In this video Roman Ceccardi addresses the common experience among crypto traders of suffering massive account drawdowns, sometimes losing the entire account. He explains that trading is essentially gambling, and the key differentiator is the use of risk management. The core advice is to risk only 1–2% of the account on each trade, always enter with the expectation of being stopped out, and maintain a sensible risk‑to‑reward ratio (e.g., 2:1). Ceccardi discusses how low win rates can still be profitable if risk is controlled, and highlights two main emotional triggers: trading without a clear rationale and risking money that cannot be afforded to lose. By applying disciplined risk management, traders can avoid large drawdowns and the associated mental hurdles. The video ends with a call to subscribe for a deeper risk‑management tutorial and a plug for a swing‑trading strategy video.
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What's up guys, in this video we are going to talk about how to get over losing a large part of your account. And as somebody in crypto, I am sure everybody has been there. Your account is down like 30%, 40%, 50%, heck, even someone who's down 100%. Basically you lost your entire account, and in crypto that is pretty common. Not everyone comes into crypto knowing even what to do, and you get stories about people following Oh hey, you know this influencer called this coin, it's gonna go 100x, so I pour my entire life savings into it. And next thing you know, you've lost all your money. Or maybe this crypto influencer on Twitter says, oh, this is a good entry to get into this coin, and you put your entire life savings, bam, gone. And at some point or another, I'm sure every crypto trader has been through that, or at least like 90% of crypto traders. And so in this video, we're gonna talk about a couple of things that you can do to get over the mental hurdle Because going through such a drawdown on your account can be quite mentally challenging. And I've been there. I've lost— I've blown up my account like 5 times before I was profitable. So I've been there. I've lost all my— I've lost all my money. I've lost my parents' money. I've lost my friends' money. You know, I've been there. So the trick to get over the mental hurdle of losing a large chunk of your account is risk management. Now, before you click off this video, hear me out for like 2 minutes. I guarantee that the advice that I'm about to share is going to save you a A lot of money and a lot of headache. So here's the thing that you need to understand about trading and risk management. Trading is essentially gambling. It is just the harsh truth. It is gambling in its most essential form. Now, what do I mean by that? When you gamble, you either go long or you go short, and you either win or you lose. But the only thing that separates trading from actual gambling is the fact that in trading, you actually have risk management. Now, in gambling, if you lose, then that's all your money. And I'm pretty sure not a lot of gamblers practice risk management. Like, oh, I'm only gonna risk 1% of my portfolio on this gamble. Same thing for trading. The reason why 90% of people are losing money is because they don't have any semblance of risk management. They see a trade that looks good, bam, you know, 50% of the account goes in, no semblance of risk management. At the end of the day, they're gonna lose a lot of money. And that's where the mental hurdle comes from. See, when it comes to traders that have already been at this for quite a while, they understand the importance of risk management. Now, sure, crypto is going to make you a lot of money, like a lot of money compared to the stock market, compared to the forex market. It will make you a lot of money way quicker than those markets ever could. But at the same time, being how unproven crypto is and how much of an effect that Bitcoin tends to have on the entire crypto market, you can lose everything in a flash. And that's why in crypto especially, risk management is even more important. Now, if you want a simple guideline, then basically you should only be risking about 1 to 2% of your account in every trade. And that means that you should enter every trade with the expectation that you are gonna get stopped out. Now, this is a very simple trick or tip or whatever that you can implement today, and it's gonna save you a lot of money when it comes to trading, which is every time you enter into a trade, expect yourself to lose. Everybody expects themselves to win. Like if I put in this much money into this coin at this price, then if it wins, I'm gonna make $10,000. But they don't expect themselves to lose. And when they lose, maybe they lose their entire life savings. So when you expect yourself to lose on every trade, you become much more mindful about how much of your account that you're risking per trade. That is just a simple trick that I use to make sure that my risk management is on point every time, because I've worked very hard to, to get my account to the place that it's at, and I'm not about to lose everything in like Just a single trade. And back onto the subject of how this person who has lost multiple hundreds of thousands of dollars is able to get over this so-called quote-unquote mental hurdle is because of the fact that maybe those few hundred thousand dollars is only a part of a $100 million or a $50 million account. Now, when you have that big of an account, losing a few hundred thousand dollars is a part of the game. Even a trader that has been doing this for a long time is going to lose money. It's just a natural part of the process. But the way that these people, the way that these experienced traders get over it, is because they have tested this strategy many, many times, and they know that over time it is profitable. Even a trader with a 30 to 40% win rate, with at least like a 2:1 risk-to-reward ratio average on every trade, is still going to be profitable over time. You don't need a really high win rate in order to win. But at the same time, think of this: if the trader has a 40% win rate That means they're losing 6 out of every 10 trades. Imagine if they didn't have their risk management down pat. What would end up happening is they would go through regular drawdowns of like 10, 15 losing trades in a row. Imagine if you didn't have proper risk management and maybe you lost 10% of your account on every trade. After 10 trades, you're out of the game. So just seriously, the one thing that really— that's just the harsh truth— is that the one thing that's gonna allow you to get over these hurdles of losing money is simply risk management. You're not gonna flinch too much if you only lose about 1% of your account in every trade. And this leads me to my next point. There are only really 2 reasons why you start having these quote-unquote mental hurdles. And you know, the first thing that comes to mind is that's because you're emotional. There are usually only 2 reasons why you get emotional in your trades. Number one is the fact that you have no idea why you are in this trade in the first place. Maybe you saw somebody post about it somewhere and you decide to drop a lot of money into whatever trade at whatever entry without really setting a stop loss. Or take profit. So number one, you know, you don't really know what you're doing. You're just taking the advice of others. Nothing wrong with that, absolutely nothing wrong with that. Just make sure you have your risk management down pat. And the second reason, which is probably 90% of the case where you feel emotional after entering a trade, is the fact that you're playing with too much money that you cannot afford to lose. The thing about trading is that you're not supposed to feel anything when you enter a trade. Trading should be done as robotically as possible with As close to zero emotions as you can possibly muster. And 90% of the time, the reason why you feel emotional entering into a trade is because of the fact that you're playing with money that you can't afford to lose. So if you just fix these few things, firstly, you're not gonna go through another drawdown of your account that is like huge. Secondly, you're probably not going to be in a position where you're going to start feeling these emotional mental struggles of having a drawdown. And if you're interested in me making a very detailed video on risk management and exactly how you should approach it, How what people get wrong about risk management, etc. Subscribe and stay tuned for the next video that I post. In the meantime, though, if you want to figure out a swing trading strategy that you can use to make about 50 to 100% returns on your account every month consistently, then check out this video while you wait for that next video on proper risk management. Hope this video has been helpful. If it has, comment down in the comment sections emotions so that I know who are the real ones that stayed until the end and who really are serious about.
