Don't stay on with a wrong trade

[palle11]

Some trades we take are in wrong direction but because we want to be hopeful that it will come back to profit, we allow it and it close against us. If we keep doing this, it is the exact opposite attitude of someone that wants to keep their initial capital.

There are steps you can take to reduce the loss before you lose every thing or it get to your stop loss and such is

1. Stop the trade: This is very good but difficult for many traders to do it but if you do that, you have potential loss that you have saved.

2. Use of stoploss all the time: This help your losses to be minimal.

3. Try to adjust your stoploss: You can do this if your trade is already in profit and you suspect that it is going back to your entry price, so you can take your stoploss to entry and all the order to run for profit or it stops at your entry.

[Reid]

1. Stop the trade: This is very good but difficult for many traders to do it but if you do that, you have potential loss that you have saved.

Or a potential gain.
I guess that's what hinders the decision.
I've been through that before and I can say up until now the ghost of it won't stop.
Halting the choice to stop it because of high expectations.
I think it's just a normal emotion that will happen most of the time. Experience will help to control it though.
Whenever I am on that occasion, I sell and never look back. It helps. Turn it off at your favorites list. 

[rhomelmabini]

There are steps you can take to reduce the loss before you lose every thing or it get to your stop loss and such is

1. Stop the trade: This is very good but difficult for many traders to do it but if you do that, you have potential loss that you have saved.

2. Use of stoploss all the time: This help your losses to be minimal.

3. Try to adjust your stoploss: You can do this if your trade is already in profit and you suspect that it is going back to your entry price, so you can take your stoploss to entry and all the order to run for profit or it stops at your entry.

Of all the things listed here I think the best one and most common to adapt to was using the stop-loss feature, may it on spot or margin trade. I think you may have to create some options too here like providing more margin balance if you're on a margin/futures trade so you may not be liquidated that quickly, adjust your leverage according to your balance, sell at breakeven and much more to manage losses (these mostly on futures trade).

[so98nn]

This is a strategy for those who are panic seller tbh. Or someone who does not have time to look after his/her trades really. If over the time I am making trades on daily basis then stop loss is not for me. Like, I may loose good profit if I stopped too early and obviously same is possible with loss side too. However, considering bitcoin trading its plus side is it always goes back to its ATH rate even after it drops. It’s a certainty in case of bitcoin as compared to commodity trading or share market.

So you get to choose here. But obviously any new trader must go through these options as they are life savers sometimes.

[teosanru]

Some trades we take are in wrong direction but because we want to be hopeful that it will come back to profit, we allow it and it close against us. If we keep doing this, it is the exact opposite attitude of someone that wants to keep their initial capital.

There are steps you can take to reduce the loss before you lose every thing or it get to your stop loss and such is

1. Stop the trade: This is very good but difficult for many traders to do it but if you do that, you have potential loss that you have saved.

2. Use of stoploss all the time: This help your losses to be minimal.

3. Try to adjust your stoploss: You can do this if your trade is already in profit and you suspect that it is going back to your entry price, so you can take your stoploss to entry and all the order to run for profit or it stops at your entry.

I think this type of trading has become more or less a full time job. Think of it like this. Currently the market is so volatile that it moves more than 20-30% in a day. I had a strategy before the wave it was keeping the stop loss below the ATR but after this bull run ATR has become so high that if you put a stop loss below the ATR your risk/ reward ratio gets ruined itself. Moreover in this choppy market there are too large wicks therefore the stop loss gets hit and markets reverts back to normal stage pretty quickly. Now what is the solution in such cases?

[semobo]

Some trades we take are in wrong direction but because we want to be hopeful that it will come back to profit, we allow it and it close against us. If we keep doing this, it is the exact opposite attitude of someone that wants to keep their initial capital.

There are steps you can take to reduce the loss before you lose every thing or it get to your stop loss and such is

1. Stop the trade: This is very good but difficult for many traders to do it but if you do that, you have potential loss that you have saved.

2. Use of stoploss all the time: This help your losses to be minimal.

3. Try to adjust your stoploss: You can do this if your trade is already in profit and you suspect that it is going back to your entry price, so you can take your stoploss to entry and all the order to run for profit or it stops at your entry.

How to recognize that we are on a wrong trade first?

Nothing is predictable until it happens, even the best crypto can cause people to lose and the shit coins can make the people rich so it all depends on how you assist the market condition better than others.

[hugeblack]

Trading is not a mathematical equation based on a rule: do this and you will win such-and-such.
It is a function of a random variable, and sometimes it is not logical, so sometimes the stop loss order is the worst thing you do.
Personally, I do not use a stop loss order, but the strategy depends on the type of trade you want to make and the profits you want to achieve.

