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.

[Baki202]

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.

because from having the idea of making quick profit to becoming greedy and that is one of the ways that you can identify a very bad trader, so it will be better for you to be able become a good trader one of the things they put first is risk management becuase they know that consistent trading without risk management will only cost you more as a trader so you need to be more prepared before you even start trading because it is going to be a cross you will carry and you need to be ready because theree is a lot of things that people dont understand but they want to trade and only when they are properly understood you can trade.

[Odohu]

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?

This is a common thing among traders  which may be so lucky to have serious of wins and little losses. It makes them feel complacent and with a sense of pride. The market usually do not take time to discipline someone at that stage because they drop their strategy to focus on fanning thwir ego. Whenever I have the urge to feel this way, I usually stop trading to avoid expensive mistakes.

[henmark]

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.

And I think it is very important for a few of us to go through the answers. Greed will always come into picture as long as money is involved. We should learn how to control that greed because excess greed is only going to hinder our decisions and we might sometimes take impulsive decisions which might cause a losing streak. One who learns to control greed can also start making profits because they can now train their mind to focus on one thing instead of being greedy and only thinking about multiplying money.

Success in trading is a long journey and there would be a few lessons that needs to be learnt. Real-world experiences can make the journey a bit easier because it will showcase the real challenges and give us the ability to tackle those.

[JunaidAzizi]

That has happened to everyone, and if i can say every time, then it would not be wrong because, due to it, many traders lost. They fell into the trap of dopamine, confidence, and greed. All of these contribute after you win a trade and prepare you to place another one, but that time you fail. If you want to fix it, adjust your position and leverage, and bring discipline to your trading activity.

[Franctoshi]

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?

One of the greatest challenges every trader faces in the market is their greed. If a trader can control their greed, half of their problems with profitability will be solved. Most traders are not profitable, but if you can interview each individual trader globally, aside from risk management and psychological aspects of trading, you would realize that after a profitable trading day or week or month, what majorly caused them to lose is their greed not being contended with the profit they've made so far.

Any day I manage my greed, for me most of the time I have a good trading day or week because managing your greed would tell you to apply risk management.

[Texac]

One of the greatest challenges every trader faces in the market is their greed. If a trader can control their greed, half of their problems with profitability will be solved. Most traders are not profitable, but if you can interview each individual trader globally, aside from risk management and psychological aspects of trading, you would realize that after a profitable trading day or week or month, what majorly caused them to lose is their greed not being contended with the profit they've made so far.

Any day I manage my greed, for me most of the time I have a good trading day or week because managing your greed would tell you to apply risk management.

I mean, this is no secret. Most traders know full well that greed is the number one reason they lose money. But knowing that and actually being able to control it are 2 different thing.

Controlling greed is not as simple as learning some theory and putting it into practice. Greed affects your brain chemistry, including dopamine , and taps into our basic survival instincts. When greed grabs a hold, even the most basic rules of risk management go out the window.

Everybody  knows greed is  a trader's worst enemy , but actually beating that instinct is way harder than talking about it.

[liasbaa]

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?

This is a common thing among traders  which may be so lucky to have serious of wins and little losses. It makes them feel complacent and with a sense of pride. The market usually do not take time to discipline someone at that stage because they drop their strategy to focus on fanning thwir ego. Whenever I have the urge to feel this way, I usually stop trading to avoid expensive mistakes.

It is often compared to gambling, but in reality the whole process is gambling. Many traders will support taking a lot of risk to make money or they will use leverage but they do not know how their confidence is causing losses. If you close the trade in such a situation, you may be in the right position but it will be like fleeing the market. In such a situation, I try to avoid excitement and establish control over myself because a wrong decision can create the possibility of panic selling. It is logical to remain stop trade as you did.

[BigTarget]

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.

That's the very initial stage where we are just learning to control our emotions. Every new trader makes a mistake of allowing their emotions take part in their trading schedule. It is only when they end up in loss, they re-evaluate their strategies and think we they might have went wrong. A few of these people are still able to identify their mistake and improvise them to be able to make profits in future but there are a few who would continue trading without actually thinking about their mistakes.

Loss is inevitable at the very initial stage and I mostly call it the learning stage where we have to spend some money in order to gain experience. What we learnt from that experience is important because that is what will decide our future in trading.

[Popkon6]

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.

That's the very initial stage where we are just learning to control our emotions. Every new trader makes a mistake of allowing their emotions take part in their trading schedule. It is only when they end up in loss, they re-evaluate their strategies and think we they might have went wrong. A few of these people are still able to identify their mistake and improvise them to be able to make profits in future but there are a few who would continue trading without actually thinking about their mistakes.

Loss is inevitable at the very initial stage and I mostly call it the learning stage where we have to spend some money in order to gain experience. What we learnt from that experience is important because that is what will decide our future in trading.

Every trader should follow the strategy then they will be able to trade successfully. At this stage I would like to say that in the present time there are many people who do not consider the market situation, cannot control their emotions, so they enter the market and take up trading in any situation.
If someone starts trading by neglecting the strategy, then it is natural that that person will face losses, so to be careful, you must move forward towards the future without danger. Only those who follow these strategies and continue moving towards the future will reach success.

[Yeesha]

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.

An experience trader knows how to tackle everything, but there is a possibility for an experienced trader to fall for greed even after many years of experience. Because sometimes greed comes into the picture when a trader experience more money. Excessive winning can trigger a trader and make them believe that they can win continuously. Overconfidence can bring a huge risk to the life of a trader either newbie or experience trader. The best point of trading is through being patient. Even if there is a possibility for short term win, is not everyone that will have the privilege. Wanting short term wins is equivalent to chasing losses, because it contains risk that you never even imagine.