Prioritize your risks over potential gains

Hey everyone, just wanted to share a quick story about how my trade went today and what I picked up from it. I found what seemed like a solid setup, everything lined up with my strategy, and it looked like a perfect opportunity. I got all the confirmations I needed, so I jumped in, risking more than I typically would almost 50% with hopes of flipping my account. But to my shock, the trade didn’t go as planned, and I ended up losing a lot. I was really frustrated, not just because of the loss but because of how much I had risked. Now, I’ve learned my lesson: no matter how great a trade appears, I’m sticking to my fixed percentage risk from now on. Hopefully, this helps some traders out there remember to only risk a fixed percentage and nothing beyond that.

Overconfidence can lead you to big loss because you will use more than the amount of money that you can afford to lose to trade. The market is volatile and you cannot be too confidence on your trading strategy which is the main reason why I don't like trading often because you will incur more losses than profit. I believe that you have learned from your mistakes.

If you had followed risk management, which is mandatory for successful trading, you would never have opened a deal with such a high deposit percentage. And if you don't know what risk management is yet, you definitely need to study it before you decide to open a new deal.

This sometimes happens to many traders and you just have to stick to your trading plan till the end. You did very well In making sure that the setup was in alignment with your trade plan. Sometimes it doesn't always turn out to be how you imagine the end results.the market makes it's own decisions and is mostly influenced by institutional traders. You might have a good setup but still end up losing. There's usually no guarantee that a setup will win till it actually does. That's where you have to be disciplined enough to see it to the end and avoid over risking. Stick to your said risk and manage it well.

That's how it should be. You should always take the advantage of having in profit already, follow it and you're not going to be disappointed with your trades. The fixed percentage of either profit or potential capital, it should be what you can afford to lose and always take care of yourself if you're in profit. Not all traders are profitable and that's the reason why you have to remember that and everyone needs to put themselves on the line before something wrong happens and gets wiped out all of their assets.

The fix is position sizing, not necessarily more discipline. Keep risk per idea at 0.5-1% until you have a 100-trade log at least. You could also add a circuit breaker: if you are down 2-3R on the day, you stop. Enter with bracket orders so the stop is in before emotion shows up.

By losing so much more than you anticipated, shows that you didn't employ the risk management skill of stop loss to minimize the impact of your loss and am sure if you had implemented other risk management skills like using leverage, your decision wouldn't have been emotional or so rushed, but would be calm and predictable to conclude a successful trading day. To be better at taking risk in trading would require a trader to be committed to a strict trading plan, set a max daily loss, practice delayed gratification and the best part is to journal your emotions like OP has done because it would do a lot to sharpen your focus as a trader.

To be profitable on the long run, you need to know how to protect your asset and maximize profits. You need to be risk conscious in every trade you take not mind how great the set up might look, remember you are not in control of the market but just there to take profit. You made the mistake of allowing your trade to put you in a lose that your didn't want, you should have put the stop lose function that people are talking about to prevent big lose.

We all know that trading is risky, irrespective of how good you think you are, you must loose money sometime, and that is the more reason why, they will always tell you invest what you can afford to loose, so that when you loose your money, you won't die of hypertension. In trading, it is always advisable to start small and grow big, the reason is because when you start small, even if you lost money, you will still be encouraged to try more, and you will be able to learn from your errors, but when you start big and you lost your money, you might quit the market immediately and will not be able to learn.

Do not be blinded by greed and the desire to make more money, but always prioritize risk management no matter you see a good position for your trade. The trading market is always unpredictable, you wouldn’t know how will the market reacts to your trade, so never risk trading more than you can afford to lose. Moreover, not all trades deserve rewards, knowing majority of those who trade end up at loss, most especially if those traders just rush to trade without having a good market analysis first before they decide to trade.

Trading has one thing, the day you don’t risk too much and stick to your trading plans, your trades will go well. Then when you’re so sure that you’ve gotten another setup that will give you good reward when you risk more, the trade will bounce back and make you lose a lot. This is just the truth about trading most of the time. Trading has proven not to be the best way of making quick money, and when you want to bypass that, you may be hit with several losses and may eventually give up. You can’t be so perfect in trading and you were not angry because you lost the trade since you already know that losses are part of the process. You were angry because you risked more than you can afford to lose which is also fine. Now stick to your plans no matter what and grow your trading account gradually and not in a rush to avoid unexpected losses like this.

