Fast ways to lose money trading

[SlimShadyMmp]

Trading requires serious relaxation and adquate mindset to do very well I think the best way is do your research well use stop lost If get out don't rush back Chill and rethink your strategy

[Hippocrypto]

Incompetence is just one side of the equation, after all you can be really bad at trading and as long as you used your common sense and stayed away from the market you will not lose money as you understand that since trading is a competition then that means that you are a great disadvantage against other traders thanks to that incompetence, so what makes people trade even when they know they are incompetent? Greed, when you add greed to the equation everything becomes more clear and we can explain why complete newbies invest all their savings in the market only to lose it all in a matter of weeks.

As you have stated above; Discipline is also one way with which we can lose money to trading; when a trader cannnot define whhen to trade and when to ignore the market it leads to losses; Also, a trader who is not disciplined will be greedy. I say this because self discipline in trading will help you to take the right decisions about trading, taking profits, exiting trades etc.

How about if you already have that discipline within you, but unfortunately you still lost in trading? There's still lacking as a trader, because without skills on analytical side we won't become successful in so many ways when doing trading specially during fluctuations. Even on my personal experiences, I've been through a lot of wrong decisions but managed to move on and learn from my failures.

[nelson4lov]

Trading requires serious relaxation and adquate mindset to do very well I think the best way is do your research well use stop lost If get out don't rush back Chill and rethink your strategy

That's true. With the way all those numbers banging in your eyes, it doesn't get any easier. Mastering technical analysis using drawing tools, chart patterns or even indicators is one part, mastering one's emotional is another. When a trader is unable to find a balance between both of these (TA & emotions), it becomes harder to win trades. You might have the right entries,  stops and exits before taking the trades; but emotional instability can make you go against your trading plans and that's about it.

[carlfebz2]

Incompetence is just one side of the equation, after all you can be really bad at trading and as long as you used your common sense and stayed away from the market you will not lose money as you understand that since trading is a competition then that means that you are a great disadvantage against other traders thanks to that incompetence, so what makes people trade even when they know they are incompetent? Greed, when you add greed to the equation everything becomes more clear and we can explain why complete newbies invest all their savings in the market only to lose it all in a matter of weeks.

As you have stated above; Discipline is also one way with which we can lose money to trading; when a trader cannnot define whhen to trade and when to ignore the market it leads to losses; Also, a trader who is not disciplined will be greedy. I say this because self discipline in trading will help you to take the right decisions about trading, taking profits, exiting trades etc.

I would say that this thing is cant really be avoided because no matter how disciplined you are, it would really be have its cons ex. waiting up for too long for you to enter the market but you had actually already
 missed out the opportunity neither to buy or to sell.The thing here on talking with the advantage is that you do know to hold or control yourself in various situations.

Losing is inevitable or cant be avoided but can really be lessen out if you do know how to play with the market.Dont mind off if you do commit mistakes and what matter most is
to make money in spite of the losing scenario.

Due to experience, you would able to see and realize those mistakes that you had experienced in the past and you would able to avoid it into your future trades.

[famososMuertos]

The point is that many people are dedicated to the activity of the trader without ever having even had similar experiences, in fact some never in their existence have had the opportunity to sell something or even have managed monetary losses in any type of investment.

There is no strategy that does not have losses, so any strategy is not exempt from losing money, in reality to trader there are no absolutes on how to win or lose.

The practice and perseverance makes you strong to understand and assimilate losses.

Knowing the ways you mention will not prevent you from losing money is only information to take into account.

Things like that the trader is 90% psychology have become a fallacy, this is present in any activity you do, you only require experience and practice with money that you do not have to cry if things do not go well.

[coiner-88]

I realize that on the off chance that you are a novice even you think you understand what is the issue here, yet trust me there are such countless individuals who have wound up doing an exchange out of feeling and broke at any rate one of the standards. They would just lament that they had hopped in however rather on putting it out straightforwardly in btc. I assume that operation is relating about on genuine exchanges on real or enormous volume coins.

[SirLancelot]

That second point is very important, people should always mind the amount of money that goes from their pockets to trading cryptocurrency and investment, I have seen so many people lose money because of this. Saw someone that complained of losing their savings for over six months because he used it to trade Bitcoin, and now he’s broke.

I know that they are doing this because they want to increase that money and get rich, but it’s totally wrong, it’s best to start small and when you keep it steady the profit will keep coming in until it gets big, and if you happen to lose you will know that it is a loss you can take.

Unfortunately I have met with people like that as well, and this wasn't some rich person neither, he was already a very very poor guy, he had 25k in savings which is awesome but that was thanks to his life prior, he lost his job due to pandemic, and his wife was working just a month after giving birth to their baby to keep the family alive, dude got into bitcoin with his 25k and lost almost all of it (do not get in at the peak) and did all those high leverages like 100x in order to make it back and lost it all.

