What Are Your Loss Control Strategies?

[Crwth]

Loss control strategies with Trading could often be using different tools like a trading bot or just putting your own risk management where you use limit orders as stop losses.

Personally, I use a trading bot for my every day trading and also have my group where I study different coins on what I will trade on. As long as I put some necessary stops with my trades, I am okay with it that’s already how I control my losses.

[JISAN]

I could remember trying something new with my trades back then. I challenged myself to try futures trading and be consistent with my profits, I tried with less than a $100 account and was able to make some decent profits, but greed as they said, made me lose everything to volatility and I was back to zero because after I saw the profit, I saw a little loss and i wanted to recover it at all costs and while I didn't use a stop loss, I traded with my emotion and before you know it, everything was gone.

At one time I was very much addicted to futures trading which caused me huge losses. Future trading is very risky so it is foolish to waste your time in future trading. Because here if you can't predict correctly then your balance will not take time to become zero. If you don't know how to manage risk then you won't be able to come back with profit from here. So I don't encourage futures trading to anyone who might get hurt. If you have enough money you can make good profit from spot trading if you can trade with a little careful analysis. And here you will lose but you will not have any fear of your balance going to zero.

[famososMuertos]

::/::::

At one time I was very much addicted to futures trading which caused me huge losses. Future trading is very risky so it is foolish to waste your time in future trading. Because here if you can't predict correctly then your balance will not take time to become zero. If you don't know how to manage risk then you won't be able to come back with profit from here. So I don't encourage futures trading to anyone who might get hurt. If you have enough money you can make good profit from spot trading if you can trade with a little careful analysis. And here you will lose but you will not have any fear of your balance going to zero.

If it doesn't work for you doesn't mean it won't work for others.

Now the strange thing about the case is that you give yourself the answer to that concern and I quote:
"And here you will lose but you will not have any fear of your balance going to zero."

One of the priorities to understand is that whether spot or futures, there is never a certificate of guaranteed profits, never, regardless of the amount you invest, but the important thing is to know that if you manage your bankroll correctly, 100 losses will be compensate with a return in the long term.

[ajiz138]

I could remember trying something new with my trades back then. I challenged myself to try futures trading and be consistent with my profits, I tried with less than a $100 account and was able to make some decent profits, but greed as they said, made me lose everything to volatility and I was back to zero because after I saw the profit, I saw a little loss and i wanted to recover it at all costs and while I didn't use a stop loss, I traded with my emotion and before you know it, everything was gone.

At one time I was very much addicted to futures trading which caused me huge losses. Future trading is very risky so it is foolish to waste your time in future trading. Because here if you can't predict correctly then your balance will not take time to become zero. If you don't know how to manage risk then you won't be able to come back with profit from here. So I don't encourage futures trading to anyone who might get hurt. If you have enough money you can make good profit from spot trading if you can trade with a little careful analysis. And here you will lose but you will not have any fear of your balance going to zero.

Yes futures trading has huge risks, we can lose our money some time after we make an entry. If we don't know what futures trading is like then it would be better to avoid it, but if we already understand then please do it, of course at our own risk.

On the other hand, many people are interested in futures trading because they see they can make profits quickly. They only see it from a profit perspective, they don't realize what risks they are facing. That's what a lot of beginners do.

[pawel7777]

I could remember trying something new with my trades back then. I challenged myself to try futures trading and be consistent with my profits, I tried with less than a $100 account and was able to make some decent profits, but greed as they said, made me lose everything to volatility and I was back to zero because after I saw the profit, I saw a little loss and i wanted to recover it at all costs and while I didn't use a stop loss, I traded with my emotion and before you know it, everything was gone.

It's a day to learn the hard way for me and I do wish that futures trading platforms would develop something to help people like me get back on their feet then because it took me a whole lot to get back on my feet both psychologically and account wise, because if it was a spot trading, at least I would have the asset to hold on to till it rises, so I would like to ask how do you guys control your loss and, most importantly, recover from it to continue trading?

