How do you handle losses in trading?

[Assface16678]

Many people said that trading is one of the best ways to make more earning which is a good thing but I'm against that trading is one of the easiest ways to make more money because trading is full of risk it depends on your self and capability to make win your trades. Some of the people make a preparation about trades like what you need are you having enough knowledge and skills to make more trade and win your trade. Next is you are mentally stable or not because sometimes many people making a trade that they are not prepared enough which is not good because you are prone to make bad decisions in trade sometimes this is the time when the people getting feared and getting greedy.

One of the things I do when I lose my trade is taking a break this is really important because you need to have a peaceful mind to make sure all of your trades are going to keep safe because you have a stable state. Also, it is better if you analyze those problems what are your mistakes and encounter so next, you face the same problem you can now make it so solve and avoid getting loss of your funds.

Trading business spends more than it receives during an accounting period, it has made a trading loss. You can set off trading losses against profit or capital gains in any of the ways discussed below & trade can claim terminal loss relief for losses generated in the final accounting period. Losses may be carried back up to three years and set off against total profits.

Loss on your trades is part of the market trading but at the end of the day one of the best things you could have is the profit even you lose a lot but still, you have an income there is a chance you will get a profit.

[1715547519]

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[1715547519]

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[deisik]

Well, there's another rule (actually, two rules). It mostly refers to investing (if we consider it a different effort), and it is Warren Buffett's invention. So here are the rules:

Rule 1: Never lose money
Rule 2: Never forget rule 1

If we draw an analogy here, it is not so much about trading the money that you can afford to lose but rather not losing whatever money gets traded. If you follow these two simple rules, you can trade as much money as you want (more money means higher profits)

Probably this applies when your position is in profit

It's six of one and half a dozen of the other

If you are in profit, you are "in the money" (using the futures market parlance). If you are losing money, you are either breaking the rule 2 or, if you don't forget it, the rule 1. But that's not the point here. The very idea that you should trade only the money you can afford to lose is stillborn, and for a reason. You trade for a living, and that means this rule is meaningless as you could just stay away from trading altogether instead. Warren Buffett with his wisdom hit the nail on the head and got it right 100 percent

[Bright_dhykseen]

Well, there's another rule (actually, two rules). It mostly refers to investing (if we consider it a different effort), and it is Warren Buffett's invention. So here are the rules:

Rule 1: Never lose money
Rule 2: Never forget rule 1

If we draw an analogy here, it is not so much about trading the money that you can afford to lose but rather not losing whatever money gets traded. If you follow these two simple rules, you can trade as much money as you want (more money means higher profits)

Probably this applies when your position is in profit

It's six of one and half a dozen of the other

If you are in profit, you are "in the money" (using the futures market parlance). If you are losing money, you are either breaking the rule 2 or, if you don't forget it, the rule 1. But that's not the point here. The very idea that you should trade only the money you can afford to lose is stillborn, and for a reason. You trade for a living, and that means this rule is meaningless as you could just stay away from trading altogether instead. Warren Buffett with his wisdom hit the nail on the head and got it right 100 percent

Lol i got your point

[deisik]

Not a very bright idea if you ask me. While it makes perfect sense in gambling (otherwise known as "roll and run"), with trading you are typically in for the long haul. It means reinvesting almost everything earned to unleash the full potential of compounding. Indeed, you may and in fact must switch between assets by selling overpriced and buying undervalued ones (known as "portfolio reshuffle"), but other than that, it is a never-ending game of making dough

And another key difference from gambling

Taking my profit without looking back helps me avoid FOMO

Taking your profit and running away is not what trading is typically about

As I had explained in the post you quoted, most people are engaged in trading for the sole purpose of making a living out of it, for the long haul, that is. In this manner, they are kinda stuck in the sell-buy routine (as in buy low, sell high), and that means going back and forth between fear and greed as prices go up and down. To sum up, it is far from "taking my profit and never looking back"

[Bright_dhykseen]

Not a very bright idea if you ask me. While it makes perfect sense in gambling (otherwise known as "roll and run"), with trading you are typically in for the long haul. It means reinvesting almost everything earned to unleash the full potential of compounding. Indeed, you may and in fact must switch between assets by selling overpriced and buying undervalued ones (known as "portfolio reshuffle"), but other than that, it is a never-ending game of making dough

And another key difference from gambling

Taking my profit without looking back helps me avoid FOMO

Taking your profit and running away is not what trading is typically about

As I had explained in the post you quoted, most people are engaged in trading for the sole purpose of making a living out of it, for the long haul, that is. In this manner, they are kinda stuck in the sell-buy routine (as in buy low, sell high), and that means going back and forth between fear and greed as prices go up and down. To sum up, it is far from "taking my profit and never looking back"

You don't get my point.
Once my trade hits my target, I take my profit and move on according to my trading plan.

If I plan to take another trade, I take it also.

