Trading can definitely be profitable, but some folks dive in way too deep with huge amounts of cash, which leads to issues. It’s a lot like gambling, and for those hooked on trading, it can be tricky. They might get caught up in technical analysis and indicators but still struggle with making sound trading choices. This is a common problem.
If you approach trading with just a small percentage of your income, like 10%, and steer clear of high-leverage stop-loss strategies, it might not mess you up too much. Think more about managing your funds and acting professionally. But if you’re tempted by high leverage, it might be better to treat it like gambling and use a tiny fraction, maybe 2% of your weekly earnings, to trade.
Traders often lack patience.
You can see this clearly when traders don’t want to just hold onto their bitcoin; they’re always itching to trade. When they score quick profits, it sparks their brain's reward system, pushing them to take on more leverage, which can wipe out their accounts. I bet many of us have been there at least once.
That’s why it might be worth considering using less money to trade instead of relying on stop losses. Why not save 10% of your weekly pay for trading? If you can be patient and let it build up for a year without trading, you’ll become a more patient trader. And when you do start trading, using 0.2x leverage or lower could make a lot more sense than constantly worrying about stop losses.
Trading addiction is actually very hard to fight because you won't know when you would use money that is meant for something meaningful to trade. I will tell you one story of someone whom I happened to know very well and he is a trader, when he was trading then he was actually making profits from it but at sometimes he would lose money. When trading is excessively then you gradually becomes a victim of trading addition which are very hard to control as it is just as gambling and when they got addicted they found it very hard to get rid of it. Again, as a trader who are even coming up should not be that leaving their funds on exchange as it could get them attractive to either want to trade again but when it is withdrawn from exchange they wouldn't be that pushed to go deposit and start trading again.
It depends on how he is addicted. Most of the traders who actually make profit are addicted, but they have discipline and strongly follow their rules and conditions.
If you are addicted because you keep doing overtrading and have no discipline, then that's a bad addiction, and that's a gamble. You don't have a system you follow, but you use your guts to predict, or maybe you use a bit of knowledge about trading like price action or something, and you think you are right when trading, but in the end you lose.
That addiction is bad; you better cool off first or stop and review all of your trades. Why are you losing instead of making profit?
I know OP is experiencing many bad trades nowadays because I think he does not have patience, if I am right? With the current condition of the market, I don't trade in the consolidation phase.
@OP, how about the cool-off feature? OKX and Binance have this option to let you rest for weeks or months; you can use this cool-off feature to stop trading.
This thread should be for those who spend more in trading and continue earning less of there investment
Not whom is addicted to trade and earning handsomely
For those who keeps losing I won't say quit but change your trading partner, read more about it before involving your self in any kind of trade
This is the same approach I took back when I wanted to take a break from trading. The reason, I suppose, was that I couldnt stay focused on my own work because I was trading too often at night. As a result, Id be sleepy during the day, and even if I had open positions in the market, I couldnt concentrate and felt the urge to check the market constantly.
That situation led me to decide to take a break, and I started moving everything to my cold wallet. This habit has continued. now, when I finish trading, I prefer to withdraw my funds immediately rather than leave them on the exchange.
One way to stop trading that I can think of for those who can't stop or want to stop is to create two account, one for investment and one for trading.
Let it play out for at least half a year and find out which performs better. I bet the trading account will go to 0 before even 1 month because statistically people are losing in trading.
The account specifically made for investment, would either drop a little or go up, but it will never go to zero if you pick good crypto to invest like bitcoin.
As laughable as that's, it's true. Traders in that described situation often find reason(s) for every lost trade and how they would prevent such the next time. The same scenario plays out again, they realign their reason(s) again. It's a circle that keeps draining such traders and they keep losing their capital. Refunding and refunding accounts become the order of the day for them.
Well, I believe that's a fallacy of hasty generalization because we know there are traders who's strength lies in patience. I know a lady who trades SMC. She rather misses a setup by whiskers than manually trigger her trades ahead of time or out of FOMO.
Trading requires patience too, but the problem is that some traders don't know when to be patient and when they should realize that what they are doing and going through has nothing to do with proper trading standards.
I would advise that any trader who consistently finds himself going against his trading rules, i mean someone who has a trading plan but does not follow it, should quit. Most times, he does not do all of that deliberately, but because his emotions always get in the way. There is no way he will grow when he doesn't follow his plans and rules. Trading works with plans; anything aside from this is gambling.
This is how trading is in a way you will think you are winning but after some days, the person will only noticed that he has been greedy and lose all, only few traders have good experience that they can use to minimize the loss during bad trading day. There is no better thing than to buy bitcoin and just hold it or trade with very small amount of money.
I do not know if anyone is addicted to trading and still makes money. Because most case of addiction lead to poor outcomes. Or even if they make a profit, being addicted means their life is being negatively affected in some way. They may be making money, but their health is deteriorating, their relationship are falling apart...they should stop too.
