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

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.

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.

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.  

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

Those that use high leverage should be ready for frequent losses, and for that, they need much motivation when that happens since trading outcomes have little to do with emotions and allowing your emotion to take a better part of your decision when trading is a quick way to lose.

Most cases of distress that result from the trading outcome is as a result of emotion and greed and that is what pushes some traders to use high leverage so we must try as much as possible to disconnect our emotions from our trading activities, that way we can analyse the trade based on available statistics which are constantly against high leverages.

Unstable emotional conditions will most likely make us make the wrong decisions,
This of course results in further errors,
It's not easy to trade because it's not just about buying and selling.

I have been involved with trading platforms for almost a long time. But after being associated with this trading platform for the past few years, I have realized that my greed is the most responsible for my losses. All the losses I have made from trading platforms till date are because of my greed. I took this trading in futures trading for few days. I had a lot of profit in the first phase. But I leave it hoping to get more and then I have to suffer this loss. From here I have seen people lose the most on trading platforms just because of greed. So whatever you do, never get greedy in trading platform, get rid of greed first.

The majority of voters says greed, but they avoided discussing the reasons for the loss. Sure, there is greed involved, but the fact remains that there is also a financial component to it. The reason I personally lose most frequently is because we don't invest into the appropriate item at the proper moment, which causes us to lose. Or perhaps the main cause for me personally is that I cling onto things for too long instead of selling them. I am quite skilled at buying things for low prices, but I tend to retain them for too long, which causes me to lose money as well. The best course of action in this situation is to simply keep selling it while you are making a profit rather than waiting an excessive amount of time. If it goes up, you might simply place a stop loss order above the profit zone to prevent going back to a loss when it goes down.

1. Inadequate information and preparation
2. Wrong information and orientation
3. Impatient and over excitement
4. I too know and overconfidence
5. Investment on the wrong asset or coins

If we can tackle all these above listed items in our economy and financial life, then we will have a better experience than we could do if not, most of these losses we see happens to us were as a result of our weakness and vulnerability, but many of us dont want to believe this, but when the proper way of administration is given to what we do, there's no how we can regret taking those step in the future because we have adhere strictly to the protocols as expected.

When we trade with emotions, we can't see the opportunity to enter the market well and instead want to chase profits. This is also what I felt when I saw the price of a coin suddenly increase and made me feel Damn, I entered a few minutes ago, so I decided to enter the market immediately without analyzing it first.

If you are still a beginner, it is better not to try futures trading because it is more risky. It's better to keep trading on spot trading, which is less risky because when you buy at the current price, and it turns out that the price is decreasing, you can keep holding it without losing your other balance. And that's why you should learn about trading more to determine when to enter the market.

Greed is something that can not be overcomed with a simple approach because it is right beneath us. It is something that is inbuilt I'm us and the only way we can try as much to guide ourselves from not being used up by greed is for us to always debug and mentality and work with people that could help us in a long term especially working with experience pro traders that might have been in the market for a very long time.

I have seen traders making huge profits from the market and the next day they lose everything. This could be as a result of greed to make more money when you have reached your daily limit. We need to ensure that the greed in us would not affect our trading arsenal to the extent that we are not going to be able to think straight on how we  get more skills and improve in all angles of our trading journey.

The result will still the same if you set a stop loss because user that soaked on trading will continuously pursue trading to chase losses. It's either the user will keep opening position with stop loss or use high leverage to increase the profit multiplier. It's very hard to stop trading if you are experiencing a momentum of profit because everybody loves it. Continuos is what everyone goal when we are trading.

A target profit and loss are the best option to avoid chasing loss or pursuing more profit because we surely never stop until we already burned all our capital before we stop. This discussion is easy to implement in theory but very hard in actual because our mind is set to become curious and greedy. I knew all this things yet I still fall victim sometimes on this kind of mistake when my emotion is unstable.

