Is it always a good idea to raise your sell order?

Hey everyone, I never really wanted to bring this up, but I’ve got some doubts I need to clear up, and I might also share some comments here for a buddy who's new to trading. Recently, a friend of mine started trading, and he placed a sell order while watching the market move. Instead of just letting the order execute, he kept adjusting it higher as the market went from around 85k to nearly 88k. He ended up canceling his order and placing it even higher, despite my warnings that this wasn't the way to go. I could see it was just greed taking over. He was like, why should he sell at that price when the market's going up? The same thing happened when prices hit around 91k, then fell to about 84k. I told him to take profits before it dropped, but he didn’t listen and ended up regretting it. If only he had set a buy order around 85k, he could have made some nice profits with spot trading. Doesn't this just scream greed?

Traders have different emotional reactions to market movements,  all though taking the right step always place a trader on the profits side since if he hard sold off at the first rise, he could have bought back at a more cheaper price when bitcoin drop to the 84k. This is just a normal thing that most newbies trader faces and that is what causes the pressure from the market,  if the volatility hit hard their will definitely get demotivated same way they reacting with the increasing price and sell order shifting.

It is both greed and arbitrary and I guess your friend did not know why the sell order should be set up at that price. Likely he took that sell price from you while don't know why. If he knew how to calculate a waiting buying price and a waiting selling price, he would not cancel it as market usually will have to be corrected, pulled back or bounced after hitting such price. Experienced traders know how to make price calculations and wait for such prices to be hit for taking profit or to be executed for purchasing order.

When I observed the market the had to hell him what to do but then he thought of waiting a bit to see how the market would reacts without knowing that most time news do influences the market, and we to be sincere I can't really tell what causes the Sharp drop to that range but, when I checked the chart I saw and indecisive candles which to me, knowing too well that there would be likelihood of dropping below so I sold off before the Sharp drop and the buying order also triggered, meanwhile I was expecting him to take same action but he didn't. I think this is a pure sign of greed.

As a trader, you must be disciplined and decisive of your action, your friend seem not to have any of those characters and he is likely to make more wrong decision in the future if he continues with this attitude of not being decisive in making trading decision. If one must be a trader, you must be prepared and not to attach emotions. The reason why I don't trade is because I know I can not handle my emotions very well, I could even do worse than your friend despite knowing that it's wrong to do that. So, I will suggest you advise your friend to take his time and learn more about being a good trader.

Majority of traders that run at loss on a daily basis are greedy traders. He is lucky that he's on spot trading. Although, the market is unpredictable and not as easy as you put it. However, luck can give you profits if the market goes as predicted. I don't like to involve myself on giving advice to a close friend when trading because if anything goes wrong, he will put the blame on you

When you want to get money and profit from the market, you are greedy but there are different options for you like becoming an investor, a trader. With trading, there are some options, like Spot, Margin and Futures, and the max greediness is with margin and futures trading types. You can lose money in the market as a trader with Spot, Margin or Futures trading and with investment as if you make bad entry, and can not control your exit, you will have loss. Not all investors can start their investment well, like they can make loan for investment, that is start of a nightmare. Market can move up and down unpredictably so if you have loss, loan expiration call, you have to sell your bitcoin for loss. You don't need to be a trader to have loss in this market and with trading, loss severity can be different too.

You can't empathically call this greed, unless it is better investigated. Don't forget that the outcome of this same action could be in his favour next time. What will you say to that? For me, he was only looking for a better price, which is possibly smart, depending on his approach. For the fact that he regrets it now doesn't mean he was wrong. What could make him wrong, in my opinion, is if he acted unprofessionally while doing that. What do I mean by that? We don't just trade, we first analyze and act based on speculations. So if he shifted the orders based on his strategy, then he is justified regardless of the loss. The best setups still end up in losses at times, don't they? However, if he acted without a guide, then he is not only greedy, but also recklessless.

Emotions do not work in trading, but emotions are the biggest enemy of new traders, so they often make wrong decisions and regret it later. Many people think that if the price drops, Bitcoin may be gone, so they panic and sell, which is also not a good plan. Some new traders think that if the price drops, Bitcoin may be gone, so they panic and sell. Many people want more profit if they make a little profit, but later lose everything. Therefore, putting aside these human emotions and controlling the market emotions, the job of a real trader is to trade with patience.

This is a newbie behavior. They simply cannot wait for their orders to get filled. They probably take too much risk which clouds their reasoning as well. We all been there done that. Everybody has a learning curve and your friend will eventually figure it out and make smarter decisions. Don’t be mean to your friend. Warn him lightly maybe but don’t do it aggressively. Otherwise your warnings may backfire. He will think you are interfering with his business too much and he will be right in a way. It is his money, his time… You can also try to talk sense into him by showing your own trades and how much you make. That will instantly change his tone.

