These are not business expenses, but training expenses. This is more realistic, because this is what the trader spends money that he did not earn.
I have a friend like this and he actually did earned some money from it as well. It wasn't the same, he literally did studied and that is why there is a big difference, but the idea is the same. He created a project, but he wasn't a developer and he didn't know how to create a project, so he spend nearly 2k dollars for both studying material and courses but mainly also for things to test out as well, he created maybe few dozen tokens without anyone knowing just to see how it works, some on testnet, some on mainnet, even paid people to test his test as well so all in all he spend 2 grand on becoming "no idea how to create a project" to "I have created a good project" and that's a good training expense. Then he made some profit from that project but not too much, now he works as a developer for another project and earns a great salary and also a ton of tokens on top of it. 
Topic: Losses in trading are nothing but Business expenses - page 2. (Read 751 times)
Many Newbie, see lost as an excuse of quiting trading, they always think about quitting trading whenever they lost. They don't understand that losing is part of trading. Losing in trading is one thing you can't basically avoid.
Exactly my terms mate. Losing is inherent to trading full stop. Any losses from trading are obviously down to the trader and the platforms used. Platform fees are often low but when you do hundreds of trades per day these fees can add up. In a way, it is true that losses in trading are a business expense as long as those losses enables you to learn and improve your trading strategies/skills. Obviously, it doesn't apply to the early traders that just get the basics wrong but it is something for those that learn and stick at trading.
We do usually make able to learn into something when we do experience bad things but doing it before then it is something less likely to happen.
Yeah, that must be kind of prevention which is better than recovering losses after a frustrating trade. Success in trading is all about making ourselves ready for all kind of challenges of market conditions. In my opinion getting ready for market challenges is simply possible by learning and practicing but unfortunately most beginners are not interested in making themselves ready.I agree with OP's concept of considering losses in the beginning days as the expenses for learning process still it should be within affordable limit because no one will be ready to pay big price for learning process.
These are not business expenses, but training expenses. This is more realistic, because this is what the trader spends money that he did not earn.
People been thinking about trading as a business which it isnt wrong either but its more precise to be that an investment and i do agree into that pointwhich it is better to call it as a training expenses rather than on business ones.
We do know that most noobs would really be rushing up on making profits thats why they are really in a hurry which do results on making mistakes.
We do usually make able to learn into something when we do experience bad things but doing it before then it is something less likely to happen.
These are not business expenses, but training expenses. This is more realistic, because this is what the trader spends money that he did not earn.
I think this is what the OP tried to imply but maybe he choose the wrong words for it, losing as a trader is inevitable, and this is even more true when you are a newbie as you will make mistakes due to your inexperience that you would not have made otherwise and there is nothing else but to accept it, however it is important to not let this acceptance become complacency and just accept any mistake as part of your inexperience and justify them that way, otherwise you will not have an incentive to improve yourself and avoid those mistakes on the first place, which means you will never progress as a trader and you will never become profitable. 
in business, loss is the loss of the business itself, yes everyone knows that, especially the trading business,
profit and loss is something that is always a trader's partner, but if traders study risk and analysis, I don't think this should be debated again,
hopefully we are avoided from a lot of losses, keep the spirit!
profit and loss is something that is always a trader's partner, but if traders study risk and analysis, I don't think this should be debated again,
hopefully we are avoided from a lot of losses, keep the spirit!
Trading is like a business where you will experience advantages and disadvantages as well as gain interesting knowledge and experience. Losing money when you trade is the same as you lose money in running a business. This is understandable, therefore, when you decide to enter the world of trading, do not only be tempted by the profits to be obtained but also the risks involved. You have to be smart and smart to manage the risk that will occur.
a trader must experience losses and gains, it's a natural thing. when we get a loss, we must be aware that we have also experienced a profit so don't be too regretful but focus on the goal and the next trade so as not to lose again. it's true that we need a new strategy for trading so that we can do our best to be able to make a profit because of course that strategy also changes according to the crypto market. do your best so that this goal in trading is also achieved.
