Losses in trading are nothing but Business expenses - page 3.

xSkylarx

hero member

Activity: 2366

Merit: 594

Quote from: ?? on ??

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.

Mauser

hero member

Activity: 1974

Merit: 534

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. When we trade and make a profit we usually don't think about our trade and if it was the right call or we just got lucky. But when we are losing we should take a more close look at the trade. Why did we buy that coin in the first place? Maybe our rational to buy a certain coin was coming from sound fundamentals and the drop in price has nothing to do with the coin itself. There is a lot of correlation between bitcoins and altcoins. So if bitcoins drop so will most of the other coins. And a loss in our crypto portfolio doesn't mean we should instantly sell, there is always the possibility to just hold our coins until the prices recover. Only when we are convinced that it doesn't make sense anymore to hold the coin we should be selling.

TheUltraElite

legendary

Activity: 2898

Merit: 1253

So anyway, I applied as a merit source :)

Quote from: ?? on ??

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.

It is a bit longshot for me but from the OP's perspective, assuming trading to be a one-man-army business, the fees are the costs of setting up the business proper.

I could also say that education costs would be the expenses to get up a well-paying job. But you have to understand that a job or a business usually ends with an almost constant timely income. But trading does not.

It is actually a similar type of explanation. But a better one for the newbies who might read this thread - take mistakes as learning points and not failures. It is a failure if you assume it to be. Taking it as a point in your experience to correct it and look back on it for future lessons is the proper approach.

Still I consider some mistakes in early trading to be due to impulses and there is nothing more to learn from them but to control your impulses. If one cannot practice this properly or trying to control impulses ends up irritating them more - then they should stop trading, it is not for them.

carlfebz2

hero member

Activity: 2926

Merit: 722

DGbet.fun - Crypto Sportsbook

Quote from: zaesvlas on October 04, 2021, 05:34:41 AM

this is certainly not the most correct approach, but the most vital. In fact, this is so, because this is a waste of experience.

Doesnt matter on what approach on what others people been thinking about.What matter most here is that you do able to do things and able to handle yourself in times of losses.

Neither a business expense or would think up about on being some kind of losses on what you do actually commit like in gambling or something like that.

As long you do make profits then that what matter the most.You should do all sorts of things to make yourself sustainable.

justdimin

hero member

Activity: 3164

Merit: 675

www.Crypto.Games: Multiple coins, multiple games

Quote from: Wawa2013 on October 04, 2021, 12:54:37 AM

Everyone who trades crypto must have experienced losses, and experiencing losses are not always bad. There are many lessons we can take when we experience losses, so I strongly agree that losses in trading are learning expenses. If we respond positively when we experience losses, it will make us become smarter in trading. Because we can learn to correct the mistakes we make, then someone who is successful in trading usually
has a lot of losses before. There is no need to be afraid of losing when trading, because that is the way for us to find a good strategy.

What we should do is learn from them, if you do not learn from them then how could you say it is learning expense. I personally feel like sometimes I do not get why something went down, I am usually a bull rider, so I buy stuff to sell when it is higher, I do not short anything ever, I never did and I never will, I do not sell things that easily neither, not when they are going down at least, only if I feel like it has peaked or I lost hope on it because of some management issue (creators turn out to be scammers etc). So long story short all I do is buy, wait for it to peak, and maybe sell.

In that situation sometimes they fall the moment I buy it, and I do not always get it, and that means I did not learn why I lost money there, I technically didn't lose money and waited for it to recover, but I still have no idea why it went down, that wasn't an expense, that wasn't a learning cost, it was literally just a loss, because I learned nothing from them. Doesn't happen all the time, but it has happened before a few times.

zaesvlas

jr. member

Activity: 140

Merit: 2

this is certainly not the most correct approach, but the most vital. In fact, this is so, because this is a waste of experience.

Desmong

member

Activity: 812

Merit: 13

Crypto bookmaker and casino

Quote from: zanezane on September 27, 2021, 09:39:39 PM

Good luck saying that to other people, how come is it business when you're the customer of the exchange? It's more like a freelance job rather than a business.

You need to know that we all are customers to each other so there nithiy like jut having a customer when you think you are not customer to another person. Trading is business and risks is attached so we'll have to take it like that whether you lost in a trade or you finally make profits, everything is business. We'll doing this to make more money which is the goal. Risk is business.

Wawa2013

sr. member

Activity: 1666

Merit: 268

Quote from: otundebis on October 02, 2021, 03:06:07 PM

I agree with your classification of losses in Cryptocurrency trading as business expenses. I will also like to add that losses is also learning expenses as well. There are important lessons you will learn about yourself in relation to your trading skills that will be eye opening for you. If you have not made a loss, you might have not learnt these lessons!

