Trading profits growing risk appetite

[Oshosondy]

Have you noticed this before? You trade and make money all to know that you later because of that go against your trading strategies which later make you lose?

You can be using just 1x leverage, but you make money to the point that your brain reward center will deceive you and make you increased your leverage and greed, making you risk more but at the end, you are losing.

I think any trader that is making money from trading should be careful of this situation. It will definitely come, but it can be avoided.

What do you think? Has it not happened to you before?

[Zaguru12]

Have you noticed this before? You trade and make money all to know that you later because of that go against your trading strategies which later make you lose?

You can be using just 1x leverage, but you make money to the point that your brain reward center will deceive you and make you increased your leverage and greed, making you risk more but at the end, you are losing.

I think we have discussed this on one of your old threads or post before and it this was actually attached to psychological effect where a trader after getting to make profits from trades starts to actually go against their risk management which also affects their risk tolerance.

This has happen to me before, two or three more good trades and you start calculating how much more you would have made if you have added by more position size either through increasing leverage which is most common or through increasing capital of which both leads to higher risk taking.

I can say that this particular behavior mostly leads to new traders falling into losing trades because with higher risk taking their psychology is affected which leads to loss of confidence and possibly loss in trade

[Joy_learns_crypto]

Have you noticed this before? You trade and make money all to know that you later because of that go against your trading strategies which later make you lose?

You can be using just 1x leverage, but you make money to the point that your brain reward center will deceive you and make you increased your leverage and greed, making you risk more but at the end, you are losing.

I think any trader that is making money from trading should be careful of this situation. It will definitely come, but it can be avoided.

What do you think? Has it not happened to you before?

As a trader you can reckon that you will be careful of this situation but then when you start making money using the 1x leverage you don't understand how you land yourself increasing the leverage.
It's just the money at hand is never enough syndrome, chasing after what could be is risk that's for a certain. Every trader needs to be emotionally witty and be one with reality.

[Oshosondy]

I think we have discussed this on one of your old threads or post before and it this was actually attached to psychological effect where a trader after getting to make profits from trades starts to actually go against their risk management which also affects their risk tolerance.

This has happen to me before, two or three more good trades and you start calculating how much more you would have made if you have added by more position size either through increasing leverage which is most common or through increasing capital of which both leads to higher risk taking.

I can say that this particular behavior mostly leads to new traders falling into losing trades because with higher risk taking their psychology is affected which leads to loss of confidence and possibly loss in trade

This is very possible because it is part of trading psychology. I posted about it which means I know it can happen, but it still happened to me just yesterday. I have my strategies which I am following which is also still risky, but I make money from it and I later suddenly changed which has happened to me before and I lose some coins.

I am taking some time off right now for me not to lose more money as it has started. I know what could be the end result if I continue trade right now.

[Gozie51]

I think any trader that is making money from trading should be careful of this situation. It will definitely come,

What do you think? Has it not happened to you before?

You are right buddy and surely it must come especially as a beginner, it could be repeated often. An old and experienced trader might develop strong emotion to control their profit because they understand the difficulty of making profit in trading. It is really painful to see that you have made good profit but because of too much confidence and excitement, you abandon your strategy and start making wrong orders.

but it can be avoided

Yes it can be avoided and one way to do that is not to over trade. If you keep to certain amount of trade you take in a day, that will help. Especially few trades like 2/3 in a day. Also, for the trader who keep to certain percentage of profit daily, you can stop trading for that day if you have reached that percentage. Also, it is good to maintain leverage size.

However, the challenge is greed. Traders feel those days of easy profit is time to maximize it. And yes, it is good to maximize profit but while we do that, we don't have to take unnecessary risk. Money management is also important.

[EarnOnVictor]

-snip-
What do you think? Has it not happened to you before?

It has happened to me before, and I believe no regular trader would be exempt even if they later correct it. What causes it can still be encapsulated under emotion, and this particular one is caused by overconfidence. This triggers overtrading or overrisking. It shows the lack of discipline, as the trader might have had a lovely plan prior to that time, but all of a sudden, they abandoned it due to success illusion, forgetting that different trades comes with different conditions. This calls for strict plans that must be adhered to.

[stadus]

Have you noticed this before? You trade and make money all to know that you later because of that go against your trading strategies which later make you lose?

