Respest your risks more than rewards

[wiss19]

Your only mistake here was you invested more amount that you can afford to loose. Isn't this one of the basis thing when it comes to trading. We should not just rush behind huge profits but sometimes we have to be much careful when it comes to the trading volume.

If you invest more is because you want more profits and this is  only because of the rising greed in your mind. The first thing you should do is to kill the greed and only than you can start making profits. No matter how much you trust your strategy, you should know that in trading winning just because of the strategy will never really happen. You need a good analysis along with fundamental knowledge and also your technical side should be strong enough to really make profits.

[justdimin]

In everything, one should take as much risk as one can afford to take because in the case of investment, no one ever gets a quick return and there is also a risk of loss. There is no investment without risk. And if one invests more than one can afford to lose, that person later loses his financial capacity. Trading is riskier than other investments. There is a possibility of losing money here, but it is much bigger. For this reason, you always have to be prepared to accept any situation. Loss is a part of investing, so you have to accept it.

I don't think one should take more risk when it comes to investment. The more we risk, the more the chances of ruining our financial well-being. I agree that there are no profits without taking any risk but this does not mean that we should risk everything we have just to make few profits in future which are not even guaranteed.

We should only risk the amount which we can afford to loose and deciding that amount might be a challenge for most. We never really know what amount can we afford to loose. For this, a string budget plan should be in place and we should try to risk half the amount of which we think we might be ready to loose. Trading or investing, both come with consequences and one might land up in loss almost 50% of the times because the probability will always be 50-50.

[Leahized]

To be profitable on the long run, you need to know how to protect your asset and maximize profits. You need to be risk conscious in every trade you take not mind how great the set up might look, remember you are not in control of the market but just there to take profit. You made the mistake of allowing your trade to put you in a lose that your didn't want, you should have put the stop lose function that people are talking about to prevent big lose.

Every trader trades for profit, but the reason they make mistakes is that they always follow the same direction and don't use the best strategy. If any strategy fails then another strategy should be used again. By doing this, you can understand the different stages of profit and understand the direction of loss. Moreover, no one can tell when the observation will fail. That's why you should never use all the money while trading, so that it can be revived later. Yes it is correct every trader should use stop loss, it will make some loss but not lose all money. Since this has happened, there is no point in worrying anymore. So we have to move forward and learn from it.

[BlackBaron]

In everything, one should take as much risk as one can afford to take because in the case of investment, no one ever gets a quick return and there is also a risk of loss. There is no investment without risk. And if one invests more than one can afford to lose, that person later loses his financial capacity. Trading is riskier than other investments. There is a possibility of losing money here, but it is much bigger. For this reason, you always have to be prepared to accept any situation. Loss is a part of investing, so you have to accept it.

I don't think one should take more risk when it comes to investment. The more we risk, the more the chances of ruining our financial well-being. I agree that there are no profits without taking any risk but this does not mean that we should risk everything we have just to make few profits in future which are not even guaranteed.

We should only risk the amount which we can afford to loose and deciding that amount might be a challenge for most. We never really know what amount can we afford to loose. For this, a string budget plan should be in place and we should try to risk half the amount of which we think we might be ready to loose. Trading or investing, both come with consequences and one might land up in loss almost 50% of the times because the probability will always be 50-50.

We must be willing to take risks to achieve what we desire, but that doesn't mean we should take risks greater than we can handle, we should adjust based on what we can afford.

We must be responsible for our actions, and we must also take risks within our means. Sometimes people take risks beyond their limits in order to achieve greater rewards. However, this is completely unwise, as it means we have exceeded our limits. Don't treat this as a form of gambling, as it will impact our finances.

[Oluwa-btc]

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...

If you had followed risk management, which is mandatory for successful trading, you would never have opened a deal with such a high deposit percentage. And if you don't know what risk management is yet, you definitely need to study it before you decide to open a new deal.

Traders ignorantly skip risks management instead of focusing on it.In trading and business, most people focus only on how much they can gain.Very few people stop to ask themselves "What could I lose?” That’s awareness initially.Risks control,gives you a chance to survive,grow, learn and protect your mindset.

[Franctoshi]

You must treat trading as a business for you to succeed in this industry, else you will fall into the category of the 95% of traders that lose money in the market. Don't trade like a gambler, like those traders who wants to use $100 capital to also make profit of $100 if not more, This way you're not trading your are actually gambling the market but thinking you're really trading. Therefore it's very important you manage your risk and use a very minimal lots size or a low leverage whenever you're trading, so you can stay in this game, target 5%-30% to allow you risk low and see if you will not be profitable especially when you have a better understanding of the market.

[Inwestour]

You must treat trading as a business for you to succeed in this industry, else you will fall into the category of the 95% of traders that lose money in the market. Don't trade like a gambler, like those traders who wants to use $100 capital to also make profit of $100 if not more, This way you're not trading your are actually gambling the market but thinking you're really trading. Therefore it's very important you manage your risk and use a very minimal lots size or a low leverage whenever you're trading, so you can stay in this game, target 5%-30% to allow you risk low and see if you will not be profitable especially when you have a better understanding of the market.

