Trading Losses Equal Operational Costs

Ultegra134

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Quote from: SquirrelJulietGarden on April 22, 2023, 09:57:25 PM

We can not control the market but if we look at fundamentals of Bitcoin and believe in it, we can simply buy bitcoin and hold it. With holding strategy, we don't have to beat the market or control it. Let the market does it works and we only hold our bitcoins till a year we plan to take profit. What year should be in our plan?

It should be the halving year or a year after the halving year. Best is only sell our bitcoin after two halving cycles.

It only makes sense if we are disciplined with a good plan. If we are disciplined with a bad plan on a shit coin, we will get bigger losses, not bigger profit.

Choose a good coin (should be bitcoin), have a good plan, and be disciplined with the plan.

The OP is talking about losses in trading, but you're mentioning that holding provides peace of mind because you're taking into account Bitcoin fundamentals and the upcoming halving, which is wrong. There's no guarantee that Bitcoin's value will rise then because the financial situation may not allow it to flourish. Statistical data shows that it's likely but not guaranteed. On top of that, traders are a different kind of breed; your mentioning holding in this case is completely irrelevant.

OP, trading is stressful and nerve-racking; I've done it before, and I completely understand your frustration. Losses are a part of the game; you can't always win, and eventually you'll suffer too. Have a stop-loss strategy and understand when you have to stop and take a loss or profit.

Lanatsa

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Quote from: jeraldskie11 on May 02, 2023, 04:46:31 AM

Quote from: mvdheuvel1983 on April 22, 2023, 04:56:12 PM

If you are a trader do not get stuck on your last trader because you made a loss. Do not overthink it. If you do, you will remain stuck there, you will refuse to see the bigger picture.

if you don't have a trading plan and lose a trade, your emotions may take over. if this occurs, your trade will no longer have a high chance of success because you will trade based on your emotions rather than what is in your trading plan. to avoid this type of issue, we must back test our trading plan to develop confidence, and if the outcome is an 8 out of 10, we are ready to begin live trading. to prevent becoming stuck in your losses, you must trust your system.

Sooner or later you would be able to realize with those mistakes on which it would really be just that normal. When you do deal up with something then you should really be that mindful in towards those things because if you do let yourself that getting impulsive just because your mind isnt that prepared then you would really be prone to lots of errors.

We know that it isnt really just we do automatically know on what are the things that we've dealing.Not all people do know on what trading is and on the time that they do see it up and someone who do make out some money out of it then they would just simply dive in and trade all the way without having those proper preparations.

Loses are inevitable and some do think off that it is really that somewhat looks like a course fee or expenses on learning up trading. Its something that cant really be avoided because
losses is there and we've been fighting with a volatile market for our own benefit in the end of the day. Error and mistakes are common which the thing you should be
minding on is on how you would be making yourself that profitable.

jeraldskie11

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Quote from: mvdheuvel1983 on April 22, 2023, 04:56:12 PM

If you are a trader do not get stuck on your last trader because you made a loss. Do not overthink it. If you do, you will remain stuck there, you will refuse to see the bigger picture.

if you don't have a trading plan and lose a trade, your emotions may take over. if this occurs, your trade will no longer have a high chance of success because you will trade based on your emotions rather than what is in your trading plan. to avoid this type of issue, we must back test our trading plan to develop confidence, and if the outcome is an 8 out of 10, we are ready to begin live trading. to prevent becoming stuck in your losses, you must trust your system.

Wind_FURY

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Quote from: mvdheuvel1983 on April 22, 2023, 04:56:12 PM

Furthermore someone said that the losses incurred in trading especially when you were disciplined enough to stick to your plans and the proper risks management strategies should not be considered losses. He said they are akin to operational costs for running a business.

What do you think?

What do I think? Be very honest with yourself. Are you truly a "real trader"?

I believe many of us here in Bitcointalk would definitely belong to the "No" column. We're merely plebs who are trying to make some profit from the market, BUT we are under-capitalized and we can't out-trade the real traders, who have the skills, the experience, and the army of bots to trade against you. The best move for us? Don't play their game, just Buy the DIP and HODL!