That's why most people in the past have always warned against trading with capital they can afford to lose, meaning that when their capital is lost to the end point or liquidated, it's gone. We can remain relaxed and never get angry about anything, because every step, decision, and strategy we employ originates within ourselves, not from others. Therefore, when it comes to using initial capital or capital for ongoing trading, careful consideration is essential so we know that our trading capital limits are within a certain range.

You should never trade with excessive confidence on the trading platform because excessive confidence leads to losses. Always remember that trading is very risky and you should never ask for too much on this risky platform. Till date, those who have taken excessive risks on the trading platform have failed on the trading platform. That is why it is always better to trade with a very small amount of money on the trading platform so that if you lose money, you do not have any regrets. I have just entered the trading platform, but in these few days I have realized that it is very difficult to make money from trading through easy ways to earn money. So all those who are trading with excessive confidence and trading with excessive emotion, avoid excessive confidence and excessive emotion, otherwise you will suffer more.

I think everyone who practice trading experience this. I'd also done that before, not only once. That's why I avoid similar mistakes again and always limit my trades to 1 to 2 trades or sometimes none a day. It's actually attractive because you think your analysis is right, but in the end the market is against your prediction. That's why we had risk management to avoid too much leverage or avoid a higher risk ratio. We should have a limit and make sure not to put higher risk even if you see a setup. 1% to 2% risk should be enough for every trade.

Managing risk is the biggest challenge when trading. If you don’t know how to manage even the initial risk, rest assured your trading performance becomes weak and later on unprofitable. This is the reason why one shouldn’t rush into trading without risk management practice, because when there’s no risk, it’s impossible also to gain rewards. Risks are associated with rewards, the more risk cautious you are, the bigger possible rewards you will reap from trading.

Risk management includes some steps: Firstly, your financial management so that you can assign part of your money for trading capital which should be smallest part in your whole finance because trading is very risky and you should use all money or big part of your finance for trading. Secondly, your trading practice must be in Spot trading, as two other trading types - Margin trading and Futures trading - are more dangerous and should be avoided. Thirdly, you must remember to use stop loss order for your trading positions as it can help you avoiding loss or minimize your loss. Lastly, if you get profit from trading, withdraw your profit graduallly with time in order to aim at retrieving your initital trading capital back to your pockect.

This must be one of the basic principle of risk management. Honestly, when I consider to open a trade, I usually look at the gap of stoploss from my entry; only if it would be affordable then I will go opening my trade. Yeah, I will not mind how big or small my profit level would be. It means that I will go for a trade even my reward is small because I believe in the proverb of ocean is built from drops. Risk management is all about how you protecting your capital. It means that you need to care about your stoploss more than how much profits that you are going to make. This methodology will lead you toward achieving minimizing loses and letting profits grow over the time.

This is a case of being over confident. You can never be over confident in crypto market otherwise you will get rekt. Nobody knows what comes next so it's always advisable to open using the size that you can afford to lose, always keep in mind that there can be a drawback in your position that's why don't over leverage nor bet too much. I've learnt that using fixed low percentage of my account margin to open a trade to be giving me a consistent trade, even if i lose I can make up for it easily. The market open 24/7 anyway, there's always opportunity.

This is what even most veterans traders has failed to understand in the market, they just get too confident on a particular set-up and use a higher margin more than they can afford to lose, and when it doesn't goes as planned, they will start regretting their actions or feeling pained like in the case of the op. Their is a way over risking plays in the mind of a trader that triggers his emotions to react negatively to any movement in the market, you will see him pulling out of a trade he should have won in a loss because the market was going against him, and once they pull out and re-entered it again in the opposite direction the market will start going reverse, it will now looks as if someone is monitoring them, but in reality their emotions is just messing everything up for them because they fails to risk what they can afford to lose.

Sure overconfident is among things that make you lose alot in trading, because anytime you Analysis in the trade you will have more confidence that you will get steady profit and you will like to put all your funds to it so that you can get huge returns. Trading is volatile and you can't get 100% that you will surly be profitable anytime you trade because everyone usually lose if the market didn't favour. You just need to used what you can afford to lose because trading is always a risky journey and you can't trade and says you will be winning back to back. Nothing comes easy and you need to take risk sometimes to achieve your goal, but is more better you should always used risk management to trade, some will be profitable in trading but they won't leaves the market because they will think since the price is moving well he can probably increase deeply and get huge returns. Any profit you get in trading appreciate it since is not a lose and you get your capital back and profit, but people rush to trade to get massive profit and he doesn't work like that sometimes because is risky.