Respest your risks more than rewards

[WhoYouCantKill]

Seriously, overconfidence is what mostly makes some traders lose, because it is what makes them take wrong decisions, like trading with high amounts. It is also what makes them not take their profits at the right time. But sometimes, it is not that all traders who trade with high amounts of money are overconfident. Some people own issue is greediness, just because they want to make it quickly, or possibly they are trying to recover their losses. Any trader that is doing that will always end in regret.

Yeah both greed and overconfidence can make a trader go in very hard. Actually both of usually go together, especially when the trader may have hit some good profits in their previous trades, they often get too confident in their skills at some point and feels like they’ll continue in the same trend, and then greed set in, thereby making them to increase their lot size with hopes of doubling or tripling their profits in the shortest time.

[Mpamaegbu]

~

But sometimes, it is not that all traders who trade with high amounts of money are overconfident. Some people own issue is greediness, just because they want to make it quickly, or possibly they are trying to recover their losses.

Confidence is necessary in trading and that's what tests one's strategy whether the strategy be of value or not. Overconfidence is when one tries to play god in the market. The market doesn't tolerate that. It sees it as arrogance. Also, greed isn't a bad thing in trading. It's over greediness that's a problem. That's the same way it's with overconfidence.

Any trader that is doing that will always end in regret.

I don't think so. Only those who don't make use of Stop Loss will get punished. SL defines what level of exposure one tends to take and safeguard one's capital while in the market. Those who don't use SL expose everything at once. That's bad trading strategy.

[shawonngp]

There is no such thing as a good setup in trading that guarantees a profit. As you want, the market can go your way; it can also go against you. Trading is risky, so every trader has to take risks, whether more or less. Otherwise, it is not possible to profit from here. Risk management is a significant factor in trading; if you don't apply it properly, you won't be successful here. Because most of the time, new traders start trading emotionally, but they continue to lose. I don't know what you mean by fixed percentage. But if you trade wrongly due to overconfidence, then you will lose in the end of the day.

[Dynamite++]

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.

That's basically what trading plans are for though, we have certain amount we plan on risking and we stick to it, and before entering the trade,you have to come to an agreement with the fact that you could loss that money, as well as you could make more to it. Thanks for sharing your experience, and this is an evidence that even A plus setups do fail sometimes.

[Hamza2424]

Exactly. And this is what we commonly refer to as risk management. Because from this, we can see whether the risk and potential profit are balanced or not. Or at what point we will set the appropriate stop loss and take profit.

Risk factor us always important when you are trading in the market because you are earning according to your risk and if you are taking more risk then you will earn more. If you are taking less risk then you will get less reward of that .

People don’t engage nowadays in long-term investing. They learn and search a lot of things that I might not have even explored at first for day trading, haha, and they are being too serious and extra careful. Well bro, they are doing right, and you both are right with your points.

We must engage but with proper risk management, and without such measures, we are going to lose our funds to the market in a way that, in the end, we will be empty-handed and won’t understand how we lost it all.

The best way is to wait, learn, try, then implement on real funds. Trading is not easy, no matter how easy it looks from an experienced point of view.

[AGogi2003]

Yeah both greed and overconfidence can make a trader go in very hard. Actually both of usually go together, especially when the trader may have hit some good profits in their previous trades, they often get too confident in their skills at some point and feels like they’ll continue in the same trend, and then greed set in, thereby making them to increase their lot size with hopes of doubling or tripling their profits in the shortest time.

That is what will definitely make you lose in trading always, because greedy can make you not be satisfy with what you get. Greedy always make you not to cashout when you're into profit you will always think that the profits will continue raising and crypto in always volatile not anytime he can favour you sometime you lose and some you gain but you need to get the Knowledge about it first before you can get the benefit. If you get more experience about trading you will always get benefits then others that always need quick funds in this life you need to satisfy with what you get, because if you think that you need big funds so that you can risk and get huge profit when he favour you.

[Johnlomape]

Yeah both greed and overconfidence can make a trader go in very hard. Actually both of usually go together, especially when the trader may have hit some good profits in their previous trades, they often get too confident in their skills at some point and feels like they’ll continue in the same trend, and then greed set in, thereby making them to increase their lot size with hopes of doubling or tripling their profits in the shortest time.

That is what will definitely make you lose in trading always, because greedy can make you not be satisfy with what you get. Greedy always make you not to cashout when you're into profit you will always think that the profits will continue raising and crypto in always volatile not anytime he can favour you sometime you lose and some you gain but you need to get the Knowledge about it first before you can get the benefit. If you get more experience about trading you will always get benefits then others that always need quick funds in this life you need to satisfy with what you get, because if you think that you need big funds so that you can risk and get huge profit when he favour you.

