Topic: Lets Brain storm on how to limit losses... - page 2. (Read 635 times)

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.

When an investor starts a new trading, the losses are more than the profits. Because in the new era an investor never acquired special knowledge but jumped into trading hoping to make a profit and later lost his money. After gradually suffering in this way, he gradually takes the advice of experts to gain his specialized knowledge towards trading. Then when he is able to acquire specialized knowledge, he sees some of the profit from trading. Similarly, if one acquires good knowledge about trading in the first stage and invests after knowing about market analysis, then there is no loss in future. But those who are new investors tend to be a little greedy because they think that trading is about profit but do not consider the loss. So to trade in crypto one must keep all things in mind and have enough confidence in mind and patience.

Traders usually turn into being greedy and emotional when they start to lose consistently and find things are not happening based on their expectations. That’s why instead of taking a break from trading to control their funds from losing, they continue to trade hoping that they will get some luck and recover their losses quickly. But that is not the real scenario in trading, the more you trade with greed and emotions, the more uncontrolled losses you will experience. However, if you only know on how to make stop loss and exit from your trades earlier, then you won’t have to suffer losing your capital completely.

One thing is certain for those who want to start trading: they have one common aim, which is to make a steady income from trading, even if the earning is not too steady, but semi-steady is also a good one. Perhaps no body goes into trading with only the purpose of making losses all the time. Leaning toward perfection is always the first aim for some people before "making profit" becomes another aim, which I can say should be the second aim. The only mistake some people make is that they don't have that desire to learn and become perfect first before making profit, which should be their sole aim; they just conceive the thought of making profit without having a second thought of how difficult it could become to learn and master the trading tools.

But I will say that everyone who is going into trading has one purpose in common, which is to make profit. Even some traders, despite their experience and high skill in trading, still count losses, so anyone who jumps into trading with just that feeling of making profit quickly will have to tell the story of what their experience will look like.

In the past, I watched a series of trading videos on YouTube, and in these tutorials, they sometimes don't make those tutorials with a real account, but just visual trading and also some kind of demo account, and the worst of it is that when they trade, they don't show losses; they only show how much profit they have made and how you can make that profit. I have tried some of those tutorials, but I have seen that some of their strategies don't work for me.

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OP, based on your questions on how to minimize loss, I think one case is to not just watch a video tutorial online where the teacher has shown you how they make $1000 in two days with a particular strategy, and the person watching would just believe it's true and just go ahead to put in huge capital and enter the trade with same strategy. As a trader, when you watch a trading tutorial online, the right thing to do is to put in the minimum amount you can afford to lose and try out the strategy or the trading tool combinations. Otherwise, if you put a huge amount at once just after watching the video, well, let experience tell the results.

One of the better ways to remain on a safety zone is to know your limits, when to trade and not to, the leverage to take and the kind of trade to go for, we shouldn't use other's experience to judge our own decision, this is a personal thing that we must work out for ourself, some steps and decisions we made couldn't have been in place that such could have avoided us in having what we never expected see while trading, this is our own personal decision which we must influence by all means to see that we cut every trading means that could lead to losses especially during uncertainty periods.

Yes, because each of us are not the same. Some can be richer or poorer than us while there are still people out there whose capacity is the same as us. We can be able to follow their preparations or they can also do the same. Limiting a loss will always be hard because it's in our nature to not be contented in almost any thing, not just in making money through crypto trading. Other than knowing what is a critical loss for us, we must also know if what is the maximum profit according to us. If we are less fortunate, our target profit must also be realistic, I mean not that huge enough. If we can accept it and do our best, it is possible to happen.

Dont know on drawing the line or something that would be calling it a day.We would really be instilling into our minds that the more the better. Why cant we able to make more if we have done it recently?
For sure these would be the most common line that would really be having on mind on the time that you are making money which is really that very common. This is why we should really be avoiding it at all cost on the time that we are engaging with trading. Limiting ones losses is not really that simple as it sounds or looks.This would really be requiring extreme mind or will and having that good control of
emotions plus having that discipline on which you could really be able to follow on what you had set out earlier.

Although it wont really be that so simple when we do speak about following those simple rules because emotion would really be the one would be hindering and alter out those decisions
along the way if you arent  really that good nor being aware on how to control it on the time that it would come out.It does really vary on certain person.

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.

There are other factors besides greed that contribute to the major cryptocurrency traders making losses. For example, some traders make losses due to a lack of experience and a lack of breaks. ^{This mainly occurs to day traders who trade cryptocurrency every day and occasionally get up at midnight to examine the market movement their lack of a break will lead to the result in major health problems.}

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.

 

I will  say that I've tasted all this stages you mentioned and there were time I stayed too confident  a d also stayed too greedy by staying too long on a trade just to hit a certain amount of money but before I could realize it, I was already making huge loss and all in red and I was hoping it will go back to green but I was so much disappointed  and worst of all was that I went all with my trading capital and it was a borrowed  fund that at some point, I contemplated suicide but thank God for the timely intervention  of my mother.