Everyone who trades crypto must have experienced losses, and experiencing losses are not always bad. There are many lessons we can take when
we experience losses, so I strongly agree that losses in trading are learning expenses. If we respond positively when we experience losses, it will
make us become smarter in trading. Because we can learn to correct the mistakes we make, then someone who is successful in trading usually
has a lot of losses before. There is no need to be afraid of losing when trading, because that is the way for us to find a good strategy.

chuckweitzman

newbie

Activity: 25

Merit: 1

Yes, we can compare trading with business. You face losses but you also have to get back to it and start with new and better strategies.

LUCKMCFLY

legendary

Activity: 2590

Merit: 1882

Leading Crypto Sports Betting & Casino Platform

Quote from: Anguwa on September 29, 2021, 02:18:10 PM

Well it is not all losses can be counted as bussines expenses, because sometimes when some traders losses some small amount of money, the consider it as business expenses and try put more effort to see if he or she can have gain by adding more capital in that same way he have some lost, that is, to take more risk, but must of this result to too much loose which cannot be considered as bussines expenses.

Sometimes we see losses like that, losses, but it is not entirely losses, but we also see it as profit, but how can it be interpreted? When we lose in trading the way we win is when we realize why we lost, if we lose and we don't know why, we are losing money and knowledge.

I know that on an economic level when we see that we have losses, it can be reflected in many things, that is why strategies are important, in my case I always make 3 trades and of those 3 trades I must ensure at least 2 trades to recover and exit in positive balance, or at least neutral without losing, and if I lose all 3 trades it is because I am seeing the trade in the wrong way.

otundebis

full member

Activity: 630

Merit: 100

I agree with your classification of losses in Cryptocurrency trading as business expenses. I will also like to add that losses is also learning expenses as well. There are important lessons you will learn about yourself in relation to your trading skills that will be eye opening for you. If you have not made a loss, you might have not learnt these lessons!

Rruchi man

legendary

Activity: 1456

Merit: 1108

Top-tier crypto casino and sportsbook

Quote from: firmino10 on September 20, 2021, 04:33:46 PM

New traders always try to eliminate losses and see losses as something bad. My breakthrough in trading came when I started seeing losses as expenses (business expenses). Trading is a business and you should see it that way.

What has helped you so far in your trading is the mindset and mentality that you have developed not to dwell on losses but to move on quickly and look ahead, not like your thoughts are so 100% correct. If you see losses as expenses, what would you call the cost of data to keep you connected online, or the cost for electricity to give power to your trading Device?, those are the real business expenses to me, not losses.

samcrypto

sr. member

Activity: 2044

Merit: 314

Vave.com - Crypto Casino

Quote from: Jazzi Mahesh on October 01, 2021, 01:26:49 PM

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.

Probably you’re thinking about your losses is your payment for that experience, well if its your point of view then its fine but in reality, you lose the money.

There’s no market that guarantees you any profit without losing the money. We have to treat trading as part of our job either part time or full time, analyzing is our job and the reward is good returns if you are able to analyze properly.

Silberman

legendary

Activity: 2534

Merit: 1338

Quote from: lixer on September 30, 2021, 04:06:41 AM

Quote from: firmino10 on September 20, 2021, 04:33:46 PM

New traders always try to eliminate losses and see losses as something bad. My breakthrough in trading came when I started seeing losses as expenses (business expenses). Trading is a business and you should see it that way.

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.

It’s simply losses. In business there is either gains or there are losses, so losses in trading is simply losses. Expenses is totally something else, and it means the cost that is required for something. Why I am saying that these things are different is because when you’re talking about expenses, it has to do with the price that you’re paying for something, there is a product that you’re getting and you’re paying a price.

But, when you talk about losses you’re not getting anything at all, you’re completely losing. Losses are also part of business, especially in businesses where the risks that are involved is high, if you’re getting yourself involved in such you have to be ready for what comes with it.

I think that is exactly what the OP is talking about when they refer to their losses as business expenses, basically everything we do has a price that we must pay, while losing money in the markets may seem as if it does not brings us nothing in fact it can do so, if a trader after each loss takes the time to see why the trade in particular was lost and learns from it then we can say that whatever amount of money that was lost was an expense in order to bring forward his understanding of the markets, still I can see why you think differently but I can also see the point of view of the OP.

goinmerry

legendary

Activity: 2940

Merit: 1083

Quote from: firmino10 on September 20, 2021, 04:33:46 PM

New traders always try to eliminate losses and see losses as something bad. My breakthrough in trading came when I started seeing losses as expenses (business expenses). Trading is a business and you should see it that way.

