The foolishness of some traders

Losing in trading happens to everyone, but what's really foolish is not jumping back in when a good chance comes up. Ever been in a trade, got stopped out, and then watched it move in your favor? Happens all the time. Losing is just part of the game, so we gotta get comfy with it and accept that losses are normal for traders. What's foolish is not taking that trade you thought would go a certain way. Keep in mind, trading is all about the numbers. Just because you got stopped out doesn’t mean it’s the end. Take a moment, reflect on what went wrong, keep your emotions in check, and get back in the game. My simple rule is: aim for a 1:3 risk-reward ratio, trade four out of five days, lose three times, win once, and you break even for the week. Don’t be afraid, enjoy the ride.

Not everyone will follow the same rulebook because they have different strategies and trade using different time frames. A trader who uses a daily time frame for example can trade once a week or even more. How do you expect him to trade in 4 days out of 5? Different people use different risk reward ratios and also have a different win rate targets. Mind you, it's also dangerous to trade too regularly, especially if you have lost a number of consecutive trades or else you end up getting into an emotional rabbit hole of revenge trading making things worse each time. I think it's OK to take a break. Why the rush? The market will always be there. New opportunities will always be there.

Why is it that when someone trades and loses, people act like they didn’t see an opportunity? I think every time we trade, it’s because we believe in our strategy and we’re confident we’ll profit. It’s just that trading results are unpredictable. There will always be times when we make mistakes and times when we get it right. In the end, it all comes down to how often we win versus how often we lose. What really matters is that, at the end of the day, we come out with more winning trades than losing ones.

I don’t think it is a fools game if you don’t enter a trade immediately after losing, for me it is even a better strategy. Yes one can actually see a good opportunity to actually trade but there is no perfect opportunity or trade in the market and as such you might be getting into a wrong trade with your emotions driving you there just Fi make back your lost money, for take a break after a loss backtest the trade and learn from it before you get going again, there is always opportunities in the market to trade This is my strategy mostly, trading a 1:3RR is the least I use because my risk management strategy i hardly trade less RR because anything below is more or less carrying equal risk to reward for me. With 1:3RR two losses and a win will still put you on a profit which is a good thing

I think when traders go through this they are just being callous or after getting profits for short term purposes, because trading needs consistency whereas losses are inevitable so when you undergo loses while trading you see it as normal or a stepping stone in putting more efforts, but I think most traders that are being selfish don't take note of this and thus it ends them in regrets. It's always a step at a time and patience is required.

There's an ups and downs in trading if you have a 50% winning rate. You can be profitable in the wrong run if you stick with this risk ratio of 1:3 and stick with 1% to 3% risk of the total account size. However, about re-entering a new position immediately when your SL got hit is not a good idea for me I accept the loss on the first setup I'm going to wait for another structure and patterns as my new setup and plan to enter again once I confirm that it will go to my expected price, and I always put a tight SL to avoid further losses and if it's against my predicted or if there's a manipulation like liquidity grab or stop-loss hunting I just accept to lose and wait for another setup. That's the way I do just to minimize my losses and make huge profit once it favors our prediction. That's why if you stick with the 1% risk rule, you have a 100-times chance to make a profit in $100, then 50% winning rate still makes you $150 profit with a 1:3 risk ratio.

In all that you've said, it's easy to say that. But there is an emotional recoil with the losses that we make. And that's why if a trader recently lose and don't want to trade again, that's normal. There is no need to recover that as soon as possible because it won't hit them hardly but if the amount is quite big, then that's for sure is going to affect them a lot.

Yeah it seems OP dont consider other factor when his suggesting something or take a look on others perspective. Some traders are likely got traumatic experience buying on top and indeed loss a lot. Of course its always easy to say buy low sell high and study more on trading but indeed if it involved emotional aspect then people got affected regardless whether they hurt on losing or being brave to buy those low again inspite of bad experience.

It's very easy to suggest and tell things to the others. But the actuality and reality of it are in total different forms that we need to consider. If OP is one of a kind and he can recover too quickly with the losses that he's made. Then, that's good for him but he has to consider other people that they're not the same as him.

this is why I prefer spot trading, like as you said, market could dump and tomorrow it could double the price of our entry. for the people who trades derivative, be prepared to get liquidated, but for spot trader, you can just forget it 2-3 days thinks might get better as long as you're not buying at the top of course. as easy as that. but in the other hand I also trade as just side hustle, basically not too frequent. so I can laid back with my trades.

This may best works for you and not for many others, some will tell you that they trade only for three days in a week a d the rest they don't, also regarding trading patterns or strategy, everyone also have their own base on their individual kinds of trade they are going for, if you can choose a desiring pattern of trade, then it may rings to you that such counts on your kind of performance you may have in it for that reason.