I don't really know why people are becoming greedy from trading and maybe because they want to make fast profits just like we have been seeing those who are looking for a quick way to make money from gambling, playing all games that they know can give them profit just to become profitable at any level.  When you respect the risk you are taking so that you don't have to lose everything you are about to use to trade, this will safe you the regret of complaining about your trades that never ends  well with profits. If you don't do the right thing, you might be surprised of losing more than you have every expected.

[MarjorieZimmermanGinger]

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

That's much better because taking commensurate risks in trading is much more likely to keep people in the game than high expectations of expected profits. Greed is always a problem for someone because we might lose control of discipline in carrying out sustainable trading and ultimately have to stop trading for some reason. Trading is not as easy as it seems, and perhaps not everyone can succeed in this industry, especially if someone engages in trading without proper knowledge, making it difficult to make disciplined and greedy moves because trading expectations must be in line with the risk because trading is not as profitable as people imagine.

[wmaurik]

That's much better because taking commensurate risks in trading is much more likely to keep people in the game than high expectations of expected profits. Greed is always a problem for someone because we might lose control of discipline in carrying out sustainable trading and ultimately have to stop trading for some reason. Trading is not as easy as it seems, and perhaps not everyone can succeed in this industry, especially if someone engages in trading without proper knowledge, making it difficult to make disciplined and greedy moves because trading expectations must be in line with the risk because trading is not as profitable as people imagine.

What I find surprising about some traders today is that when they start to gamble, they aren't relaxed enough when trading any option. Trading can be done in a more relaxed manner without being greedy and relying entirely on the market. As long as the market is still open to everyone, there's certainly time to think about trading in the days to come. However, some people who have become traders today still think that if they don't trade now, it's too late to enter the market. This is a misconception, as trading can be done at any time without having to force themselves to a specific time.

[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 is why there's always a talk about discipline, you get to test your discipline mostly in situations like this, when you are able  to stick to your strategy regardless of the situation you find  yourself, bee it a very perfect one marking out all your parameters, still stick to your risk management, and this should apply to both winning and loosing trades, some will always think they are disciplined enough untill they find themselves in situations as this where their discipline gets tested, then they know better if they are better disciplined.

One other thing that helps the discipline mind is set goals and expectations, you may be a very disciplined person but your expectations can turn out very unrealistic, that will push your discipline and break boundaries, if you are expecting to get something form trading, when you see this type of opportunity, you get that push to exploit it, forgetting trading is not a get rich quick scheme but it rewards those who express discipline, stick to a realistic plan and give it as much time as possible.  You can still achieve that dream trading, but may not be in the time you want so add patience to your discipline and try not to rush to exploit opportunities when you see them, it mostly turns bad.

[nara1892]

Thanks for your story OP, this can really be a valuable lesson for us especially yourself, that's what will happen when we treat everything excessively, beyond the limits of ability because we think it is a moment that should not be wasted.

Of course I have also experienced such a situation, even I all in all the balances I have haha and finally what is left is only regret, from here I also learned that no matter how good the moments we see in the market it does not mean you will definitely profit at the end of the entry, this is the reason why the market really cannot be predicted 100% accurately.

[sana54210]

Greed, what happened to OP was called greed. When you see a good setup and you think that you are going to make a lot of money, you could be wrong, just like anyone else in the world. This is why there is no reason why we should be expecting this to be very true, it is going to be wrong most of the time so assume that you could be wrong about the setup, you could lose, always be careful.

When you think like that, you end up risking a lot less and that is the way to go, you should be risking a lot less, and that way you can make a lot more profit. Even in this case, if it turns out a bad strategy, because you would be risking small amount, you would have lost a lot less money than what OP did and you would be fine.

[Y3shot]

Some people don't even understand how risky trading is; that is why they can go into trading with no fear. I think before one should think of respecting risk, it is important to first know the risk because what you don't know makes it impossible to have regard for it.

One of the reasons why some traders have no regard for their risk is because they don't understand trading, and they are just concerned about making money from trading. It takes a good understanding of trading to have concerns about risk and to avoid it. If traders prioritize understanding trading, it reduces risk in trading.

[MarjorieZimmermanGinger]

What I find surprising about some traders today is that when they start to gamble, they aren't relaxed enough when trading any option. Trading can be done in a more relaxed manner without being greedy and relying entirely on the market. As long as the market is still open to everyone, there's certainly time to think about trading in the days to come. However, some people who have become traders today still think that if they don't trade now, it's too late to enter the market. This is a misconception, as trading can be done at any time without having to force themselves to a specific time.

