Topic: 4 factors that could destroy your Trading - page 6. (Read 1235 times)

I think the four factors that could destroy you in trading industry are stress, hardship, frustrations , un patience because this for four factors is always in this kind of business you must know how to deal with it.

Traders generally buy and sell securities more frequently and hold positions for much shorter periods than investors. Such frequent trading and shorter holding periods can result in mistakes that can wipe out a new trader's investing capital quickly. One of the defining characteristics of successful traders is their ability to take a small loss quickly if a trade is not working out and move on to the next trade idea. Unsuccessful traders, on the other hand, get paralyzed if a trade goes against them.

I think in trading it is important to recognize mistakes and draw the right conclusions, be able to give up non-working things. Emotional components are very many, but the logic is the best trader's assistant

To concise, one of the most factor of it that can kill your trading is your emotions mate. You can't deny how much emotion you'd always inputted when you are in the middle of worse or success.  According to majority of trader, Controlling emotion can be one the key to achieve your goal. I wish you all the best and also wish me luck!

All factors above come from our mind. So I think if we believe that we can get coins, we can make the effort to get over it. Try your best!!!

Some good points here. I'd add.....

- Anger
Can be felt mainly after a big loss, but also after suffering multiple losses in a row. Can cause a trader to drastically increase the amount of coin they buy in an attempt try to make back the money they lost. Can also make a trader to get 'trigger happy' i.e place significantly more trades than they usually would, also to make back what they lost.

-Denial
Is felt when something happens that isn't in accordance with the traders view of what was supposed to happen. E.g when Bitcoin started to crash lots of traders were in denial because they thought the price was going to rise forever. They couldn't imagine that it would fall after such a huge rise, so when it inevitably did they continued to believe that it would keep rising, even though the 'facts' (the continued decline) suggested the rise was over, at least for the time being.

Holding a losing trade open i.e letting the price continue fall below the price you bought some crypto at instead of selling, is caused by denial.

People think "the price will eventually rise again, so if I keep holding I can exit with a small loss or tiny profit". But there's no guarantee that will actually happen, and even if it does rise back to the point where they bought, and the trader get a chance to close his/hers trades, it will set a bad precedent, because the trader will then think the same thing will happen in the future.

So the next time he has a losing trade open he will assume the price will eventually rise again and give him a chance of closing at a small profit or loss, just like it did before. The problem is that may not happen, in which case, the trader will continue holding the trade open, having the loss grow  bigger and bigger until eventually they lose all of their money.

I've just researched this area, have someone guide me, thanks a lot

Yes.So if you're already in real trading,leave all your negativities because it could only cause destructions rather than attracting profits.You should make your brilliant mind works rather than depending on your emotions because you are trading for profits,not for emotional satisfaction.

This is need to avoid because bad characteristics in trading cannot help you and to the community because for example if you have bad characteristics the trading will be affected on that because the price will change what ever action you make.

I think the four key factors can destroy your trading is you emotions, family matters or problems, emotional stability and physical health of course,
because these factors can easily affect the mind of traders.

I think the first factor that can destroy you in trading is, if you can’t work under the pressure because trading business put too much effort to function well, next factor if lack of patience in this because you must know how to deal for the changes of the environment of the business, next factor is the easily changing of the amount of the investments because of the law of demand , last factor is you are not confident to what you do, not everyone investors will trust you.

Patience is very important, certainly, but I absolutely agree with the author of this thread. I guess that a good trader must be never afraid of some losses, and he should forget the word called GREED.

Excessive Leverage is also a reason. According to a well-known investment cliché, leverage is a double-edged sword, because it can boost returns for profitable trades and exacerbate losses on losing trades. Beginner traders may get dazzled by the degree of leverage they possess, especially in forex trading, but may soon discover that excessive leverage can destroy trading capital in a flash. If leverage of 50:1 is employed – which is not uncommon in retail forex trading – all it takes is a 2% adverse move to wipe out one's capital.

The first destroying factor is starting to trade without any knowledge or learning. This is the main thing that gives room for every other negativity such as emotion, making bad decisions and so on, which would always make the trader to always end up in a bad situation most of the time. It is one thing to want to trade, and it is another thing to be dedicated to learning.

Traders never stop learning, and that is what makes them a pro till date. If a trader cannot find time to learn then it would be better quitting trading career. Because, instead of struggling with improper way of trading, it would be better not to trade.

1. Trust ---  In crypto asset we should have trust over particular coin for which we are trading, If you lose your trust then no one can help you to become a loser.
2. Patience --- Before all thing consider you need to have patience if you are in trading regularly because in crypto forecasting does not working at all. Only thing is working patience.For how long to hold funds you are in better size .
3. Govt. Regulation--- Yeah we can't neglect Govt. If you are a trader. similarly we have seen in china when Chinese govt. bans trading exchanges. all trader was in lose and price of crypto had decreased.
I don't what to add in 4th anyone has idea?
Please share your opinion on it.

Following the Herd is very dangerous. Another common mistake made by new traders is that they blindly follow the herd, and as a result they may either end up paying too much for hot stocks or may initiate short positions in securities that have already plunged and may be on the verge of turning around. While experienced traders follow the dictum of "the trend is your friend," they are accustomed to exiting trades when they get too crowded. New traders, however, may stay in a trade long after the smart money has moved out of it. Novice traders may also lack the confidence to take a contrarian approach when required.

These are the things that might affect our trading. These are the things we need to hold more and control. Look at the fear thing, it is the most common of the 4. With fear, it could end us all. I'm trying to confront that kind of attitude. Fear is the most frequent emotion on me.

I think you misunderstand greed here. Greed means that you want more and more of something. In this case it is money or to be more detailed Bitcoin.
So when you see that a trade is green and you could take profit now you think "no I want more profit, I will sell for a 10x" and you do not take profit.
Then the coin dumps and is red again. You did not make any money because you did not sell.
This is one way greed in trading can hurt you.

In fact that is one thing that sets a real professional trader apart from a noob. Most noobs usually do not have any strategy and all they are looking for is to make some quick decision to buy low and hope to sell high without nothing to look for or to watch out for and in that case, how on earth will they ever know how to set a stop loss.

The market is always going to be fluctuating and those who only bet in the market blindly will always suffer for it. I mean we should not trade without reasons. Only our analysis bring more than two strategies confirming a similar thing then only we must go for entering that otherwise just watching must be a good way of trading .