Basically he is not unemployed, wife working hard time just to keep the family alive, and he lost all his savings on top of that. I can't believe some people could be this much idiot when it comes to investments, there is no shortcut to being rich and if there was everyone would use it. You have to just keep grinding for years, even decades to get richer.

[Mpamaegbu]

👉Trade too big - Don't use more than 6% of your capital when trading. Ensure your liquidity is low

Money Management (MM) is key in trading and shouldn't be overemphasized. Any successful trader will tell you this. To be able to do this means that one must have a mastery of one's emotion. Emotion kills faster than lack of trading skills.

👉Trade based on your emotions - Trading is about 90% psychology. Guard your mind and your heart so you can properly apply your trading plan.

👉Trade based on predictions - Don't trade based on financial advice from someone on telegram or any of the social media platforms. Do your own research.

These two quoted are of the same consequences. Emotions and predictions based on assumption without any Technical reading are highly fatal to trades.

👉Cut winners fast: Don't be greedy!! Collect your profits.

What happens after you exit a winning trade and the trade continues in your direction? Aren't you going to beat yourself silly for panicking and cutting it short? Well, the best approach is to move your SL to Entry level or Break even without exiting the trade and then wait for it to either hit your TP or revert to your new SL with some profit for you.

👉Let losing trades run: This would kill you, if a trader is going bad I think it's better to close the position at your stop limit rather than letting it run in hopes it may come back to our favor.

A lot of traders do that (yours sincerely too as a greenhorn), and it's done in expectation that the losing trade will revert and head their direction. Most times it does. But in those times it would've have eaten deeply into the capital before reverting. Sometimes it burns the account to zero and then the trader is forced out of trade.

[Issa56]

Lots of people have lost all there funds due to the reasons you just listed above the first thing I will like to talk about is trading with emotion that's one of the first thing you have to avoid when trading you don't have to fall in love with any coin or you might endup losing all you funds, as a trader somepeople will say stoploss is not necessary but to me stop lose is very important when trading is better to loss 10% of your fund than you losing 75% of your funds, don't always trade with too much of funds, always make sure you do your own research before buying any coin don't just buy a coin just because of what you hear about the coin. I think this my little wite up will also help.

[Wulan_maniez]

Yeah OP is right, sometimes beginner traders do the above because of a lack of knowledge and experience. I’m sure every  trader has ever
done one thing Op mentioned above. No exception for experienced traders. I’ve done the above, too. So if I do one of those things, I never
benefit. In fact, I only slightly profit from trading.

[maldini]

Exchanging is go to future exchanging without examining the market and do exchange without experience how to peruse where the market will go, and afterward rest soundly and in the following day it might crash your equilibrium. The principle purpose behind losing reserves is the absence of exchanging experience. It's not actually simple to procure from the exchanging, yet a novice figures just they could acquire effectively from the exchanging.

[redsun114]

The point is that many people are dedicated to the activity of the trader without ever having even had similar experiences, in fact some never in their existence have had the opportunity to sell something or even have managed monetary losses in any type of investment.

There is no strategy that does not have losses, so any strategy is not exempt from losing money, in reality to trader there are no absolutes on how to win or lose.

The practice and perseverance makes you strong to understand and assimilate losses.

Knowing the ways you mention will not prevent you from losing money is only information to take into account.

Things like that the trader is 90% psychology have become a fallacy, this is present in any activity you do, you only require experience and practice with money that you do not have to cry if things do not go well.

That type of thinking exists in all parts of life as well. We all want to be famous but we do not want to grind the hard work that requires to be there, we all want to be professional sports players but we do not want to train 12 hours a day for 10 years before we become one and keep it up for another 15 years to stay one, we all want to be doctors but we do not want to read tens of thousands of pages and memorize and learn meaning of each of them, we all would want to be great lawyers but we do not want to memorize every single law out there plus all the previous decisions on similar cases.

I can continue with Hollywood and acting, politician and many other stuff but you get the point. You know whats the difference in trading? No football team would get me to play but I can trade, no big movie would hire me to act but I can trade, no one would allow me to do surgery but I can trade, so basically I can never work to be a good trader but I can trade nevertheless.

[Pamadar]

Yeah OP is right, sometimes beginner traders do the above because of a lack of knowledge and experience. I’m sure every  trader has ever
done one thing Op mentioned above. No exception for experienced traders. I’ve done the above, too. So if I do one of those things, I never
benefit. In fact, I only slightly profit from trading.

Newbies are prone making mistakes due to lack of knowledge.

There are lots of new investors who quickly lose their money because of rushing things out, thinking that it's just an easy access to make
good profits, not doing their research and proper study leads them to invest with the wrong assets or place their position in the wrong time making them trapped and lose their money.