There are actually some times when we forget all of our disciplines and drills in trading especially  when the losses are getting higher than the profits and if you've been an independent  trader( i mean trader who depends on trading profits for survival ) you'll  agree with me that there are times when some trading losses seems too impossible  to forfeit and we would want to recover all of our losses if possible but we ending  up messing things up and at those points,  it is better we have people around us because as a trader, there will always be bad days.

One's attitude toward trading might be rapidly altered by greed. Due to this, traders frequently ignore risks in favor of focused on making money because they believe their assets can readily grow as a result.
Sometimes, winning and success stories of other traders mislead us and persuade us to feel that the same thing may also happen to us, but trading success necessitates a lengthy learning process on our part. A desire to understand technical analysis and tactics is necessary. Although optimism is acceptable, we shouldn't greed guide our choices.
We shouldn't let greed control us if we don't want to experience significant losses and regrets during our trading journey. It's okay to go slowly and not hurry things since trading with certain outcomes is preferable to making poor decisions out of greed.

One of the greatest thing one can do to limit loses is just removing greed, if you can do away with greed, trust me you've fought like 50% of the problems you would face while trading that could lead you to losing a lot. If there's no greed attached when trading, you will manage risk and use proper leverage/ lots size, you will avoid revenge trading, you will not have to over trade and you will be contempted with whatever profit that you have made at the end of the day.  

As you rightly pointed out, market losses are an inevitable experience for most traders. One way to limit losses is to use risk management strategies such as setting stop losses and limit orders. It is also important not to let emotions such as greed, fear or revenge influence your trading decisions. It is also recommended to carefully analyze the market and conduct a sufficient amount of research before making decisions about trading.

This is really something I can relate to because mostly it is a waiting game that it ain't coming back from our desire TP, which we end up losing more. This kind of trade is because we are too confident that our entry will be back and not thinking about our SL, which we should always first consider in risk management. Also, one of the common losses is that you don't have patience and don't follow your strategy, or you trigger the trade without confirming all of your confirmations, and a bonus to that is that you are too greedy.

Losing is something you can’t avoid in trading, so it’s better you are always planning for it, if you don’t plan for losing, you will definitely be disappointed because you will lose, even as a professional trader, they are always losing, just make sure that your profits is more than your loss in trading. Whenever you notice that your loss is more than your profits frequently, then you should stop trading at that moment because you are not getting it right. But anybody that tells you that you won’t lose is wrong, losing is also part of trading.

I have don different things which have led me into losing different amounts of money in trading, but have learnt my lesson and have stop all of those things. First of all I do over leverage my traders because I was looking for fast money, I noticed whenever I enter any trade, after like few minutes or house I always end up getting liquidated, I was getting addicted to future trading then but I just have to force myself to stop it, now I don’t even go close to future trading.
I do FOMO, whenever I notice a coin have been rising, I will like to enter the trade and  cash out before it start dumping, immediately I enter the trade, the market will start crashing and I will end up losing money in the trade.
I know am always Greedy, whenever am in profit in a trade, am always finding it difficult to leave the trade, am always having the mindset of waiting a little bit longer, the market will still pump more.

While I don't have any personal experience in trading, I have heard from other traders that their major loss in the market was due to various reasons, such as being too emotionally attached to a trade, not having a proper risk management plan, or simply making a wrong analysis. It's important for traders to understand that losses are a part of the trading journey and to have a plan in place for managing risk. Reflecting on past losses and learning from them can help traders improve their trading strategies going forward.

Losses cannot be avoided, but we can minimize them so that the losses don't become big and there are many ways we can do this if we want to learn to find solutions. And when we can learn more, besides getting the solution, we will also find ways to make money from investing or trading.

Being a perfectionist means perfection, whereas nothing is perfect in this world. Even professional traders or investors cannot achieve perfection because they also experience losses in trading or investing. But even so, we can still learn to be better and can make a profit from both because that is the goal of every trader and investor.

And if we are inexperienced and still need to learn more, we must be able to accept it because the situation and conditions are like that. But by continuing to study better, we can certainly achieve what is our goal later.

I always thought that people who are actually losing a lot from trading is because they come into the market unprepared and just jump into trading because of their greed to get instant profits. Though they actually know that trading is risky, but maybe some just need to experience the risk of losing first before they can actually say that yes, trading is risky and certainly never that easy to make profits. And even those who decide to do revenge trading, for me it only shows that they are just being greedy that they keep on chasing for profits even when the market does not favor their trading decisions.

On the time that emotion kicks in then you would really be making yourself like a gambler then you arent doing investing or trading anymore.We know that losses isnt something an avoidable thing on which its rather
inevitable. The thing on here is that you should really prioritize on making profits in the end of the day despite of the losses because what we do really tend to achieve is to have positive results.

Dont make yourself on being that perfectionist because if you do have that kind of approach then you would be that susceptible to lots of error sand mistakes which you should really be that avoiding it on the first place. Trading isnt that simple and not something that you could really be easily handle with. Remove into your mind that you are that a guru or knowledgeable on this one.

On the time when you do make out some active dealing and engagement, then you would be finding to your self that it isnt something that someone could handle on easily .There might be some
initial profits which you might experience but most of the time it would be a loss since you arent that knowledgeable or skillful when it comes to this.