Those who keep losing do not necessarily have to quit, but if they have tried changing their approach, learning more and the result still do not improve. They need to stop before it is too late.
That's a good piece you have there. Though it might not be as easy as you think, it is still good to, at least, follow/practice, as trading and all other things that are psychological are not easily approached with a certain blueprints.
We've seen some failing and devastated traders who later found their secret sauce, and we've seen many of them who would never find it, so I believe, above all things, as we are all finding the right system, we should, above all, work on limiting our risks and embrace adequate account management. Anyone limiting their risk while they try their luck in trading will have both good and bad days, but the bad days will not be as bad to warrant devastation to their finances.
I don't see charts or real time strategies there though, which I think what they need more.
Also, addicts don't earn money at all, because even if they earn something at first, they will still continue because they are addicts up until they lost everything they had.
Trading partner? Just like in business? Where we can also have a trading partner. Oh well, trading is also like a business too because we are earning money on it . I can see this, as one person that also follows a trading influencer to help him for his trades. But yeah, they may be not fit for it, or much better we can now solo. There are plenty of benefits too for doing this. Although may be some just choose to have a partner at the first place because they are like lazy to read and learn. But if that was the case, then they don't deserve to earn.
I have hear people saying that they flipped $100 to $10k in one day or two days, that can be true for some pro traders but we can tell that such trading pattern is basically a gambling kind of scalping which works under probability, it's possible that a pro trader can come across a coin that is trending very well and they use it to take multiple positions and then double their capital but that kind of luck does not show up every day. What am driving at here is that if any beginner trader is thinking that they can just flip $100 to $10k in 1 day the way their mentor told, then they should stop dreaming and just quit before they get addicted on the process of chasing goal that is based on luck.
Flipping $100 to $10k is very common, the quiet truth that people never speak about is the guy who flipped probably have already experienced $10k to $100 in the past otherwise statistic wouldn't be majority of traders are losing.
It's cool sharing the big win, but I rarely see people share their big loss .
Moving onto the advice of quitting trading, just trade $1-2 margin for whole month, enough to make your craving of trading become harmless.
I'm curious where do you find those stories. Do they share it on Reddit or a dedicated forum for traders? As far as my experience goes in Bitcointalk, I haven't heard someone being to "addicted" they need to close all their trading accounts and do self-exclusion to stop trading. Most of them stop after they got burned. It's very rare to see someone going all out of their way taking loans and whatnot to fund their trading activity.
Honestly, if you can't even obey basic rule like don't use money you can't afford to lose, I don't think high-risk financial activity is your thing.
I once decided to stop trading for quite a long time. At that time, I was going through financial problems, and I stopped my trading and gambling activities. My income was only enough to cover debts and necessities, I didnt even have a little to save.
But I managed to get out of that situation and got back to my routine of allocating a small amount of money for trading. However, it seems my interest in trading has decreased, and Im mostly putting it into buying Bitcoin now, though I still trade occasionally.
In some trading discussion threads I've always observed the OP post regarding stop loss, he is always against it and within myself I've always countered his reservations about stop loss but I'm glad that he has thrown more light on it in his OP. As much as I still believe that stop loss is essential for newbies to limit their loses I've also gained some insights on his perspective on not recommending stop loss.
I think that it is a matter of strategy for every trader if stop loss works for you then it is fine you can stick with it or you can consider the OP strategy of using lower amount for trading. If you are using high leverage it can liquidate your account very fast and you would be needing stop lose to mitigate loses but with very small trading funds at a time you wouldn't be eager to rely on stop lose you will go all in. Let us remember that trading is not for everybody, if it's not working for you it is better to go into Bitcoin investment instead.
Quitting trading is not a solution to the issue in trader may be facing, because if he eventually quits, he may also be addicted to other things are said trading and play unprofessional roles doing them, we understand that not everybody can maintain their emotion when it comes to activities like this and trading is not what you can just be doing without considering the risk that is attached and be well disciplined in other not to fall into trading mishap.
Yeah.. Quitting completely is indeed a bad idea. Thats because it means the trader wont learn from their mistakes and wont try to figure out where they went wrong in their trading. It also means they lack the mental fortitude to persevere and are prone to giving up easily. And typically, in other areas, including any business. someone with that kind of mindset is likely to keep repeating the same mistakes.
However, taking a brief break or stepping back to study, observe, and re-evaluate is a better approach. Unless, of course, someone isnt truly interested in trading, in which case it simply cant be forced.
Could be a short term solution though. We are talking about something that would be beneficial and could help with a lot. I understand it may not be a perfect solution, but it is a good solution nevertheless for the time being. If you are facing trading issues, and you are not trading well, then the best thing to do would be just making sure that you give a long break, and meanwhile learn what mistakes you have done and why.
If you can do that then you are going to end up with a better situation and won't be dealing with anything bad. I personally do not feel that bad when I take a break, I look back on my mistakes and learn from them and do better thanks to that. If you do the same thing you are going end up with better results too.