Do Not Lose Everything Youve Gained in One day, or One Trade

[justdimin]

People are greedy.

I also experienced this once, because my mindset is that if I won a trade using my technical analysis, I can win the next trade that I'm going to make with a higher leverage for an easy profit, but it's not as simple as that, because trading is not always Christmas. We always forgot the risk management and the right management of our funds and profit, that's why we always lose everything and the rage trading will start.

Chasing the losses is the most case scenario for newbie traders, trading randomly because of their frustration hoping to make profits without any plan at all.

Yeah that is definitely not an easy thing to do and I understand the logic and I understand why it looks so difficult for a lot of people. I am not saying that you shouldn't do it, all I am saying is that if you really want to do it at least be aware that you could lose all your money if you do it, that would be the most logical thing. I know that we are going to want to do something that would get us a lot of return and the greedy nature of the people could make them trade like this.

So, the middle ground is that if you really want to do it, then you should simply just end up doing it with very little money so that you wouldn't end up with losing all of it at the single trade. The mistake there was that OP's friend invested ALL his money to a single trade, that is way too much risk, there is no need to put that much money into that much risk. If you really want to try it, then just do like 5% of your portfolio into a single trade and learn the hard way that it can be gone, and all you would end up could be 5% loss.

[Taskford]

People are greedy.

I also experienced this once, because my mindset is that if I won a trade using my technical analysis, I can win the next trade that I'm going to make with a higher leverage for an easy profit, but it's not as simple as that, because trading is not always Christmas. We always forgot the risk management and the right management of our funds and profit, that's why we always lose everything and the rage trading will start.

Chasing the losses is the most case scenario for newbie traders, trading randomly because of their frustration hoping to make profits without any plan at all.

To much chasing for more big gain is somehow the most worst decision we could ever take since we will just come up on wrong situation where luck fades and unlucky strikes will follow after than. This is commonly happened that's why we need to be more careful upon deciding to extend our game time since if we always do this for sure that we can't get a best result for what we do. So we must know how to end up our game to avoid any huge damage and instead we can secure all our winnings so casino will not have a chance to recover the money they lost from us. Chasing losses is the worst situation which we ever take since this attitude is addictive and we cannot get anything good for doing this since its so stressful to see how the game will end up to us especially when seeing those stats which is currently at heavy losing so for sure that person who done this action will be in huge stress if they decide to gamble for more and ignore other consequences that can possibly destroy them.

[Mahanton]

People are greedy.

I also experienced this once, because my mindset is that if I won a trade using my technical analysis, I can win the next trade that I'm going to make with a higher leverage for an easy profit, but it's not as simple as that, because trading is not always Christmas. We always forgot the risk management and the right management of our funds and profit, that's why we always lose everything and the rage trading will start.

Chasing the losses is the most case scenario for newbie traders, trading randomly because of their frustration hoping to make profits without any plan at all.

To much chasing for more big gain is somehow the most worst decision we could ever take since we will just come up on wrong situation where luck fades and unlucky strikes will follow after than. This is commonly happened that's why we need to be more careful upon deciding to extend our game time since if we always do this for sure that we can't get a best result for what we do. So we must know how to end up our game to avoid any huge damage and instead we can secure all our winnings so casino will not have a chance to recover the money they lost from us. Chasing losses is the worst situation which we ever take since this attitude is addictive and we cannot get anything good for doing this since its so stressful to see how the game will end up to us especially when seeing those stats which is currently at heavy losing so for sure that person who done this action will be in huge stress if they decide to gamble for more and ignore other consequences that can possibly destroy them.

There are only two things that we could really be able to experience out on trading or investment whether;

Gaining up profits
Consecutive losses

This two scenarios does really need up that wise dealing and stopping and taking a break would really be that recommended.
It might be that more sensible or something that it is really that needs to be done on losing situation but it is also that relevant if we do speak about on winning scenario too.
If you are really just that too greedy then you would really be ending up on having bad decisions which it might causes up for those wins to lose it up once again.
Control is relevant and if you arent having that control then things turns out to be messy.

Slowly taking up the pace so that you would really be able to assess which it would really be that wise on taking a break or would really be proceeding with
having more caution and meticulous trading approach but as long you arent stressing yourself then it is really that recommended to have that kind of behavior
instead on really that make yourself that too forceful.

[lalabotax]

it is very important to be most careful while day trading when volatility is high, just as it has been in a few days now, this is specially for those who trade the futures market, trading futures is 10x more risky than trading spot, in futures trading, a simple miscalculation or failure to use proper risk management could lead to you being liquidated and all the money invested gone in a twinkle of an eye.

The future market is indeed very high risk, in any market conditions. Especially if there is news sensitivity which causes price volatility to become higher or the market changes drastically. Trading in the Future market could be said to be not for everyone. In fact, only traders who have truly prepared themselves with emotional maturity, understanding, insight, analysis, strategy and experience will probably have much better results. This alone does not mean that they are exempt from those risks. But usually, they already have several plans if the market changes direction, there are several techniques they can apply. Meanwhile, for newbies who don't really understand this, they might only think of a 1-way market, which when its volatility changes, it looks like it will end because of reduced liquidity.

On the other hand, trading in spot may be less risky in the future. but then again, nothing will be zero-risk. Everything is at risk, it just depends on how much risk we can take, and how prepared we are to minimize that risk. In spot, maybe this is not as risky as the future market, because after all, we ourselves can regulate the prices we set, especially for short terms, if they are not hype coins which might turn to dust quickly, this will be safer if one day the market changes drastically just just wait, or do it with SL/CL.

[terrific]

On the other hand, trading in spot may be less risky in the future. but then again, nothing will be zero-risk. Everything is at risk, it just depends on how much risk we can take, and how prepared we are to minimize that risk.

The risk remains and there could be some ways to lessen the risk but it's gonna stay there as you've said.

In spot, maybe this is not as risky as the future market, because after all, we ourselves can regulate the prices we set, especially for short terms, if they are not hype coins which might turn to dust quickly, this will be safer if one day the market changes drastically just just wait, or do it with SL/CL.

The risk in spot, is not that much compared to the futures and many think that futures is going to be the one that they will choose more than it. They're wrong if they want to have a safer way to trade and risk in spot is no doubt lesser and lower than futures.

[Rengga Jati]

The risk remains and there could be some ways to lessen the risk but it's gonna stay there as you've said.

But unfortunately, many new traders seem to ignore this and it will actually increase the risks. Sometimes, they even ignore the risks because they feel very confident that they will get high profits from what they place when doing future trading. In fact, future trading will never be free from risk. And honestly, it is quite difficult to minimize risk, especially if we still don't really understand the various appropriate strategies when trading.

To much chasing for more big gain is somehow the most worst decision we could ever take since we will just come up on wrong situation where luck fades and unlucky strikes will follow after than. This is commonly happened that's why we need to be more careful upon deciding to extend our game time since if we always do this for sure that we can't get a best result for what we do.

Indeed, Greediness. Yes, this happens very often, greed is one of the things that makes many traders miss the moment to take profits and end up losing the money. I've experienced this several times and it's not easy to let go of our desires and hopes that are too high for the profits we set. However, when the target has been achieved, it's not taking profits that we do, but there is a feeling of wanting to go higher and higher, yes, this greedy nature will actually destroy and make us get disappointing results

[knowngunman]

Risk management was what your friend failed to apply on his trade before going to sleep. Which trader that understands how risky that trading has and didn't use stop loss on his trade and he went to sleep, it means that he was the one that was the cause of his loss.

What makes a trader successful is not by his experience of skill in trading but it is how he can manage his risks when trading to avoid excess loss. When trading, we shouldn't allow our emotions to control our trading activities to prevent us from greed.

Honestly this is what I'm still struggling to understand too. Which serious trader will open a trade and go ahead to sleep without setting the necessary limit? That's a very classic mistake mate. He was just too confident in his strategy but that is not the right way to go. The best way to avoid this is to always set stop losses before going to sleep so that your trade will close automatically if the market moves against you. He needs to do more research and learn more about risk management before he should starts trading again. Sometimes the best way to help someone is to let them learn from their own mistakes and I hope your friend has learned from this mistake and is being more careful now. It's always painful to lose money but it is more painful at this period of economical surge. Lesson is being learnt in hard way.

[goinmerry]

As one of the famous lines says, "even the high priest messed up". Shit happened even for professional traders.

Saying do not lose everything in a single day sounds simple to say but it's hard to cope up on any advice once on the situation. We are able to say that advice because in most cases, it resulted in the worst but what if the other way happened?

Let's just charge that worst experience into a useful reference and try our best to improve our future strategies.

[gunhell16]

You need to admit that, more profit comes with more risk. So if you demand for more profit from the market, then you have to also take more risk accordingly. If someone isn’t capable of this, then definitely no one can save him from getting into losses. I don’t believe that Day trading is hard. If a trader is capable enough to analyse the market correctly, then it doesn’t at all matter for him. For him everything is like a cake of piece and he does risk management perfectly.

I agree with this: if you know what you are doing as an individual trader, you or we know ourselves that we can really get a profit; it is really easy to achieve, and we can do it if we have extensive knowledge of chart reading analysis.

So, losing everything we have earned in one day will not happen to someone with enough knowledge. That will only happen to those who lack knowledge of trading skills; this is true. It's something that others don't understand well because their only thought is to make money, so the end result is always not good.

[tvplus006]

...So, losing everything we have earned in one day will not happen to someone with enough knowledge. That will only happen to those who lack knowledge of trading skills; this is true. It's something that others don't understand well because their only thought is to make money, so the end result is always not good.

Even if a trader has sufficient knowledge for futures trading, but does not comply with risk management, then will eventually lose all your money. This is exactly what happened in the case described by the OP: a stop loss was not set, the transaction amount allotted for opening an order was exceeded.

[savetheFORUM]

The higher the profit the higher the risk, that's life if you can't take the risk you can't get the higher reward or profit. This kind of action can be an expensive lesson, this is the reason why you must have a trading plan and stick with it or else you will suffer like this For example, people make a lot of trades and once they lose trade has a bigger lose they are trying to make a risk to earn those backs. Consistency is the key at the end of the day your profit counts even though it's just a small trade. Know your limit, know your budget. Its not hard to set a TP/SL in trades people always tired to use this feature.

For a person who is doing day trading, TP might not be an issue since profit can be taken at any given time if the market goes in positive after the position is taken, but stop-loss is definitely important for all the trades they take in a day or a week because even if there is no risk of losing the money, if the coin dips after the purchase, the capital or a part of it will be locked in that trade and it won't be released until the coin manages to recover and get back to the position where it was bought and this wastes a lot of time.

That's why, it's important to use stop-loss so that just a small amount is lost but the capital is free and it can be used for making more trades and possibly recover what's lost and some profit on top of it. One should also not put all their eggs in one basket just to be on the safe side in case something goes wrong.

[terrific]

The risk remains and there could be some ways to lessen the risk but it's gonna stay there as you've said.

But unfortunately, many new traders seem to ignore this and it will actually increase the risks. Sometimes, they even ignore the risks because they feel very confident that they will get high profits from what they place when doing future trading. In fact, future trading will never be free from risk. And honestly, it is quite difficult to minimize risk, especially if we still don't really understand the various appropriate strategies when trading.

It's for them to experience that, if they're not going to notice the risk that they will take, it could pay them a lot.
Those that are not used to futures much better not to get involved on it. Or if they want to try, just do it as if you're gonna lose the money no matter what happens.

[beerlover]

The risk remains and there could be some ways to lessen the risk but it's gonna stay there as you've said.

But unfortunately, many new traders seem to ignore this and it will actually increase the risks. Sometimes, they even ignore the risks because they feel very confident that they will get high profits from what they place when doing future trading. In fact, future trading will never be free from risk. And honestly, it is quite difficult to minimize risk, especially if we still don't really understand the various appropriate strategies when trading.

It's for them to experience that, if they're not going to notice the risk that they will take, it could pay them a lot.
Those that are not used to futures much better not to get involved on it. Or if they want to try, just do it as if you're gonna lose the money no matter what happens.

I do agree that a bit more "laissez faire" approach is not really bad for people to learn, if we keep on interrupting them and telling them what to do, they will not know why they are not doing something, they would be not doing it just because we told them to, and they would always have that "maybe it could work" mindset at the side of their brain. However, if we let them do whatever they want, then the yare going to test and learn why it's a bad idea themselves and that's an important learning opportunity for them.

I would say that the best thing about this would be just making sure that they are making a profit based on what they are approaching it like, and that is not a bad idea at all, it would give them a chance to learn. Learning all by yourself and gaining experience is the best way to make money, and I believe that if we are going to end up with something big about this, then we are going to end up with a result that should be very important in the end.

[terrific]

It's for them to experience that, if they're not going to notice the risk that they will take, it could pay them a lot.
Those that are not used to futures much better not to get involved on it. Or if they want to try, just do it as if you're gonna lose the money no matter what happens.

I do agree that a bit more "laissez faire" approach is not really bad for people to learn, if we keep on interrupting them and telling them what to do, they will not know why they are not doing something, they would be not doing it just because we told them to, and they would always have that "maybe it could work" mindset at the side of their brain. However, if we let them do whatever they want, then the yare going to test and learn why it's a bad idea themselves and that's an important learning opportunity for them.

I would say that the best thing about this would be just making sure that they are making a profit based on what they are approaching it like, and that is not a bad idea at all, it would give them a chance to learn. Learning all by yourself and gaining experience is the best way to make money, and I believe that if we are going to end up with something big about this, then we are going to end up with a result that should be very important in the end.

Like the other people believes about experiencing something to tell whether it's worth it or not, let them be.
Those that learns from the advise of the experience of others are paying them well. And those that are adventurous and don't like to just learn it from the others but also from themselves will have to see it and they will react on it accordingly.

[xSkylarx]

The risk remains and there could be some ways to lessen the risk but it's gonna stay there as you've said.

But unfortunately, many new traders seem to ignore this and it will actually increase the risks. Sometimes, they even ignore the risks because they feel very confident that they will get high profits from what they place when doing future trading. In fact, future trading will never be free from risk. And honestly, it is quite difficult to minimize risk, especially if we still don't really understand the various appropriate strategies when trading.

It's for them to experience that, if they're not going to notice the risk that they will take, it could pay them a lot.
Those that are not used to futures much better not to get involved on it. Or if they want to try, just do it as if you're gonna lose the money no matter what happens.

Spot and futures trading both have risks. In the futures you'll need more knowledge compared to the spot but that doesn't mean that spot trading is easy because as others said buy low sell high but without any knowledge you'll lose. Also in the futures even if you have the fundamentals like a learning indicator you still do not have a 100% winning percentage so both of them have risks and only to lessen them with experience and knowledge.

[terrific]

It's for them to experience that, if they're not going to notice the risk that they will take, it could pay them a lot.
Those that are not used to futures much better not to get involved on it. Or if they want to try, just do it as if you're gonna lose the money no matter what happens.

Spot and futures trading both have risks. In the futures you'll need more knowledge compared to the spot but that doesn't mean that spot trading is easy because as others said buy low sell high but without any knowledge you'll lose.

Both of them are hard and as you have said requires risk. The risk is just much higher in futures.
In spot, it's true that it doesn't guarantee you'll win your trades there because it's also hard just how it's risky with the futures although it's just lessened in that manner.

Also in the futures even if you have the fundamentals like a learning indicator you still do not have a 100% winning percentage so both of them have risks and only to lessen them with experience and knowledge.

It's just best to avoid it.

[Pingrapole]

You need to admit that, more profit comes with more risk. So if you demand for more profit from the market, then you have to also take more risk accordingly. If someone isn’t capable of this, then definitely no one can save him from getting into losses. I don’t believe that Day trading is hard. If a trader is capable enough to analyse the market correctly, then it doesn’t at all matter for him. For him everything is like a cake of piece and he does risk management perfectly.

I totally agree with you in fact if we expect a more profit in every matter it is natural that we have to take a more risk we actually do not want to understand that we only expect a profit profit profit in fact the word loss is what we do not think In my opinion the amount of a risk might be too high for newbies that are getting ready to trade with extreme excitement like me for an example i am not saying that newbies cannot, in fact it requires a lot of knowledge, keen understanding of market systems is essential, but we invest with overzealous enthusiasm and cry in despair at the loss of everything.

[Issa56]

it is very important to be most careful while day trading when volatility is high, just as it has been in a few days now, this is specially for those who trade the futures market, trading futures is 10x more risky than trading spot, in futures trading, a simple miscalculation or failure to use proper risk management could lead to you being liquidated and all the money invested gone in a twinkle of an eye.

Future trading is not something you should just start easily, your chances of losing money when it comes to future trading are higher. I don't recommend anyone to go into future trading, and if you will be going into it, always make sure you are using small leverage with a small amount of money. Don't be desperate to make big money, or you will end up losing everything you are having. I know some people are pushed to trade futures because of the high reward that's there, but if you are not careful, you might end up losing everything.

I am sharing this based on a story a friend of mine told me yesterday about how he lost crypto NetWorth in just one trade on one faithful day way back last upper year which is 2022. According to him, he went long with all of his entire crypto NetWorth on an Altcoin because he was expecting the price of the altcoin to jump back up, after a news (which was later confirmed to be fake) caused the cryptocurrency to go down, but unfortunately for him, by the time he woke up from sleep the next day, on checking on this trade, he discovered that he had been completely liquidated because the price of the crypto currency ended  up dumping even harder than before.

Your friend is funny, i guess he was trying to make use of opportunity to make big money. Your friend is supposed to know about risk management, why will he decide to use his entire crypto net worth on a trade? It doesn't make any sense to me. No matter the news which I hear, I can't use all my money to trade on future. I once wasted money on future trading when I was learning how to trade, since then I don't even go close to future trading. When trading, always make sure you use a small percentage of your money. In case something goes wrong, you will always have backup, and always maintain small leverage.

[kingvirtus09]

People are greedy.

I also experienced this once, because my mindset is that if I won a trade using my technical analysis, I can win the next trade that I'm going to make with a higher leverage for an easy profit, but it's not as simple as that, because trading is not always Christmas. We always forgot the risk management and the right management of our funds and profit, that's why we always lose everything and the rage trading will start.

Chasing the losses is the most case scenario for newbie traders, trading randomly because of their frustration hoping to make profits without any plan at all.

To much chasing for more big gain is somehow the most worst decision we could ever take since we will just come up on wrong situation where luck fades and unlucky strikes will follow after than. This is commonly happened that's why we need to be more careful upon deciding to extend our game time since if we always do this for sure that we can't get a best result for what we do. So we must know how to end up our game to avoid any huge damage and instead we can secure all our winnings so casino will not have a chance to recover the money they lost from us. Chasing losses is the worst situation which we ever take since this attitude is addictive and we cannot get anything good for doing this since its so stressful to see how the game will end up to us especially when seeing those stats which is currently at heavy losing so for sure that person who done this action will be in huge stress if they decide to gamble for more and ignore other consequences that can possibly destroy them.

Chasing our losses in gambling is equivalent to a trap, or like a disease that we only think is a simple disease, but we don't know that if we just let it get worse, it turns out to be a danger to our personal health. Let's not let it be done again and again because maybe one day our lives will have something like a chronic disease.

So it's still really important to be responsible when gambling. Even if you have been gambling for a long time, you don't let it ruin your life or ruin the family you have if you have one. So in doing trading, we must also give value to the assets we have here.

[yudi09]

Most people are simply not fit for using leverage, or even trading in general. Overall in my entire time in the crypto space, I made most of my money just trading altcoins using spot. Leverage always managed to mess me over due to those sharp wicks, despite me being directionally correct.

Spot trading in my experience is more relaxed. I'm probably one of the many people who doesn't feel comfortable trading using leverage.
I often experience what you said. I mean it's almost similar because the profits I get when trading altcoins on spot trading.
Maybe I am familiar with spot trading rather than using leverage. For those who are more familiar with leverage, they can easily gain profits when doing so.