This is a consequence of the fact that you succumb to emotions, in the desire to correct the situation in which you lost money as soon as possible, the emotional state is very unstable, which will lead to subsequent mistakes.

If you have a strategy for how you should act in certain situations, but you do not follow these rules, then in this case it is better not to trade, because you still will not be able to achieve positive results in this.

This is the case when we trade loosely, without stop loss and guided by emotions and not reality. I have been in that also, either you are expecting a reversal to your entry point to get out which will not happen most of the time because of trading on wrong trend. After such experience, I have observed that most serious and heavy losses made is because of lack of stop loss, high level which is caused by high taste for profit. Having a trade on 10x leverage is not going to move in profit or loss will trade with 1x or 2x and that is a lesson I have learnt.

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.

This is why I've had so many setbacks. And, in my opinion, this is also the reason why most traders' funds are depleted. Instead of taking a break from trading due to persistent losses, we began trading continually even though we no longer followed the plan and were ruled by emotion. Your reasoning is that you want to recoup your losses, so you trade more frequently and raise your position size; this only demonstrates that you are not adhering to your risk management strategy. As a result, it causes significant losses and causes your capital to vanish swiftly.

Another approach to combat greed is to establish a plan for when to stop buying into the market once Bitcoin surpasses its previous all-time high. At this point, you can begin devising an exit strategy by setting specific prices for selling all your coins and placing the necessary orders.

SL's or limiting your losses is really indeed crucial thing not only on trading but simply or into investment itself on which you should really know on when to set those losing limits rather than on losing all of your assets.
We know that it cant really just that possible that we could be able to predict on whats the future on which it would really be not that shocking if ever we do really miss out some opportunity out of those positions that we have set earlier.This is why as a trader or investor then setting out your risks management is really that important because if you wont then you would really be that shocked on something that unexpected to happen.
We do know that we cant really be having that huge capital or something that we could make use neither on trading or investment which it is really just that sensible that we should really be setting out something
like this or else you would really be seeing your entire bankroll would be blown up in shortest time as possible. Risks management and handling it would really be that important and
really that most crucial.

One way to limit losses is to set stop loss orders that automatically close the position when the price reaches a certain level. This way you can protect your position from additional losses if the market moves against you.
It is also very important to have a risk management strategy and follow it strictly. This may include determining a certain percentage of your capital that you are willing to risk on each trade, as well as determining exit points from a trade if it starts to lose money. It is important to stick to your strategy, even if there are unforeseen changes in the market.

Yeah, he didn't realize that both are still the same. If we are not greedy, we will stick on our limits so we still have something left to trade the next day and so on. I don't think this is called a revenge trading but it's just another trading session. Trading must be done like this so that we can be able to trade often and expect earning some profits. About capital, we must only use the money that we can afford to lose.

We must not took a loan or sell our valuable stuff. If greed unexpectedly happens and we drain all of our money, then just accept the mistake and move on. All experienced it even once or twice but that's normal because we are just humans.

Buddy, I feel you! Who hasn't been seduced by crypto's bewitching melody, promising a treasure trove and captivating prospects? Yet, as you pointed out, restraint is vital. Don't let the mania engulf you, like resisting a cake's sweet allure. Recall the overarching plan.

My personal secret? Focusing on the long haul. Disregarding market jitters, I see the bigger picture and invest shrewdly. Naturally, taking chances and embracing novelty are part of life's thrill. It's about balancing prudence and audacity, temperance and spontaneity. Indulge in the crypto frenzy, but keep your gaze fixed on the target and harness that essential self-control.

Trading is one of the ways we can make money in the market but it is very important for us to always measure our risk to reward ratio so that we are nit going to always fall Victim to the wrong analysis. If we are able t ok measure our risk to reward ratio accurately, we are not going to have problem at all as a trader when we enter the market.

 Loses is something that is inevitable but it's always impressive when our loses is less than our profits.
 This is what pro traders do use to supercede the upcoming traders who do make big profit and later lose it with a small space of time.