Take your feelings away from trading, build a clear strategy and you will be fine.

[palle11]

1. Stop the trade: This is very good but difficult for many traders to do it but if you do that, you have potential loss that you have saved.

Or a potential gain.
I guess that's what hinders the decision.
I've been through that before and I can say up until now the ghost of it won't stop.
Halting the choice to stop it because of high expectations.
I think it's just a normal emotion that will happen most of the time. Experience will help to control it though.
Whenever I am on that occasion, I sell and never look back. It helps. Turn it off at your favorites list.  

3. Try to adjust your stoploss: You can do this if your trade is already in profit and you suspect that it is going back to your entry price, so you can take your stoploss to entry and all the order to run for profit or it stops at your entry.

This point is good for a trade you suspect that may later turn into profit. Rather than stopping the trade, you can readjust it to your entry point which gives you a 50/50 chance of making profit out of it or running out clean without losing your stake.

How to recognize that we are on a wrong trade first?

You can if you have built a good strategy and when your orders turns against it , you can predict it rightly.

[Oshosondy]

1. Stop the trade: This is very good but difficult for many traders to do it but if you do that, you have potential loss that you have saved.

What if you stop the trade and the market begin to rise back? That means you will lose what you should have gained back immediately. You have to analyse before doing anything. Using RSI can predict you to still stay and not stop to trade at the time.

2. Use of stoploss all the time: This help your losses to be minimal.

Stop loss can also be a disadvantage, you have to be careful while using it. It should be placed also in a way to fulfill its purpose during abrupt drop in price.

3. Try to adjust your stoploss: You can do this if your trade is already in profit and you suspect that it is going back to your entry price, so you can take your stoploss to entry and all the order to run for profit or it stops at your entry.

This is a nice suggestion, adjusting stop loss will be good especially if the trader has gained already and increasing the stop loss price for long while reducing the stop loss price for short.

[carlfebz2]

It varies in someones risk management thing because not all would really be that willing on closing up their positions even if they are already in negatives.

Yes, its mentioned that you can potentially cut of those potential further losses but doesnt mean that you wont really be having the chance for some recovery if you do just simply open those positions?

If you do mind off that you can possibly recover or patch up those loss then its up to your own choice but those suggestion above isnt really a bad idea to follow on.

[ScamViruS]

Trading is not a mathematical equation based on a rule: do this and you will win such-and-such.
It is a function of a random variable, and sometimes it is not logical, so sometimes the stop loss order is the worst thing you do.
Personally, I do not use a stop loss order, but the strategy depends on the type of trade you want to make and the profits you want to achieve.

Take your feelings away from trading, build a clear strategy and you will be fine.

You are right. In some cases using stoploss when trading is considered the worst decision. I have tried using stoploss in my trade many times and the result I got is really disappointing, because every time my stoploss has hit the market has pumped.

So now I am careful to use stoploss. However, each trader has their own strategy, so they can use stoploss for their strategy needs.

[livingfree]

Avoid applying emotions on your trade.

Make sure that you are executing it based on your plan. Long time traders have already managed to control themselves if they are being emotional with their trades because it won't do good for them.

Stop loss is very important. This also triggers the emotion if you've done so.

[samcrypto]

Many becomes greedy when they trade and that is their bad side because they’re playing with a lot of emotion and with less strategies. I saw a lot of trading successful posted on social media and it creates hype especially on Futures trading, and that’s why many newbies started to do the same thing hoping to get huge profit as well, and guess what most of them lose a lot of money in futures.

If you’re just learning how to trade, its important to understand how it works and to create strategies that allows you to earn. Stay discipline, and stay focus on trading don’t put too much emotion and never to listen to any hype without analyzing the whole scenario of the trend.

[goaldigger]

Avoid applying emotions on your trade.

This is my biggest mistake when I was a newbie in trading, I became greedy and always hurt whenever I lose money, i got hype before and that’s not good in trading as you realize after losing money. There’s no such thing that you’ll always win in trading, you have to accept that you’ll lose some and you’ll earn some. Keep learning, have your best strategies always and stay consistent.

[Issa56]

As a trader or as a newbie in Cryptocurrency you don't have to be greedy and you don't have to always allow emotions to control you, whenever you buy a coin one of the first thing you should do is always set stop loose some people always say stop lose is waste of money or waste of time, some people always complain that whenever there stop-loss have been trigard that's when the coin always pump back again. Seriously I believe all these use to happen but I believe if you are holding a coin and you really believe in the coin if the coin is dumping you can just sell it and buy back when the price is low!!! And there are some coins that will never pump back when it's dumping so is better you always exit those kind of coin because is better to lose 5-10% of your capital than losing 50-80% of your capital. I really believe when you are buying a coin always set stop lose to reduce lost.