If you don't enter to the market when the opportunity present, maybe that is because you are afraid and still worry if the market back to the situation before. That is normally happen to many traders because they don't want to get more losses in trading so they decide to wait and make sure that the market is move to the way they want. But they don't know if the market can back to the way before anytime so when they can analyze deeper, they will know when they need to quit trading. Yes, we must become comfortable, accepting losses and not think too serious with the result we get from trading. There is more opportunity for us to make a profit so we must keep trying. Besides that, we can improve our skill if we can learn more about trading. When you want to enter to the market, you will analyze more so when you learn more about analysis, you have your chance to improve your skill better.

Not all traders think the same, and that's not possible, because just think if we all think the same, for sure nothing will happen in our trading. For example, if we all bought bitcoin from different parts of the world, no matter how much it was, and we all thought the same thing that Bitcoin would be 500k$ and at that price we all planned to sell it. Do you think you would progress the trading we are doing? Then can it be called trading when that happens? Of course the answer is no, because what others have said is correct that when you make a profit in trading that means there are other traders who did not make a profit or lost their funds in their trading activity, it's that simple to understand.

I agree that losses are just part of the process. It’s all about mindset and staying in the game. Getting stopped out isn’t failure it’s just data to improve on for the next entry. The key is managing emotions and sticking to a solid plan. Consistency over perfection wins in the long run.

So you're saying that when our stop-loss get's hit, we should open a position on that direction as well? If we are entering a short position and suddenly it goes up and hit our stop-loss, then you're saying that we need to open a long position then because we got stopped out? Just for context, there's a thing called "Liquidity Grab" where Market Makers are pumping a token to an extent just to hit the stop-loss of those traders then eventually the market will go down again and continue the trend (or vice-versa), and because of this, I don't recommend opening a position to the opposite direction after you got stopped out. That's even more foolish if you will ask me. Looking at the charts, and using indicators are still recommended before re-entering a position. I agree with what you said though that losing is part of the business, but what's important is that, you will end up the day/week/month with a profit. That's called "Missing an opportunity", and I don't see it as foolish at all. I don't know if it's just me, but I've seen coins that I tracked on a daily basis and I see a confirmation coming from the indicators that I use and for some reasons, there are some instances where I decide not to enter a position from that coin. Of course, there are some times where my instinct is correct and it went to the opposite direction of what I expected, but there are times where I'm wrong as well. 1:3 RR is a good one, but we're in a volatile world of cryptocurrency where you can be 1:2 RR with your current trade and after a few hours, you will end up at a loss because you got stopped this is why I'm only going for 1:1.5 RR. Yes, it's too low, but that works for me, and we all have different strategies, right?

From what I can understand, it's probably has something to do with not trusting your instincts because your instincts have failed you before, I'd say that this kind of situation that you are talking about OP has probably have something to do less with hindsight and I don't think it helps that you think what you do is foolish, instead learn from that mistake, you know, find what you did wrong and try a different approach than last time, trading is a continuous trial and error until you get the right blend. Another thing that you can do is stop getting scared, your money will come back in some way in the future, with carefulness and courage to do trades with risky outcomes, I'm sure that your chances for profits are going to get much better than last time. @Text is right, it's all about your mindset, keeping your head in the game and not doing half-hearted decisions is probably the way to go.

It is a good ratio because chance of getting risk and loss is smaller than profit from your entry. Big difference from entry to profit and exit by a cut loss is safe enough and it allows you to cut loss with acceptable rate too. Good ratio or bad ratio, you likely can not control your emotion and action in market crash so always use stop loss order, to help you execute your exit automatically without emotional effects. It will help you to exit the market automatically and determinantly, then avoid bigger losses. Chances will appear again in this market and if you can protect your trading capital, you can have many chances for trading later. One of best weapons in trading.

If this is something that you are currently experiencing, then know that you need to go and study more about liquidity and liquidity zones in the market because since you are unable to spot the liquidity, you are actually being the liquidity as a market is taking you out before moving in the direction you predicted. If you understand liquidity properly and liquidity zones, you will be able to set your SL better, so the market does not take you out.

We all know it’s normal to lose in trading. I’ll bring Sinia again from where I lose. You have to come to trading with this expectation. If you lose in training, don’t break completely again and try again, inshallah will succeed. And apply trading strategies very nicely. Many people may accept the calculation you’ve given weekly training but most people’s training techniques are different. They adopt their own training strategies and trading their own. Another I want to talk that in terms of trading you must take courage. If you have the mind-mentalities of taking courage and risk, you can come a training if you are afraid to move away from trading. If you want to be saucasy in life, you must take risks.

I will take that for a wise trader in my own opinion because when you realizes that trading is not easy as you earlier thought before you got into it after seeing yourself loosing and still can not find your errors due to improper education, there is always a need to exit. The foolish trader is that one  who has always been loosing oftenly and still not worried on a second thought what the problem could be and still keep trading and loosing.