One thing that always haunts me in trading is not being able to control my patience and ambition to want to achieve something more than what I have found. I admit that and really learned afterward, being able to enter crypto trading with high volatility and risk is certainly not just reckless capital. Even though it has been seasoned with knowledge for a long time, the desire for more is always unavoidable. Until it got to the point where I started to get bored and turned to long-term investments. Try not to care about market conditions at all times, only enter occasionally to buy coins that I want to hold for a long time. After leaving and not returning, at first, it was quite difficult because crypto information kept updating and reaching social media brands. In fact self-control is the main thing before going any further.

I must say revenge trading happens only to those who are greedy. Because if not, then they will just call it a day and just come back to trading when there is enough capital and whenever the market is perfect to trade. But I completely believe that all traders experienced this revenge trading. Because we don’t want to keep on losing and used up all our funds, so we start to do some revenge trading hoping we can easily recover our losses, but it seems it only lead us to losing a lot more until we end up in a very worst situation.

If you only trade on spot trading, when you buy at a certain price and it turns out that the price is decreasing, don't panic right away but just calm down for a while to see if it is a continuation of the correction or if the price will continue to decline. If it's getting lower but there's still potential to go up, you have to be patient for a while.

But even if the price keeps dropping, it will inevitably stop at a low and bounce back and the next time, it will bounce to a higher price, especially if it is a potential coin. We must be more patient when we see this and stay calm to see if there is still an opportunity to buy at another low price.

Most people will panic when they see the price drop drastically and immediately sell it to eliminate the bigger losses. But it's not always like that because it could be a trap from other traders to be able to buy at another low price. But if it's bitcoin, you better hold on tight and don't easily sell it because the potential for a bitcoin price increase will be huge.

But greed will lead us to losses, so we shouldn't be too greedy to chase big profits.

I am using these methods to limit the losses.

1. Dont use higher leverage for the trading
2. Only use 2% of the main capital
3. Also apply the Doller cost average to buy Bitcoin.

things like that are mostly done by beginners in trading. simply following a friend's talk or following the trading signals of the group. choose an asset and place an order at the recommended price range. but beginners forget to place a stop loss to anticipate the risk that the plan might fail.
but for those who are experienced enough, will make an analysis and choose their assets. some traders have their approach before trading.

This is called greed and we all have this, no wonder why this was the first option in the poll because OP knows that many will vote for this but I think most of the choices on the poll are still referring to greed, they are only written differently though. Trading won't be called like that if we will idle for too long but on trading, a person must act quick and move on.

If you can not do that then you better do investing instead. In investing, you have no time limit and you can wait for the price to recover the longer you want. To be greedy is bad and being greedy can happen not only in trading but most of the times in playing a gambling. It is hard to resist it but we need to try if we want to be profitable.

If we do base up on whats written on the poll then we could actually say that all of those things are the reason on why we are really that experiencing losses although it is something that inevitable because no matter

how veteran you are or no matter old or professional you are here on this space, it wont really be guaranteeing 100% winning or profitable trades.When we are still that a noob then we cant really be that avoided on having that overconfidence that we could easily do on what others we've been seeing that they are trying to do. Yes, when we are noob, looking someone who do trade looks simple and you would really be simply
having those thoughts in mind that you could also do it with ease, but on the time that you had stepped your foot into the field then this is where realization do kicks in.

As we do move forward we do really be able to learn up things which are supposed to be learnt, we do really give our best on lessening out the risks to limit losses and this is where
we do mainly targeting on.

I think that person should be relax while trading because if he take some decision while he is in hurry so there is a great chance of Losing money. Another thing is to use minimum percentage and avoid copying others because sometimes the ideas of another person become a cause of your failure. Sometime people hear about the coin that what coin is the best and without knowing in detail about it they buy it so it can also be risky because they don't know what to do with it and for how many months it should hold so complete knowledge is also necessary.

