Trading profits growing risk appetite

[M47AK16]

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.

In this situation, I would say all these people can avoid using any leverage and stick closely to spot markets. Leverage is a great tool to maximise our profits but if not treated carefully, can majorly dent our portfolio. Even if we use 1x leverage and make some profits, our mind would eventually send signals to hike the leverage thinking we can make profits in next trade as well. That does not work out usually and a lot of us might have experienced loss after a winning streak.

For me, making profits is not the main motto but not to make loss and save profits is what I run behind. Loss usually wipes away our profits and a lot of us overlook at that probability. All they want is profits but it's not coming the easy way.

[boyptc]

For me, making profits is not the main motto but not to make loss and save profits is what I run behind. Loss usually wipes away our profits and a lot of us overlook at that probability. All they want is profits but it's not coming the easy way.

That's sort of confusing when you say that making profits isn't the main thing and yet you want to save profits. But I understand what you're saying.

It's to minimize the losses and to keep whatever is the amount you're profiting with. And you're right that it's not easy to profit with trading.

Because the harder part aside from those things, is on how we're keeping the profits we make and if we're going to spend it back to the market or into something else.

[PERtua]

A second potential issue following a run of victories is that the trader's perception of what is normal returns might alter. A 2% win that previously felt like a win, but now feels like a small one after a few good trades. The trader starts to up his position size just to get the same feeling or dollar return from the trade. This can occur without the person being aware of being greedy. A method to fight it is to compare each trade with the initial risk plan, instead of the prior trade profit. An effective streak should help you control yourself, not your understanding of what is a safe risk.

[PostQuantumBTC]

In this situation, I would say all these people can avoid using any leverage and stick closely to spot markets. Leverage is a great tool to maximise our profits but if not treated carefully, can majorly dent our portfolio. Even if we use 1x leverage and make some profits, our mind would eventually send signals to hike the leverage thinking we can make profits in next trade as well. That does not work out usually and a lot of us might have experienced loss after a winning streak.

Cryptocurrencies is very risky, they are very volatile. Leverage is nothing more than gambling. Example is someone that is using 25x leverage for bitcoin, that is totally gambling.

For me, making profits is not the main motto but not to make loss and save profits is what I run behind. Loss usually wipes away our profits and a lot of us overlook at that probability. All they want is profits but it's not coming the easy way.

Many traders will later accept the losses and stop trading and move to less risky means of making money. Trading is very dangerous but they will not listen until they have several losses while some may even become a trading addict.

[Barikui1]

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.

Their is a popular saying that excess of everything is bad, greed in trading may not be that bad if you are using it the right way, because you have to be greedy, if you want to win big or make big money in trading, but where I think that it's bad is when you no longer have control over it, which shows that it has taken over the way you reason, that's when I think it's bad.

 What the op explained is a normal emotional temptation that happens to most traders, but the main reason some of them fail or lose a significant amount of money the moment they try such is that they did it with what they cannot afford to lose, and because of that line of action, they start trading emotionally, away from their main trading strategy that has given them positive results before then.

[Findingnemo]

We simply want more, when we are making profits then our brain seeks more returns for that we will increase the risk and that can bring the opposite outcome then we will feel that market deceived us but in reality, we are the one who tricked ourselves to get into the situation. It will take ages to get a mindset that we should avoid the trap and for some it happens after a few lesson but for some it takes forever to learn that simple lesson.

[henmark]

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.

I don't think disciplined traders would ever face this kind of problem. These traders have already spent years in mastering the charts and now they know when and why to stay away from the markets. A lot of times, I have observed that the markets are going really well and mostly in the direction I predict so at that point, my brain would eventually force me to open multiple positions because I am sure about the direction but we all know how unpredictable the markets can be and I only realised that after a series of loss.

No matter how confident we are, we should never over-trade. Booking a profit and stepping away until we revamp our strategy is what will keep you in profits. Using the same strategy to make another profit will never work out.

[Charles-Tim]

I don't think disciplined traders would ever face this kind of problem.

So as most traders are losing, this means they are not disciplined. Most of the traders know how to tade very well after they have learned how to trade and have experience for many months. But this is where the problem lies. They will be able to make money over time, but later a simple mistake will occur and they will lose money. Some traders will even lose all the money that they are having on their trading account.

No matter how confident we are, we should never over-trade.

Yes, but when they are making successful trades without any losses, that is where they will make the mistake.

[Bright0515]

I think the problem is overconfidence, a lot of traders start making money and they start thinking that they are invincible but it doesn't really work that way. No one can always predict the market accurately, this means that a trader could be In profit today and have a different result the next day. They say human needs are insatiable, it is normal to aim for more profits as a beginner but you must remember that greed can take away the results of your hardwork within a short period of time.

[hafiztalha]

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.

I said it many times: there is no room for greed in trading. Greed definitely flushes our disciplined mindset and we lose. We saw the market was green, we forgot our tp and then we lost it all. Tp is a must because it keeps us on track for when we need to get back from our position but alone it's not enough. A trader must set limits before entering, like their TP, how much they are willing to lose, etc. Both take profit and stop loss must be decided before entering it will help us with our discipline and not to become greedy.

[mirakal]

We simply want more, when we are making profits then our brain seeks more returns for that we will increase the risk and that can bring the opposite outcome then we will feel that market deceived us but in reality, we are the one who tricked ourselves to get into the situation. It will take ages to get a mindset that we should avoid the trap and for some it happens after a few lesson but for some it takes forever to learn that simple lesson.

The moment we chose to stop trading, that's the only time we stop wanting more and stop leveraging on our trades. But as long as we are still stuck in the situation on how to increase our profits in trading, the idea to take higher risk is non-negotiable. Because trading without leveraging at some point may only mean useless, you trade but you are not actually making real good profits.

