Trading profits growing risk appetite

[Proty]

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.

There is no stage in trading that losses can be completely avoided. Even experienced traders still losses money while trading but the most important thing is that they have learned how to manage risk. There are mistakes that we don't really need to make before we can learn because there are people who has made such mistakes, learning from them will be the best thing to do. I believe trading should be done with an amount of money we can afford to lose and a beginner doesn't need to waste money because they want to learn from their mistakes.

[icebar]

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.

It is true that a greedy trader can also make wrong decisions in the hope of big profits. I think that it is not necessary to trade all the time to make a profit from Bitcoin. Because there are many people who lose their money while buying and selling Bitcoin in the hope of small profits. Even those who have been trading for a long time do not always understand when the price of Bitcoin will increase and when it will decrease.

So instead of chasing big profits in a short time, I think it is better to know Bitcoin well and think about holding it for a long time. It is not that there will be no losses. But at least there will be no need to buy and sell hastily after seeing the price fluctuations every day. So before investing in Bitcoin, it is better to understand your financial situation and make a decision with patience.

[GbitG]

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.

Well, it's a good flash to highlight the point but here I will tell you something more......
For me the most important thing is learning. Before jumping into the field you should need to learn the basic unit. Because it's a financial markets and here whenever you try to float for equity then probably you will never understand the scale or the structure of the view. I mean the analogy behind the market.....

Besides that if I elobrate this in simply words...  Then probably I will say that when it's come to  makes profit then you will never understand the technical aspects because you emotions just triggered the dopamine of profit rather learning.

[Just Say]

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.

It is true that a greedy trader can also make wrong decisions in the hope of big profits. I think that it is not necessary to trade all the time to make a profit from Bitcoin. Because there are many people who lose their money while buying and selling Bitcoin in the hope of small profits. Even those who have been trading for a long time do not always understand when the price of Bitcoin will increase and when it will decrease.

So instead of chasing big profits in a short time, I think it is better to know Bitcoin well and think about holding it for a long time. It is not that there will be no losses. But at least there will be no need to buy and sell hastily after seeing the price fluctuations every day. So before investing in Bitcoin, it is better to understand your financial situation and make a decision with patience.

Yes even a greedy trader can make wrong decisions hoping for big profit so when a trader gets addicted to making too fast or too big profit we can say that their logical thinking is lost because they don't realize that it is not necessary to trade all the time to make profit from Bitcoin. Due to greed one usually takes these bull decisions like over trading, excessive lever cinema,Not using stop loss and unplanned trading.

The key to being a successful trader is that for survival in trading, risk management and control of risk is more important than profit for each of us. In this case I agree with you that one should invest in Bitcoin with a long-term attitude by gaining knowledge about Bitcoin without chasing big profits in a short time. In fact, there is no need to analyze the market sentiment and market to start recruiting Bitcoin B because one can start investing in this currency with basic knowledge.

[Lannakosa]

There is no stage in trading that losses can be completely avoided. Even experienced traders still losses money while trading but the most important thing is that they have learned how to manage risk. There are mistakes that we don't really need to make before we can learn because there are people who has made such mistakes, learning from them will be the best thing to do. I believe trading should be done with an amount of money we can afford to lose and a beginner doesn't need to waste money because they want to learn from their mistakes.

I think that, as a beginner, you inevitably have to learn from your own mistakes. No matter how hard you try to learn from other traders' experience, listen to their advice, and follow their recommendations, the time will come when you make mistakes and lose money. That's because the market doesn't behave the same way every time. Even the same strategy can work differently for different traders.

[Big Dirams]

There is no stage in trading that losses can be completely avoided. Even experienced traders still losses money while trading but the most important thing is that they have learned how to manage risk. There are mistakes that we don't really need to make before we can learn because there are people who has made such mistakes, learning from them will be the best thing to do. I believe trading should be done with an amount of money we can afford to lose and a beginner doesn't need to waste money because they want to learn from their mistakes.

You are absolutely correct, no stage at all in trading that prove that we can completely eradicate losses in our trading journey. There are traders that have been in trading industry for ages now but still they face losses in their trading career and not because they are not knowledgeable or profitable but just because losses in trading can’t be  avoided. Losses in trading can’t be avoided totally but we can reduce our losses in trading and focus much on our risk management and that way we will face minimal losses in trading that won’t affect our portfolio that much.  