At least you've learned your lesson (hopefully).
But in all honesty, if losing $100 was a massive blow to you financially and psychologically, then maybe you shouldn't be trading just yet, or maybe just give demo accounts a try just to get knowledge and experience. You'd probably be better off developing some marketable skills and getting a good-paying job (or self-employment). Get a steady income first and then experiment with trading etc.

I don't subscribe to the opinion that spot trading is inherently better just because you have something to hold on to and wait for it to rise. Too many people fall victim to the sunk-cost fallacy. For the purpose of trading, any past actions (i.e. entry price) should be ignored and focus should be put on the present and the future.

[Crypto Fella]

<snip>

Dear, this is why we should risk with only the money we can bear in form of losses, I always avoid feature trading due to some my personal preference. Feature trading is more risky for the newbie as they don't have any information how it work or how to make money out of it. They just set high leverage to check their luck and have to face big loses.

On the other hand, dear, if we talk about greed, it is common behaviour of the human that we all fall prey sometime in crypto space so it is better for us to have control on our greedy emotion to become a successful trader. I have done trading in spot i booked my profits according to my plan, and then i take exit from the market. After all that, i have no repentance even if the if the market goes up because i had already achieved my goals.

Nice points highlighted there mate will note this thanks.

[Aanuoluwatofunmi]

When it comes to controlling loss in trading, we could make use of some gambling strategies to ensure that we have control over loses to a particular percentage, though there may still be some level of inevitable risk in what we are doing, minor losses as well as other little market challenges from the trades we may be doing, we should also have more understanding about the particular kind of trade we are going for in other to minimize loss as well.

[joniboini]

When it comes to controlling loss in trading, we could make use of some gambling strategies to ensure that we have control over loses to a particular percentage, though there may still be some level of inevitable risk in what we are doing, minor losses as well as other little market challenges from the trades we may be doing, we should also have more understanding about the particular kind of trade we are going for in other to minimize loss as well.

What kind of strategy are you referring to? Wouldn't the context be too different especially if those strategies come from a specific game instead? I don't think it is wise to use a strategy from a different activity even if they share similarities. On top of that, we have a lot of resources for trading risk management if anyone is interested in it. Granted you still need to acquire the skill to filter the noise that might affect your decision making.

[bee]

so I would like to ask how do you guys control your loss and, most importantly, recover from it to continue trading?

Futures trading is a two-way risk and profit. I don't think that there is any particular strategy that guarantees to turn your states around especially if you gone bankrupted. I mean let's say with strategy A you make a profit today, it doesn't guarantee it will work the same way tomorrow. Controlling losses is the same as wanting to control the entire market. I think you can only limit the risk of loss that you can bear when you open a position.

[Jamal Aezaz]

Yes futures trading has huge risks, we can lose our money some time after we make an entry. If we don't know what futures trading is like then it would be better to avoid it, but if we already understand then please do it, of course at our own risk.

On the other hand, many people are interested in futures trading because they see they can make profits quickly. They only see it from a profit perspective, they don't realize what risks they are facing. That's what a lot of beginners do.

Future trading is one of the most risky options of earning and those who are participating in future trading will not only lose money but will also be mentally disturbed therefore try to choose that field which does not have adverse effects on your health and provide you a better way of earning.

A quicker way of earning does not always work and those who choose quicker ways of earning will suffer in life as greed is a bad thing and many individuals lose huge sum just because of greed. Investment and trading can give you profit if you have patience and are ready for all the things that are coming in the future because the future of crypto coins is unpredictable.

[Captain Corporate]

I believe that as long as we think we are on the right path, not changing is one of the most important ones. I mean that doesn't mean that we are going to end up with a profit at all times, but we could definitely consider how to make it work one way or another. The reality is that we shouldn't really consider what we are doing as wrong, as long as the market itself doesn't provide proof for that, sometimes it does and then we can change, but before it does there is no need. This is why we should try to keep it going with the plan without changing much of it, or any of it, if we could do that.