[Bigjoe33]

I don't think disciplined traders would ever face this kind of problem.

So as most traders are losing, this means they are not disciplined. Most of the traders know how to tade very well after they have learned how to trade and have experience for many months. But this is where the problem lies. They will be able to make money over time, but later a simple mistake will occur and they will lose money. Some traders will even lose all the money that they are having on their trading account.

It's just human nature. They always want more. Human wants are insatiable. When a trader makes money today, and another tomorrow, another again, using a pattern of trade, and always been successful. Somehow, the human nature sets in. He would want to double it, make more than he is making, and to achieve this, he has to increase the liverage and risk ability, and this brings in a bigger percentage of loss.

So, it's not all about discipline. Discipline plays a role, but sometimes, we just allow the human insatiable nature surpass our disciplined measure that we set for ourselves, and boom, we hit, and sometimes we fall. So a trader has to be more careful, fighting the insatiable state of mind if they really want to maintain there controlled trading pattern.

[SuperBitMan]

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.

I said it many times: there is no room for greed in trading. Greed definitely flushes our disciplined mindset and we lose.

Yeah I totally agree with you, as a trader greediness should not be anywhere near you because if you are greedy you will only lose money, we all know how difficult and complicated trading is and for you to succeed you need to be contented with the money you make.

The reason why most people actually lose money in trading is because they are greedy and they are not contented with what they make, when you become greedy and wants to make huge amounts immediately you will end up losing everything.
Greediness has made me lose money and it’s also making many more people losing money in trading.

[uchegod-21]

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.

I said it many times: there is no room for greed in trading. Greed definitely flushes our disciplined mindset and we lose.

Yeah I totally agree with you, as a trader greediness should not be anywhere near you because if you are greedy you will only lose money, we all know how difficult and complicated trading is and for you to succeed you need to be contented with the money you make.

The reason why most people actually lose money in trading is because they are greedy and they are not contented with what they make, when you become greedy and wants to make huge amounts immediately you will end up losing everything.
Greediness has made me lose money and it’s also making many more people losing money in trading.

It is easier said than done. Every trader knows why it is good to be disciplined; they all know why having self-control is necessary, but when they see themselves making profits, their stance on their initial trading plan changes immediately, and they want to go back for more. Sometimes this happens when a trader is overconfident that his strategy is perfect and that overtrading will work. Some traders have been successful when they go against their initial plans, while others end up losing it all. For all of those traders who abandoned their initial plan just because of greed, it is nice that they learnt their lessons the bitter way. Many traders have had this experience; that is why they are advising from experience, so others will see the need to stick to their initial plan.

[Hatchy]

No matter how confident we are, we should never over-trade.

Yes, but when they are making successful trades without any losses, that is where they will make the mistake.

One thing most people still don't understand about trading is that no matter how good you are you will still take losses. We cannot be 100% accurate all the time and the best we can do is to accept that defeat and move on. It's not even about over trading or not being disciplined, you can still follow all your trading rules, be very much disciplined and then the Market still does it's thing. Over time you come to understand that in trading there are many things that can go wrong, you could have issues with brokers, the market manipulators, your own emotions and many more that can make you unprofitable for a very long period of time..

[atookz]

I think the problem is overconfidence, a lot of traders start making money and they start thinking that they are invincible but it doesn't really work that way. No one can always predict the market accurately, this means that a trader could be In profit today and have a different result the next day. They say human needs are insatiable, it is normal to aim for more profits as a beginner but you must remember that greed can take away the results of your hardwork within a short period of time.

Yes, it's a well known issue: overconfidence. The hard part is that, after a few profitable trades, it can be easy to think that it's skill, when in reality the market could simply have been following the same trend as our trade. The same approach can yield vastly different results when the conditions are altered.

When it comes to greed I feel that it's normal for beginner traders to want to grow their account quickly. But typically, that's where the trap lies: targets are increased, position sizes are increased, stop losses are adjusted, and once they hit a losing trade, it can wipe out weeks of profits. That's why the best idea isn't to try to stop wanting to make money, but to set a limit on the amount of risk you take with each trade and stick to it regardless of whether you are on a winning streak or not.

In the end, no trader can win every trade. What we can control is how much we lose when we're wrong, not how often we're right.

[Agathamay]

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 will relate this with gambling and there are times as a gambler, mostly the casino players who play With a lot of discipline with little profits coming in gradually and since the winnings are continues, there's this tendency that begins to creep in (greed) and starts making it seem like betting with a certain amount of money is not worth it and the best is to raise the stake and for those go gamble will understand it that most times, the moment you just raise your stake, you just end up losing the game.

For trading, I just know that, nothing is certain and guaranteed in trading and if I'm to follow a certain principle while trading, I always make sure I do it strictly.

[danherbias07]

Greed or maybe trying to rush the profits.

Well, I think that's a normal reaction for an impatient trader, but it could be successful sometimes. Leap and cross the line. It's high risk. That is a fact. It could also be coming from overconfidence after having a good record of making small profits. Still, I do agree that we should be careful when this happens to us. We may be envisioning something that cannot become reality, and we are taking a high risk that is only going to make us lose more.  Trading can be profitable in both ways, the greedy and the patient. But I think trading lightly is the safest route.

[laspol65]

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 has happened to me many times and I have faced losses using high leverage, when I use low leverage I do not face any loss but my profit is small. But whenever I use high leverage I have more losses before I get time to add leverage later. That is why I have stopped trading, where I am facing losses constantly I cannot control myself so I have been away from trading for the last 21 days. And I want to enter trading again by saving money and using low leverage and trading with less risk.