.

Viscore

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Quote from: GreatArkansas on May 08, 2023, 08:35:51 PM

Quote from: Zilon on April 22, 2023, 10:15:03 AM

(....)
What led to your major loss in the market as for me it was staying too long on a trade i was making good profit before it turned all red and while waiting for the market to finish the correction moves i ended up losing everything. How about you?

For me, traders are not sticking with their plans.
Let's say for example before they enter a trade, they have a plan already, stop loss on x price, take profit on y price.
Then suddenly let's say the price goes to the opposite of their price target, then even if the stop loss is not yet triggered, they already close the trade. So by that, you already conclude or accepted the lose, what if it will not hit your stop loss? Then that's the problem.

Solid plans are very essential for a trader to succeed. However, if you are already in real trading, most traders tend to lost tract from their plans and create new plans that could mostly lead into failure and losses. And when they think there’s no way to be profitable anymore, they resort into stop loss while there are still other options that could make them succeed from their trades. That’s how inconsistent most traders are.

Topic: Lets Brain storm on how to limit losses... (Read 635 times)