"Taking my profit and never looking back" simply means not letting the behaviour of the market after hitting my target affect me.

That's where greed sets in and traders make irrational entries/decisions.

[deisik]

Not a very bright idea if you ask me. While it makes perfect sense in gambling (otherwise known as "roll and run"), with trading you are typically in for the long haul. It means reinvesting almost everything earned to unleash the full potential of compounding. Indeed, you may and in fact must switch between assets by selling overpriced and buying undervalued ones (known as "portfolio reshuffle"), but other than that, it is a never-ending game of making dough

And another key difference from gambling

Taking my profit without looking back helps me avoid FOMO

Taking your profit and running away is not what trading is typically about

As I had explained in the post you quoted, most people are engaged in trading for the sole purpose of making a living out of it, for the long haul, that is. In this manner, they are kinda stuck in the sell-buy routine (as in buy low, sell high), and that means going back and forth between fear and greed as prices go up and down. To sum up, it is far from "taking my profit and never looking back"

You don't get my point.
Once my trade hits my target, I take my profit and move on according to my trading plan

Then that has nothing to do with avoiding FOMO

FOMO refers to greed as it gets aroused when the prices start to rise and people are desperately trying to jump on the bandwagon when it is already too late most of the time (the opposite of jumping the ship when the prices plunge). So it is not about closing your position because it is more about opening one. Put simply, you can't avoid FOMO by closing your position as this is simply beyond the scope of the entire FOMO idea. Just to make things a little bit more clear

[Bright_dhykseen]

Then that has nothing to do with avoiding FOMO

FOMO refers to greed as it gets aroused when the prices start to rise and people are desperately trying to jump on the bandwagon when it is already too late most of the time (the opposite of jumping the ship when the prices plunge). So it is not about closing your position because it is more about opening one. Put simply, you can't avoid FOMO by closing your position as this is simply beyond the scope of the entire FOMO idea. Just to make things a little bit more clear

It has something to do with FOMO.

Imagine I'm a new trader and after closing my position (most likely when price rallies and gets to a potential reversal zone), I kept on watching this pair and next thing that happens is price breaks past my presumed "potential reversal zone", It is very possible FOMO happens; making me wanna get back in that trade cos I didn't get the most out of the market.

This is what I mean by "Taking my profit and not looking back". I do this to prevent FOMO and other emotions that can come alongside! 

[deisik]

Then that has nothing to do with avoiding FOMO

FOMO refers to greed as it gets aroused when the prices start to rise and people are desperately trying to jump on the bandwagon when it is already too late most of the time (the opposite of jumping the ship when the prices plunge). So it is not about closing your position because it is more about opening one. Put simply, you can't avoid FOMO by closing your position as this is simply beyond the scope of the entire FOMO idea. Just to make things a little bit more clear

It has something to do with FOMO.

Imagine I'm a new trader and after closing my position (most likely when price rallies and gets to a potential reversal zone), I kept on watching this pair and next thing that happens is price breaks past my presumed "potential reversal zone", It is very possible FOMO happens; making me wanna get back in that trade cos I didn't get the most out of the market

Yes, this is a possible development

However, let's picture a somewhat different situation. Again, you are a novice trader (emphasis yours) and just watch the price break past your expected "potential reversal zone". Will that FOMO be weaker or stronger, i.e. when you got nothing out of the market at all instead of getting something out of it? It can be said off the top of one's head that there'll be some minor differences or nuances in that feeling of missing out, but personally, I don't think they would amount to much anyway. Thus it doesn't really matter whether you closed your position prematurely or entirely missed an opportunity to open it in the first place. If anything, in the second case your greed will likely be even more painful and excruciating

[LUCKMCFLY]

The losses in the market should be taken in the normal way, not as failures that lead to total disappointment in personal trade that lead to abandoning trading, what should be taken into account is that the losses do not exceed the profits.

[Jocuserious]

I often loss many time but nothing happens, if you're loss right now today then keep your eyes next step i hope tomorrow your best day. Trade wouldn't make profitable everyday and you're loss because low quality skills. Therefore, go and keep some articles with video for increase your skills after that your loss time will less soon. Do you know every new traders facing same problems but after they're make well. Even i don't know you're a new trader or old but i want recommend try again your best, don't get feedback losser time.

[Oceat]

Just take a break if you can't handle your losses and call it a day. Don't try to push yourself too much or else you might be chasing losses if you force yourself. It's all about the discipline and patience that you give each time you are trading. There's no way a single person can get rich in a single day, it all takes time. I am not that a hard trader just like the dedicated one but I always make sure I will gain a profit each time I trade.

[Yatsan]

Just take a break if you can't handle your losses and call it a day. Don't try to push yourself too much or else you might be chasing losses if you force yourself. It's all about the discipline and patience that you give each time you are trading. There's no way a single person can get rich in a single day, it all takes time. I am not that a hard trader just like the dedicated one but I always make sure I will gain a profit each time I trade.

