Lets Brain storm on how to limit losses...

[Bushdark]

Trading is one of the ways we can make money in the market but it is very important for us to always measure our risk to reward ratio so that we are nit going to always fall Victim to the wrong analysis. If we are able t ok measure our risk to reward ratio accurately, we are not going to have problem at all as a trader when we enter the market.

 Loses is something that is inevitable but it's always impressive when our loses is less than our profits.
 This is what pro traders do use to supercede the upcoming traders who do make big profit and later lose it with a small space of time.

[1715434776]

1715434776

[death69]

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?

One thing that always haunts me in trading is not being able to control my patience and ambition to want to achieve something more than what I have found. I admit that and really learned afterward, being able to enter crypto trading with high volatility and risk is certainly not just reckless capital. Even though it has been seasoned with knowledge for a long time, the desire for more is always unavoidable. Until it got to the point where I started to get bored and turned to long-term investments. Try not to care about market conditions at all times, only enter occasionally to buy coins that I want to hold for a long time. After leaving and not returning, at first, it was quite difficult because crypto information kept updating and reaching social media brands. In fact self-control is the main thing before going any further.

Buddy, I feel you! Who hasn't been seduced by crypto's bewitching melody, promising a treasure trove and captivating prospects? Yet, as you pointed out, restraint is vital. Don't let the mania engulf you, like resisting a cake's sweet allure. Recall the overarching plan.

My personal secret? Focusing on the long haul. Disregarding market jitters, I see the bigger picture and invest shrewdly. Naturally, taking chances and embracing novelty are part of life's thrill. It's about balancing prudence and audacity, temperance and spontaneity. Indulge in the crypto frenzy, but keep your gaze fixed on the target and harness that essential self-control.

[darewaller]

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.

I must say revenge trading happens only to those who are greedy. Because if not, then they will just call it a day and just come back to trading when there is enough capital and whenever the market is perfect to trade. But I completely believe that all traders experienced this revenge trading. Because we don’t want to keep on losing and used up all our funds, so we start to do some revenge trading hoping we can easily recover our losses, but it seems it only lead us to losing a lot more until we end up in a very worst situation.

Yeah, he didn't realize that both are still the same. If we are not greedy, we will stick on our limits so we still have something left to trade the next day and so on. I don't think this is called a revenge trading but it's just another trading session. Trading must be done like this so that we can be able to trade often and expect earning some profits. About capital, we must only use the money that we can afford to lose.

We must not took a loan or sell our valuable stuff. If greed unexpectedly happens and we drain all of our money, then just accept the mistake and move on. All experienced it even once or twice but that's normal because we are just humans.

[MIner1448]

One way to limit losses is to set stop loss orders that automatically close the position when the price reaches a certain level. This way you can protect your position from additional losses if the market moves against you.
It is also very important to have a risk management strategy and follow it strictly. This may include determining a certain percentage of your capital that you are willing to risk on each trade, as well as determining exit points from a trade if it starts to lose money. It is important to stick to your strategy, even if there are unforeseen changes in the market.

[Fatunad]

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.

I must say revenge trading happens only to those who are greedy. Because if not, then they will just call it a day and just come back to trading when there is enough capital and whenever the market is perfect to trade. But I completely believe that all traders experienced this revenge trading. Because we don’t want to keep on losing and used up all our funds, so we start to do some revenge trading hoping we can easily recover our losses, but it seems it only lead us to losing a lot more until we end up in a very worst situation.

Yeah, he didn't realize that both are still the same. If we are not greedy, we will stick on our limits so we still have something left to trade the next day and so on. I don't think this is called a revenge trading but it's just another trading session. Trading must be done like this so that we can be able to trade often and expect earning some profits. About capital, we must only use the money that we can afford to lose.

We must not took a loan or sell our valuable stuff. If greed unexpectedly happens and we drain all of our money, then just accept the mistake and move on. All experienced it even once or twice but that's normal because we are just humans.

SL's or limiting your losses is really indeed crucial thing not only on trading but simply or into investment itself on which you should really know on when to set those losing limits rather than on losing all of your assets.
We know that it cant really just that possible that we could be able to predict on whats the future on which it would really be not that shocking if ever we do really miss out some opportunity out of those positions that we have set earlier.This is why as a trader or investor then setting out your risks management is really that important because if you wont then you would really be that shocked on something that unexpected to happen.
We do know that we cant really be having that huge capital or something that we could make use neither on trading or investment which it is really just that sensible that we should really be setting out something
like this or else you would really be seeing your entire bankroll would be blown up in shortest time as possible. Risks management and handling it would really be that important and
really that most crucial.

[ololajulo]

Another approach to combat greed is to establish a plan for when to stop buying into the market once Bitcoin surpasses its previous all-time high. At this point, you can begin devising an exit strategy by setting specific prices for selling all your coins and placing the necessary orders.

[jeraldskie11]

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?