Yamane_Keto

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If we look at our failure, we will not succeed in doing anything, let alone trading, which is mainly related to distancing your emotions from the market and making the language of numbers and logic what controls your investment decisions. No one always wins and all famous people who made fortunes fail at some point, so do not be dazzled by the field of the story and do not be fooled by scammers who tell you that you will not fail and make losses in trading.

Controlling your emotions is the first step, but the most important thing is to stay away from exaggerated thinking. Whatever your profits, if trading affects your daily life, makes it impossible for you to do the simplest things, or occupies your thinking all the time, then trading does not suit you and it is better for you to look for another way.

rather than your last trade set a time range. Collect what you have done over the past months and correct your mistakes.

Mahanton

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Quote from: mvdheuvel1983 on April 22, 2023, 04:56:12 PM

If you are a trader do not get stuck on your last trader because you made a loss. Do not overthink it. If you do, you will remain stuck there, you will refuse to see the bigger picture.

You should realize that most times we do not have control over the market. We may have done or thought we did everything to make us profit but then the market does its thing. Despite this, keep executing on the market.

Furthermore someone said that the losses incurred in trading especially when you were disciplined enough to stick to your plans and the proper risks management strategies should not be considered losses. He said they are akin to operational costs for running a business.

What do you think?

One of the problems you would really be facing on when you do deal up with trading which it would really be testing out that kind of emotion which it would really be making you on keeps on looking back on where
you do came from on which if you do have some loss specially big one on your earlier trade then you would really be molding up that kind of impression or thinking along the way which would really
be distracting you and if ever you do have that mindset which do easily boggled with those previous results then it would really be messing up your plans that you had put up.
This is why its never been ideal on making some revenge trading because if you do then you would really be that derailed basing up on what you had planned earlier.

Dont chase up losses, the thing you should be having on mind is on how you would really be able to sustain yourself because if you do stick into your plan then those losses would really
be that able to catch up and would be able to break even or would be profitable more without noticing as long you arent that chasing.

tjtonmoy

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Quote from: mvdheuvel1983 on April 22, 2023, 04:56:12 PM

If you are a trader do not get stuck on your last trader because you made a loss. Do not overthink it. If you do, you will remain stuck there, you will refuse to see the bigger picture.

This is why they say, are you making loss by not selling and giving up the opportunity. If you see that you are on a little bit of loss and your next analysis indicates the opposite of your open trades. Do you still keep that trade open in hopes that it will go as planned and ignore your analysis? No, if you do it, you'll be in loss and could also get liquidated. So instead, you make your risk management on how much you can lose and won't affect your trading, then you close at that point and open a new one. By doing this, you turn the tide in your favor. Many newbies forget to learn this and only focus on emotions. This is the worst mistake a trader can do.
But you need to do your own research and come up with a plan that will suite you.

merekamo

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I think it's important to keep in mind that losses are a normal part of the trading process. It's important not to get too hung up on any one particular trade or loss, as this can prevent you from seeing the bigger picture and making sound decisions in the future.

It's also important to remember that the market is largely unpredictable and that even the most well-planned trades can result in losses. However, this doesn't mean that you should stop executing trades altogether. Rather, it means that you should be mindful of your risk management strategies and should continue to execute trades in the long run.

death69

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Oh, stuck on your last trade? Pssh, I trip over my own feet before I finish my first trade! But hey, the saying goes: when you bite the dust, just shake it off and hop back on that wild stallion. Or was it "fumbled a trade, scarf down a hoagie and move on"? Darn, it's so hard to keep track.

Point being, losses are just part of the deal, amigo. You score some, you fumble some, and sometimes you trade your whole stash for a sack of enchanted legumes. But as long as you're leveling up from your bloopers, every loss is like a secret victory.

So don't sweat the market's mood swings. Keep on truckin', and soon enough you'll be trading like a boss. Or at least like someone who knows which end of the horse gets the grub.

noorman0

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Quote from: mvdheuvel1983 on April 22, 2023, 04:56:12 PM

-snip-
Furthermore someone said that the losses incurred in trading especially when you were disciplined enough to stick to your plans and the proper risks management strategies should not be considered losses. He said they are akin to operational costs for running a business.