In the pool options, I think..

-Greed
-Stayed too long in a trade
-Over confidence

Are all basically the same thing as greed, it is out of greed that a trader gets over confident, and choose to stay longer in a trade he should have closed and secure the little profit he or she made..

Anyways, majority of my loses in trading have been out of greed, wanting more and more profit, I get too confident, and then keep open a trade I should have closed..
Other times, it is simply due to coming late to the party, that is buying into a market that is ready to start selling, that is, meeting the pump at its very end, and hoping it will continue to go up, only for it to start selling when I've already bought.

Good point of view. And in my opinion, distraction is not the main cause of loss but greed, lack of knowledge  and self control…etc. Plus, it is really essential to be completely focused while trading or making decisions due to one mistake may cause a massive loss especially when you do daily trading and your capital is pretty large. In addition to that, you will be able to limit losses when you gain experience, practice and improve your decision making, they will be definitely achieved by time.  In conclusion patience, education, and self development are ones of important keys  to succeed in crypto trading.

The first thing I remember when talking about losses is margin trading without stop loss. Until this is a mandatory condition for you to open a deal, you will regularly lose your money when the price moves in the opposite direction to your expectations.

What made me experience a big loss was when I didn't use the stop loss feature and left the trade open without seeing the possibility that the market would move in the opposite direction and after that didn't cut loss even after the asset had decreased by tens of percent, this really damaged my mentality and made me feel afraid every time want to trade daily, that's why I only invest in Bitcoin or Altcoins, which can be said to have the potential to provide big profits over a long period of time.
Often traders think that even though the asset has gone down, as long as they don't sell it, it's not a loss. This mindset eventually leads traders to bigger losses so that their thoughts become chaotic, because actually, a loss is still a loss, even though they haven't sold it, because it's just an unrealized loss, never hesitate to cut losses because the crypto market is always full of surprises.

I think greed made me suffer losses because I didn't immediately take profits when the price increased high but instead waited for the price to increase again.
I often forget that if the price has managed to increase several times, it will decrease again and whether it returns to the previous low or gets a small correction, the price will decrease.
But that doesn't make me sell the coin instead of holding on for the next big win and I'll only regret it in the end.
But that's not all because sometimes I make an incorrect analysis so that I enter the market at the wrong time which causes me to suffer losses before the price can reverse direction and give me a small profit.
But I still try to prevent myself from making mistakes again and even though it's difficult, I still have to try it to get the benefits I want.

That's really nice poll mate, I just hope we see major group voting on it so that one can get the idea of how everyone is losing it. For me, it was straight-up late enrolment into the trading zone. By that I mean I bought the position at a very high price in the belief that it will go further. However, I was wrong in many ways due to the market condition itself. Many times I feel that confidence, poor analysis, and holding on for long, all are connected with each other. If that day I had a proper judgment of the market (that's good TA), then I might not have stayed for very long (long holding) and might have close the positon way more quickly than before. We can say that they all are one and the same or interlinked. So many times people will keep losing their minds over these three for sure.

Since then, I trade really less because that was a pretty big loss at the time. I might just be holding my asset and performing dollar cost averaging over the course of the next few years. I am holding the king coin that is BTC, and gonna break it with the lowest price average and high price sell in a few years.

That is my lesson and that's how I am improving my situation right now.

I know there are other reasons why people lose in trading but the more common among traders I would love to mention is greed. The desire for more cost traders to be too drastic in setting their leverage while trading, even at high volatility. I don't see distraction to be a good reason cuz I know of experts that still make their money on trading irrespective of the level of fun, their condition, or their position. When u are used to the trading system I'm not sure you will be losing due to distraction

I hope you learnt some lesson from that. However I would mention here that most big names in crypto are never really at home, but traveling the world while tracking their assets and investments, they are that rich. So they know how to manage the money while having fun at the same time. Hope you can develop that capability in future too when you become a crypto millionaire.