[TheGreatPython]

One of the fastest ways I know of (and even some stupid person did it by blowing away investors' BTC) is leverage trading. It can go wrong anytime but you must know at what leverage you should enter and exit. I know of some people who love to take risks at 100 and even 125x leverage but the worst of it all, they do it with their capital all-in and then get liquidated.

Leverage at 125x means you will lose everything with a ~1% drop in the coin you purchased and its awful because in crypto 5-10% drop and rise is normal and I know that yeah if someone lets say did the same thing when BTC was 20k and then it reached 40k in no time, the guy can become a millionaire but the truth is that even during the rise there are small drops and you will lose everything on futures trading with 125x leverage.

I would say 5x is a good option because a 20% drop is not expected suddenly and you can find your balance in case you see the market is crashing, at least it gives you time to react and stabilize but at 1% liquidation there is absolutely no chance.

[Obito]

Emotions and stop losses that I often experience when trading. I sometimes don't follow the roles that I have made myself. because when we trade and carry large amounts of money, these minutes will be imagined. Last November when the market fell into an experience that made me realize how important it is to maintain stop losses as well as emotions. when we can't control it what happens is trading becomes like gambling

If you are too emotional when formulating decisions then trading is not for you, I think you already the experiences of losing because of emotion, maybe you are a stronger person now, there is a way to control your emotions, if you feel ecstasy because of a win then try to sell for profit and don't do anything after that because the emotions are positively high which means that anything thrown at you during the trading, you might get into it. Discipline is a good thing to practice with this kind of thing, meditate some time to clear your mind. Although being emotional contributes to losing money in trading, it is not the fastest. The fastest way that I can think of is going for an all in in futures without the regards to a possibility that it might be a loss.

[konflikkastil]

Smile!!! I do not think there is any trader who has not had a share of loosing money while trading. My friend I and lost close to $1,500 in the space of just 25 days alone. We need money do badly, and we also want to make quick profit. We entered into multiple trade hopiy it will go in our favor, and the trades went otherwise. We refused to close the trade and take the lost, we were hoping the trade will later go up. And instead it kept going down. Until the account was closed down. I know this happens alot, cause that's what I personally refers to as learning period.
We have learnt the lesson of our lives with our hard earned money, but life continues. I just shared one way you can loose money while trading and I hope you guys can learn from my experience.

[New.in.trading]

One thing I missed on the list, not only for BTCUSD but in general, is:

Plan your trade.

Sit on your ass and do some work:

-Create a strategy, and backtest it.
-after backtesting, test it with demo accounts

-after 1-2 Months of demo accounts, switch to real money (small account)
-every continuous month you end in profit, add some money to your trading account.

-> That is solid trading. Everything else is pure guesswork imho <-

[maxig.boroday]

You gotta be careful when investing, there are also fake Technical Analysis which will make it hard for you as you might get caught on it that will make you lose your investments..

[lixer]

Lots of people have lost all there funds due to the reasons you just listed above the first thing I will like to talk about is trading with emotion that's one of the first thing you have to avoid when trading you don't have to fall in love with any coin or you might endup losing all you funds, as a trader somepeople will say stoploss is not necessary but to me stop lose is very important when trading is better to loss 10% of your fund than you losing 75% of your funds, don't always trade with too much of funds, always make sure you do your own research before buying any coin don't just buy a coin just because of what you hear about the coin. I think this my little wite up will also help.

I agree with the emotions part but stop loss can be tricky because I have seen guys selling bitcoins at 5-6k because they had stop loss enabled but imagine if they just waited and come on we all knew the prices will jump back even higher and it was all about time as we can see now.

Yes one should avoid buying random coins, well said. But there are coins which I bought like UNI swap tokens and PolkaDOT tokens which I never heard or learned too much about, now I have learned a lot about DOT but when I purchased, I had no idea and still I was happy with my purchase. The reason was because there was serious hype followed by exchange listing and from what I have seen - any coin that gets newly listed on big exchanges like Binance, the price tends to go up at least temporarily.

[laredo7mm]

👉No stop loss: This happened to me once. I lost a chunk of my capital. Stop loss was created for a purpose use it for every one of your trade.

👉Cut winners fast: Don't be greedy!! Collect your profits.

👉Let losing trades run: This would kill you, if a trader is going bad I think it's better to close the position at your stop limit rather than letting it run in hopes it may come back to our favor.

I think there is a better way to deal with a negative trade. If my trade goes against me then I can rebuy the same amount of token if the price dump 10 to 15% from my buying price. If the price still goes down then I can do one more buy but this time the amounts will be double. This dollar cost average will lower my entry points and if that project is good it will surely bull after sometimes. I have used these methods successfully my your chance of losing trade will be zero.