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.

Your views are correct. Treat trading like business because we consider that as an investment. The key to trading success is by doing it regularly. The goal is to minimize losses the same as the usual business does. Don't stick with the same strategy as in the crypto market, there are different trends making it more volatile.

But always remember that experiencing losses is the key for some newbies before that now turned to professional and expert traders today.

jostorres

hero member

Activity: 2562

Merit: 586

Quote from: dunfida on October 01, 2021, 02:45:18 PM

You wouldnt progress as a trader if you do keep on denying or accepting your losses on your trading career which simply shows out that you should really treat these things up as a learning stones

for you to become even much more better in the future.Think off it as a payment for the learnings you do get because trading does involved lots of trials and error.

Business expense or what you do call on that but still it would really be the same experience and outcome.

We all have different experience because it's very simple trading is not about all winning for this all we have to do some good and bold decision's these are very important we have to treat trading like a business unit which is very important. Few works without any strategy which is never been good idea you must do some work before start and set your goals and do some good strategy then you will be able to make some good profit. Lost is also part of this, but managing things in better way is good and can give some good profit in long run.

You also need some good mentality and patience for good trading because without these things you are not able to have settled things in better way.

palle11

sr. member

Activity: 2366

Merit: 332

Quote from: firmino10 on September 20, 2021, 04:33:46 PM

New traders always try to eliminate losses and see losses as something bad. My breakthrough in trading came when I started seeing losses as expenses (business expenses). Trading is a business and you should see it that way.

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 is a possible way to trade. With the right mind set as this, you just have to keep making progress and profit at same time. But on the trade that would be winner, you can have an idea of a winning trade if you pay attention to little details. We don't need to enter every market but to be at least 60% sure that it may be good strike. When we don't enter almost every market, we see clearly, wait until we are convinced for a winner and we should remember to always use stoploss.

shield132

hero member

Activity: 2352

Merit: 905

Metawin.com - Truly the best casino ever

Quote from: firmino10 on September 20, 2021, 04:33:46 PM

New traders always try to eliminate losses and see losses as something bad. My breakthrough in trading came when I started seeing losses as expenses (business expenses). Trading is a business and you should see it that way.

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.

That's right, it's always to look at trading that way because otherwise you'll get very depressed and lose control on your mind. Just remember, Amazon couldn't profit for 5 years, yeah, amazon and Jeff Bezos, the richest man's company couldn't profit for 5 years. Your day will come, just be organized, focused and patient.

Personally, I always set some limits every time I gain significant profit. Did I had $1000 as a first capital and gained $3000? Then I set $2000 as a new base capital and limit my loses on $2000 but risk more with the additional $1000. I found that to work very well and if it happened that I lost $1000 from $3000 and I'm on my base capital, then I rest for a week or two and start trading after that (but still have a look at market movement to not miss great moments).

dunfida

legendary

Activity: 3122

Merit: 1140

Quote from: Dragonfund on October 01, 2021, 02:09:36 PM

Quote from: firmino10 on September 20, 2021, 04:33:46 PM

New traders always try to eliminate losses and see losses as something bad. My breakthrough in trading came when I started seeing losses as expenses (business expenses). Trading is a business and you should see it that way.

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.

Of course, to profit one must learn from this mistake but where it becomes a problem is when they are in excess, you can't continue to amass loss and think you are learning at the expense of your finances, no, it has to be minimal and when your portfolio is ruled by risk management.
While trying your strategy, learn to do them on paper rather than using your own fund. Trading view is an example where you trade for fun and make used of good tools for technical analysis.

You wouldnt progress as a trader if you do keep on denying or accepting your losses on your trading career which simply shows out that you should really treat these things up as a learning stones

for you to become even much more better in the future.Think off it as a payment for the learnings you do get because trading does involved lots of trials and error.

Business expense or what you do call on that but still it would really be the same experience and outcome.

Dragonfund

full member

Activity: 546

Merit: 148

Quote from: firmino10 on September 20, 2021, 04:33:46 PM

New traders always try to eliminate losses and see losses as something bad. My breakthrough in trading came when I started seeing losses as expenses (business expenses). Trading is a business and you should see it that way.

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.

Of course, to profit one must learn from this mistake but where it becomes a problem is when they are in excess, you can't continue to amass loss and think you are learning at the expense of your finances, no, it has to be minimal and when your portfolio is ruled by risk management.
While trying your strategy, learn to do them on paper rather than using your own fund. Trading view is an example where you trade for fun and make used of good tools for technical analysis.

Topic: Losses in trading are nothing but Business expenses - page 3. (Read 751 times)