Respest your risks more than rewards

[letteredhub]

Hey guys i just want to shear a little story of how my trade went today and what i learnt from it, i found a very good setup it followed all my plans and it looked like an A1 setup, it gave me necessary confirmations and it looked just right, so with me knowing this i entered the trade and i risked more than usual almost snout 50% with the desire to flip the account, but to my greatest surprise the trade didn't go as planed and i lost a lot, i got really angry not because i lost the trade but because of how much i risked on he trade and i now have it in mind that no matter how good the trade may look i will not risk more than my fixed percentage. i hope that this information will help traders out there as well to risk only fixed percentage and noting more than that.

Many times when traders refuse to be patient with what they think could be looking like an opportunity in the market to strongly confirm the position they're seeing before entering they get to enter into a market trap that happens to be a fake out in the candlesticks movement. Once the market tested your psychology and you fell for it with bigger amount that you're not used to trading with. Nothing saves a trader like one who sticks to his principles even in face of what seems to be an opportunity to scoop profit.

[Zigabel]

Hey guys i just want to shear a little story of how my trade went today and what i learnt from it, i found a very good setup it followed all my plans and it looked like an A1 setup, it gave me necessary confirmations and it looked just right, so with me knowing this i entered the trade and i risked more than usual almost snout 50% with the desire to flip the account, but to my greatest surprise the trade didn't go as planed and i lost a lot, i got really angry not because i lost the trade but because of how much i risked on he trade and i now have it in mind that no matter how good the trade may look i will not risk more than my fixed percentage. i hope that this information will help traders out there as well to risk only fixed percentage and noting more than that.

This has served as a reminder about the place of discipline in your trading life and the place of patience, risk management and sticking to your strategy in every situation. only a few are very consistent with all of this, most others are usually more focused on the results and that is why you see them suffer so bad when it goes against them just like it happened with you. if you had stayed true to your plan, sticking to it in every case, you would have most likely not lost as much, always remember you have almost no control of what happens on the charts but you have control of how much you can risk and what happens to your account to a very far extent, but some persons are so focused on the result they do not want to even remember the fact that they do not control absolutely the movement of the market.

No trade is just too good enough to make you go despise your strategy, although sometimes it is usually okay to take some risk, but make sure to be a very calculated one so that if it goes against you, you will still not have so much to loose but something to always fall back to in the long run.

[Dickiy]

This is why risk management, like money management, is so crucial in trading. Its sole purpose is to avoid significant losses. Even professional traders still trade with limits, which means this aspect is crucial.

You've proven it and experienced it yourself, and I hope this incident serves as an example to all traders that they must maintain limits. Confidence is good, but changing your trading plan, such as increasing the amount of money used for each entry, is not recommended. The consequences are exactly what you're experiencing now.

So, no matter how much capital you have and how good your strategy, you must remain disciplined in sticking to your initial plan.

[Pandu Geddon]

i now have it in mind that no matter how good the trade may look i will not risk more than my fixed percentage.

We really need to consider the risks of trading carefully. We might not have an issue if we lose the amount we usually allocate for trading capital. However, when we become overconfident and increase trading risks, it can affect our finances. 
Even if we start trading with a small capital, it's better to grow it gradually. Small profits are not a problem; what matters is being able to try and be more consistent.

[uche6215]

You loss because you were not conscious on your trade. You were not focusing on the trade. If you were focused on the trade you would have stopped it when it was at the lossing side in the trade. If you would have used the two most important element of trading which are stop loss and take profit, you wouldn't loss the trade but you were having the confident that, you would have a big profit because the amount you used was big. Trading is not like that. You can lose $20,0000 within a second.

[Mpamaegbu]

... i now have it in mind that no matter how good the trade may look i will not risk more than my fixed percentage. i hope that this information will help traders out there as well to risk only fixed percentage and noting more than that.

That's the way to go in trading sensibly. Slow and steady with minimal risk appetite checkmated by Stop Loss is the best thing to do in every single trade taken.

Just the way we say there's no holy grail in trading, we also say there's no absolute certainty when it comes to speculation with our trading strategies. There's always room for things to go awry. We all should know that. I've come to realize that instead of subjecting one's capital to unnecessary exposure by increasing risk threshold, it's better to maintain the same exposure level by looking for tight entries and then increase lotsize/leverage. Let the percentage in risk remain the same. Nothing is so certain in every setup that it can't go wrong.

[Dzwaafu11]

Overconfidence can lead you to big loss because you will use more than the amount of money that you can afford to lose to trade. The market is volatile and you cannot be too confidence on your trading strategy which is the main reason why I don't like trading often because you will incur more losses than profit. I believe that you have learned from your mistakes.

Not only is trading overconfidencereally putting some people into a mess, but it is also something you are supposed to do with caution and patience. One will want to make it in one night or so. The best thing is to do it gradually; trading is very risky. Why risk too much money in it when you know you don’t really have much knowledge about it? Even the professionals don’t use too much money to trade due to the risk that is attached to trading; rather, they use the amount they can afford to lose.

