It's not just once or twice, it's pretty much a constant thing.
When you're in the red, you tend to keep the position open instead of closing it, which can lead to liquidation or getting hit with a stop loss.
But when you're in the green, or when a loss turns back into a profit, you might just close the trade out for a small gain. Then later you find yourself wondering why you didn't just hold on a bit longer since the market kept moving in your favor.
But then again, what if you try to hold and the market reverses on you? That’s happened to me too.
I really believe that keeping leverage low is crucial. That way, if things go south, at least your mind can stay calm.
It's because we're not contented with the profit that we make and so, we want to see more of it. But when we've learned the hardest way through losses, we'll start to think of how much and what percentage is enough as the minimum profit for us to call it a day. So, with the experiences that we have and the losses that we're also getting. It is making us wiser with the next trades that we do, and that's why it's important that we should recall on where we've made a mistake for us to correct it with the strategies that we're applying to our trades.
Had an experience about this, and this is the reason why I have a system that I follow whenever I enter a position. As of this moment, that works for me, but there are times where I'm doing the same thing as well.
Exiting with very little profits, and at the same time exiting when I see that I'm at a loss. I do it when I suddenly feel that I'm not confident with my trade anymore or when the market suddenly moved in sideways after I entered a position. There will be times where you will just exit with either a little loss or profit, and it happens to me not all the time, but many times already.
Low leverage would lessen the stress and risk towards the gambler, and there's nothing wrong with it. At the end of the day, trading is all about survivability and if you know how to survive, you will end up making money in the long term. Of course that alone isn't enough, and you still need more than that.
This is because you haven't set your maximum profits for that specific day while trading. You know as a trader you should be able to know when a particular profit is okay for you or not, if you decided that whenever you reach at least 10 or $20 you should be closing the position instead allow it to still continue counting profits or even starts enduring for the price to add up so that you would have more profits, that is when you see the market turning against you then you can't close your position again while trading.
its because we don't secure loses but we secure wins. when we see we profit we exit the position but in loss we hope to see reversal hoping to win.
stop loss is meant to prevent your capital from liquidation but because stop loss also prevents you from winning when the trend suddenly retraces back to go along your position. somehow we always have hope that we win the game when its obvious you are losing yet not adding stop loss is still your way of doing it.
At that point it will be better to not use leverage at all isn't it? It will give you more peace of mind and trading with leverage was never a good thing to begin with.
The odd is much lower than simply holding it with spot. In my opinion though, the only problem that make trading with leverage basically throwing money is the simple fact that sideways can liquidate you while sideways is a certainty in crypto market.
By using spot, you just only need to think about what's going on? what are the latest news? no need to think about sudden strange market condition such as when price suddenly surging and liquidates your position.
When new traders come to us and if they start taking profits at some point, they think that they can take more profits than that, but this is their misconception, due to which they are greedy and leave the profit of $10 or $20 and go ahead and take losses. They should keep themselves at the same profit in the beginning so that they can estimate later how we can teach them to make more profits than that. Although when they want to take more profits, there will be losses, but they should not be disappointed by this loss, only then will they be able to make big profits. They lose a lot in trading and many people have earned a lot from it, but there is a way for this, so we should choose that or not go towards big profits out of greed. I am not stopping them from big profits, but I am explaining the system of beginners so that they do not lose money in trading in the beginning.
Yeah, I think that's what happened to most of traders. Fear of losing money is real and fear of losing profit is also just as real. The only way to prevent this would be to accumulate more experience but we can't deny that the fear will always be there.
I've had so many trading history where I keep my losing position open hoping that it will get better and become profitable only for it to go even deeper. As I've seen from youtube compilation where popular trader are doing trading live, despite their experience they are doing this as well.
OP, I guess this follows on from your thread about why stop loss is bad. Which is another reason you experience what you do > if you're spending your time on the terminal watching trades instead of allowing limits and stops to go their own natural way, then you're not really doing it the right way.
Believing that charts and markets move because of your trade is a whole new level. I get it if you're a big player, maybe the platform wants you to lose... but surely you can't think it all happens on an individual level
Kinda weird for you to talk about peace of mind and then advice against stop loss. You're getting weirder and weirder mate.
No trader would be losing and you expected them to close their position so easily while at lost they would always want to watch their position to know where the market would lead them to before they may decide to close such position while trading. Even when on profits, you wouldn't want to be that careless to lose what you had already earned, hence you would mind closing that position on time in order to secure the best profits from your trade and you would be that shocked seeing the market going the other way you didn't just expect after you might have ended up closing your position so quickly.
Your post is absolutely nonsense if you are referring to me, a friend of my talked about this and I noticed it has happened to me before and I think of posting it on this forum as one of the ways some traders are doing, but you completely only referring to me. That is very bad of you.