Greed is always there the important thing is to keep your cool and not make drastic orders that lead to losses, but calculated ones.

I think it is important to remember that when we are making a trade, it is vital to not be in there for too long and we should get out if we are not long term investors. Too many people react as if they are doing a smart decision by staying for too long but that is a wrong move and you should not do that.

Long term investment and trading are totally different stuff and they do not have the same returns neither, which means that you are going to end up losing money to it if you keep mixing them together. Best case for people is to make sure that you end up trading when you trade and invest when you do invest and not mix them together. Staying in too long makes it a bit more investment and less trading and you should stay away from that if you could.

In crypto trading, losses are just something that is inevitable unless, for the AIs that are now being developed to suppass human intelligence (lol), well, let's see how good it can turn out, but as long as the market has not been 100% accurate based on human analysis and predictions, there is no way AI can even be better at making accurate trades. It is just that humans are sometimes the reason for the losses they encounter, both by letting their emotions take over their trading decisions and also out of greed. but most times some of the bots are just programmed to readjust on leaverage depending on how volatile they see the market becoming. There are some professional traders who are well observant of the market's change in volatility; if they see the market is becoming so volatile on the day of their trade, they can become more careful in their trading amount and setting a low leaverage.

What causes my major loss during a trade is whenever am trying to revenge, whenever I lose in a trade and I plan to revenge, just know that am going to lose the money also, so I learnt my lesson now, whenever I lose in a trade, I always accept my lose and always fight back another day. Whenever am revenging, my analysis is always poor, am always desperate just to get back my money and I notice whenever am desperate, am always ending up losing, since I know my weaking point already, I don't revenge again in a trade.

I was on a vacation trip with friends, I was clearly distracted by the engagements of our vacation and should not have even tried to engage in any trading activity. I went ahead, my analysis of everything was wrong and I ended up blowing the account and the little I had managed to gather there. I made the mistake of trading at a wrong time, I made trading decisions while distracted and It was something I regretted.

Same here, staying too long hoping that the price would uptrend more.  There are instances that I wanted to cash out but hindered by the thought of making more.  It is really not a good thing to be greedy in trade.  In a high volatility market, if we see a good profit we should grab it.  Then wait patiently for reentry.  If the opportunity for reentry does not come, at least we have exited the trade with profit. 


Looks like I am not alone, well at least we have learned our lesson.  Greed is part of trading but too much of it will cost us our profit.  Better to trade with realistic price target and stick with it.  It is not funny to miss profit because of greed again and again. 

You are just very correct,I mean there is no way on can be a trader without him losing.Dont forget that loses are part of the game, therefore,one must belt up while venturing into the business,you must be someone who can Atleast handle such cases,and not someone who will cry when you experience loss.If there is anyway one can do without loss,almonet everyone would have done that,but because  loss is part of the game,you just can't make smooth trade in a row without getting setbacks.All you just need to do is make up your mind that  despite the loss that comes,you will still continue with trading  until you get to the height that you desired.Remember,winners never quit,and quitters Neva win.

Leverage and margin trading requires an extreme level of knowledge and experience of markets and technical analysis and trends, one cannot master it by simply starting to trade with no proper experience and knowledge about the tools and set ups that are useful and can be used in the favour of the trader. That's why it's better to just stick to spot trading until you are fully trained.

I've seen people who have enough technical knowledge and abilities to analyse markets and charts and do all sorts of things but they stay away from margin and futures trading because they say it's too much risk.

Traders are regretting their past mistakes because they do not have a solid plan that should be consist of good risk management, perfect entry point and also cut loss. When it comes to risk management, traders should be aware to VAR or the Value at Risk. This is where you will know what is your maximum cut loss percentage and your maximum amount of money you can afford to lose. The Ideal VAR is usually 1%-2% which means that if you have $100 in your trading account. The maximum losses that you have in a specific asset will be 1%-2% which is $1-$2. If your losses surpass this amount then it only means that you are not using the VAR in the right way.

