Trading profits growing risk appetite

[Ndabagi01]

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

Winning a as a trader always comes with feeling yourself more that you’ve become a better trader, thus pushes one to become more confident than before and temper with their risk management approach they have been using in the market. Trading can be very challenging, when you think you are getting it right, then you make a big mistake that sees you helpless and now looking for help again. We should stick to the same principle in trading, our leverage should be in accordance to our capital. Just because we are seeing more wins, that doesn’t mean that we should increase leverage, it will be the most destructive thing to do when we trade like that.

[Natalim]

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.

The more a trader is making money, higher greed and confidence to make more money develop. Yes, this can be avoided but not all traders are disciplined enough not to take the risk. Because as long as they are seeing chances to make money and earn, traders tend to be more greedy and take leverage to gain more profits from trading. While some traders fall on the trap, wise traders continue to make money and stop leveraging when they feel there is no longer a need to. The fact that they know exactly when to stop it makes them wiser and smarter.

[#CapsLOck]

You can do this by determining the risk that you are willing to take before you make a trade, not after a string of profitable trades. Otherwise, it can seem more cosy than it really is when you've just cashed in a lot of money. The basic standard is to not vary the risk per trade based on the day's winnings. When you have all the answers and nothing is going wrong, that's when you put your strategy to the test.

[Royal Cap]

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

I would say that it is actually because of human psychology. Because people are naturally greedy and people want when they have made a profit, they want to make more profit. And this is why they face losses at the end of the day, I will not say that I have not faced losses. And I myself also have faced losses because of this greed.  So I think the best way to avoid this is to set our target profit and if we do not withdraw the profit after hitting the target profit, then the possibility of our loss is reduced at least a little.

[TheUltraElite]

Indeed we often go against our initial set points because we become, i would avoid saying greedy - but ambitious about getting higher returns.

A bit of discipline here might work wonders and avoid huge losses from the same capital. The people who are using leverage and all might have different approach to the game, but I preferring spot trading will always attempt to drag the trade over mid to long term to maximize the possible gains. The more one enters into non-spot trading the more risk they are exposing themselves to, I feel often which is unnecessary.

But someone out there might feel they want to get-rich-quick, where I feel logical reasoning is needed to avoid losing money.

[Kelward]

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

Winning a as a trader always comes with feeling yourself more that you’ve become a better trader, thus pushes one to become more confident than before and temper with their risk management approach they have been using in the market. Trading can be very challenging, when you think you are getting it right, then you make a big mistake that sees you helpless and now looking for help again. We should stick to the same principle in trading, our leverage should be in accordance to our capital. Just because we are seeing more wins, that doesn’t mean that we should increase leverage, it will be the most destructive thing to do when we trade like that.

Discipline matters so much in trading, if you have self control you won't be driven by emotions when you're making trading decisions, you will understand that making profit a couple of times in sequence doesn't mean that the tide cannot turn to having loses. Before you start to increase your trade you should make sure that you're ready for it not because you became overconfident about your profit, experienced traders shouldn't be that greedy because they should know better. Trading should be structured and when you get it right you should stick to the plan, don't just make spure of the moment decisions because You're overconfident about your profit or you want to desperately chase loses.

[jcojci]

Yes, that happened before and I think that is fine as long as we remember that is just our luck comes in the right moment. We should not break our trading strategies because we might not get same luck as before. We should sticks to our strategies and not risking more than we can afford.

If you think your profit are enough, you should not let greed posses you and telling you to continue. You should take a break and enjoy your profit so when you want to trade in other time, you can still control yourself. Trading profits can tempting someone to keep trading without think enough is enough so you should quit before the situation change.

[Big Dirams]

Yes, that happened before and I think that is fine as long as we remember that is just our luck comes in the right moment. We should not break our trading strategies because we might not get same luck as before. We should sticks to our strategies and not risking more than we can afford.

If you think your profit are enough, you should not let greed posses you and telling you to continue. You should take a break and enjoy your profit so when you want to trade in other time, you can still control yourself. Trading profits can tempting someone to keep trading without think enough is enough so you should quit before the situation change.