What do you think?

I do not agree. Operational costs I think only cover tolerable fees such as trading, withdrawals or asset holding fees if any(some exchanges charge this fee). Trading losses do not include operational costs but costs for evaluation, imagine if you lose every one of your executions that should be avoided as much as possible.

blockman

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We truly don't have control over the market and that's why everyone is eager to do every strategy that we found and we think might work for us. But just as the thing that works for others, they may not work for us. The here is that we need to look at our losses and in which part we think we've done wrong. Being disciplined and strategic with our trades should always be accompanied by being patient.
That's where every trader is losing control when we think that we've done that much and yet the results aren't impressive because we keep on losing our trades and by that case, it only means that there's something wrong.

usekevin

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Every one had their loss in the crypto trading,which also include the investment into the bitcoin.Now bitcoin doesn't have huge pump this yes, but we need wait for the next halves of 2024.When you get huge loss in bitcoin, you will doubt the bitcoin.But the fact is you need to know the future value of bitcoin as compared to the current value. Most of the bitcoin traders was in big loss, but it's not a real one the price of bitcoin will cross the high value.The bitcoin had potential to grow to high value, most of the bitcoin traders are hold the bitcoin till price of bitcoin beats the All time high of 68,700 dollars.

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Quote from: Edwardard on April 22, 2023, 11:14:11 PM

Quote from: SquirrelJulietGarden on April 22, 2023, 09:57:25 PM

It should be the halving year or a year after the halving year. Best is only sell our bitcoin after two halving cycles.

After the institutional investors came in, we all have noticed that the bitcoin's price cycle has changed a lot since the past couple of years. I don't think the halving year will have any major effect on the price like the old (golden) days. If you ask me, just play with the most recent sentiments and dont think that long. For the hodling part, hold your bitcoin regardless of the year and sell in parts whenever you are satisfied with the gains. As simple as that!

Considering that the price of Bitcoin has grown by over 30,000 times in the last 14 years, it is reasonable to assume that there is a significant demand for this cryptocurrency. However, in order to further support the bullish trend in the coming year, some believe that we need more institutional investors, larger funds in the crypto space, increased demand and liquidity, as well as more crowdfunding initiatives. While we currently lack concrete evidence to support these predictions, the fact that Bitcoin reached a price of $30,000 in a short period of time this year, which is half of its previous all-time high, suggests that anything is possible by the end of the year.

palle11

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Quote from: mvdheuvel1983 on April 22, 2023, 04:56:12 PM

Furthermore someone said that the losses incurred in trading especially when you were disciplined enough to stick to your plans and the proper risks management strategies should not be considered losses. He said they are akin to operational costs for running a business.

What do you think?

I believe this because sometimes the market doesn't allow your plans to work and in such cases where you have done the right thing and discipline then you should see it as one of those days that you are running a cost without profit. In reference to trading bitcoin, the price has been dropping since a week and nothing indicating the reason for the drop, so a trading buying while price is dropping should get acquainted that sometimes the market just have to take away certain percentage from you as cost that you may not explain but to move on with the mindset that every day isn't for profit.

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Quote from: mvdheuvel1983 on April 22, 2023, 04:56:12 PM

If you are a trader do not get stuck on your last trader because you made a loss. Do not overthink it. If you do, you will remain stuck there, you will refuse to see the bigger picture.

You should realize that most times we do not have control over the market. We may have done or thought we did everything to make us profit but then the market does its thing. Despite this, keep executing on the market.

Furthermore someone said that the losses incurred in trading especially when you were disciplined enough to stick to your plans and the proper risks management strategies should not be considered losses. He said they are akin to operational costs for running a business.

What do you think?

I highly agree. Losses are a normal part of the game. It is necessary to let the probability of your strategy play over a series of trades.
Losses are just taxes in your business. It is simply a losing transaction so why bother? The most important thing is you act accordingly to your plan. As long as you are following your plan, with little to no deviation as much as possible. Every losing position is a win in the long run.