[Ryker1]

^[snip]
1. Stop the trade: This is very good but difficult for many traders to do it but if you do that, you have potential loss that you have saved.

2. Use of stoploss all the time: This help your losses to be minimal.

3. Try to adjust your stoploss: You can do this if your trade is already in profit and you suspect that it is going back to your entry price, so you can take your stoploss to entry and all the order to run for profit or it stops at your entry.

Well, it is obvious these are very common advice but effective way of gaining profit. For the first one, you have two choices, stop the trade and hold your coins or stop the trade and covert your coin to fiat if you see that your profit was already there. And the rest is to avoid potential risk, every trader should use this to avoid a massive loss when there is a drastic pullback price in the market. However, I have an addition to this, ^{[stick to the plan]}, it gives you perfect trading if you stick on the plan and avoid following your emotion or even others opinions.

[Sled]

If we find it hard and notice that our strategy never works, this gonna be the best solution to that...

1. Stop the trade

There is no need to force ourselves if we are not fit for this. If we saw that many had success in trading is that because they are destined to become a trader and they are working it hard before they come out with that faces.

The question is, did you do that? Because if not, then you can say that aiming to win without doing it something is just a dream only. Maybe we can take a look at that and try to assess ourselves if this is really for us or not.

[Cherylstar86]

Some trades we take are in wrong direction but because we want to be hopeful that it will come back to profit, we allow it and it close against us. If we keep doing this, it is the exact opposite attitude of someone that wants to keep their initial capital.

There are steps you can take to reduce the loss before you lose every thing or it get to your stop loss and such is

1. Stop the trade: This is very good but difficult for many traders to do it but if you do that, you have potential loss that you have saved.

2. Use of stoploss all the time: This help your losses to be minimal.

3. Try to adjust your stoploss: You can do this if your trade is already in profit and you suspect that it is going back to your entry price, so you can take your stoploss to entry and all the order to run for profit or it stops at your entry.

Sell 50% of the portion of your holdings when you're not certain by the time price would pump. Don't out a 100% trust on the trend because I also experience to be frustrated during my xrp pumped up. I made a decision to sell early and grab the small profit to prevent stressful nights, because it's the best options to do to avoid wrong trades affects me emotionally.

[wxa7115]

Some trades we take are in wrong direction but because we want to be hopeful that it will come back to profit, we allow it and it close against us. If we keep doing this, it is the exact opposite attitude of someone that wants to keep their initial capital.

There are steps you can take to reduce the loss before you lose every thing or it get to your stop loss and such is

1. Stop the trade: This is very good but difficult for many traders to do it but if you do that, you have potential loss that you have saved.

2. Use of stoploss all the time: This help your losses to be minimal.

3. Try to adjust your stoploss: You can do this if your trade is already in profit and you suspect that it is going back to your entry price, so you can take your stoploss to entry and all the order to run for profit or it stops at your entry.

Keeping a position open when it is clear that you have made a mistake and somehow hope that things should change is probably the number one reason why traders not only lose money but they lose way more money than what they intended, take a look at some of the greatest losses in the markets and you will see a similar pattern, a trader will open a position, then his prediction is proven wrong but instead of closing it and accept his mistake he keeps it open increasing his risk and sometimes even adding to it by buying even more stocks or coins.

This cycle keeps itself going on for some more time until the losses cannot be sustained anymore and the trader finally admits defeat or he gets his positions closed by the exchange, so I will recommend anyone that if you happen to make a bad trade just accept the loss since that is way cheaper than the alternative.

[MWesterweele]

If we find it hard and notice that our strategy never works, this gonna be the best solution to that...

1. Stop the trade

There is no need to force ourselves if we are not fit for this. If we saw that many had success in trading is that because they are destined to become a trader and they are working it hard before they come out with that faces.

The question is, did you do that? Because if not, then you can say that aiming to win without doing it something is just a dream only. Maybe we can take a look at that and try to assess ourselves if this is really for us or not.

We all have our own kind of strategies and techniques in trading but sad to say sometimes those strategies we have didn't work for that plan A so we should always have a set of plan B in case. For me life in trading is a constant trial and error that's why we should always choose our decision wisely and also learn to become flexible when the strategies doesn't work well. Though we can save some ideas and strategies from other traders but we can't say that their strategy will work on us.