Some traders get carried away when things start aligning with their strategies and analysis, they start to feel more full of themselves and start thinking they are good enough and start taking irresponsible decisions that will end in regrets. If we start making constant profits in trading, we shouldn't let our emotions deceive us and pushes us into taking higher risks which might end up costing us so much, let respect our strategy and stay discipline to it and honestly we will start to witness more progress with our journey but when we start letting greed take control then we will have to blame ourselves for any result we see.

[liasbaa]

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

Winning a as a trader always comes with feeling yourself more that you’ve become a better trader, thus pushes one to become more confident than before and temper with their risk management approach they have been using in the market. Trading can be very challenging, when you think you are getting it right, then you make a big mistake that sees you helpless and now looking for help again. We should stick to the same principle in trading, our leverage should be in accordance to our capital. Just because we are seeing more wins, that doesn’t mean that we should increase leverage, it will be the most destructive thing to do when we trade like that.

Discipline matters so much in trading, if you have self control you won't be driven by emotions when you're making trading decisions, you will understand that making profit a couple of times in sequence doesn't mean that the tide cannot turn to having loses. Before you start to increase your trade you should make sure that you're ready for it not because you became overconfident about your profit, experienced traders shouldn't be that greedy because they should know better. Trading should be structured and when you get it right you should stick to the plan, don't just make spure of the moment decisions because You're overconfident about your profit or you want to desperately chase loses.

Patience and Discipline No matter what the reason, you should always be careful to use limited funds in trading. Use less funds than your financial capacity. You have mentioned overconfidence. A trader should not be overconfident if he has reliable information in advance about high profits. Analyze the market and trade with discipline rather than being confident.
Trading is risky, just as gambling is considered risky. This risk can increase when you take excessive risks to recover previous losses. In the initial stages of trading, it is better to focus more on increasing your holdings rather than chasing profits.

[Brizi5000]

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?

Yes it happens every now and then to real traders who like to take up risks of increasing their profits , a trader is like a gambler who after the first win is not always satisfied with the profit as he will tend to increase his staking power to Earn higher returns. Taking such risk is part of the game because the financial gains are in line with the level of risk and and so do the financial loses and that’s why is only important when taking such risk it should be well calculated and structured.

[sotelorene]

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?

This is very common to every trader especially when they are on winning streak like you said, the sense of wanting to increase the win and make more will come but that is where discipline comes in. You only know a discipline trader when they are making profit and you will know them by their decision and action to the market, a discipline trader will never break their rules because they are on a winning streak by trying to trader more when they have reach their target and if a trader is unable to defeat this thought they will remain unprofitable.

[Humblevirus]

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.

Almost every trader sees that as  an opportunity to increase their profit when using low leverage, as they make frequent profits from low leverag. The frequency opportunities of making profit from using low leverage is what always convinces almost every trader that they should try increasing their leverage, but most end up in losses.It is not bad to try increasing leverage sometimes, but the point is that when someone loses after increases the leverage, they should not continue using high leverage. They should immediately try lowering their leverage, as the slightly higher leverage did not work for them.For a trader to continue sticking to low leverage is not bad, but at the same time, it is not always a good idea for a trader also. Everyone needs improvement in whatever they are doing. Sometimes, taking some risks is really worth it.

[cocadalcan]

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?

This happened to me. Once I made a satisfactory profit but I thought that if I could trade with most of the funds available to me, I would have made a lot more profit.

The next time I used leverage but the market did not behave as expected and after a few weeks I had to sell at a loss. It was like gambling for me. Making a profit once and using high leverage to make more profit and losing.

You should be in a holding strategy most of the time, not just to make money. Trade only based on your own financial capacity so that even if you lose the amount of funds, your financial position will not be affected.

[Sally9256]

Almost every trader sees that as  an opportunity to increase their profit when using low leverage, as they make frequent profits from low leverag. The frequency opportunities of making profit from using low leverage is what always convinces almost every trader that they should try increasing their leverage, but most end up in losses.It is not bad to try increasing leverage sometimes, but the point is that when someone loses after increases the leverage, they should not continue using high leverage. They should immediately try lowering their leverage, as the slightly higher leverage did not work for them.For a trader to continue sticking to low leverage is not bad, but at the same time, it is not always a good idea for a trader also. Everyone needs improvement in whatever they are doing. Sometimes, taking some risks is really worth it.