You can either compute the VAR manually or you can also use calculator to save time and effort. You need to also to know what is your perfect entry, the entry is not fix it will be depend on what is your niche. Lastly which is the most important thing: the cutloss. Every trading plan should have a cutloss because your bias can be invalidated anytime.

Revenge trading is after you have some lost trades but it is not worse than you are too happy with your win trades and lose control of your mind by more easily to open new trades. It is when you change from a win streak to a lose streak and it is a cause of your revenge trading. All of them are bad for a trader but I am sure all of us made that mistakes. It's only a personal matter that when we realized that bad trading style and stop it, change ourselves.


It is also because we mostly don't accept to close our positions with a priority to protect our initial capital. It is a most important thing for investor and trader but we mostly don't want to do this.

After open a trading position or investment position, we only close our mind and wait for profit. Not all rocky discipline can help us to protect our capital and get profit. Discipline only help us if we do this with a good plan.

In my case, I made a mess with my leaverage setup, and just within some minutes, I lost my asset. It happened the first time, just like magic. While I was just seeing the price go up and down, with just a little volitile movement, everything was gone. I tried it again, but my asset still melted. Trading is not something anyone should venture into without being determined to handle losses, just like in the thread I commented on yesterday about how people sit so long on their losses. Well, after my experience when I tried to learn about trading, I have not tried trading again, but I can try, and I think I will still give it time when I begin to have enough free space.

Greediness.

When it was the best time to take a profit and I didn't because I thought that it was going to be more. This type of scenario is common for the most of us.

When it seems that it was actually a good time to sell, we are not selling because we want to have more and that approach is giving us the kind of greediness that we're not noticing.

For me the two major things that make me lose money in trade are FOMO and Greed, FOMO affected a lot of people even experience traders get struct by it, Greed is another thing not sizing my trade right, and wanting to recover most if not all my past loss from another trade, this also never work for me. There are other factors like Poor analysis just like the Op highlighted. I have been in the $SYN trade since I learned the team coming out with their own chain but this trade is taking too much more than necessity

The best way to limit your losses is by managing your risk.  Plunging into emotional trauma is unavoidable if you trade with large funds and loss the trade.
Another reason is revenge trading. This also happens in gambling, trying to bounce back to profit you sink the more.

P.S: Can you include trading without experience or gambling in the name of trading when you don't know how to trade.

In conducting a trading activity here in the crypto space, we must consider risk management because of the money involved, we learn to limit ourselves as a trader here in this field.

We also know that it is not easy to get a cryptocurrency profit but we can also get a profit here, but all we need is not to seek high income each day if we do day trading and if we do long-term It should be a time frame if you really sell it.

Most voters said greed, but they didn't talk about what caused that loss though. I mean sure greed but the reality is that we are talking about a financial reason for it as well. I personally lose most commonly due to the fact that we do not invest into the right thing at the right time, hence that makes us lose. Or my personal biggest reason; I keep holding something for far too long instead of keep selling it. I can buy something at low, I am very good at it, but then I hold it for far too long and that makes me lose money as well. This is why the best thing to do in this case is to just keep selling it when you are in profit and not wait for it for too long. Or just have a stop loss above the profit zone if you can do that after it goes up, so you do not go back down to a loss when it goes down.

From what I have read online, greed has to be the number one cause of most losses from traders. Greed can come in many ways so the newbies can always fall victim. The most common type of greed is not exiting the market while in profits because they trader wants to make more money as he believes the market is still going to continue rising. Most traders that take this decision, regrets it at last.

For me revenge trading was the main reason I lost big when I started trading in my early days. I hate losing so whenever I make a loss I always want to make that money back, some days it was a profiting move until I over did it at some point and lost almost all my capital then I began understanding why it's dangerous.

