Ruined my account through multiple mistakes

[Lemmon007]

Have you guys ever ruined your account when you were still a beginner? And by ruined I mean losing everything or a very big part of it. I started trading like 3 months ago and made my first deposit 2 months ago. After 150+ trades through the course of 1 month I managed to get my 4000$ initial investment to 7000$. Needless to say I was over the moon and I got overconfident. I invested more than usual thinking I have a great opportunity right there and even though I had a fixed plan with certain stop losses in place for every trade, after the price went against my prediction I still hold onto it thinking it will rebound and even added a little more to average down. In the end the price got my stoploss and I was down 3000$ (I don't know how I managed to lose so much in 1 trade). I was very frustrated with my idiocy and I started chasing losses (again like an idiot). Throughout the next 2 weeks I managed to lose another 2400$ by trading while mad (lost most of it when bitcoin went up from 6700 to 8000 at the beginning of the year, shorting it). Now I have only 1600$ left in my account, deeply depressed and afraid to lose even more. I'm afraid that I won't ever make it back and even if I do this is the worst timing possible with the halving rally in sight. I get more depressed even thinking of all the profit those money would have generated if the rally begins. I came here to ask for some advice since I don't trust my decisions anymore and maybe you could give me some insight.

[semobo]

You are capable of making profits from trading which is show when you made 3000 dollars profits from your capital of 400 which is too huge to be honest but then you started expecting the same kind of profits for your every trade is you biggest mistake IMHO.I think you should continue your trading again and start aiming for smaller and realistic target to achieve in certain time period.

But if you need that capital amount then starts holding on it,once the rally begins it will help you to recover the invested capital amount.

[Lemmon007]

It was 4000 not 400

[harizen]

~snipped~

It's common to feel overconfident when you are managing to get continuous winning streaks. It's like, "Hey this is not tough at all, I can manage this". It's just that when you started losing, your ruined your focus that's why even you have a fixed plan and strategy, you were not able to follow those. And your frustration totally eats as you chase your losses and that's how it ends now.

You know losing is part of the game. There's no way you will avoid it as dealing with crypto's volatility is not as easy as anyone thinks. Even a professional and a long-time trader today still losing their respective position.

Since you are frustrated, I suggest taking a break for now as your mind is not relaxed. Remember that you were able to manage to get a $3,000 profit on your past trades so it means you know how to trade wisely. Charge those mistakes to your experience and make it as your reference. Refresh your mind and make a comeback once you think you are now fully prepared again to take on the challenge.

[ubercool]

It was 4000 not 400

You need to update the main post rather than making a new one and confusing people with a new number.

These things happened to people many times in the past. When you're on a roll, you make more money than expected and then you get over confident and lose more than what you have earned.

[ChrisPop]

First of all don't get mad on yourself, but make a commitment with yourself that you will never ever repeat this mistake again and you will take all the necessary measures to respect this commitment. Remember that the majority of big traders have lost their whole account at least once in their career. If you want to get into trading remember that it is a game of probabilities and risk management is a must. As a rule of thumb I would never risk more than 2% of my account on any particular trade. After all it is about supply and demand and your ability to read that in the charts.

$4000 is not a huge amount, but not small either. You might also want to work on your conception about money - you can always make more of it - through one means or another. Also there will always be the next opportunity. Even if you miss the Bitcoin rally, you will still be able to get on later or find an exceptional company on the stock market that can raise in value as much if you buy it when it is just a penny stock. Or if you can get your trading game right you will be blessed with a lot of opportunities each day.

[semobo]

It was 4000 not 400

Sorry it was a typo,corrected it now.
But its still near to doubling your capital invested so you are capable of doing it that is what I wanted to say.

[nreal]

No one can give you the right advice, I think what you need to do now is stop trading for a certain period of time, which will help you regain your spirits.

[outatime1]

I made mistakes too early on and still do.  My advice is do long term trading rather than day trading.

Just buy some Bitcoin and hold for a year or so.  You will see profits if you do that.

[tenakha]

I made mistakes too early on and still do.  My advice is do long term trading rather than day trading.