Since losing must be expected, one strategy should also have sound risk and money management. Overleveraging is the easiest way to lose your account.
A loss or a series of drawdowns is like having a flat tire. It sucks. but guess what? soon enough when you stick to your trading system you'll get out of that rut.
It's not consistently winning, it is all about consistently following your trading plan.

Edwardard

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Quote from: SquirrelJulietGarden on April 22, 2023, 09:57:25 PM

It should be the halving year or a year after the halving year. Best is only sell our bitcoin after two halving cycles.

After the institutional investors came in, we all have noticed that the bitcoin's price cycle has changed a lot since the past couple of years. I don't think the halving year will have any major effect on the price like the old (golden) days. If you ask me, just play with the most recent sentiments and dont think that long. For the hodling part, hold your bitcoin regardless of the year and sell in parts whenever you are satisfied with the gains. As simple as that!

SquirrelJulietGarden

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Quote from: mvdheuvel1983 on April 22, 2023, 04:56:12 PM

You should realize that most times we do not have control over the market

We can not control the market but if we look at fundamentals of Bitcoin and believe in it, we can simply buy bitcoin and hold it. With holding strategy, we don't have to beat the market or control it. Let the market does it works and we only hold our bitcoins till a year we plan to take profit. What year should be in our plan?

It should be the halving year or a year after the halving year. Best is only sell our bitcoin after two halving cycles.

Quote

Furthermore someone said that the losses incurred in trading especially when you were disciplined enough to stick to your plans and the proper risks management strategies should not be considered losses

It only makes sense if we are disciplined with a good plan. If we are disciplined with a bad plan on a shit coin, we will get bigger losses, not bigger profit.

Choose a good coin (should be bitcoin), have a good plan, and be disciplined with the plan.

Dr.Bitcoin_Strange

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Quote from: mvdheuvel1983 on April 22, 2023, 04:56:12 PM

You should realize that ~~most times~~ we do not have control over the market.

There is no time that we have even had control of the crypto market. The market is just there, and we are only players in the market trying to use our developed skills and strategies to make profit in the market, making some profit through volatility.

Quote

What do you think?

Well, a good trader doesn't sit around, moping around their losses; otherwise, they would not be making more trades to archive profit. Even a professional trader can still lose money in some trades, but they don't overthink their losses, not to making more trades to archive profit. Only an amateur trader can overthink their losses, which can make them even worse traders because people who act in such manner can end up allowing their emotions to take some trading decisions that will even cause them more losses. So anyone who is not ready to experience loss should not even trade at all.

Beparanf

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Quote from: mvdheuvel1983 on April 22, 2023, 04:56:12 PM

If you are a trader do not get stuck on your last trader because you made a loss. Do not overthink it. If you do, you will remain stuck there, you will refuse to see the bigger picture.

Last trade, You’re right that we should move on every time we loss on trading because that already happened but we should always evaluate on where we got mistake to improve our next trade. We should continuously learn our lesson on our losses before we go to the next one to avoid trading just to chase loss.

Quote from: mvdheuvel1983 on April 22, 2023, 04:56:12 PM

Furthermore someone said that the losses incurred in trading especially when you were disciplined enough to stick to your plans and the proper risks management strategies should not be considered losses. He said they are akin to operational costs for running a business.

What do you think?

Loss is still loss no matter how you view it on different perspective. We should consider it loss to make our future trade more cautious because of our previous experience. I think this is just a self justification to accept losses easily but loss is a loss.

mvdheuvel1983

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If you are a trader do not get stuck on your last trader because you made a loss. Do not overthink it. If you do, you will remain stuck there, you will refuse to see the bigger picture.

You should realize that most times we do not have control over the market. We may have done or thought we did everything to make us profit but then the market does its thing. Despite this, keep executing on the market.

Furthermore someone said that the losses incurred in trading especially when you were disciplined enough to stick to your plans and the proper risks management strategies should not be considered losses. He said they are akin to operational costs for running a business.

What do you think?

Topic: Trading Losses Equal Operational Costs (Read 187 times)