What Are Your Loss Control Strategies?

[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.

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?

As you already mentioned that you have done the future trade with the emotions and that is the main cause for your loss, in generally I am not a future trader I just do spot trading and in my case all the time I have use the DCA method for long term strategy and that makes my loss control strategies. And the other thing I have some control currently when I did spot trading, and also use the stop loss trading features maybe that can be also work for you. But the first day you have to bring control in yourself.

Future trading is as tempting as gambling so here a person loses a lot of things very quickly because no one can guarantee anyone's prediction. So when someone takes sell short then if the price goes up then his loss. I do not do futures trading or advise anyone to do so. DCA method will be very effective for risk management. It is possible to reduce the loss a lot through DCA, so if you buy and hold tokens or coins following the DCA method on the spot, it is expected to be able to give good profit.

[|MINER|]

Future trading is as tempting as gambling so here a person loses a lot of things very quickly because no one can guarantee anyone's prediction. So when someone takes sell short then if the price goes up then his loss. I do not do futures trading or advise anyone to do so. DCA method will be very effective for risk management. It is possible to reduce the loss a lot through DCA, so if you buy and hold tokens or coins following the DCA method on the spot, it is expected to be able to give good profit.

For  risk management there is no doubt about the DCA method is the best and I also mention for this cause in my previous post. Anyway if I talk about the Future trading then you are also right that it's kinda gambling thing because there something depend on fully luck but even then I will not say that there is no need off skill, here skill are also matters so it will be only advisable to do future trading when the trader have proper knowledge and skill on analysis. 

[Faisal2202]

Having control over strategies does not exempt you from losses.
There is a simple fact, profits, losses establish a RoI.
One cannot be measured by the simple fact that I did poorly today, at week, etc. or because I did not see profits in a certain period, that is quite normal. If it were that simple, we would all have "full pockets."

You are right, profit and loss is the part of the game but one should focus on increasing one while decreasing or avoiding the other (loss). And as far as I saw, every single person passes by a phase where they lose a lot but some of them learn from their mistakes so they won't repeat them in the future. In short, newbies make the most losses because of the lesser knowledge they have.

I know it is obvious to make both and what's ROI but a person always tries to improve his ROI by making more profit, and in essence, we should follow certain tips, like usage of SL and TP, if a person is not utilizing the method to minimize the risk and increase the profit somehow, then its obvious for him to make loss.

[ZAINmalik75]

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?

It's a good thing that you are finding mistakes in your trading methods and not blaming the volatility and market manipulation factors. Many newbies blame others for making losses when they should be finding the cause of the bad trade. If they are trading with emotions and trying so hard to give their mind relief that we will recover the loss too we just need to take another trade then that needs to stop.

Future trading platforms cannot give the lost amount back if you are rekt why would they give your lost funds back to you if they start to do that then how they are going to make a profit. That's their way of business to make money. I control my loss by making more and more losses I made a lot of losses and that has trained me mentally to bear small losses.

[Jamal Aezaz]

For  risk management there is no doubt about the DCA method is the best and I also mention for this cause in my previous post. Anyway if I talk about the Future trading then you are also right that it's kinda gambling thing because there something depend on fully luck but even then I will not say that there is no need off skill, here skill are also matters so it will be only advisable to do future trading when the trader have proper knowledge and skill on analysis. 

Skills and knowledge are required for both trading and investment and in case of future trading we will have high chances of loss no matter how long we learn about it therefore we should not choose that way of earning in which our skills and experience does not make us able to earn well.
One should make an investment by applying the strategy of DCA because with this technology you can minimize your loss and I think whenever the price reduces we should make little investment according to the amount of money we have.

If someone is an expert in trading then trading can give him something beneficial but there is huge risk with future trading and everyone knows it better but still people are looking for the way of getting huge profit due to which they are accepting every good or bad way.

[$crypto$]

If someone is an expert in trading then trading can give him something beneficial but there is huge risk with future trading and everyone knows it better but still people are looking for the way of getting huge profit due to which they are accepting every good or bad way.

I believe in this, the bigger or faster the profits we can get, the bigger the risks we have to take. This applies to trading, because trading has the 2 categories I said.

Only in the future, trading can give us profits, but this is proportional to what we have to accept with the risk, namely at the same time we may experience losses. So this is something that is a balance between the advantages and disadvantages that we can get.

[Jamal Aezaz]

I believe in this, the bigger or faster the profits we can get, the bigger the risks we have to take. This applies to trading, because trading has the 2 categories I said.

Only in the future, trading can give us profits, but this is proportional to what we have to accept with the risk, namely at the same time we may experience losses. So this is something that is a balance between the advantages and disadvantages that we can get.

There are bad and good things about trading and we should not accept any of these but should be ready to go with both because the future is unpredictable and we don't know that we will lose or win but if we are mentally prepared for both of the situations then we will not be disturbed after a loss. We can have both the condition depending on our coin, our decision and the circumstances of the market.

I think there is a balance because we can face both loss and win but when we come in reality then for newbies the percentage of loss becomes higher as that of win percentage and for experts the percentage of win increases so I think all depends on the knowledge and number of accurate trade as more you trade accurately more you will win.

[$crypto$]

I believe in this, the bigger or faster the profits we can get, the bigger the risks we have to take. This applies to trading, because trading has the 2 categories I said.

Only in the future, trading can give us profits, but this is proportional to what we have to accept with the risk, namely at the same time we may experience losses. So this is something that is a balance between the advantages and disadvantages that we can get.