Just buy some Bitcoin and hold for a year or so.  You will see profits if you do that.

Yeah, first try to calm down for a while. Then try to understand where and why you made mistake. If you understand these mistakes, think about how you can fix them. Otherwise, as long as you can not see your mistakes, you will always lose because of the same mistakes. And when you are ready to trade again, experiment with smaller amounts. If everything goes well, you can earn much more than your money. Also, do not trade to earn your money back, but because you think it is a good position.

[MURONDI]

take a long time to understand the state of the market, there are times when the market is in an uptrend or downtrend, sometimes the market is stable, sideways or flat, sometimes prices move irregularly, Experienced traders will surely be patient waiting for the right time to enter the market, the money you are trading should not be the main money so you are ready with all the risks, a few years ago it was indeed a tragedy where traders suffered a lot of losses, I myself lost around $ 40000 - $ 50000, I don't know the exact amount of my loss, it's only an estimate, because my loss is in the form of a variety of different altcoins, so you don't need to feel frustrated.

[adroitful_one]

It sounds like you really need to focus on trying to take less profit and selling a lot sooner during a loss. Was there ever any opportunity for you to make any money at all during those times you lost all of that money? You don't have to make 15%+ on every trade that you make. Even just a couple percent profit is a successful trade in my book. Plus, if I ever start to get into a hole and it doesn't look like the coin will recover, I just immediately sell it off. You'll end up making it all back on the next trade or two anyways.

[gabmen]

Have you guys ever ruined your account when you were still a beginner? And by ruined I mean losing everything or a very big part of it. I started trading like 3 months ago and made my first deposit 2 months ago. After 150+ trades through the course of 1 month I managed to get my 4000$ initial investment to 7000$. Needless to say I was over the moon and I got overconfident. I invested more than usual thinking I have a great opportunity right there and even though I had a fixed plan with certain stop losses in place for every trade, after the price went against my prediction I still hold onto it thinking it will rebound and even added a little more to average down. In the end the price got my stoploss and I was down 3000$ (I don't know how I managed to lose so much in 1 trade). I was very frustrated with my idiocy and I started chasing losses (again like an idiot). Throughout the next 2 weeks I managed to lose another 2400$ by trading while mad (lost most of it when bitcoin went up from 6700 to 8000 at the beginning of the year, shorting it). Now I have only 1600$ left in my account, deeply depressed and afraid to lose even more. I'm afraid that I won't ever make it back and even if I do this is the worst timing possible with the halving rally in sight. I get more depressed even thinking of all the profit those money would have generated if the rally begins. I came here to ask for some advice since I don't trust my decisions anymore and maybe you could give me some insight.

Well back then, the value isn't as high as today. Less than 1k per btc, losing won't hurt you that much compared to today's effect. I've made a lot of mistakes as a newbie that included gambling, making emotional decisions, listening and basing my moves on pump and dump groups. I easily lost almost 1 full btc during my first few months. Though those are lessons that, looking back, i should be quite thankful for. It adds up to the experience stash that i'm able to use today.

[djgtr]

take a long time to understand the state of the market, there are times when the market is in an uptrend or downtrend, sometimes the market is stable, sideways or flat, sometimes prices move irregularly, Experienced traders will surely be patient waiting for the right time to enter the market, the money you are trading should not be the main money so you are ready with all the risks, a few years ago it was indeed a tragedy where traders suffered a lot of losses, I myself lost around $ 40000 - $ 50000, I don't know the exact amount of my loss, it's only an estimate, because my loss is in the form of a variety of different altcoins, so you don't need to feel frustrated.

   Sometimes we feel disappointed about the losses we encounter during immediate downfall, through our aggressive action that lead to create mistake but we have to continue our marks as traders enduring forbearances and acceptance. I also gain loses when I am beginner on this field, but I do research to enhance my knowledge on deliberating a benefited outcome.