If you still do not understand the kind of trading that I said stop loss is not necessary than it is used by greedy traders with low amount of money but making them lose, then you have to forget about it. Most traders posting here are losing but they always say something about stop lose but they do not learn about patience trading. This does not change the fact that almost all traders are losing, and most of them will always say use stop loss. Another thing is that most of you people say you are trading but it is actually lies.
Adding to a position is only possible as long as you still have enough capital to hold through losses. Once you run out of funds to sustain the position, the fear of liquidation becomes completely normal.
This often leads to strong psychological pressure, especially the fear of losing the entire position. At that point, closing the trade to preserve the remaining capital becomes a rational decisionbetter than losing everything.
However, after you close the position out of fear, the market often moves in the opposite direction ).
Most traders have experienced this situation at some point.
Woah this is so me when I am first doing future trading and not only that even I close it with some profits I still check that position and wonder if this will still earn haha I know thats like a silly mindset and should have move on already. Likewise when you are negative you still hoping for it to recover and when it goes deeper and increase the losses you still not closing it. I dont know but thats like something users tendency.
It is natural and normal to feel that way. The problem is the emotion and fear of losing and that is why you exit a supposed profitable market and after the day trade that you visit it you get a misfeeling and kind of regret for not leaving the profiting trade to role on. So it is emotion and lack of control.
This is also the reason that SL and TP is good to apply because you already know the amount you want to lose and how much you want to profit from the amount and once it gets filled you are fine whether for profit or loss.
Yeah, low leverage is good because it means you have taken reduce liquidity and risk in the market. So your trade can go against you for a longer time unlike someone who took bigger leverage. However, I also know that sometimes low leverage gets a margin call depending on the capital and extent that the trade runs on free fall/rise depending on the order or direction you are.
Sometimes you can use indicator that indicates overbought or oversold like RSI as some people do to know when to exit or not.
You shouldn't really do leverage trade or high leverage trade if you really don't have solid strategy or understanding of the market because it will just really ruin your wallet (based on experience). Yes it really happened a lot, usually it's because of the humans emotion in trading, if you only keep your position technical you wouldn't close early, or take profit early or leave open a losing position. I actually have a hard time managing my emotions before and there's a time when I realized that if I open up a position, put my TP and SL and just close the tab and leave it for hours or days, my strategy would work and in my surprise it really do work. Don't get me wrong, I didn't say that I always earn/take profit, what I'm saying is, when I closed the tab after I open a position it's more unlikely that I would ruin my position because of my emotion. I let the TP and SL do the work for me.
It is caused by the use of high leverage which is most related to traders having greediness while trading. Using small money or using low leverage may not even let you watch the market at all like screen trading and if thing like this happened and the person still think like that, I will say it is nothing. If the person is using high leverage, the person is gambling and anything can happen.
True based on OP story about my last position get liquid, I keep open my position until getting liquidation although has chance to close and loss around 20% but keep holding my position until reach the liquid price. But if profit position around few percent I don't know why hurry up to close and re open at lower price but previous position have been close price increasing up or down drastically depend on position kinds opening. Right now has long position for BNB coins and already dump around 10%, looks bit sadness if close position right now because BNB already drop to lower price and I open position during BNB above $600 and right now have below $572.
What do you think with my open position for BNB coins must cut loss or keep waiting during have bad news announce by Donald Trump yesterday and make market crash suddenly.
Your are not the only one in this mate, almost all traders are used to this, which i think is cause by our emotions like fear and greed, because sometimes you may decide not to go with the profit, but it will later turn against you, and once you take or walk away with the profit it has already given you, the market will keep on going further in that your direction, so that you will feel more regret, that's actually normal, and I would advice that you shouldn't pay much attention to it because that's how the market behaves sometimes.
The way I go about my trading activities is that, it's all or nothing, once I open a trade, I do not close it until it gets to my take profit or my stop loss
You are actually right about this, because low or no leverage is the best, and one thing I love most about it is that the market can't just take you out anyhow like how high leverage does, so all traders should avoid high leverage because trading with your emotions intact is the best.
Compare it with crash game aviator, waiting too long will end up bust so we have time frame that is unknown and can bust at any time so some people are really in a hurry to take their profits even if it is small and at loss, is different story, we don't really want to close the trade with lose so we just hope the price will recover that is why there is a wait.
Upon seeing this its just concludes me that this kind of action is not yet prepared to lose money or not having a good risk management if you see already that the trade is against with your perspective you must need to consider to make a cut losses you can just make another trade if you will see another market opportunity you dont need to make yourself stress with the current position at the market.
With that kind of action taking small profit with the position is just normal if you think you are enough with that but at the first place you made an analysis and if you are confident with that you will not close immediately your position.