On one hand, you are right that it is necessary to consider risks. The more money you want to make from a small capital, the greater risks you will expose your funds to. And vice versa, the larger your capital is, the safer the trades you can execute in order to receive a more or less normal profit. But this is only one of the aspects of trading that needs to be taken into account. Because you mention statistics that show that only a few percent of the total number of traders are able to make a profit. But in reality, I think that in quantitative terms this is not such a small number of traders. Most traders simply expose their funds to high risks. And this is what prevents them from making money in trading. And because of this they lose more than they earn.

[harapan]

It's no longer a secret that people who focus on their risks have and builds the best foundation for themselves.They understand risks and studies risk management to an extent of survival and professionalism.If you take careless risks,your chances of growing or learning becomes unrealistic.

[jossiel]

There are influences why sometimes we trade more than what we can afford to lose. The expected profit is high and that's what we think is achievable which is.

But we haven't measured that little added risk is going to cost us more money if we lose those trades.

Because of that thought of added greediness and going more than what we can afford to lose, it results to a worse trade that we might get discouraged of recovering it for being frustrated of the result.

[wmaurik]

It's no longer a secret that people who focus on their risks have and builds the best foundation for themselves.They understand risks and studies risk management to an extent of survival and professionalism.If you take careless risks,your chances of growing or learning becomes unrealistic.

People who dare to take risks in any profession have usually studied in detail where those risks will occur, thus gaining the courage to undertake them because they already know the point of risk. And if we look at a profession like trading, the point of risk is at the level of loss, so every trader simply strives to avoid loss, even if it doesn't immediately achieve profit as the ultimate goal. Therefore, it's important to understand risk before taking any action in the profession we've always loved, as it's a crucial part of anything.

[laijsica]

It's no longer a secret that people who focus on their risks have and builds the best foundation for themselves.They understand risks and studies risk management to an extent of survival and professionalism.If you take careless risks,your chances of growing or learning becomes unrealistic.

People who dare to take risks in any profession have usually studied in detail where those risks will occur, thus gaining the courage to undertake them because they already know the point of risk. And if we look at a profession like trading, the point of risk is at the level of loss, so every trader simply strives to avoid loss, even if it doesn't immediately achieve profit as the ultimate goal. Therefore, it's important to understand risk before taking any action in the profession we've always loved, as it's a crucial part of anything.

Yes if we can study the risks or negative aspects, it will be more fruitful for a trader. That's why many people may criticize you, but the reality is that not only in trading, but before starting any project, it is better to be aware of the negative or risky aspects of that project before getting motivated to make a profit.

I was discussing with my friends about developing a project together, in that discussion, I explained the negative aspects of the project, so many people criticised me. But as an experienced person, I knew what the risky things could be in that project. It is very easy to calculate the profit when you are a beginner or when you only see the positive aspects in analysis any other project but if you look deeply you cannot succeed in anything without experience.

[Yeesha]

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.

I'm really sorry for your lost. It's really a great thing that you share your personal experience with us here in the from, because I believe that a lots of us got some big to learn from your experience.

I actually don't know how you come up with the title of this thread, but it sound so interesting. Respect your risks more than reward. The title has already explained everything, and as they said "A word is enough for the wise". In trading it's actually important or advisable to control your emotions and feel comfortable and contented with the profit you are getting no matter how small or little it may seem, rather than being carried away by emotions and chases unrealistic expectations, or big win that may result in big loss. A good trader will always think about and focus on the downside. When you size a position, it's actually very important to set a stop loss, or limit, Just as the OP did for the first time. But the mistake he made is that, he was carried away by his emotions and he was blinded by the imagination of the biggest win ahead.

And he doesn't want more people to be a victim, that's why he posted it here which is actually a good thing. If the potential loss would hurt your account, your peace of mind, or your mental health, the trade isn't worth it, no matter how tempting the upside looks.

[ancafe]

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.

Managing risk allows us to adapt to trading, even though we know that trading doesn't always produce consistent profits. Many people fail in trading because of greed and trying to make large profits with disproportionate capital, ultimately losing even more money. Managing risk is not easy in trading because sometimes we struggle to limit ourselves. We are usually able to withstand losses, but when we get small profits, we rush to exit the market and this is what we often experience.

The lack of a trading strategy can lead to inability to persist in trading, and overusing strategies will also be unsuccessful because we lack a basis for correcting previous trading mistakes. Making some adjustments to your trading engagement and evaluating each loss in a previous trade is, I believe a much more optimal approach.

[Fara Chan]

Managing risk allows us to adapt to trading, even though we know that trading doesn't always produce consistent profits. Many people fail in trading because of greed and trying to make large profits with disproportionate capital, ultimately losing even more money. Managing risk is not easy in trading because sometimes we struggle to limit ourselves. We are usually able to withstand losses, but when we get small profits, we rush to exit the market and this is what we often experience.

The problem is, why be so hasty to exit the market after making a small profit, even though we have already experienced losses that may have outweighed those profits? I also acknowledge the difficulty of managing risk in trading, as it is inherently challenging. However, every trader needs to train themselves not to let their emotions escalate to the point of being unable to manage actions such as rushing to exit the market. However, some would also call it greed when a trader doesn't quickly take profits they've already made in the market.