Yeah, small break maybe a day or two will be the best way to handle the loss. In my personal experience, when I loss I am also losing my temper and going to trade high amount of money to get back the money that I loss, the ending is very predictable, I also loss that trade and ending up losing almost all of my capital. Taking a break is always be the best way for me to handle losing trade.

And also I highly suggest to avoid this kind of scenario is to always set up a stop loss. 

[Mpamaegbu]

Taking consecutive losses in trading has led to a lot of blown accounts.

Losses affects us psychologically and doesn't make us think logically.

Just wanna know how you get yourself back in right state of mind after taking a loss or better still, how do you handle losses?

Share your experiences and techniques, this will be helpful. 

To start with, the advice has always been to not stake what one can't afford to lose. Now to cope with the loss, just view it as one of those things in life and remember to focus your mind on millionaires who lost a lot of chances and finances before finally hitting gold. Think about the Ali Baba guy, Walmart owner, Bill Gates, or Mark Zukerberg and console yourself with their history in hope that one day your day of discovery will roll in.

But more importantly, don't trade what will hurt you if you lose it.

[mnporter2001]

Taking consecutive losses in trading has led to a lot of blown accounts.

Losses affects us psychologically and doesn't make us think logically.

Just wanna know how you get yourself back in right state of mind after taking a loss or better still, how do you handle losses?

Share your experiences and techniques, this will be helpful. 

to me, trading is a gambling game and it depends a lot on your performance and luck. When your trading system is not working well for a long time, you should stop and stabilize psychologically. Wait for the market to enter a new phase to continue trading. sometimes the losses don't come from the problem of your trading psychology or trading system, just because the market at that time was chaotic. get rid of that kind of market, wait for it to stabilize and then continue to make money. That's the way I usually do it.

[qiwoman2]

If you lose, like many of have at some point, you just have to analyze where you went wrong and next time try and do things better. Also you need to know yourself and your limits. How much risk can you handle without getting perturbed. As they say NEVER RISK WHAT YOU CAN'T AFFORD TO LOSE. One lesson I learned was NOT to give up, even when the market was flat and down in capitulation. That's the best place to find all the bargains and if you find a good project stick to it. I now play it safe, hedge with some stablecoins always and buy the dips to dollar cost average on my favorite investments. I keep it very simple now.

[sulendra12]

First of all, don't ever invest on same coin again after you lose it. Wait until everything is stable and then you are free to do anything. Investing on same coins after lost just makes you greed and rage because you want to get your money back, it would be better to just invest on something else for better method.

[Dr.Osh]

First of all, don't ever invest on same coin again after you lose it. Wait until everything is stable and then you are free to do anything. Investing on same coins after lost just makes you greed and rage because you want to get your money back, it would be better to just invest on something else for better method.

I think it depends on the conditions. if it's a popular coin, it's OK to choose the coin again. however, I think you need a moment for that. besides, you need to realize that risks that make you ever disappointed can be repeated again. so, when you are ready to trade, you need to prepare the risk. however, overcoming defeat in trading is to choose coins that have more potential than the previous coins, but the risk is very large.

[Jateng]

Always learn for those losses and make them motivation in order for you to start again and win for the next time. You have all the time to learn and study about the market trend and situation. Don't lose hope, consider it as a process for learning. Always cut your losses and don't be emotional to trade consecutively if your trades are not in condition. You will learn that taking back your money after losing will take some time so be also patience.

[wozzek23]

Taking consecutive losses in trading has led to a lot of blown accounts.

Losses affects us psychologically and doesn't make us think logically.

Just wanna know how you get yourself back in right state of mind after taking a loss or better still, how do you handle losses?

Share your experiences and techniques, this will be helpful. 

Losses are not something I worry about these days because I mind how much I invest in trading. And I know for the fact that whatever I lose I will always recover them after some days, so it's never something to worry about. I only had serious problems when I was still a newbie. And the first time I lost big money it affected me seriously that I decided to quit from anything cryptocurrency for a long time.

I was also angry at myself for choosing to trade cryptocurrency, but I was wrong because I never took out time to learn how it works. After I decided to go back and the first thing I did was to learn everything that I'm supposed to learn but skipped at first. I think when you're losing, the best thing to do is to stop trading for the day and take time to go through everything and maybe you can continue trading tomorrow.

[Utoy101]

Taking consecutive losses in trading has led to a lot of blown accounts.

Losses affects us psychologically and doesn't make us think logically.

Just wanna know how you get yourself back in right state of mind after taking a loss or better still, how do you handle losses?

Share your experiences and techniques, this will be helpful. 

Well,  i do believe loses are part of trading and it's a way of helping us learn the more so i always take it as a lesson whenever i lose while trading and make sure I don't repeat such mistakes again. It's a bit hard seeing oneself losing while trading though but you just have to accept the fact that it's part of trading, that way you'll be able to handle it the more