This is why I've had so many setbacks. And, in my opinion, this is also the reason why most traders' funds are depleted. Instead of taking a break from trading due to persistent losses, we began trading continually even though we no longer followed the plan and were ruled by emotion. Your reasoning is that you want to recoup your losses, so you trade more frequently and raise your position size; this only demonstrates that you are not adhering to your risk management strategy. As a result, it causes significant losses and causes your capital to vanish swiftly.

[GreatArkansas]

(....)
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?

For me, traders are not sticking with their plans.
Let's say for example before they enter a trade, they have a plan already, stop loss on x price, take profit on y price.
Then suddenly let's say the price goes to the opposite of their price target, then even if the stop loss is not yet triggered, they already close the trade. So by that, you already conclude or accepted the lose, what if it will not hit your stop loss? Then that's the problem.

[palle11]

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?

This is the case when we trade loosely, without stop loss and guided by emotions and not reality. I have been in that also, either you are expecting a reversal to your entry point to get out which will not happen most of the time because of trading on wrong trend. After such experience, I have observed that most serious and heavy losses made is because of lack of stop loss, high level which is caused by high taste for profit. Having a trade on 10x leverage is not going to move in profit or loss will trade with 1x or 2x and that is a lesson I have learnt.

[Inwestour]

This is why I've had so many setbacks. And, in my opinion, this is also the reason why most traders' funds are depleted. Instead of taking a break from trading due to persistent losses, we began trading continually even though we no longer followed the plan and were ruled by emotion. Your reasoning is that you want to recoup your losses, so you trade more frequently and raise your position size; this only demonstrates that you are not adhering to your risk management strategy. As a result, it causes significant losses and causes your capital to vanish swiftly.

This is a consequence of the fact that you succumb to emotions, in the desire to correct the situation in which you lost money as soon as possible, the emotional state is very unstable, which will lead to subsequent mistakes.

If you have a strategy for how you should act in certain situations, but you do not follow these rules, then in this case it is better not to trade, because you still will not be able to achieve positive results in this.

[Wapfika]

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?

This is the case when we trade loosely, without stop loss and guided by emotions and not reality. I have been in that also, either you are expecting a reversal to your entry point to get out which will not happen most of the time because of trading on wrong trend. After such experience, I have observed that most serious and heavy losses made is because of lack of stop loss, high level which is caused by high taste for profit. Having a trade on 10x leverage is not going to move in profit or loss will trade with 1x or 2x and that is a lesson I have learnt.

The result will still the same if you set a stop loss because user that soaked on trading will continuously pursue trading to chase losses. It's either the user will keep opening position with stop loss or use high leverage to increase the profit multiplier. It's very hard to stop trading if you are experiencing a momentum of profit because everybody loves it. Continuos is what everyone goal when we are trading.

A target profit and loss are the best option to avoid chasing loss or pursuing more profit because we surely never stop until we already burned all our capital before we stop. This discussion is easy to implement in theory but very hard in actual because our mind is set to become curious and greedy. I knew all this things yet I still fall victim sometimes on this kind of mistake when my emotion is unstable.

[Bushdark]

Another approach to combat greed is to establish a plan for when to stop buying into the market once Bitcoin surpasses its previous all-time high. At this point, you can begin devising an exit strategy by setting specific prices for selling all your coins and placing the necessary orders.

Greed is something that can not be overcomed with a simple approach because it is right beneath us. It is something that is inbuilt I'm us and the only way we can try as much to guide ourselves from not being used up by greed is for us to always debug and mentality and work with people that could help us in a long term especially working with experience pro traders that might have been in the market for a very long time.

I have seen traders making huge profits from the market and the next day they lose everything. This could be as a result of greed to make more money when you have reached your daily limit. We need to ensure that the greed in us would not affect our trading arsenal to the extent that we are not going to be able to think straight on how we  get more skills and improve in all angles of our trading journey.

[maydna]

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?

This is the case when we trade loosely, without stop loss and guided by emotions and not reality. I have been in that also, either you are expecting a reversal to your entry point to get out which will not happen most of the time because of trading on wrong trend. After such experience, I have observed that most serious and heavy losses made is because of lack of stop loss, high level which is caused by high taste for profit. Having a trade on 10x leverage is not going to move in profit or loss will trade with 1x or 2x and that is a lesson I have learnt.

When we trade with emotions, we can't see the opportunity to enter the market well and instead want to chase profits. This is also what I felt when I saw the price of a coin suddenly increase and made me feel Damn, I entered a few minutes ago, so I decided to enter the market immediately without analyzing it first.

If you are still a beginner, it is better not to try futures trading because it is more risky. It's better to keep trading on spot trading, which is less risky because when you buy at the current price, and it turns out that the price is decreasing, you can keep holding it without losing your other balance. And that's why you should learn about trading more to determine when to enter the market.