[Yeesha]

There is no stage in trading that losses can be completely avoided. Even experienced traders still losses money while trading but the most important thing is that they have learned how to manage risk. There are mistakes that we don't really need to make before we can learn because there are people who has made such mistakes, learning from them will be the best thing to do. I believe trading should be done with an amount of money we can afford to lose and a beginner doesn't need to waste money because they want to learn from their mistakes.

You are absolutely correct, no stage at all in trading that prove that we can completely eradicate losses in our trading journey. There are traders that have been in trading industry for ages now but still they face losses in their trading career and not because they are not knowledgeable or profitable but just because losses in trading can’t be  avoided. Losses in trading can’t be avoided totally but we can reduce our losses in trading and focus much on our risk management and that way we will face minimal losses in trading that won’t affect our portfolio that much.  

That's why it is actually called trading. They are a lots of impossiblities, but they are possible ways to handle and manage those Impossiblities. Let's take trading for example, loss cannot be totally terminate or eliminate in trading, but there are appropriate ways to manage the risks (which is losses) and again they are some strategies that a trader will make use of in order to maximise the profits. No matter professional a trader is, he will definitely face loss. But their level of loss and risks taken will be different from that of newbies, because of their skills, experience, understanding of the market and also their ability to adapt to modern challenges that occur in the market.

[hafiztalha]

Yeah, it's true that personal experience gives us upper hand and valuable lessons but it's not true that beginners have to lose money to learn important lessons. They can learn from other traders' mistakes as well. And it's completely true that the market changes every time and our same strategy can fail to give us the same result and produce different results for different traders. It shows us how important it is to test and understand a strategy before putting in our money. The main goal is not to make mistake and learn but the point is to identify the mistakes early. Learn and avoid. Experience is everything but how we can use that experience matters a lot.

[ndutndut]

There is no stage in trading that losses can be completely avoided. Even experienced traders still losses money while trading but the most important thing is that they have learned how to manage risk. There are mistakes that we don't really need to make before we can learn because there are people who has made such mistakes, learning from them will be the best thing to do. I believe trading should be done with an amount of money we can afford to lose and a beginner doesn't need to waste money because they want to learn from their mistakes.

I think that, as a beginner, you inevitably have to learn from your own mistakes. No matter how hard you try to learn from other traders' experience, listen to their advice, and follow their recommendations, the time will come when you make mistakes and lose money. That's because the market doesn't behave the same way every time. Even the same strategy can work differently for different traders.

In the world of trading there's no way to completely avoid losses and managing risk is far more important than trying to win without experiencing any losses at all. Indeed, learning from other traders mistakes is something we need to do especially if they target beginners because by studying other people's mistakes, we can save time learning trading and speed up our understanding of discipline, position management and market psychology. Besides that trading only with money you're prepared to lose is a basic principle every trader must stick to.

But even so, personal experience is still irreplaceable for minimizing losses especially since the market is very dynamic, so everyone’s strategy will definitely be different. Even if a strategy works for someone else, it can fail in our hands because there are differences in how decisions are made. I can say that our own mistakes often become the most effective teacher for minimizing losses, as long as the amount lost is controlled so it can be used as material for future evaluation and definitely not just wasted money for the sake of learning.

[Proty]

There is no stage in trading that losses can be completely avoided. Even experienced traders still losses money while trading but the most important thing is that they have learned how to manage risk. There are mistakes that we don't really need to make before we can learn because there are people who has made such mistakes, learning from them will be the best thing to do. I believe trading should be done with an amount of money we can afford to lose and a beginner doesn't need to waste money because they want to learn from their mistakes.

I think that, as a beginner, you inevitably have to learn from your own mistakes. No matter how hard you try to learn from other traders' experience, listen to their advice, and follow their recommendations, the time will come when you make mistakes and lose money. That's because the market doesn't behave the same way every time. Even the same strategy can work differently for different traders.