[Wexnident]

You reap what you sow I guess? Patience is a big factor when trading, and chasing something blindly without considering the possible consequences could lead to disastrous outcomes, such as yours. Instead of taking profit from trading for now, try to think of possibilities where you break even instead. After covering that and you can ensure that you would break even, you could start predicting or analyzing the paths of BTC so that you could profit. Seems like you involve yourself in day trading, so always break even first before considering profit.

[maydna]

I guess all of us have the same experience in our journey in crypto, and many of us have learned from their experience so we can rise and recover the losses. You need to accept the mistakes that you made before, and you know that is the part of learning so you can take it as a lesson which will give you useful information that will help you to make a better result in the future. It is hard, I know, but we should try to wake up and to try to learn from the mistakes, so we can forget the mistakes for achieving what we want.

You should have the power to control yourself so you can prevent overconfident, which is not good at trading. Overconfident will makes you lose control for yourself, and that can prevent you from making a profit. With so much advice from us, only you can help yourself and only you that can solve the problem by build trust inside you.

[chip1994]

Have you guys ever ruined your account when you were still a beginner? And by ruined I mean losing everything or a very big part of it. I started trading like 3 months ago and made my first deposit 2 months ago. After 150+ trades through the course of 1 month I managed to get my 4000$ initial investment to 7000$. Needless to say I was over the moon and I got overconfident. I invested more than usual thinking I have a great opportunity right there and even though I had a fixed plan with certain stop losses in place for every trade, after the price went against my prediction I still hold onto it thinking it will rebound and even added a little more to average down. In the end the price got my stoploss and I was down 3000$ (I don't know how I managed to lose so much in 1 trade). I was very frustrated with my idiocy and I started chasing losses (again like an idiot). Throughout the next 2 weeks I managed to lose another 2400$ by trading while mad (lost most of it when bitcoin went up from 6700 to 8000 at the beginning of the year, shorting it). Now I have only 1600$ left in my account, deeply depressed and afraid to lose even more. I'm afraid that I won't ever make it back and even if I do this is the worst timing possible with the halving rally in sight. I get more depressed even thinking of all the profit those money would have generated if the rally begins. I came here to ask for some advice since I don't trust my decisions anymore and maybe you could give me some insight.

This is common in every new trader. It is important that when you win, you are overconfident and your emotions are not really normal. Besides, you let your plan be broken. you said you had a stoploss plan but broke it and implemented DCA. so you're paying the price for your lack of discipline. If you didn't break the rules, maybe you just lost a few hundred dollars. But now you have lost too much. Next time, you should re-plan and never break it, because the opportunity is numerous, don't regret.
Note: hopefully next time you will put down each paragraph so that everyone can read it.

[Kemarit]

You just have to stop trading for a while just to be able to clear your mind.

As I was saying here, crypto trading is a journey, you can't just go everyday and trade and think that you are going to win. You also have to re-assess everything before continuing. In your case, it's better to reset and just think what went wrong and try to improved your trading strategy. As for the advise as to how you're going to trade, then no one can answer that for you. You are the only person that can answer that, maybe someone will advise you to do this and do that, but it might not work on your end.

[sana54210]

One thing that usually mess up a lot of traders is having too much of confidence. You had over-confidence and you felt like you’re never going to lose again and forgetting the risks that are involved in cryptocurrency and at the end it cost you more than half of your money .

You made everything worse for yourself by trading when you’re angry and chasing after loss, that’s a very bad decision, you shouldn’t be trading when you’re angry because you will be making the wrong trades out of anger and as you boil in anger the more you keep making wrong choices. When you feel angry you should leave trading and relax to chill off the anger and when your mind is back and you’re able to concentrate, then you can go back to trading.

[logfiles]

You let emotions take control of your trading decisions... I also did the same mistake several times before finally learning. In Margin trading, discipline is very important. Loses are part of trading or any aspect of our lives, that shouldn't get you mad or change your initial winning strategy.

Take the loss as a lesson and make sure not make such a mistake again. Always follow your stop loss protocol. It's always better to lose 10% rather than try waiting for the market to bounce and end up losing 50%+. It's far easier to recover the 10% loss than 50%.

You can still recover with the $1600, but you have to restart trading with a clear sober mind. Don't do it when you are frustrated.