Yes, you made a nice point here. I believe that trading is not about learning the entire procedure as quickly as possible. There is a potential that the trader would lose money. This will still result in another health issue. I'd want to add that when someone is dealing with emotional issues, they should not trade because trading is not for them at that time.
That is what has an impact on my trading journey. I once had a terrible market when I first started trading because I was not knowledgeable about it well and I wanted to trade instead of needing more explanation and guidance I didn't think of that I just went through it and started trading and I made a very bad loss that I can't forget
Mine was avarice. I don't want anyone else to know I'm trading since I'm afraid of scammers everywhere, and if I let someone know, he or she may swindle me. And a lack of sufficient trading understanding at the time, which harmed me financially because I didn't understand how it worked and invested a large sum of money.

Many will say it’s greed but the largest losses for almost all traders is going to be revenge trading and we have all been there.

You know how it is. You lose a little and then went to trade until break even. Then you lose some more so you take more trades with higher positions and these trades basically make no sense in technical analysis and you are pretty  much guessing at this point and eventually you go bust. Happens to every trader.

You can not maintain your good trading streaks forever. You must know when to stop trading even you are in a very good streak.

Market itself needs to have days of moving boring and uncertain so if you decide to trade in those days, you are taking higher risk. When the market decides its next trend and you don't have stop loss, your position can be liquidated or you simply get a loss by yourself without forced liquidation.

Knowing when to trade and when to not trade is key to have successful trading. It is a vital rule for trading but I think it is more easily if we don't trade, but invest instead.

Greed!

I think it has affected most of the traders, including me

One fateful day I made very good profits from an open position, probably around 250% ROI and then after closing, instead of calling it a day I when back in to short more since the market was crashing. The position was closed and liquidated and closed even before a set-up a stop loss due to the high volatility of the market at that time. I froze for a bout a minute or two 

My dude, greed is the major reasons why people experience losses, let's leave aside sentiments, everybody is into bitcoin because they wants to make money and in attempt to money many feels like outsmarting the system. The first huge amount of money put into trade and investment was $3,000, what happen I open a trade and leave the market going in my favour, often time I came back to check it, it was still green favour but when it goes a slits against me instead of taking profit and leave, I was believing to hit huge expectations and be like others but the market go against me and wipe all the money, I did not get myself for two months with trauma and shocks.

Most bitcoin investors and traders are too greeding to a fault, wanted to make all the gain in a second, minute or hour without be contented with the little increase you've on your wallet. If we can remove greed we can achieved great.

There are a lot of reasons why traders lose, and based on my experience, the most reasons why they lose are due to greed and revenge trading. Trading is for mature minds that have a plan and set out calculations to achieve the plan under strict rules. Anything that makes such a trader degenerate from the plan would surely ruin his trading account.

Frankly without wasting time, a trader that would limit/minimise losses and preserve his trading account for a long time duration must be;
1. Disciplined and determined
2. Must have a foolproof trading strategy with a high winning percentage to avoid discouragement
3. Must have proper and balanced money and risk management.

Do this, and you will always be happy with your trading account.

High leverage affected me in the past. If I had used low or no leverage, I would have gained as the market correct itself to the position that I took.

Assuming I have $500 to trade, I can go for more than 10 to 20x leverage. Market may continue to favour me, but when it does not favour, my money got liquidated. What do follow the liquidation is market correction in a way the position I took is what that the market would follow in a way I would have gained, but high leverage affected me.

Just like in gambling, chasing losses is what that is mostly dangerous, because that is the time poor mind builds up and making wrong decision that can make the losses get more further, so it is like that in trading too. Revenge trading only lead more losses.

Sometimes, I supposed to use longer duration analysis, but using shorter durations like 15 minutes for analysing the market can result to losses at times. There are times that 1 hour, 4 hours or 1 day charts would be better. But scalpers will depend on shorter durations though.

Irrespective of that mistake we made, we should not trade with the amount of money we can not afford to lose.

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?