There are mistakes a beginner don't need to make. I am not saying that beginners won't make mistakes, but if they rely on there own knowledge and understanding they may end up making mistakes that should have been avoided. Even an experienced traders can still make mistakes during trading. The thing is for a beginner to know the basics about trading to avoid some common mistakes while still learning from their own experience.

[Su-asa]

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.

Risk management is an important part of trading that should not be taken for granted, the reason why a lot of people that are experienced in trading stop applying risk management is because they start getting to greedy or trying to make money rapidly from trading which makes it gambling. Traders that always need to be reminded of these basic things means that they are not disciplined enough to trade. A trader that's mature mentally would always prioritize risk management over quick profits.

[Freeveto]

You are absolutely correct, no stage at all in trading that prove that we can completely eradicate losses in our trading journey. There are traders that have been in trading industry for ages now but still they face losses in their trading career and not because they are not knowledgeable or profitable but just because losses in trading can’t be  avoided. Losses in trading can’t be avoided totally but we can reduce our losses in trading and focus much on our risk management and that way we will face minimal losses in trading that won’t affect our portfolio that much.  

The traders that always post positive winning PNLs in their channels are just to deceive people to trade with them, but they are not real because even professional traders lose money in trading, but there is no reason why you should be trusted if you only post winnings PNLs and not both, and some of the claims are to be perfect traders, and we know that there are no perfect traders because the crypto market is volatile. That is why, as a trader that is making profit, there is a high chance of losing money to trading.
We can only reduce the rate at which we lose money if we apply risk management by using very low leverage to avoid greed, and to use stop loss and TP to minimize our risk of losing our capital in a single trade.

[Li Yuan Fangs]

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 should serve as a lesson for everyone. A trader once turned $56,000 into $12.25 million in just four months by trading BTC and altcoins. He then began trading with even higher leverage, which resulted in the near-total loss of his entire portfolio. Now, he is left with only $21,800—an amount even less than his initial capital. This is precisely why, in futures trading, no matter how large your starting capital may be, you will eventually end up bankrupt.

[Yorubek]

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.

Risk management is an important part of trading that should not be taken for granted, the reason why a lot of people that are experienced in trading stop applying risk management is because they start getting to greedy or trying to make money rapidly from trading which makes it gambling. Traders that always need to be reminded of these basic things means that they are not disciplined enough to trade. A trader that's mature mentally would always prioritize risk management over quick profits.

There are both profits and losses through trading, when a person is aware, controls his greed and emotions, uses strategies and is aware, can take risk management and understands the volatility of the market, enters at the right time and controls himself from emotional decisions, limits himself to his means and is calm with small profits, as a result, the risk of losing money from trading can be reduced, the possibility of making money naturally increases. Those who do not acquire basic knowledge about trading and start trading aggressively only in the hope of quick profits, then it turns into gambling, as a result, the risk of losing money increases manifold. It is very important to be disciplined through trading, take risk management, avoid emotional decisions, and be patient.

[Rengga Jati]

Well, it's a good flash to highlight the point but here I will tell you something more......
For me the most important thing is learning. Before jumping into the field you should need to learn the basic unit. Because it's a financial markets and here whenever you try to float for equity then probably you will never understand the scale or the structure of the view. I mean the analogy behind the market.....

Exactly. Learning is the primary ammunition before deciding to trade crypto. This process shapes our trading journey. It encompasses preparation. of course this also determines the actual trading process, evaluation, and the subsequent assessment of outcomes.

Through learning, we gain essential insights. Such as an understanding of risk management. This is crucial, given that crypto trading carries a very high level of risk. By learning how to manage risk, we can work to minimize it.

Additionally, learning helps us understand the characteristics of various coins, including their often extremely high volatility. which better prepares us mentally for significant price fluctuations.

Furthermore, learning provides the knowledge needed for market analysis, primarily technical and fundamental analysis. It will undoubtedly define your future strategies. Naturally, you can also minimize or even avoid pitfalls through learning. Such  like FOMO, scams, and security risks. After that, we then calculate how much capital we can afford to use for trading.

