✍The Biggest Loss in Trading

The biggest loss in trading can occur when a trader makes ill-informed decisions, ignores risk management, or is influenced by emotions (such as greed or fear). Some of the most famous historical examples of trading losses include:

Loss of the French Bank Société Générale:

In 2008, a single trader named Jérôme Kerviel caused a loss of approximately $7.2 billion due to unauthorized trading in futures contracts. This is considered one of the largest individual losses in the history of financial markets.

On an individual level, many traders in cryptocurrencies and stocks have lost thousands or millions of dollars due to:

- Trading without a clear strategy.

- Using high leverage.

- Ignoring market signals or technical analysis.

- Trading during periods of extreme market volatility.

✍️ Trading can yield significant profits, but it also carries high risks. Therefore, it is important to learn, plan, and strictly adhere to capital management.