If his actions are based on his own analysis, such as when he decides to shift his position to take advantage after seeing a breakout and seeing the price of bitcoin break through a resistance point that has the potential to continue rising to a higher price, then your friend's actions are not wrong. However, if he does so based solely on emotion and without careful analysis, then it could indeed be a sign of greed. Sometimes it is better to stick to the initial plan that has been carefully made. Although some changes may occur, taking profits gradually is better. But I'm curious whether your friend is trading in the futures market or the spot market, because in this case there will be two different indications. In the futures market, we can even continue to raise orders or shift our orders to higher prices without fear of losses if the price falls. And the way to do this is to shift the stop loss order to a zone where we can still take profits when the price falls after an increase. So the method is that every time we move the take profit order to a higher price, we must also move the stop loss to an area that was initially at a loss level we could tolerate to an area that still provides a profit. The point is that this is about risk management in the market itself.

This just normal for any high-risk taker trader, as you don't just settle on the same order and expect the same amount of profits, but in times you could also set some higher order so that as a return, if you trade luckily, you will also reap a more impressive amount of profits. There is no wrong with this, as long as you are still trading on the amount that you are comfortable to lose. If you are earning well in your job, for sure you also want to reap higher profits when trading. That's not greed, you just want to take  advantage of a bigger opportunity while it could still be possible.

To be frank I have watched him incurring several loses and he also regretted his actions for not doing that as said earlier, but whenever it's time for him to take action and implement it he become sliding a bit whether If the market direction could change, already before whatever the charts already tells us what the next candle gonna be, viewing from 30 minutes, 1hr time frame, then when you go back to the 5 minutes time frame you would see that it is still bullish while the 1 hr candle usually tells you how the charts is in between.

I would say it is a sign of greed but I would like to hear his side of the story as well, like who told him to do this method of increasing bets evertime the price is about to touch. But he will eventually learn his lesson because when the market drops and then that lower price is also not touched, he will have to wait for a painfully long time. Once that happens he will say bitcoin is a scam or trading does not work for anybody.

It’s clearly a mix of greed and lack of discipline, because constantly moving a sell order higher just because the price is rising and then regretting missed profits when the market reverses shows he’s chasing the market instead of following a plan. This is the problem on most traders they lose rationale and give in on their emotion. Greed is really the enemy of anyone in the market.

Yes, he's greedy and on the other hand, has no plan whatsoever (I even doubt he uses any technical analysis), only emotions dictate his entry and exit orders. Tell your friend it's better to use a feature like a trailing stop. This also shifts the position of the sell order. The difference is, the expected profit target is locked at the initial entry; if the price rises, the order will automatically shift upwards.

That's not only a sign of greed but also a sign of an emotional trader and mind me he will be exhausted of looking at the market from his screen or he'll be liquidated in no time. It's not that bad to look at the market and be focused on it but at least be consistent at what you do like have some plans ahead, R/R ratio, set SL and TP, and other fundamental way of trading, that's more healthy than keeping himself at the screen. I'm not a pro trader but it can be exhausted to watch the market all day and burnout is definitely real. His peace will be shattered in no time if he keeps on doing that kind of sh*t. It's best to have some price target automatically than just manually increasing it. Just an advice though.

That depends on how the market moves. We don't know what will happen in the next minutes so if we see the profits, we can close the trade and search for other positions. No need to raise your order to a high price because there is no guarantee the price will keep rising. Your friend seems to have difficulty controlling his greed and wants bigger profits. He should know when to take profits because the price can falls anytime. You can suggest him to take profits but if he still wants to do that, you can let him and see what will happen to him.

To be frank, it's a sign of greed. However, there's nothing wrong in being a bit greedy in making money. The only time it becomes a thing is when the trader gets on the losing side after witnessing unrealized profit like what you said happened to him when it moved to $91k that he didn't take profit and it plummeted to $84k. I've experienced this countless times myself and come to realize that the easiest way out of this is to take partial profit at intervals and then allow what's left to roll with price. What of if one sells off and within days price begins to spike? I bet you, there will be big regret selling off. Another way to do it is to determine your exit point when price hasn't started pushing up. Once price gets there, sell off and then wait for a pull back if you're still interested in riding the market. There will always be pull backs in the market for correction.

Greed is different, this is more about confidence. Greed could be used in this case if you think that someone is trying to get a bigger chunk only but that's it, in this case we are talking about also a risk, which is the fact that one could be wrong. Because there is a benefit and loss potential, we could say that this is about confidence of ones self. If you think that you are going to trade and then do a great job then you could always end up with a bigger order and that means you are confident in that trade and in yourself. This is why I think it's a risk thing and confidence thing, and I believe many people who think they are right, ends up with a loss because they are confident but also not backing that up with hard work.