Yes, trading in Stockity is so exciting and a golden opportunity to increase income, but not so fast! This excitement can also be a source of loss if we are not careful. Many traders, especially beginners, often get caught up because they feel they understand the strategy, but instead slip into the same mistake. Well, in this article I want to share some of the ways of avoiding losses that actually can be prevented, together with stories from personal experience so that you don’t go broke or suffer a big loss.
The first thing to remember is to avoid overtrading. Most often, this happens when one is in a profitable position or has suffered several losses in a row. Sometimes, because we want to make a quick profit or return the lost capital, we actually get carried away by the desire to continue opening positions. Real experience, you know! I used to be like that, too. If it had a small profit, I just wanted to continue opening positions in order to increase the profit. But then what happened was just the opposite of what I expected-my capital ran out because I unknowingly entered a trade that wasn’t really solid. Overtrading is just like playing in an amusement park but you forget about time-you get a headache later.
So, not to get caught by overtrading, always use a clear strategy before entering trading activity. This will guide you on when to enter and exit. Never follow the trend or your feelings. For example, on Stockity, I usually use the analysis of Bollinger Bands and Moving Average. This really helps to understand whether the price is stable or there is big potential for ups and downs. If there is one setup, I was always looking at first when I start trading, it acts like a road sign so I do not go into a totally wrong direction.
Then, there is one more thing that is no less important: don’t be lazy to evaluate after trading, either when the result of trading is a profit or a loss. It’s just that sometimes people only want to remember the profit and forget the loss that they have ever experienced, even though that is where the valuable lesson can be found. Once or twice, I lost quite a lot when I entered the market without calculation in volatile conditions. At that point, I understand that looking at the trading history is important. From this evaluation, we can see the pattern of mistakes and learn not to repeat them again. Never be ashamed to learn from others’ experiences. I often read other more experienced traders’ experiences, and it does help a lot.
Oh yes, one trick that is often forgotten by many traders, especially new ones, is about profit management. In Stockity, after getting a profit, it is better to immediately secure some of it. Simply said, immediately withdraw it or separate it from the main trading capital. Because I often see friends who, at first, got a good profit but because they were tempted to add positions ended up running out of capital as the market was not as expected. Remember, the profit that you have secured can be a “safety net” if you are less lucky in the next trade. Just think about how regretful it would be if you had to lose everything just because of being impatient and not wanting to separate the money that’s in your hands.
Last but not least, control your emotions while trading. These emotions can be your best friend or your worst enemy, it depends on how we control it. When I first started trading, there were many moments where I was reckless in opening positions just because I wanted revenge after losing. That was the wrong mentality, and it didn’t take long for me to realize that trading with emotions would only make you lose more. Now, every time I lose, I try to take a break, take a breath, and only go back in when I’m calmer. Don’t rush to take revenge, because the market will always be there and the opportunity for profit won’t go anywhere.
So, the point was the key is self-control and a mature strategy. This way, trading in Stockity can be calmer, and the potential for profit is also greater. Remember, success does not come in a day, so be patient, evaluate, and stay consistent with the strategy. Good luck, may you continue to make money and your trading become smoother!
