Lets Brain storm on how to limit losses...

[Zilon]

Every trader has come to that point in their trading history where the had to battle many things when the made their major loss. Some might have had so many bad thoughts flying through their minds while others struggled with emotional trauma. Losses is what no body ever plans for but it happens to be one of the major experience every trader must taste.

Most traders have also had their greedy moments turn out too hash on them. Some out of taking revenge on the market made tribble loss and many who feel extremely confident even when they are making wrong analysis have also tasted losses. Some even jump into trading premature maybe after getting an overview of what trading entails the feel confident and wants to explore themselves.

What led to your major loss in the market as for me it was staying too long on a trade i was making good profit before it turned all red and while waiting for the market to finish the correction moves i ended up losing everything.  How about you?

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[Oshosondy]

What led to your major loss in the market as for me it was staying too long on a trade i was making good profit before it turned all red and while waiting for the market to finish the correction moves i ended up losing everything.  How about you?

High leverage affected me in the past. If I had used low or no leverage, I would have gained as the market correct itself to the position that I took.

Assuming I have $500 to trade, I can go for more than 10 to 20x leverage. Market may continue to favour me, but when it does not favour, my money got liquidated. What do follow the liquidation is market correction in a way the position I took is what that the market would follow in a way I would have gained, but high leverage affected me.

Just like in gambling, chasing losses is what that is mostly dangerous, because that is the time poor mind builds up and making wrong decision that can make the losses get more further, so it is like that in trading too. Revenge trading only lead more losses.

Sometimes, I supposed to use longer duration analysis, but using shorter durations like 15 minutes for analysing the market can result to losses at times. There are times that 1 hour, 4 hours or 1 day charts would be better. But scalpers will depend on shorter durations though.

Irrespective of that mistake we made, we should not trade with the amount of money we can not afford to lose.

[EarnOnVictor]

There are a lot of reasons why traders lose, and based on my experience, the most reasons why they lose are due to greed and revenge trading. Trading is for mature minds that have a plan and set out calculations to achieve the plan under strict rules. Anything that makes such a trader degenerate from the plan would surely ruin his trading account.

Frankly without wasting time, a trader that would limit/minimise losses and preserve his trading account for a long time duration must be;
1. Disciplined and determined
2. Must have a foolproof trading strategy with a high winning percentage to avoid discouragement
3. Must have proper and balanced money and risk management.

Do this, and you will always be happy with your trading account.

[JamesBorn]

My dude, greed is the major reasons why people experience losses, let's leave aside sentiments, everybody is into bitcoin because they wants to make money and in attempt to money many feels like outsmarting the system. The first huge amount of money put into trade and investment was $3,000, what happen I open a trade and leave the market going in my favour, often time I came back to check it, it was still green favour but when it goes a slits against me instead of taking profit and leave, I was believing to hit huge expectations and be like others but the market go against me and wipe all the money, I did not get myself for two months with trauma and shocks.

Most bitcoin investors and traders are too greeding to a fault, wanted to make all the gain in a second, minute or hour without be contented with the little increase you've on your wallet. If we can remove greed we can achieved great.

[Bitcoin_Arena]

What led to your major loss in the market as for me it was staying too long on a trade i was making good profit before it turned all red and while waiting for the market to finish the correction moves i ended up losing everything.  How about you?

Greed!

I think it has affected most of the traders, including me

One fateful day I made very good profits from an open position, probably around 250% ROI and then after closing, instead of calling it a day I when back in to short more since the market was crashing. The position was closed and liquidated and closed even before a set-up a stop loss due to the high volatility of the market at that time. I froze for a bout a minute or two 

[BlackBoss_]

Every trader has come to that point in their trading history where the had to battle many things when the made their major loss. Some might have had so many bad thoughts flying through their minds while others struggled with emotional trauma. Losses is what no body ever plans for but it happens to be one of the major experience every trader must taste.

You can not maintain your good trading streaks forever. You must know when to stop trading even you are in a very good streak.

Market itself needs to have days of moving boring and uncertain so if you decide to trade in those days, you are taking higher risk. When the market decides its next trend and you don't have stop loss, your position can be liquidated or you simply get a loss by yourself without forced liquidation.

Knowing when to trade and when to not trade is key to have successful trading. It is a vital rule for trading but I think it is more easily if we don't trade, but invest instead.

[adaseb]

Many will say it’s greed but the largest losses for almost all traders is going to be revenge trading and we have all been there.

You know how it is. You lose a little and then went to trade until break even. Then you lose some more so you take more trades with higher positions and these trades basically make no sense in technical analysis and you are pretty  much guessing at this point and eventually you go bust. Happens to every trader.

