Trading profits growing risk appetite

[Karl_3000]

We must be able to control our emotions and yes we can actually avoid major losses We must remain calm Those who have experienced losses must have a strong mindset and determination to avoid repeating the same mistake Those who have never lost must be vigilant and learn from the mistakes of others

Let me just tell you the truth about trading, it is mostly done by people that are greedy. The greed is not confirmed until they are losing but they continued to trade after years of losses. They can see their mistakes, correct themselves, obey the trading rules, but after they are making money they will begin the mistakes again just because they think they can earn huge amount of money from trading within a short time period. Short term trading is bad.

[CryptoBuds]

We must be able to control our emotions and yes we can actually avoid major losses We must remain calm Those who have experienced losses must have a strong mindset and determination to avoid repeating the same mistake Those who have never lost must be vigilant and learn from the mistakes of others

Let me just tell you the truth about trading, it is mostly done by people that are greedy. The greed is not confirmed until they are losing but they continued to trade after years of losses. They can see their mistakes, correct themselves, obey the trading rules, but after they are making money they will begin the mistakes again just because they think they can earn huge amount of money from trading within a short time period. Short term trading is bad.

Sounds harsh, but that is truth. Most people who get into trading, especially futures are driven by greed to some extent. Once you have got that get rich quick mindset, keeping your emotions in check, and controlling greed and sticking to discipline becomes damn near impossible.

Easier said than done . On paper , everyone  knows  what they should do, but IRL it's a whole different story. That's why so many people know they're making mistakes and still keep repeating them.

[Bitcoin_people]

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?

~~

Yes, of course it is true that if you make a profit in trading, then greed works a lot. If you can earn money by trading, then a plan to start trading with more money comes to mind to make more profit. If you can make a profit, many people use additional leverage and plan to make more money in a short time, going against the trading strategy. When a trader starts trading with the aim of making a large amount of profit in a short time, it becomes very challenging and risky for him. You can never make a profit by going against the trading strategy, but you have to lose all your money. Therefore, an experienced trader never goes outside the trading strategy, but he trades with skills and experience. I think that if you trade skillfully within the trading strategy, it will be possible to make a profit, and the risk will be reduced here.

[CryptoLogixBot]

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?

There is a specific temptation when you stick to a single strategy, trade monotonously, and actually make money: you start trading on autopilot. Your brain gets bored and suggests, "Look, you're trading successfully—why not boost your returns using margin?" You look at the charts, see that your trades are solid, and convince yourself that higher leverage won't hurt you. So, you keep raising the leverage and the risk, until eventually, you wipe out your account. I know people this has happened to personally. I’ve dabbled in margin trading myself, and it is an extreme experience.

But I have a rule for this:
5x leverage is the sweet spot; it gives you a safety buffer of about 18.5%.
You *can* use 10x, but only if you are absolutely confident in the trade.

You must always keep some free cash in reserve so that, in a crisis, you can add margin to avoid liquidation.
Alternatively, you can place an order for the same amount just before the liquidation price; this improves your average entry price, lowers the liquidation level, and gives you a bit more breathing room.

But all of this is high-risk and doesn't always pay off.

It’s better to earn a steady profit than to put yourself through that kind of stress!

[Odusko]

Trader's can lose in trading from whatever direction, having over confidence after a few profits in your trade can lead to excessive losses in the Short time from that point, that is not the only way to lose also.

Some traders can take the wrong trade direction just by not paying attention to which option they hit on the order book, this happened to me two day ago and it lead to me losing $135.

[r_victory]

Everything the OP said boils down to pure greed. An experienced trader usually already has efficient risk management and wouldn't let themselves be emotionally swayed by profits to the point of increasing their risk exposure beyond their self-imposed limit.

[Byebyebtc]

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?

Its a phase that traders will pass through, there is a point where you will not be affected by those emotions of over confidence and using high leverage, but to get to that level you will have a lot to experience and learn from them as well.

Probably this might be a situation you got to experience recently and the fact that you are able to pick it out is one thing, another is to act on it, when the urge comes again how strong will you be to overcome it and stick to your risk strategy, that is the most important.

[TSen]

Trader's can lose in trading from whatever direction, having over confidence after a few profits in your trade can lead to excessive losses in the Short time from that point, that is not the only way to lose also.

Some traders can take the wrong trade direction just by not paying attention to which option they hit on the order book, this happened to me two day ago and it lead to me losing $135.

That was a very basic mistake and almost everyone might have made that mistake back in times. I guess you should pay close attention to the order books because the worst thing we want is opening a trade in wrong direction because that would directly oppose our analysis. You can still try and close this trade at minimal loss or even at break-even but you might have to sit right in front of the charts for a few hours until you can find the exit point. Also these kind of trades can even cause liquidation so we should be really careful.

This mistake is still understandable in spot markets because the loss we might face there is on a minimum scale but we can never afford this kind of mistake in futures or options and that too with high leverage.

[Odogwu-Blockchain]

Are you blaming yourself for that? If you blame yourself then you are equally blaming the natural phenomenon that occurs to the human brain whenever success happens, you do not need to act as if you are not happy when you profits in trading, the brain chemistry does it work automatically to everyone.

It's normal, not something new, you just have to know exactly when it's time to jump up and stop trading as that's the key to successful trading.

[laijsica]

Everything the OP said boils down to pure greed. An experienced trader usually already has efficient risk management and wouldn't let themselves be emotionally swayed by profits to the point of increasing their risk exposure beyond their self-imposed limit.

These experienced traders still do not get a guaranteed profit because trading is full of uncertainty. Most short-term traders fall into the trap of greed. Experienced traders tend to take more risks, so their losses are more likely to be large. Very few experienced traders understand their financial limits and use leverage. Most of them go beyond their limits in a greedy attitude and lose money.

I have faced a situation where op is asking for your opinion on being greedy a few times, but the results of making quick decisions are not good in most cases, and this was the case with me. Even after analyzing the market, experienced or inexperienced traders can sometimes make stupid decisions.