Although its not perfectly written but I do understand it... and yes, I experienced this before, I had a working strategy already, but I still tried to revise it like I'm not satisfied with what I'm currently using, instead of making it simple the working one I made it complicated. its that sometimes I'm affected by what I read and try to revise whats working already, and that was the big mistake I remember in the past, lesson learned whatever is working we should just stick with it..

[Dr.Bitcoin_Strange]

This is something that all beginners traders usually encounters, even those that are now good in trading and are making money from it have also experienced this before because at first, you would think that trading can respect your emotions or arrogance but by the time the person faces repeated losses from a strategy that probably had worked many time, they would understand that market doesn't even respect strategy most of the time and so the need to always apply proper risk management is very important. I have had this experience multiple times and it did me no good but rather made me lose confident in the trading and I was the cause of it. We should never be in a haste to make profit in trading and also, let protecting of your capital be the most priority for traders.

[Donneski]

Most traders who do this borrow that extra confidence from the belief that their profits are different from their capital. When they make good profit, they don't have the fear of losing it by increasing their leverage because to them, it's not their capital after all so it's no big deal to lose it. They forget that the profit they made while using 1× leverage has become theirs, that why they'll still feel pain if they lose it to greed. Having a strategy is important but sticking to it after a good run of winnings only happens when you're disciplined.

[Sally9256]

Most traders who do this borrow that extra confidence from the belief that their profits are different from their capital. When they make good profit, they don't have the fear of losing it by increasing their leverage because to them, it's not their capital after all so it's no big deal to lose it. They forget that the profit they made while using 1× leverage has become theirs, that why they'll still feel pain if they lose it to greed. Having a strategy is important but sticking to it after a good run of winnings only happens when you're disciplined.

Exactly, after a profits like they have the believe of thinking that profits isn’t part of their capital so they don’t actually care that much when lost again even if it would hurt them but not as much as when it touches their capital. A trader will do anything to protect their capital but they are forgetting that the profits we made is our capital too and we need to protect it at all cost because that profits is what builds our capital to some level we want.

You are also right about one thing, having a strategy is definitely important but the main difficult task is sticking to it even after wins or losses. It always turns out to be a difficult task for traders specifically the greedy ones.

[BitMaxz]

If you don't have any system to follow, then you will end up losing or your trades is more likely a gamble because you are risking beyond what the system recommends.

And actually leverage will only increase the amount you can risk, but you can still set the margin amount you want and SL. So no matter how much leverage you set, if your margin and risk amount still the same, the leverage is ignore unless you use the isolated type and use liquidity as your SL.

[AVE5]

Have you noticed this before? You trade and make money all to know that you later because of that go against your trading strategies which later make you lose?

You can be using just 1x leverage, but you make money to the point that your brain reward center will deceive you and make you increased your leverage and greed, making you risk more but at the end, you are losing.

There's always that death trap in the trading market where you've to go through the risks of guess right uncertainty events.
A lot of risks are required in trading which includes the risk of capital, emotions and time. If any side is ruin apparently means heart breakening to you.
So you should have enough money before you can undergo the risk and become successful because, matter of consistency might be required until your lucky moments comes while you learns from your past experiences to also figure better strategies that should do you better profitable.
Definitely sure that you'll loose more if you're too greedy. Trading is also not for those too who can't take the risk.

[batang_bitcoin]

That is a normal precedent of each trader when we're making profits from our trades. I think that's part of human behavior and there are case studies about it. But when you start to think about growing the risk and putting more leverage to your trade, that's the sign that you should stop. You're already overconfident and that shall give you a warning that you're no longer in the path of trading with caution. In your mind, you're doing it as is and making it with caution but you're stepping up and wanting to earn more which is a sign that you're starting to get greedy.

[Makus]

Keeping up with risk management while making profit can be very difficult and it takes a lot of discipline, a lot of profitable traders start feeling like they are invincible at some point, they move from being calculative to taking careless risks and instead of them being in profit in the long run they end up incurring more losses than the profits that they make all because of their greed. No matter the results you get from trading you must always remember that it is important to take risk management seriously, you cannot avoid losses but you can control what you lose.

[GbitG]

......