It's really common and I think it's just not in trading alone but also different things that deals with profit making or money making. One thing I know is that once you start making a certain amount frequently you will start to develop the urge to make more than that that's why people easily get greedy when they start making some money, they suddenly want more and will want try anything just to make more.

This is exactly what happens with traders, they suddenly want to abandon their trusted strategy to try out a different one just to increase their profit. If increasing leverage is not what you can afford to lose then there's no point in doing it, because it will only lead to regret.

[savetheFORUM]

That has definitely happened to me before. I think the ones making loss are actually quite careful but once they make any single profit, their risk appetite would eventually increase. These people usually do not consider the previous loss making trades and are only happy now because they saw one profit coming along their way. If they do not control their mind, the profit would soon be converted to loss or every worst, might even blow the account just because we are overconfident.

I learnt it the hard way to take a break after a winning trade. Our mind is not ready to take another trade after seeing profits and at that point, it is always better to take a break and relax our mind before starting to think about trading again.

[Hamza2424]

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.

Crazy how you put this in such short lines, I would need more lines to make it clear for OP haha. Anyway bro, there is absolutely no doubt that we should focus on our risk amount, and you are so smart that you did not say risk percentage. You said risk amount because with risk percentage, the whole situation would be wrong.

As in percentage the same margin with higher or lower leverage could make a difference, but again we should focus on our actual risk amount, which is determined by our position size and SL. 

[fredericktaylor]

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.

Yes, when you make money through trading, it naturally increases the traders emotions or greed, as a result of which the trader becomes overconfident and starts trading outside the correct rules, taking extra risks, as a result of which the trader will have to face losses in both deposit and profit. It is good to be confident but trading with overconfidence can have the opposite effect, so it is very important to stay calm and avoid emotional decisions after making money.

[BitMaxz]

Crazy how you put this in such short lines, I would need more lines to make it clear for OP haha. Anyway bro, there is absolutely no doubt that we should focus on our risk amount, and you are so smart that you did not say risk percentage. You said risk amount because with risk percentage, the whole situation would be wrong.

As in percentage the same margin with higher or lower leverage could make a difference, but again we should focus on our actual risk amount, which is determined by our position size and SL. 

Yeah, a bit of confusion; I just brought the MT4/MT5.

What I'm talking about is the position size no matter how high or low the leverage you set is if the position size is the same with the same SL position, you are risking the same amount when you lose a trade.

The only difference is the gap of your liquidity; it is way much closer if you use higher leverage. That's like I said before; it still depends on your position size unless your SL is not too tight to fit with much closer liquidity. Meaning you are using high leverage; your order would fail if you set SL beyond your liquidity.

Also take note of the displayed ROE%; the percentage is different between the 3x and 20x movements. 20x shows you a higher percentage, while 3x leverage shows you a low percentage sample it displayed on 3x as +14.7%   and 20x as +98%.

[Yeesha]

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?

Profits itself is a trap, especially for those who are not content with what they have or blinded by greed. Making profit is a joyful thing and that is what every trader always wish and hope for. But one of the major or greatest mistake that some traders made is providing room for more loss. Even if a trader is winning again and again, you have to ensure that your winning probability should be low, In order not to allow your emotions to takeover. Emotions can create overconfidence. In trading, losing your money is not the only problem, becoming too confident after winning is the real problem.

[Dareo]

Profits itself is a trap, especially for those who are not content with what they have or blinded by greed. Making profit is a joyful thing and that is what every trader always wish and hope for. But one of the major or greatest mistake that some traders made is providing room for more loss. Even if a trader is winning again and again, you have to ensure that your winning probability should be low, In order not to allow your emotions to takeover. Emotions can create overconfidence. In trading, losing your money is not the only problem, becoming too confident after winning is the real problem.

To me, profit in itself does not become an issue while trading, rather what becomes the problem is changing your rules once someone get some profit. After doing some profitable trades continuously, everyone starts thinking that he knows everything about the market and gets greedy. Position size increases, the number of trades also increases, and ultimately the previously maintained risk management system starts getting discarded. In my opinion, the best way out would be to look at every next trade as a new chance even when you make some profits. Do not think of previous profits as free money, keep your old risk management system intact. And must follow your rules and strategy consistently because the market doesn't differentiate between past profits.