[Aanuoluwatofunmi]

What led to your major loss in the market

1. Inadequate information and preparation
2. Wrong information and orientation
3. Impatient and over excitement
4. I too know and overconfidence
5. Investment on the wrong asset or coins

If we can tackle all these above listed items in our economy and financial life, then we will have a better experience than we could do if not, most of these losses we see happens to us were as a result of our weakness and vulnerability, but many of us dont want to believe this, but when the proper way of administration is given to what we do, there's no how we can regret taking those step in the future because we have adhere strictly to the protocols as expected.

[cydrix]

The majority of voters says greed, but they avoided discussing the reasons for the loss. Sure, there is greed involved, but the fact remains that there is also a financial component to it. The reason I personally lose most frequently is because we don't invest into the appropriate item at the proper moment, which causes us to lose. Or perhaps the main cause for me personally is that I cling onto things for too long instead of selling them. I am quite skilled at buying things for low prices, but I tend to retain them for too long, which causes me to lose money as well. The best course of action in this situation is to simply keep selling it while you are making a profit rather than waiting an excessive amount of time. If it goes up, you might simply place a stop loss order above the profit zone to prevent going back to a loss when it goes down.

[Rigon]

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?

I have been involved with trading platforms for almost a long time. But after being associated with this trading platform for the past few years, I have realized that my greed is the most responsible for my losses. All the losses I have made from trading platforms till date are because of my greed. I took this trading in futures trading for few days. I had a lot of profit in the first phase. But I leave it hoping to get more and then I have to suffer this loss. From here I have seen people lose the most on trading platforms just because of greed. So whatever you do, never get greedy in trading platform, get rid of greed first.

[judaspriest]

This is why I've had so many setbacks. And, in my opinion, this is also the reason why most traders' funds are depleted. Instead of taking a break from trading due to persistent losses, we began trading continually even though we no longer followed the plan and were ruled by emotion. Your reasoning is that you want to recoup your losses, so you trade more frequently and raise your position size; this only demonstrates that you are not adhering to your risk management strategy. As a result, it causes significant losses and causes your capital to vanish swiftly.

This is a consequence of the fact that you succumb to emotions, in the desire to correct the situation in which you lost money as soon as possible, the emotional state is very unstable, which will lead to subsequent mistakes.

If you have a strategy for how you should act in certain situations, but you do not follow these rules, then in this case it is better not to trade, because you still will not be able to achieve positive results in this.

Unstable emotional conditions will most likely make us make the wrong decisions,
This of course results in further errors,
It's not easy to trade because it's not just about buying and selling.

[Ojima-ojo]

Those that use high leverage should be ready for frequent losses, and for that, they need much motivation when that happens since trading outcomes have little to do with emotions and allowing your emotion to take a better part of your decision when trading is a quick way to lose.

Most cases of distress that result from the trading outcome is as a result of emotion and greed and that is what pushes some traders to use high leverage so we must try as much as possible to disconnect our emotions from our trading activities, that way we can analyse the trade based on available statistics which are constantly against high leverages.

[stomachgrowls]

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?

This is the case when we trade loosely, without stop loss and guided by emotions and not reality. I have been in that also, either you are expecting a reversal to your entry point to get out which will not happen most of the time because of trading on wrong trend. After such experience, I have observed that most serious and heavy losses made is because of lack of stop loss, high level which is caused by high taste for profit. Having a trade on 10x leverage is not going to move in profit or loss will trade with 1x or 2x and that is a lesson I have learnt.

When we trade with emotions, we can't see the opportunity to enter the market well and instead want to chase profits. This is also what I felt when I saw the price of a coin suddenly increase and made me feel Damn, I entered a few minutes ago, so I decided to enter the market immediately without analyzing it first.

If you are still a beginner, it is better not to try futures trading because it is more risky. It's better to keep trading on spot trading, which is less risky because when you buy at the current price, and it turns out that the price is decreasing, you can keep holding it without losing your other balance. And that's why you should learn about trading more to determine when to enter the market.

On the time that emotion kicks in then you would really be making yourself like a gambler then you arent doing investing or trading anymore.We know that losses isnt something an avoidable thing on which its rather
inevitable. The thing on here is that you should really prioritize on making profits in the end of the day despite of the losses because what we do really tend to achieve is to have positive results.

Dont make yourself on being that perfectionist because if you do have that kind of approach then you would be that susceptible to lots of error sand mistakes which you should really be that avoiding it on the first place. Trading isnt that simple and not something that you could really be easily handle with. Remove into your mind that you are that a guru or knowledgeable on this one.

On the time when you do make out some active dealing and engagement, then you would be finding to your self that it isnt something that someone could handle on easily .There might be some
initial profits which you might experience but most of the time it would be a loss since you arent that knowledgeable or skillful when it comes to this.

[Kasabus]

I always thought that people who are actually losing a lot from trading is because they come into the market unprepared and just jump into trading because of their greed to get instant profits. Though they actually know that trading is risky, but maybe some just need to experience the risk of losing first before they can actually say that yes, trading is risky and certainly never that easy to make profits. And even those who decide to do revenge trading, for me it only shows that they are just being greedy that they keep on chasing for profits even when the market does not favor their trading decisions.