As for the OP, he won’t make such a mistake anymore because he has understood and realised his mistake; the next trading will be done with caution.

[rachael9385]

Hey guys i just want to shear a little story of how my trade went today and what i learnt from it, i found a very good setup it followed all my plans and it looked like an A1 setup, it gave me necessary confirmations and it looked just right, so with me knowing this i entered the trade and i risked more than usual almost snout 50% with the desire to flip the account, but to my greatest surprise the trade didn't go as planed and i lost a lot, i got really angry not because i lost the trade but because of how much i risked on he trade and i now have it in mind that no matter how good the trade may look i will not risk more than my fixed percentage. i hope that this information will help traders out there as well to risk only fixed percentage and noting more than that.

First of all no strategy should make you sure of any trade to the point where you trade with an amount of money that you cannot afford to lose. Another red flag here is that you got angry, emotional instability isn't really a good way to get better in trading.  This is obviously a lesson that you have leant from, it only becomes a problem if you keep on making the same mistakes. Start again and this time fo things differently

[Abu-Naim]

Hey guys i just want to shear a little story of how my trade went today and what i learnt from it, i found a very good setup it followed all my plans and it looked like an A1 setup, it gave me necessary confirmations and it looked just right, so with me knowing this i entered the trade and i risked more than usual almost snout 50% with the desire to flip the account, but to my greatest surprise the trade didn't go as planed and i lost a lot, i got really angry not because i lost the trade but because of how much i risked on he trade and i now have it in mind that no matter how good the trade may look i will not risk more than my fixed percentage. i hope that this information will help traders out there as well to risk only fixed percentage and noting more than that.

Should we call this the effect of greed? It should be because you admitted that you risked above your usual risk just to flip the account which is completely all about how to make money easily with your trade if you risk more money just because when you risk small amount, the return is not always big big for you.
Risk is very important, but in most cases it backfires just as you said. If you have made more money from your trade you would have been happy.

[Questat]

The amount of risk you put will never be equivalent to the amount of rewards you may gain. Sometimes, even if you take some risk, rewards aren’t guaranteed, that’s how unpredictable trading is. That’s why know when to take risk, especially if you are seeing a good position that would lead to a positive outcome. And know exactly when to avoid taking risk, because not all risks are to be taken, and besides not all risk deserve rewards. Take risk to avoid unfavorable losses, not just to maximize your earning potentials.

[programmer3666]

Hey guys i just want to shear a little story of how my trade went today and what i learnt from it, i found a very good setup it followed all my plans and it looked like an A1 setup, it gave me necessary confirmations and it looked just right, so with me knowing this i entered the trade and i risked more than usual almost snout 50% with the desire to flip the account, but to my greatest surprise the trade didn't go as planed and i lost a lot, i got really angry not because i lost the trade but because of how much i risked on he trade and i now have it in mind that no matter how good the trade may look i will not risk more than my fixed percentage. i hope that this information will help traders out there as well to risk only fixed percentage and noting more than that.

Sometimes, self-confidence can help us be optimistic in achieving the targets we plan. But sometimes, overconfidence can actually cause us to fall even deeper.
You are not alone. I am sure most traders have also had similar experiences. It is very good if we can all learn from our own experiences, but for those who have not experienced it, learning from others' experiences can help us in better trade planning.

sure bro!! confidence is important in all this trading journey but once it turns into overconfidence! then it can be dangerous. many traders fall into that trap especially when a setup looks kind of too perfect. the truth is even the best looking trade can fail, tha is why respecting risk is more important than chasing rewards!! learning from your loss and setting a strict risk percentage is a smart move to be honest because most traders only learn that lesson the hard way. the key is consistency and discipline but they will always beat emotions in the long run.

[Beparanf]

Hey guys i just want to shear a little story of how my trade went today and what i learnt from it, i found a very good setup it followed all my plans and it looked like an A1 setup, it gave me necessary confirmations and it looked just right, so with me knowing this i entered the trade and i risked more than usual almost snout 50% with the desire to flip the account, but to my greatest surprise the trade didn't go as planed and i lost a lot, i got really angry not because i lost the trade but because of how much i risked on he trade and i now have it in mind that no matter how good the trade may look i will not risk more than my fixed percentage. i hope that this information will help traders out there as well to risk only fixed percentage and noting more than that.

You’re right about acknowledging the risk but I believe the important factor that you should consider more is your strategy because if you think that you have already a solid strategy and still inaccurately predict   your trade only means there’s something wrong on your analysis.

Your confidence means you are holding on to something solid that’s why you increase your investment on certain assets.

If I’m on your situation, I will totally evaluate my trading skills and lower my trading capital until I develop a solid trading strategy.

[ScamViruS]

Many times, traders become overconfident, which leads to such wrong decisions. Basically, no one can predict the market's next movement with certainty, so before taking a trade, you must prepare in advance for what could go wrong so that you don't end up making more wrong decisions out of anger after making a loss.