Rushing and thinking they can make money quickly is the mindset of people new to trading, so they don't try to base their actions on proper knowledge. I have a friend who thinks this way, he was very enthusiastic about trading because he thought he could achieve large profits, but so far he has stopped trading because he probably experienced more losses than profits. Greed and a lack of discipline in carrying out anything will never work, especially when it comes to trading which is inherently high-risk. Many people will wait for the right time to enter and they will never enter a trade if they think the chances are small because wasting time on small chances is a waste of time.

[Inwestour]

Some people don't even understand how risky trading is; that is why they can go into trading with no fear. I think before one should think of respecting risk, it is important to first know the risk because what you don't know makes it impossible to have regard for it.

One of the reasons why some traders have no regard for their risk is because they don't understand trading, and they are just concerned about making money from trading. It takes a good understanding of trading to have concerns about risk and to avoid it. If traders prioritize understanding trading, it reduces risk in trading.

I think that people who haven’t fully figured out trading won’t trade with large amounts of money. Of course their first trades and initial attempts will most likely be unprofitable. And if some trades do bring profit, it will be random rather than consistent. I believe that smart people would never put serious money into something they don’t understand well.

[LastKiss]

Greed, what happened to OP was called greed. When you see a good setup and you think that you are going to make a lot of money, you could be wrong, just like anyone else in the world. This is why there is no reason why we should be expecting this to be very true, it is going to be wrong most of the time so assume that you could be wrong about the setup, you could lose, always be careful.

I agree, greed and overconfidence are what make OP forget their own plan and discipline. This happens often when people become overconfident with their setup, believing it has a high probability of success. Traders tend to get greedy, aiming for more profit so they put more money there. But when they lose the trade, it reminds them to be more disciplined with their strategy. Most traders already know the risks, but as OP mentioned sometimes they don’t respect the market and the market will make them remember how to respect it again.

[Itz-prisigold]

I feel you on your honesty about this, I’ve also learned my lesson from this too. The market doesn't care how perfect a setup are, no matter how perfect your setup look, is actually not safe,  The moment you break your own risk rules, you aren’t trading anymore, you’re just gambling.

For me, account survival is always more important than any single trade. Even a setup that is A+ can still fail, there is nothing like a sure thing; a trade might look like it’s a guaranteed win, but you survived to fight again if you stick with a calculated risk, Once you let emotions into your trading,  you lose discipline and go for the money with a high risk.

I feel you when you say you were more upset at the risk you took than the loss. loss are part of the game and I get that but you can completely avoid oversized risk. Trading without the risk is gambling. That is a lesson every trader has to learn for themselves.  Always remember that despite the harsh truth of the lesson: respect risks first,  a profit is just a game to be played again. Those who ignore this truth lose without a doubt.

[Fivestar4everMVP]

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.

Right from time immemorial, one of the golden rules in crypto is never invest more than you can afford to lose, and reason for this rule is clear, crypto trading and investing are both a highly risk venture, profiting can be sometimes very hard while losing is very easy, so matter how good a market appear to be, never put into it more than you know you can afford to lose and this is majorly because the market is very volatile and dynamic, this second, everything could be facing up and the very next second, everthing will be facing down, this is why it's very difficult to accurately and correctly predict the future prices of cryptocurrencies.

And another important thing is to always be sure you know what you are doing as a trader, if not, your trading is no more than gambling and we all know that in gambling, it's only by luck that a player wins.

[barbara44]

Risks are the number one part of crypto trading where you are going to see what could go wrong. Even before you make a single trade, you see the risks or at least you should be calculating the risks and if the risk is higher than the possible reward then there is no need to do it, and you need to look at the odds as well.

For example, putting just a thousand dollars on a 100x leverage could get you 5k+ return, which is huge and sometimes even more. In that case risk is lower than the reward, because you will lose only thousand dollars but could win five or ten thousand dollars. But you gotta look at the odds, and possibility of you losing is a lot higher than you winning and that's a bigger deal without a doubt.

[Yeesha]

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.

When trading confidence is essential, but overconfidence can be dangerous. Confidence helps a trader to make decisions calmly, follow a plan, and remain disciplined even when the market is unpredictable. But overconfidence can often leads to making wrong decisions, ignoring risks, neglecting proper analysis and taking impulsive or excessive trades. And this can actually result in heavy losses and poor risk management if proper care is not taken. In order to avoid unnecessary risks, a trader must balance confidence with caution. This includes having a clear trading strategy, setting limits and managing the capital wisely and thoughtfully, and most importantly accepting that losses are a normal part of trading. Successful trading is not about being overly sure of every decision you make, but about staying humble, learning from mistakes and making decisions wisely based on analysis rather than emotion.