When I follow my strategy and I lose, I see it a the price I have to pay to get it right, because there is no 100% strategy and since I don't know which trade would be a winner or loser, I detach myself from every trade and execute my strategy flawlessly regardly of the outcome.
This must be a different perspective of how we need to treat losses while trading. But, definitely this will give positive energy to all traders by not minding about their losses but they will keep learning to improve their strategy so that they will be turning their losing trades in to profitable ones. At the same time we need to to be careful while losing our capital otherwise we might need to go for arranging funds from other sources for continuing our trading. I mean only up to some levels we can consider losses like expenses for improving and enhancing our strategy but not for all the times. Many Newbie, see lost as an excuse of quiting trading, they always think about quitting trading whenever they lost. They don't understand that losing is part of trading. Losing in trading is one thing you can't basically avoid. But, I think you can minimize lost, by having a good strategy, Although, I know no strategy is 100% correct. However, you can build a good strategy which will work for you. And also I don't think anybody is perfect when it comes to trading. Just stick to your strategy, and when it doesn't seems to work again, change it.
To be fair to those newbies many do not really have a choice but to quit trading for a while or forever because their losses were massive, one thing I have understood over time is that the most important skill in this market is not to have a great ability to predict what the market is going to do but to have a great stop loss strategy, this way when you lose, and we know this is inevitable, your losses are limited, but in the case of newbies the majority do not know this which means that when they lose they lose big. 
How do you say that the loses are business expenses. Is it not business loss? Investing a lump of capital on a coin and that goes in loss, I do see it as business loss. Expense is a part of money we spend to set up a business or during the business.
And really appreciate that you follow your strategy/call and trade. Besides learning technical strategies, its our own call to when and where to place our orders. So yes, self decision would make us perfect as we move on with ups and downs.
And really appreciate that you follow your strategy/call and trade. Besides learning technical strategies, its our own call to when and where to place our orders. So yes, self decision would make us perfect as we move on with ups and downs.
Many Newbie, see lost as an excuse of quiting trading, they always think about quitting trading whenever they lost. They don't understand that losing is part of trading. Losing in trading is one thing you can't basically avoid. But, I think you can minimize lost, by having a good strategy, Although, I know no strategy is 100% correct. However, you can build a good strategy which will work for you. And also I don't think anybody is perfect when it comes to trading. Just stick to your strategy, and when it doesn't seems to work again, change it.
I agree with you that we should look at trading losses more openly. While they hurt our bankroll, losses are not always bad. First of all we should learn from our losses.
That suppose the thing we do but it is so sad that not all have taken this as a sort of learning, more often they think they don't have a better future in trading. We keep thinking to get in profit all the time neglecting the chance that one-day losses will come to us. It is a common mistake for most trading being too emotional. But I can't blame why some traders got mad when they lose, as a human being, it is somewhat common and understandable, and surely everyone does during their early days in trading. But if we keep behaving this way, there is no way to succeed.
during your stay inside the exchange, trading is a continuous knowledge, it's not just an easy access
to richness but it's a good way to earn, the business is open and everyone is allowed to practice their
knowledge, if you lose better to treat that as a learning process, try to improve and you'll see betterment
will come your way on your next try.
Trading is business but losing in trading can be a source of worry. Yes you loss money but it is possible to get profit net time. In every field there is always a gain and loss. You will seek guidance from assumptions you make throughout your life. There is no such thing as a loss free zone. Every field has a loss and gain component. So consider trading to be nothing more than a business. It will keep you from being afraid. As a result you will be able to profit next time.
You have a point because, as a freelancer, you should have skills and knowledge about your niche. The same is true for trading, where you must have knowledge before trading and also have a strategy. Trading needs capital, which a freelancer not required, but patience is essential. I believe it is appropriate to refer to it as a business because we have capital, we have control over our money, and we could go bankrupt.