There are many opportunities in the market, but to utilize those opportunities in the right way, patience, self-control, and money management always play an important role.And only traders who keep these things in mind can do well in trading, otherwise it is not possible to stay here for long.

[irhact]

You loss because you were not conscious on your trade. You were not focusing on the trade. If you were focused on the trade you would have stopped it when it was at the lossing side in the trade. If you would have used the two most important element of trading which are stop loss and take profit, you wouldn't loss the trade but you were having the confident that, you would have a big profit because the amount you used was big. Trading is not like that. You can lose $20,0000 within a second.

Most traders are making this mistake, they don't consider how much they can lose because of the potential profits that they're seeing without realising that any profits that they haven't received isn't a profits yet therefore they have to consider if the trades is too risky for the amount that they're using considering if the trade doesn't favour them. While we wan to make profits, we should also consider the possibility of the losses that's e might get if the trade doesn't go as we're expecting it to go. Trading is a risky activity that shouldn't be done but just assumptions but we should consider all possible outcomes so we don't end up with losses.

[Scarlett_23]

Hey guys i just want to shear a little story of how my trade went today and what i learnt from it, i found a very good setup it followed all my plans and it looked like an A1 setup, it gave me necessary confirmations and it looked just right, so with me knowing this i entered the trade and i risked more than usual almost snout 50% with the desire to flip the account, but to my greatest surprise the trade didn't go as planed and i lost a lot, i got really angry not because i lost the trade but because of how much i risked on he trade and i now have it in mind that no matter how good the trade may look i will not risk more than my fixed percentage. i hope that this information will help traders out there as well to risk only fixed percentage and noting more than that.

Trading requires knowledge and skill. Along with this, it is necessary to have a risk-taking mindset and take as much risk as you can mentally withstand if you lose.

It is necessary to be confident in trading, but if you are greedy, there is a high possibility of loss, far from profiting from training.

Therefore, you should not trade greedily in such a way that your own capital is at risk.

[Finebone]

i now have it in mind that no matter how good the trade may look i will not risk more than my fixed percentage.

We really need to consider the risks of trading carefully. We might not have an issue if we lose the amount we usually allocate for trading capital. However, when we become overconfident and increase trading risks, it can affect our finances. 
Even if we start trading with a small capital, it's better to grow it gradually. Small profits are not a problem; what matters is being able to try and be more consistent.

Risk are broken down on different levels, like higher, medium and lower level of risk, that's why I prefer taking a risk that wouldn't have a significant impact on my finances, and the best way to do that is to trade with an amount you can afford to lose, because that's the first step in managing your risk, but once you trade with any amount of money more than what you can afford to lose, you will observe that you will be making more emotional decisions and the likelihood of you losing that trade is very high, since you are likely going to panic at anytime the market goes against you, so managing your risk in an orderly manner is the ideal way to trade if you want to win more trade in the market.

[traderethereum]

When you are overconfident, you may think that your analysis and prediction will help you make a profit. You will forget that trading can change the direction and make you lose. Even if you think that your setup is good and follow all your plans, that doesn't guarantee it will work as you expect. Overconfidence can make you risk more than the usual amount. You forget the market can change direction anytime. You think that your prediction is right and it makes you lose control of using the money. Your mind wants to make a big profit but you don't thinking what may happen to the market.

[Oluwa-btc]

Do not be blinded by greed and the desire to make more money, but always prioritize risk management no matter you see a good position for your trade. The trading market is always unpredictable, you wouldn’t know how will the market reacts to your trade, so never risk trading more than you can afford to lose.

Moreover, not all trades deserve rewards, knowing majority of those who trade end up at loss, most especially if those traders just rush to trade without having a good market analysis first before they decide to trade.

Once risks are respected and observed,rewards become more predictable and safer to pursue/ achieve.However,respecting risk doesn’t mean neglecting all the mistakes,it means being aware,prepared and strictly calculative about the entire process.In short,rewards are usually attractive,but risk ignored can efface them completely.

[Finestream]

The amount of what you can risk can be fixed, but the rewards are not. Sometimes you win, but sometimes you also end up with losses. So this is a good practice to never risk what you can't afford to lose as rewards aren't guaranteed.

Prioritize sticking to what you can risk, be it trading or investing, respect your risk so that whatever the outcome is, you will not be totally end up in a bad shape.

[Asuspawer09]

It is probably what most traders do, they just forget about how risky things could be, most of the time they forget doing this kind of trade is risky, a lot of people are just making a huge amount in trading and some traders just wanted to replicate that without doing the hard work, or without realizing how difficult it is, Most of the long and experience trader have years of experience and learning in the market, and still they still lose some of there trades online, if you are also going to join in as a beginner you could always expect to lose some if you have no experience and not really doing you learning.

I mean its always better to manage and plan your trade, I would agree to only trade only when you are sure that your trade is almost guaranteed win, but the market is still unpredictable, so there are always possibility of losing that trade, so having that limit or budget on your trading is always going to be a good thing if you are going to plan it. We just need to take profit as a profit and not risking what we can't take, make sure to always risk depending on your risk tolerance.