This is very possible because it is part of trading psychology. I posted about it which means I know it can happen, but it still happened to me just yesterday. I have my strategies which I am following which is also still risky, but I make money from it and I later suddenly changed which has happened to me before and I lose some coins.

I am taking some time off right now for me not to lose more money as it has started. I know what could be the end result if I continue trade right now.

Simple is that you need to work on your market profile. Like you mentioned that your strategy made you profit or the same strategy at sometimes make you lose. If your strategy is lacking then go on and Backtest it until you conclude a better win rates. Few years ago I was also feel the same as you and when my mentor suggest me that keep minimal your risk like 1% and honestly it's work.....

I took 60+ trades on same strategy with 1% risk and also circle the rules of mine strategy. And fortunately it's work nicely and even it's also wrap my emotions. So keep minimal your risk if your setup is not A+.

Risk management is foundation. If you you keep it rightly then probably it will handed you the best rewards.

[I_Anime]

Have you noticed this before? You trade and make money all to know that you later because of that go against your trading strategies which later make you lose?

You can be using just 1x leverage, but you make money to the point that your brain reward center will deceive you and make you increased your leverage and greed, making you risk more but at the end, you are losing.

I think any trader that is making money from trading should be careful of this situation. It will definitely come, but it can be avoided.

What do you think? Has it not happened to you before?

If it haven’t happened to you then you haven’t started trading yet . Is one of the common most traders have experienced , that’s why you have to be a trader with principles. Set a system to work with , know the amount of risk you can handle, find the strategy that suit you the most cause there are countless strategy at there you just have to do your research and find the one that suit you . Because is only traders without strategy that usually struggle with this the most .

[Finebone]

Have you noticed this before? You trade and make money all to know that you later because of that go against your trading strategies which later make you lose?

You can be using just 1x leverage, but you make money to the point that your brain reward center will deceive you and make you increased your leverage and greed, making you risk more but at the end, you are losing.

It's not just greed that makes a trader goes against his trading strategy, and why we only talk about greed is because it is an easy target to blame, but the main thing that makes a trader goes against his trading strategy is when the said trader cannot control his emotions like fear, not just greed. Our emotions is the only thing that can cause you to start doubting your own analysis, which might make you go against what you are aware is the right thing, so if you can control your fear and greed when trading, going against your own principles is impossible.

What do you think? Has it not happened to you before?

I have experienced it in the past when I am still struggling to control my emotions because I know of a particular winning strategy that works, but lack of emotional control will make me pull the plug and go the other way, which will make me lose money, and in the end, the trade will play out as my analysis say, but I have not experience the one caused by greed that you made mentioned here.

[Alphakilo]

Have you noticed this before? You trade and make money all to know that you later because of that go against your trading strategies which later make you lose?

You can be using just 1x leverage, but you make money to the point that your brain reward center will deceive you and make you increased your leverage and greed, making you risk more but at the end, you are losing.

I think any trader that is making money from trading should be careful of this situation. It will definitely come, but it can be avoided.

What do you think? Has it not happened to you before?

I only experienced this at the onset of my trading journey when I funded my friends account who was putting me through as someone who has more experience in trading. He was winning at the beginning and got greedy that he increased the amount and that's when within a few minutes, he lost both the initial capital he had managed to secure and the profits on it.
I was kinda angry at him for being greedy but I tried to control my response to him and just told him outrightly that this is pure greed. He agreed it indeed was, but my money was lost already and while I learned my lesson from that incident to never hope on making quick profit from funding someone else, mostly a close friend, he too learned his lesson about greed.

[suzanne5223]

What do you think? Has it not happened to you before?

Yes, it has once happened to me,
I believe this is something that mostly happens to some traders who let the level of their winning trades get into their head and have the feeling of being invincible to lose in the market, when the reality is that every analysis, trade execution, and every professional trader does not mean they control the result of the market trend because the next thing the trader is doing is not trading; it's gambling, since the trader has the rules of being profitable in trade.

[Botnake]

We all trade to make money and grow our income, but the only difference is that, while others stick to their trading plans, some fall on the trap of leveraging and compromise risk management which made them to lose in the end. And I believe a lot of traders have experienced this and have learned their lesson the hard way because of greed and wrong leveraging.

I think this kind of topic has been discussed oftentimes, but traders need to be reminded everytime.