[Dzwaafu11]

Every trader has come to that point in their trading history where the had to battle many things when the made their major loss. Some might have had so many bad thoughts flying through their minds while others struggled with emotional trauma. Losses is what no body ever plans for but it happens to be one of the major experience every trader must taste.

Yes, you made a nice point here. I believe that trading is not about learning the entire procedure as quickly as possible. There is a potential that the trader would lose money. This will still result in another health issue. I'd want to add that when someone is dealing with emotional issues, they should not trade because trading is not for them at that time.

Most traders have also had their greedy moments turn out too hash on them. Some out of taking revenge on the market made tribble loss and many who feel extremely confident even when they are making wrong analysis have also tasted losses. Some even jump into trading premature maybe after getting an overview of what trading entails the feel confident and wants to explore themselves.

That is what has an impact on my trading journey. I once had a terrible market when I first started trading because I was not knowledgeable about it well and I wanted to trade instead of needing more explanation and guidance I didn't think of that I just went through it and started trading and I made a very bad loss that I can't forget

What led to your major loss in the market as for me it was staying too long on a trade i was making good profit before it turned all red and while waiting for the market to finish the correction moves i ended up losing everything.  How about you?

Mine was avarice. I don't want anyone else to know I'm trading since I'm afraid of scammers everywhere, and if I let someone know, he or she may swindle me. And a lack of sufficient trading understanding at the time, which harmed me financially because I didn't understand how it worked and invested a large sum of money.

[irhact]

Every trader has come to that point in their trading history where the had to battle many things when the made their major loss. Some might have had so many bad thoughts flying through their minds while others struggled with emotional trauma. Losses is what no body ever plans for but it happens to be one of the major experience every trader must taste.

From what I have read online, greed has to be the number one cause of most losses from traders. Greed can come in many ways so the newbies can always fall victim. The most common type of greed is not exiting the market while in profits because they trader wants to make more money as he believes the market is still going to continue rising. Most traders that take this decision, regrets it at last.

For me revenge trading was the main reason I lost big when I started trading in my early days. I hate losing so whenever I make a loss I always want to make that money back, some days it was a profiting move until I over did it at some point and lost almost all my capital then I began understanding why it's dangerous.

[Captain Corporate]

Most voters said greed, but they didn't talk about what caused that loss though. I mean sure greed but the reality is that we are talking about a financial reason for it as well. I personally lose most commonly due to the fact that we do not invest into the right thing at the right time, hence that makes us lose. Or my personal biggest reason; I keep holding something for far too long instead of keep selling it. I can buy something at low, I am very good at it, but then I hold it for far too long and that makes me lose money as well. This is why the best thing to do in this case is to just keep selling it when you are in profit and not wait for it for too long. Or just have a stop loss above the profit zone if you can do that after it goes up, so you do not go back down to a loss when it goes down.

[gunhell16]

In conducting a trading activity here in the crypto space, we must consider risk management because of the money involved, we learn to limit ourselves as a trader here in this field.

We also know that it is not easy to get a cryptocurrency profit but we can also get a profit here, but all we need is not to seek high income each day if we do day trading and if we do long-term It should be a time frame if you really sell it.

[KingsDen]

Re: Lets Brain storm on how to limit losses...

The best way to limit your losses is by managing your risk.  Plunging into emotional trauma is unavoidable if you trade with large funds and loss the trade.
Another reason is revenge trading. This also happens in gambling, trying to bounce back to profit you sink the more.

P.S: Can you include trading without experience or gambling in the name of trading when you don't know how to trade.

[disconnectme]

For me the two major things that make me lose money in trade are FOMO and Greed, FOMO affected a lot of people even experience traders get struct by it, Greed is another thing not sizing my trade right, and wanting to recover most if not all my past loss from another trade, this also never work for me. There are other factors like Poor analysis just like the Op highlighted. I have been in the $SYN trade since I learned the team coming out with their own chain but this trade is taking too much more than necessity

[jossiel]

Greediness.

When it was the best time to take a profit and I didn't because I thought that it was going to be more. This type of scenario is common for the most of us.

When it seems that it was actually a good time to sell, we are not selling because we want to have more and that approach is giving us the kind of greediness that we're not noticing.

[Dr.Bitcoin_Strange]

In my case, I made a mess with my leaverage setup, and just within some minutes, I lost my asset. It happened the first time, just like magic. While I was just seeing the price go up and down, with just a little volitile movement, everything was gone. I tried it again, but my asset still melted. Trading is not something anyone should venture into without being determined to handle losses, just like in the thread I commented on yesterday about how people sit so long on their losses. Well, after my experience when I tried to learn about trading, I have not tried trading again, but I can try, and I think I will still give it time when I begin to have enough free space.

[BlackBoss_]

Many will say it’s greed but the largest losses for almost all traders is going to be revenge trading and we have all been there.