There are bad and good things about trading and we should not accept any of these but should be ready to go with both because the future is unpredictable and we don't know that we will lose or win but if we are mentally prepared for both of the situations then we will not be disturbed after a loss. We can have both the condition depending on our coin, our decision and the circumstances of the market.

I think there is a balance because we can face both loss and win but when we come in reality then for newbies the percentage of loss becomes higher as that of win percentage and for experts the percentage of win increases so I think all depends on the knowledge and number of accurate trade as more you trade accurately more you will win.

Yes, of course knowledge will play an important role in determining us in trading, and I also see that someone who is a professional can be better because their knowledge is also extensive, so that helps them analyze better.

On the other hand, beginners, they are still in the development stage or there is still a lot they don't know, so that also influences their trading results, because they don't have much knowledge and experience.

[Jamal Aezaz]

Yes, of course knowledge will play an important role in determining us in trading, and I also see that someone who is a professional can be better because their knowledge is also extensive, so that helps them analyze better.

On the other hand, beginners, they are still in the development stage or there is still a lot they don't know, so that also influences their trading results, because they don't have much knowledge and experience.

At first experts are also new to the market and they don't know the reality so when time passes they realise about the good and bad things related to the market and start to find ways to eliminate The bad things that come into their way of success. This all can only be possible with the help of knowledge and if one has not got any knowledge then becoming an expert will be a time consuming process for him.

Most of the people are now getting Knowledge about trading but just with knowledge they cannot be successful until they get experience with the help of such knowledge and experience the win and loss situations because hearing about something is totally different from doing anything.

[bhadz]

Stay on spot, I avoid going with futures even if there are times that I want to. I just don't want to have that loss story in trading through futures. I know the risk and it's a hard thing to take but I know that I can avoid it and so I am staying to the spot and even it's a lesser profitability and it varies how much capital that I can start with. But at least on this strategy, this is not going to make me liquidated as long as the price target hasn't been met.

[Captain Corporate]

I still think that holding is the best way. Sure if you are holding some terrible I agree to sell, but it hasn't changed and I think if we are talking about something like btc, then its holding. I see that a lot of people supported stop loss, which isn't that bad, and there are some other ways, I understand the need for something different, but that doesn't mean that we are going to get anything great from it, just ignore it and focus on what we can do. I personally believe that the best we can do will be holding and DCA, if you do that, then you are going to end up with some great profits in the end.

[taufik123]

-snip-
I personally believe that the best we can do will be holding and DCA, if you do that, then you are going to end up with some great profits in the end.

hold and DCA will only apply if you have a reserve of money that you haven't used yet.
But when there is no reserve whatsoever and the market looks set to go bearish for quite a long time, some considerations to sell first and then buy again at that lowest price can be done.

But with a note that you're absolutely sure the next decline will be deeper.
Trading knowledge, technical and fundamental analysis is very much needed, not just challenging loss control or any strategy.

[SamReomo]

Stay on spot, I avoid going with futures even if there are times that I want to. I just don't want to have that loss story in trading through futures.

If you're doing futures trading with 1x leverage then it's not that much risky when doin it on coins like Bitcoin but when someone is going with higher leverage then that's going to be quite risky.

Those who do 2x leverage end up losing their capital when an asset drops 50% of its value and in most exchanges it's always going to be less than 50% and that's why one should avoid futures trading if he/she doesn't want to take those unnecessary risks.

[BitMaxz]

If you're doing futures trading with 1x leverage then it's not that much risky when doin it on coins like Bitcoin but when someone is going with higher leverage then that's going to be quite risky.

Those who do 2x leverage end up losing their capital when an asset drops 50% of its value and in most exchanges it's always going to be less than 50% and that's why one should avoid futures trading if he/she doesn't want to take those unnecessary risks.

I don't get the purpose of trading on futures with 1X leverage. You are likely trading with the spot. It would be better to trade in spot if you are planning to set your leverage to 1x.
The reason why using leverage is to borrow USDT to trade and maximize the amount you want to trade so if you set it to 1x then you are trading with your capital. If I'm going to set 1x then I'll buy on spot instead except for the short position if want less risk and take advantage to make profit in bearish season 1x levarage is fine.

[bayu7adi]

If you're doing futures trading with 1x leverage then it's not that much risky when doin it on coins like Bitcoin but when someone is going with higher leverage then that's going to be quite risky.

Those who do 2x leverage end up losing their capital when an asset drops 50% of its value and in most exchanges it's always going to be less than 50% and that's why one should avoid futures trading if he/she doesn't want to take those unnecessary risks.

I don't get the purpose of trading on futures with 1X leverage. You are likely trading with the spot. It would be better to trade in spot if you are planning to set your leverage to 1x.
The reason why using leverage is to borrow USDT to trade and maximize the amount you want to trade so if you set it to 1x then you are trading with your capital. If I'm going to set 1x then I'll buy on spot instead except for the short position if want less risk and take advantage to make profit in bearish season 1x levarage is fine.

+1 ... I think the point that @samreomo wants to explain is about risk... the greater the leverage you take, the greater the risk... apart from thinking about leverage, we also have to understand that the actual movements of the futures market usually have a slight difference with the market. spot... especially for short term candlesticks... starting from 1 hour to 1 day..

The advantage of using 1x leverage is not much different from what @bitmaxz said, namely that it is not much different from spot trading... and because I use spot trading more often, so I think 1x leverage is only needed when you want to get bigger profits from a bearish market .