In freelancing, the money being paid to the worker is going to be there always as long as the skills of the workers are at par with the work being asked for. The same skills in trading may be there but the money is not fixed, it may never be realized. I think we cant compare the two, freelancing is after all a type of a job, the only thing is that you will not be paid a fixed amount monthly but a fixed amount/work. In trading there is a risk vs reward scheme - you may make a lot or you make not make anything in a month.It is better to consider the money lost in trading (if realized PnL obviously) - to be tuition fees. Dummy trading does exist though - but most newbies dont even try that, maybe doing dummy would save that fees to a certain extent.
You never lose in the Forex Market. When you make profit, you earn money and when you don't you earn experience, which helps you to earn in the next trade and hence you never lose.
Did I hear you said you don't lose in Forex market? There is loss in forex and may even lose more if you are the type that likes margin, the only thing I have liked about forex is there low volatility which has been the bad side of cryptocurrency.
When you trade cryptocurrency, you should know that loss is part of the game you sign-up for, it's just like every other business where sometimes you make profits and sometimes you make loss, therefore loss is inevitable but should be minimal.
I can't blame why some traders got mad when they lose, as a human being, it is somewhat common and understandable, and surely everyone does during their early days in trading. But if we keep behaving this way, there is no way to succeed.
Until you gain experience, definitely you will behave in exact that manner. Market pressure will definitely enforce you to commit more mistakes out of one mistake. But, when traders are making use of hard lessons, learned during market sessions definitely will help them avoiding future mistakes which must be the right beginning for them toward profitable traders in near future.Try to do something very simple without panicking to get profits in the long run and keep the price so that you don't get dizzy with the price movements on the market. so simple
No, it is not that simple. You will start feeling all the pressure of market when market direction is against you. This is the reason most traders are committing mistakes and losing all their capital because of unable to handle market pressure. Only after paying prices for such mistake people start learning and then may start feeling like so simple for handling such kind of pressurized market situations. 
Trading on the exchange is a trading process that sometimes you don't realize, because every crypto asset you own is only aimed at short-term profits.
Try to do something very simple without panicking to get profits in the long run and keep the price so that you don't get dizzy with the price movements on the market. so simple
Try to do something very simple without panicking to get profits in the long run and keep the price so that you don't get dizzy with the price movements on the market. so simple
I agree with you that we should look at trading losses more openly. While they hurt our bankroll, losses are not always bad. First of all we should learn from our losses.
That suppose the thing we do but it is so sad that not all have taken this as a sort of learning, more often they think they don't have a better future in trading. We keep thinking to get in profit all the time neglecting the chance that one-day losses will come to us. It is a common mistake for most trading being too emotional. But I can't blame why some traders got mad when they lose, as a human being, it is somewhat common and understandable, and surely everyone does during their early days in trading. But if we keep behaving this way, there is no way to succeed.
I don't get how it's a business expenses though, it's much closer to freelancer in my opinion because you don't have any kind of stuff to be considered a business in trading, unless you're a trader for a company then it's probably a business expenses but you're not to take lightly losses especially when you're working for other people or it's a company.
You have a point because, as a freelancer, you should have skills and knowledge about your niche. The same is true for trading, where you must have knowledge before trading and also have a strategy. Trading needs capital, which a freelancer not required, but patience is essential. I believe it is appropriate to refer to it as a business because we have capital, we have control over our money, and we could go bankrupt.
We have a budget, as ordinary people, amateur traders... I never saw my trading activities as a business, it's what I wanted to try and was ready to invest some money in that. My expenses were paying for school, it's how I thought of that, knowledge is not always free...
The approach is important, and I guess some people will take trading more seriously... By that I mean they will invest more money in trading, they are ready to spend more time on that, and that can be good and losses can be seen as "business losses", but for us, amateur part-time traders losses are simple mistakes we learn from.
Jump to: