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

[Lakai01]

So from my point of view I understand that trading have to do with taking precautions and continuous practice in a trading, you can only lose whatever you have gain in trading at once when you are greedy and also open or venture into trading with what you can not afford to lose.
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I think this has less to do with greed and much more to do with wrong (or even worse: no) risk management. Risk management also includes planning your re-investments correctly and also when to enter which trades in the first place and how to get out of failed trades as quickly as possible. If all this is missing, failure is actually already pre-programmed.

Risk management in particular is criminally neglected by newcomers to the trading market, which then also leads to these people losing everything relatively quickly - and then also blaming the losses on the "wild" and "hardly predictable" crypto market.

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[Dickiy]

So from my point of view I understand that trading have to do with taking precautions and continuous practice in a trading, you can only lose whatever you have gain in trading at once when you are greedy and also open or venture into trading with what you can not afford to lose.
[...]

I think this has less to do with greed and much more to do with wrong (or even worse: no) risk management. Risk management also includes planning your re-investments correctly and also when to enter which trades in the first place and how to get out of failed trades as quickly as possible. If all this is missing, failure is actually already pre-programmed.

Risk management in particular is criminally neglected by newcomers to the trading market, which then also leads to these people losing everything relatively quickly - and then also blaming the losses on the "wild" and "hardly predictable" crypto market.

But in my opinion greed also does not rule out the possibility that it can occur and have an impact on their increasingly large losses or even to experience MC. With this of course I will say that there are many factors that can make them experience unnecessary losses, and yes on the other hand I also agree with your assumption that maybe they apply the wrong risk management or for example not strict in its application. Of course anyone cannot skip risk management or that means every trader must have a lot of preparation before finally getting involved in the world of investment and one of them is very good risk management such as applying stop los and take profit. With that, I think they will know when to enter the market and when to exit when the situation is not favorable.

Yes, it is not uncommon for newcomers to forget this important point, in my opinion maybe they come not because of good intentions like traders in general but they come no more just to make money with large amounts but on the other hand absolutely do not understand what they should prepare and do for the initial stage. I think they are nothing more than fools who expect profits but do not bring any fishing rods and preparations at all, obviously in the end losses will dominate, because they come only with luck.

[Best-mary]

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.

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.

Anxiety and fear made me deposit more money and he try to see if he could DCA the dip and make some of the money he lost back, and at a point, the price reached his take profit target but unfortunately, the take profit did not fill before the price of the altcoin shoot up again and at end, he was liquidated again.

This experience for me showed that he was really inexperienced when it comes to trading futures, but the truth is that, such a thing can happen to anyone in times when volatility is very high, when price runs become really high, it makes sure to liquidate both long and short position in a matter of seconds and minutes, most especially, if you open a position with a very high leverage.

Best to avoid trading futures in times like this, but if you must, make sure you know what you are doing, and use proper risk management like the stop loss and take profit features, also ensure you are only trading with an amount of money you can afford to lose, and remember not to put all your eggs in one basket.

Happy trading ya all.

Risk management is crucial in the crypto market but why would someone go all in with their net worth trading? He could use Spot trading which is best and even if he wants to take the risk not with his net worth, he could try using a less risky method like Dual Investment or just not trade till he affirms the positivity of the market...

I feel sorry for him though

[HONDACD125]

Risk management is crucial in the crypto market but why would someone go all in with their net worth trading? He could use Spot trading which is best and even if he wants to take the risk not with his net worth, he could try using a less risky method like Dual Investment or just not trade till he affirms the positivity of the market...

I feel sorry for him though

Some people want to double their capital in the blink of an eye and actually this is where we start our losses. Everyone who trades in the crypto currency market knows that there are many risks involved in trading. We may get a good profit, but there is also the risk of losing our capital. the rate of profit in spot trading is low and it may take more time. Whereas futures have higher returns in shorter periods of time.

Yet they get greedy and take a decision that wastes all their capital. Another reason could be inexperience, even if someone sees only profit in the crypto currency market, they end up losing their capital by making such decisions. However, this is the main rule of the crypto currency market is to never invest all of your capital in one coin at a time. Yet we can call such a decision maker greedy or inexperienced.

[Mpamaegbu]

The worst mistake one can make as a trader is chasing the market to recover losses, If you lose a trade, learn from it and take it as your fault.

It's called revenge trading. I've yet to see anyone who chases the market to recover their losses and does it successfully. One may be lucky with a few wins chasing the market but ultimately one will lose out at the end if one makes it a way of trading. It's better to let the loss go and then crosscheck to find out why one lost for future trades. Unfortunately, many of us don't learn this from others mistakes until it happens to us. Just like you, I've also been a victim of this. Also just like many others reading this now, they won't take precaution of this until they experience it firsthand.

[Assface16678]

The worst mistake one can make as a trader is chasing the market to recover losses, If you lose a trade, learn from it and take it as your fault.

It's called revenge trading. I've yet to see anyone who chases the market to recover their losses and does it successfully. One may be lucky with a few wins chasing the market but ultimately one will lose out at the end if one makes it a way of trading. It's better to let the loss go and then crosscheck to find out why one lost for future trades. Unfortunately, many of us don't learn this from others mistakes until it happens to us. Just like you, I've also been a victim of this. Also just like many others reading this now, they won't take precaution of this until they experience it firsthand.

Well, we can't blame others for chasing losses. As you said, you've experienced it, and I also experienced that situation. We know the feeling of losing a trade, and we know how much we want to recover the loss immediately. I've done it numerous times, and most of them end up losing more. Even now, with my long experience in trading, I often do that, but of course with minimal damage, or often I recover what I've lost. Sometimes I do a minimal lose trade, which means I trade again after the loss trade, not aiming to recover the loss completely but only to earn some, so it's not that hurt. Sometimes I'll let it go if what I've lost is not too much or if I stake a smaller amount. and I have the discipline or principle that "profit is profit," no matter how big or small it is. As long as I earn, that's enough for me. That's why I don't set a goal because I don't want to have something that I want to chase.

[Mpamaegbu]

~

Well, we can't blame others for chasing losses. As you said, you've experienced it, and I also experienced that situation.

No one is blaming anyone on this, at least not me. It's their place to lose. We're only advising from a place of experience so that those who are less experienced can borrow from such valuable lessons and make amends. There's no point constantly losing funds to the market when one can stand on the shoulders of those who know these things and navigate far.

Sometimes I'll let it go if what I've lost is not too much or if I stake a smaller amount. and I have the discipline or principle that "profit is profit," no matter how big or small it is. As long as I earn, that's enough for me. That's why I don't set a goal because I don't want to have something that I want to chase.

That's the best way to solve this. Just let go and wait for another opportunity. There are so many opportunities in the market.

[tygeade]

Well, we can't blame others for chasing losses. As you said, you've experienced it, and I also experienced that situation.

No one is blaming anyone on this, at least not me. It's their place to lose. We're only advising from a place of experience so that those who are less experienced can borrow from such valuable lessons and make amends. There's no point constantly losing funds to the market when one can stand on the shoulders of those who know these things and navigate far.

I do agree that having a stop loss and not really caring about the loss is important. If you can do that then you can repeat the action again and hope that you can win it this time around. Not everyone will be able to do that and most people will lose their money, the chasing of the loss is the hardest and most wrong thing one could do. I think it's important to realize that you are not going to end up wit ha good result if you keep on trying the same thing. This dude didn't even do that, he put all into a single risk and that doesn't make sense, why would anyone do that, it is not going to make you any profit if you are wrong, and the return would be minimal compared to potential to lose.

I think it should not be all that easy to put all your money at risk for a small return, it doesn't make sense, if you are going to risk ALL your money, then you should at least have 10x possibility, that would make the only sense, and this isn't one of those situations. I think it is definitely a risky move, and doesn't deserve all your money.

[gabbie2010]

The worst mistake one can make as a trader is chasing the market to recover losses, If you lose a trade, learn from it and take it as your fault.
Trading really fucked with me back days as a newbie until when I got to know this secret, Which is protecting your trading capital.
I was this trader who never bothered that much when most time I blew my account because I was working and seeing money on a regular basis before my salary would drop, so it was just like I was trading with spare money so little did I feel it, But after that I changed a job and that regular money was no longer coming but mainly on monthly basis, that was when I understood the importance of protecting my capital and started proper management of risk, and stopped trading with high leverage that I was using, and since then, I never blew my capital.

 

This is one of the mistakes inexperience traders always make I am also victim of such a mistake by trying to to take revenge trade consequently getting or incurred more losses, I believe it is more of emotion and Psychology of trading once it's is taken care of such a mistake wouldn't repeat itself again, meanwhile it's most appropriate to enter a trade with a fix percentage or part of the total portfolio rather than trading with the whole fund, some traders trade with  at most 5% of the total fund Incase of price hitting a Stop Loss there is more fund to trade with, this are issues every trader should take into consideration particularly using Stop Loss for every trade to be executed and adopting a trading strategy that has higher rate of reward compare to the risk.

[AYOBA]

Best to avoid trading futures in times like this, but if you must, make sure you know what you are doing, and use proper risk management like the stop loss and take profit features, also ensure you are only trading with an amount of money you can afford to lose, and remember not to put all your eggs in one basket.

Almost all business now is at his own risk, and before a person can achieve some success goals, he must pass through risk for him to achieve what he wants, but some people in terms of trading don't go through the skills of trade for them to acquire much knowledge about; some will just jump in to trade with the amount they cannot afford to lose, and some lack emotional strength, which is not proper. Sometimes strength comes from gently letting go of what you most want to hold onto.

[lixer]

The worst mistake one can make as a trader is chasing the market to recover losses, If you lose a trade, learn from it and take it as your fault.

It's called revenge trading. I've yet to see anyone who chases the market to recover their losses and does it successfully. One may be lucky with a few wins chasing the market but ultimately one will lose out at the end if one makes it a way of trading. It's better to let the loss go and then crosscheck to find out why one lost for future trades. Unfortunately, many of us don't learn this from others mistakes until it happens to us. Just like you, I've also been a victim of this. Also just like many others reading this now, they won't take precaution of this until they experience it firsthand.

It's trading, not gambling, and there is no point in chasing the market just to recover the losses, even in gambling when someone tries to do that, they tend to lose all their bankroll. When it comes to trading, it's knowledge and experience that matter, and if one loses a trade even if they are knowledgeable and experienced about the market, they shouldn't take it on their ego and start making reckless trades just to recover that loss as quickly as possible because that will surely cause then more losses.

When you know what you are doing, a single trade cannot stop you from becoming profitable at the end of the day. If you are making a total of 10 trades per week and getting profit in 8 out of them, you will still be profitable despite the lost trades. So, as a trader, one should look at the longer picture.

[batang_bitcoin]

Almost all business now is at his own risk, and before a person can achieve some success goals, he must pass through risk for him to achieve what he wants, but some people in terms of trading don't go through the skills of trade for them to acquire much knowledge about; some will just jump in to trade with the amount they cannot afford to lose, and some lack emotional strength, which is not proper.

And those are the people that are having the conclusion that trading is easy and it is for everyone. Honestly, it is not for everyone to do because you'll never know if it's going to be working for you and if you're not good in decisions and analysis, you know where it is heading.

Sometimes strength comes from gently letting go of what you most want to hold onto.

Strength comes from experience and it's up to you if you're going to apply that to your next trades.

[Lanatsa]

The worst mistake one can make as a trader is chasing the market to recover losses, If you lose a trade, learn from it and take it as your fault.

It's called revenge trading. I've yet to see anyone who chases the market to recover their losses and does it successfully. One may be lucky with a few wins chasing the market but ultimately one will lose out at the end if one makes it a way of trading. It's better to let the loss go and then crosscheck to find out why one lost for future trades. Unfortunately, many of us don't learn this from others mistakes until it happens to us. Just like you, I've also been a victim of this. Also just like many others reading this now, they won't take precaution of this until they experience it firsthand.

It's trading, not gambling, and there is no point in chasing the market just to recover the losses, even in gambling when someone tries to do that, they tend to lose all their bankroll. When it comes to trading, it's knowledge and experience that matter, and if one loses a trade even if they are knowledgeable and experienced about the market, they shouldn't take it on their ego and start making reckless trades just to recover that loss as quickly as possible because that will surely cause then more losses.

When you know what you are doing, a single trade cannot stop you from becoming profitable at the end of the day. If you are making a total of 10 trades per week and getting profit in 8 out of them, you will still be profitable despite the lost trades. So, as a trader, one should look at the longer picture.

People should be sticking into this principle because people would really be having those kind of switch ups on the time that they've been doing trading but in the end of approach they do become on doing gambling.

As a newbie then it would really be that normal that mistakes could happen yet impressions and beliefs are totally that something new which is normal but once you do able to get that sufficient experience or
awareness on how things works then it would really be that totally changing when it comes to approach. Its impossible that you wont really be able to find out for yourself on what are the things that should be needing to be done because if not then you arent really making any progress with your trading career on which it is something that you do need to pursue on.

You wont really be making out those advancement if you wont really be having that real experience and next to that then adjustment and adaptability would really be that crucial.
Speaking about gains on one day and trying out to lose everything in that moment? You are just basically doing YOLO which is really that known
that this behavior is really that connects with gambling which its never been that recommendable.

[South Park]

Holy shit, your friend forgot that he is trading and thought that he is investing. It is only investment that you will go and sleep, go on vacation and feel relaxed because your bitcoin will be lying in your wallet. Trading is different and you must be very vigilant because the market can turn in opposite direction at anytime. He should have used stop loss and risk management when trading the for whole day, which is not recommended as a trader if you don't want to run at big loss. Trading should be something that you give a break and rest the brain just like what your friend did but he did it the wrong way by not quitting from trading. I don't trade because I am a careless person that can get distracted with some many things around me, and the risk in trading is higher than the profit.

It is difficult to imagine how people can make this mistake but it is very common, while both traders and investors look for the same and they use the very same tools, the way in which they do so is completely different, an investor should look for the very best assets and invest in them when they are undervalued and hold them, while a trader looks for the assets with the highest volatility and actively buys them and sell them, so a trader cannot simply decide they want to become an investor while still having their money on those volatile assets, or it will happen to them the same that happened to the friend of the OP.