[Fullcoinese]

The problem is, why be so hasty to exit the market after making a small profit, even though we have already experienced losses that may have outweighed those profits? I also acknowledge the difficulty of managing risk in trading, as it is inherently challenging. However, every trader needs to train themselves not to let their emotions escalate to the point of being unable to manage actions such as rushing to exit the market. However, some would also call it greed when a trader doesn't quickly take profits they've already made in the market.

Deciding whether to exit a trade or hold onto it requires paying attention to the market movement situation. Sometimes we do feel uncertain whether the profits can reach the maximum as expected due to slight signals that may affect our thinking.

Making a decision that satisfies a trader requires experience. Those who are less experienced will certainly feel panicked if the situation could change in a short time. This is what makes traders close their trades faster, even though the target price has not actually been fully reached.

[Mpamaegbu]

Traders ignorantly skip risks management instead of focusing on it.

Nothing destroys accounts faster than that. Besides having a strategy, emotional control and Risk Management/Money Management are the real trading skills. Those who are only focused on what they can win without paying attention to what they can also lose don't become profitable on the long run. Being profitable in trading doesn't mean absence of losses. Nope, it doesn't. It only means that a trader's winning ratio (not just the wins), must over shadow their losses. That's why anything less than a 1:3 doesn't get my interest. What that means is that I will have to lose 3 trades to wipe off profit from my one win. It's a good ratio.

[alastantiger]

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.

oh man that right there is one of the toughest lessons every trader eventually learns, even the cleanest setup can always still fail. the market doesnt reward confidence, it will reward discipline. What happened to you is exactly why fixed risk management exists in the first place. When emotions kick in and you start thinking about "flipping the  account", thats when the damage happens. It is good you recognized the mistake early, most peoople blow entire accounts before realizing that no setup, no matter how perfect it may look is ever guaranteed. Sticking to your risk percenntage protects you from days like this and aslo kepp you consistent in the long run.

[ASloveapg]

The problem is, why be so hasty to exit the market after making a small profit, even though we have already experienced losses that may have outweighed those profits? I also acknowledge the difficulty of managing risk in trading, as it is inherently challenging. However, every trader needs to train themselves not to let their emotions escalate to the point of being unable to manage actions such as rushing to exit the market. However, some would also call it greed when a trader doesn't quickly take profits they've already made in the market.

Deciding whether to exit a trade or hold onto it requires paying attention to the market movement situation. Sometimes we do feel uncertain whether the profits can reach the maximum as expected due to slight signals that may affect our thinking.

Making a decision that satisfies a trader requires experience. Those who are less experienced will certainly feel panicked if the situation could change in a short time. This is what makes traders close their trades faster, even though the target price has not actually been fully reached.

This is why the trader must first acquire skills. If one has deep skills, one can handle oneself in such situations and make reasonable decisions, but those who have less experience are more likely to make wrong decisions in such situations. In trading, decisions should be made through skill rather than emotion, unnecessary worries should not be made during any fluctuations, but at that time one should keep one's mind calm and make decisions through more in-depth research, unnecessary and excessive reactions will not lead to correct decisions, and this kind of mentality will naturally remain in the new situation.

[terrific]

The problem is, why be so hasty to exit the market after making a small profit, even though we have already experienced losses that may have outweighed those profits? I also acknowledge the difficulty of managing risk in trading, as it is inherently challenging. However, every trader needs to train themselves not to let their emotions escalate to the point of being unable to manage actions such as rushing to exit the market. However, some would also call it greed when a trader doesn't quickly take profits they've already made in the market.

There is no problem in exiting the market very early. As long as you've got profits already and you're in a hurry to exit.
That should just be fine. What's not fine is if you're in a hurry and you're forgetting the things you should do like controlling your emotions.
So, with how we manage our emotions, it could lead us on an early exit but the determining factor there is if we've got sufficient profit by that time or we are in losses.

[Johnlomape]

To be profitable on the long run, you need to know how to protect your asset and maximize profits. You need to be risk conscious in every trade you take not mind how great the set up might look, remember you are not in control of the market but just there to take profit. You made the mistake of allowing your trade to put you in a lose that your didn't want, you should have put the stop lose function that people are talking about to prevent big lose.

Every trader trades for profit, but the reason they make mistakes is that they always follow the same direction and don't use the best strategy. If any strategy fails then another strategy should be used again. By doing this, you can understand the different stages of profit and understand the direction of loss. Moreover, no one can tell when the observation will fail. That's why you should never use all the money while trading, so that it can be revived later. Yes it is correct every trader should use stop loss, it will make some loss but not lose all money. Since this has happened, there is no point in worrying anymore. So we have to move forward and learn from it.

Traders don't have to blame their strategies for their lose because I don't think that is what could be responsible for a trader's lose. Apart from being with a good strategy, what about losing money to your trade due to not having enough skills that will help you to be profitable? Strategy can only work if you know how to use it and the same also applies to gamblers that are looking for profitable strategy that will help them to make money from their bets. If you have a good strategy and you don't know how to use it, you will have problem with yourself while complaining about your trades.