[Roseline492]

Yes futures trading has huge risks, we can lose our money some time after we make an entry. If we don't know what futures trading is like then it would be better to avoid it, but if we already understand then please do it, of course at our own risk.

On the other hand, many people are interested in futures trading because they see they can make profits quickly. They only see it from a profit perspective, they don't realize what risks they are facing. That's what a lot of beginners do.

Future trading is actually one of the trading I consider to be highly risky because of the nature of it, however there is no much difference between future and normal Fx trading because there is a high chance of losing everything at a blink of an eye, and one of the things I realized about future trading is that is very complex to understand.

However the only reason why people always prefer trading future is because of the possible profits they could get from it if they eventually get it right, but among all the trading I think the one I consider a little bit safer is the normal crypto trading because is much safer in terms of losing your investment because even if the price should go against the trading there investment will only depreciate in value till when the price bounce back.

[vegasus]

Actually, this is quite tricky when talking about loss control strategies. Because often we have set and managed the best strategy to control ourselves in trading, but in reality our defense is often destroyed and control is often lost. Ha ha

because of that, to get around all of that, it would be much better if in trading, I personally implement:
- Set SL/TP so that we don't panic or get too greedy
- Set the amount only to trade, no more than ..... to do once trading
- Learn and improve the quality of emotional management, because maintaining a strong mentality and emotions really requires special attention and extra effort so that we don't easily get tempted.

[famososMuertos]

When it comes to controlling loss in trading, we could make use of some gambling strategies to ensure that we have control over loses to a particular percentage, though there may still be some level of inevitable risk in what we are doing, minor losses as well as other little market challenges from the trades we may be doing, we should also have more understanding about the particular kind of trade we are going for in other to minimize loss as well.

Minimizing losses is an idea that has become deeply rooted in the discourse of traders in general, but it is intrinsically linked to profits, and it is something that many do not understand when they start managing their bankroll.

That is to say, losses are a variable factor in their frequency, you cannot avoid it, so minimizing losses does not have to be a multiplying effect on your profits, on the contrary it is normal. The issue lies in whether the profit supports that percentage of losses.

e.g.: If you lose $1000 or $100 (whichever amount applies) it does not mean raising an alert in the simple phrase; "minimize losses", come on, it's normal in the profit margin.

Understand, big profits have losses,it is a "partner," and as a good "partner," you control them with little participation (%) in your profits.

Therefore, wanting to modify your loss margins can be counterproductive.

[Rubel007]

Yes futures trading has huge risks, we can lose our money some time after we make an entry. If we don't know what futures trading is like then it would be better to avoid it, but if we already understand then please do it, of course at our own risk.

On the other hand, many people are interested in futures trading because they see they can make profits quickly. They only see it from a profit perspective, they don't realize what risks they are facing. That's what a lot of beginners do.

Future trading is one of the most risky options of earning and those who are participating in future trading will not only lose money but will also be mentally disturbed therefore try to choose that field which does not have adverse effects on your health and provide you a better way of earning.

A quicker way of earning does not always work and those who choose quicker ways of earning will suffer in life as greed is a bad thing and many individuals lose huge sum just because of greed. Investment and trading can give you profit if you have patience and are ready for all the things that are coming in the future because the future of crypto coins is unpredictable.

Agreed, where there is potential for quick profit, the losing ratio is also high. Cryptocurrencies are the most volatile platforms that can experience major ups and downs in a short amount of time. Meanwhile, those who participate in futures trading should increase their risk by 100 times. Chances of losing all the money within moments are very high. If one gets profit from future trade10 days in a row he tries to get more on the 11th day and at some point he loses all his money. An investor's confidence in cryptocurrency is one of the most important factors without which one can never hope to get out of this platform. Although there are some differences, it would not be wrong to compare futures trading with gambling.