You know how it is. You lose a little and then went to trade until break even. Then you lose some more so you take more trades with higher positions and these trades basically make no sense in technical analysis and you are pretty  much guessing at this point and eventually you go bust. Happens to every trader.

Revenge trading is after you have some lost trades but it is not worse than you are too happy with your win trades and lose control of your mind by more easily to open new trades. It is when you change from a win streak to a lose streak and it is a cause of your revenge trading. All of them are bad for a trader but I am sure all of us made that mistakes. It's only a personal matter that when we realized that bad trading style and stop it, change ourselves.

Most voters said greed, but they didn't talk about what caused that loss though. I mean sure greed but the reality is that we are talking about a financial reason for it as well. I personally lose most commonly due to the fact that we do not invest into the right thing at the right time, hence that makes us lose.

It is also because we mostly don't accept to close our positions with a priority to protect our initial capital. It is a most important thing for investor and trader but we mostly don't want to do this.

After open a trading position or investment position, we only close our mind and wait for profit. Not all rocky discipline can help us to protect our capital and get profit. Discipline only help us if we do this with a good plan.

[DevilSlayer]

Traders are regretting their past mistakes because they do not have a solid plan that should be consist of good risk management, perfect entry point and also cut loss. When it comes to risk management, traders should be aware to VAR or the Value at Risk. This is where you will know what is your maximum cut loss percentage and your maximum amount of money you can afford to lose. The Ideal VAR is usually 1%-2% which means that if you have $100 in your trading account. The maximum losses that you have in a specific asset will be 1%-2% which is $1-$2. If your losses surpass this amount then it only means that you are not using the VAR in the right way.

You can either compute the VAR manually or you can also use calculator to save time and effort. You need to also to know what is your perfect entry, the entry is not fix it will be depend on what is your niche. Lastly which is the most important thing: the cutloss. Every trading plan should have a cutloss because your bias can be invalidated anytime.

[doomloop]

In my case, I made a mess with my leaverage setup, and just within some minutes, I lost my asset. It happened the first time, just like magic. While I was just seeing the price go up and down, with just a little volitile movement, everything was gone. I tried it again, but my asset still melted. Trading is not something anyone should venture into without being determined to handle losses, just like in the thread I commented on yesterday about how people sit so long on their losses. Well, after my experience when I tried to learn about trading, I have not tried trading again, but I can try, and I think I will still give it time when I begin to have enough free space.

Leverage and margin trading requires an extreme level of knowledge and experience of markets and technical analysis and trends, one cannot master it by simply starting to trade with no proper experience and knowledge about the tools and set ups that are useful and can be used in the favour of the trader. That's why it's better to just stick to spot trading until you are fully trained.

I've seen people who have enough technical knowledge and abilities to analyse markets and charts and do all sorts of things but they stay away from margin and futures trading because they say it's too much risk.

[martyns]

In my case, I made a mess with my leaverage setup, and just within some minutes, I lost my asset. It happened the first time, just like magic. While I was just seeing the price go up and down, with just a little volitile movement, everything was gone. I tried it again, but my asset still melted. Trading is not something anyone should venture into without being determined to handle losses, just like in the thread I commented on yesterday about how people sit so long on their losses. Well, after my experience when I tried to learn about trading, I have not tried trading again, but I can try, and I think I will still give it time when I begin to have enough free space.

You are just very correct,I mean there is no way on can be a trader without him losing.Dont forget that loses are part of the game, therefore,one must belt up while venturing into the business,you must be someone who can Atleast handle such cases,and not someone who will cry when you experience loss.If there is anyway one can do without loss,almonet everyone would have done that,but because  loss is part of the game,you just can't make smooth trade in a row without getting setbacks.All you just need to do is make up your mind that  despite the loss that comes,you will still continue with trading  until you get to the height that you desired.Remember,winners never quit,and quitters Neva win.

[BitcoinPanther]

What led to your major loss in the market as for me it was staying too long on a trade i was making good profit before it turned all red and while waiting for the market to finish the correction moves i ended up losing everything.  How about you?

Same here, staying too long hoping that the price would uptrend more.  There are instances that I wanted to cash out but hindered by the thought of making more.  It is really not a good thing to be greedy in trade.  In a high volatility market, if we see a good profit we should grab it.  Then wait patiently for reentry.  If the opportunity for reentry does not come, at least we have exited the trade with profit. 

Greediness.

When it was the best time to take a profit and I didn't because I thought that it was going to be more. This type of scenario is common for the most of us.

When it seems that it was actually a good time to sell, we are not selling because we want to have more and that approach is giving us the kind of greediness that we're not noticing.

Looks like I am not alone, well at least we have learned our lesson.  Greed is part of trading but too much of it will cost us our profit.  Better to trade with realistic price target and stick with it.  It is not funny to miss profit because of greed again and again.