[Pandorak]

Risk management is an important part of trading that should not be taken for granted, the reason why a lot of people that are experienced in trading stop applying risk management is because they start getting to greedy or trying to make money rapidly from trading which makes it gambling. Traders that always need to be reminded of these basic things means that they are not disciplined enough to trade. A trader that's mature mentally would always prioritize risk management over quick profits.

I think this is a common occurrence and surely most of us have experienced it at some point.

We must not only learn good risk management but also learn to consistently apply it in our trading systems. Many traders start off well, generating profits commensurate with their initial capital and keeping their capital intact even when making only small profits. However, even with the right strategy and consistent risk management, there will be moments when we’re dissatisfied with the profits generated at that time, getting bored with small amounts. This is where the fatal mistake begins, when greed takes over. In many cases, this ultimately leads to total loss.

In reality, if you want to generate significant profits without violating your risk management rules, what you need to adjust is your trading capital, increase it and then adjust. If you aim for substantial profits, you must have substantial capital to match, so that everything remains under control and you can generate consistent profits.

[nara1892]

Anything that involves the chance to make a profit is bound to be closely tied to greed do you see what I mean? Well, since the goal is money and we all need money that indirectly makes it easy for people to become greedy.

And yeah, of course I’ve been there too. My first, second, and third profits made me feel confident and great, which indirectly led me to spontaneously increase my leverage and profit targets so I could make a huge profit with just one click and that situation left me stuck with massive losses. Luckily, I realized what was happening, and I think all traders should be able to get past this if they can learn from their experiences.

[Big Dirams]

Anything that involves the chance to make a profit is bound to be closely tied to greed do you see what I mean? Well, since the goal is money and we all need money that indirectly makes it easy for people to become greedy.

And yeah, of course I’ve been there too. My first, second, and third profits made me feel confident and great, which indirectly led me to spontaneously increase my leverage and profit targets so I could make a huge profit with just one click and that situation left me stuck with massive losses. Luckily, I realized what was happening, and I think all traders should be able to get past this if they can learn from their experiences.

We always get greedy when it involve money or making more money, but for us not to loss woefully we need to reduce our risk and our greed and eventually even add discipline to ourselves. Naturally after some few profits repeatedly as a new trader we always feel we have understand the market and have experienced so much and at some point we even feel trading is easier than we thought and no one said that to us, with that confidence we begin to increase our lots size and begin to aim after higher profits that carry’s higher risk that we can’t afford and at the end we lose so much than the profits made.

[Nheer]

We always get greedy when it involve money or making more money, but for us not to loss woefully we need to reduce our risk and our greed and eventually even add discipline to ourselves. Naturally after some few profits repeatedly as a new trader we always feel we have understand the market and have experienced so much and at some point we even feel trading is easier than we thought and no one said that to us, with that confidence we begin to increase our lots size and begin to aim after higher profits that carry’s higher risk that we can’t afford and at the end we lose so much than the profits made.

Sometimes i don't blame people who get too greedy or lack discipline because it's not so easy to control oneself or train ones mind to be disciplined but those manage to be disciplined and train themselves to be better are considered good traders. I think what many traders fail to understand is that making profits from trading is different from being a good trader. You can make some decent profits just because the market is favourable but that doesn't necessarily make you a good trader. There are some qualities a trader need to have consistently before being considered as a good trader. Focusing on profits is not good for new traders, they need to learn how to manage risks and how to react when things doesn't go well.

[Abu-Naim]

This should serve as a lesson for everyone. A trader once turned $56,000 into $12.25 million in just four months by trading BTC and altcoins. He then began trading with even higher leverage, which resulted in the near-total loss of his entire portfolio. Now, he is left with only $21,800—an amount even less than his initial capital. This is precisely why, in futures trading, no matter how large your starting capital may be, you will eventually end up bankrupt.

Traders like this have learned their lesson the hard way; this is the clear if definition of greed. The trader is so greedy because he lost his mind after making huge profit, he wanted more profits instead of continuing with the method he has been coming with and had made him this profit, he decided to use high leverage for quick profit and he lose it almost all.

This should serve as a lesson to new traders; they can use small leverage to trade at ease and have their profits, but once they decide to use high leverage when they don’t understand the trading fully, they lose money instead of making more money from trading. We need to reduce our greed in trading.