Topic: Basic things that you need to know before starting in trading (Read 799 times)

"Trading is simple yet so complicated"

You know what they say "you just buy at low price and sell at high" this phrase seems really simple but really complicated to execute. This is why knowledge and strategy is a requirement in trading. If you don't know where you should position and take your profit. It just look like you're gambling and in trading you will not survive with this kind of set up. Also, sometimes your emotion is your hardest foe. If you let your emotions get the best of you, it will cloud your judgement and will eventually lead you to your losses.

many think that trading is just an easy activity, just buying & selling...
they do not understand that it all requires strategy, buying when the HYPE market and selling when the market is BEAR is foolish. it is important to understand what you are doing, don't take trading for granted, you need to increase your knowledge and mentality when you really want to start trading.

I think being knowledgeable is also important.

I am not saying to be knowledgeable about trading but to be knowledgeable about what you will doing. Trading is not something that would give you a profit 100%, and despite the patience you have if you don't know what you're waiting that would be useless. You should know what you are doing and what is you're goal in investing and trading.

Successful traders doesn't force themselves to trade if they don't see a clear opportunity and perfect opportunity only show when every single criteria has been met. If not, be patient and just wait. You don't have to force yourself to make position. There are 365 days in a year and there would be at least 50-100 opportunities in the market in a year. Missing one or two will not hurt.

The thing is that we don’t know what direction the market will be moving to, we can only use technical analysis to look for what will be the next move but it doesn’t guarantee we would be right, sometimes we are still going to lose. That’s why we have trading like stop-loss, and we have to be using every tool at the right time to help our trading and help us achieve something.

At the end there will still be people who are going to lose, if nobody is losing, nobody will be making profit. Trading comes with risk of losing money and you should prepared for it, and if you can’t take it, it’s best to look for other things to do.

There are really times that it isnt really necessary for you to make out some trades or making out some position and this is where sometimes people do commit mistake because they do pushes or force up to trade
even if the situation isnt really that ideal.

There are things that you would need to know of course before you do jump in to trading industry.Mistakes is common but be sure to learn from it and make yourself even more better and effecient.

Dont be greedy and dont let yourself fall into fomo and fuds because these are primary things that you would encounter into this market.So we should be aware!

Yes, that is true. Patience is definitely necessary virtue in trading. It helps you control your emotion and prevent you from "fear of missing out". Risk management, I would say, is also a must have skill when you're trading. High risk does not always equate to high reward and to be a great trader, you must have a strategy that have at least 70% win rate. If you think the trade doesn't seems right, don't go for it. Only trade if you think that it has 70% win rate.

So right, patience is not the only thing it takes to be successful in trading. There are lots of things it takes to be successful in trading and being good in only one of those doesn’t help, you have to know everything and apply all of them to your trading.

Imagine only having patience and not know technical analysis and other strategies that can help you know the right coin to trade, you will just end up waiting on a coin that will keep falling and that would be a wasted patience. And then if you have the other, but you can’t have patience, you’re still likely to fail or miss out on bigger opportunities. So knowing all or at least some of them would really be of help.

Just knowing the basics is simply not enough when it comes to this market anymore, you need to dedicate a considerable amount of time to learn how to trade effectively and if you do not want to do that or if you are unable to do that then you need to give up trading and investing, it is as simple as that, because even those that dedicate a huge amount of time to those two activities end up losing money during their careers and many never recover the money they lost.

Such advices by the OP are pretty much helpful most specially for the starters or those who are new in trading and wanted to make their own path of journey on doing trades so they must find this thread a basic start up point of learning before doing engagement on trading.


It might be right that older traders do know better compared to the new ones but remember the new ones can be good as them too with proper guidance and with the help of doing thorough research and as well as with their own experiences on doing trades because there might be new discovery on trading that they will come up on providing new approach that can also be helpful to the new batch of traders that will enter the market. But still it is indeed that older traders do know more about and they have got it from lots of experience doing trading.

It is indeed that patience and presence of mind is needed in this kind of work for you must not be easily pissed off to avoid doing unnecessary actions like doing impulsive decisions brought and driven by emotional attachment. Presence of mind to weigh the situation and see both sides of the scenario to be able not to get stressed out when you experience loss and make bad happenings into a great opportunity of learning to do things right in the future trades you will have.

OP's advice is great especially for beginners who have to apply it because they don't have good trading experience and knowledge yet and it is good advice.
In trading patience is the main role to produce good results, analysis and a strong conscience will make choices and not give up if you fail or go wrong because that will be a lesson that will pay off because it will make you a great trader.

It is true that success cannot be achieved without the basic idea of ​​knowing the basics before starting trading. He needs patience before that the crypto market is not stable. In case of fluctuations even if the price of the currency goes down there is nothing to be disappointed about. Even if the price goes down it will go up again if the demand goes up. Therefore, you should always be active in the market and try to know the latest information.

Combining everything is the best way, patience is also included in managing emotions so that they remain stable and can make good decisions. I agree with you that patience will give you an advantage when trading. Because if technical analysis, fundamental analysis is not accompanied by patience, then everything will fall apart and the strategy will not work well. Market analysis, price sentiment will be easier if all aspects are combined.

A professional trader must be able to control emotions well, to get consistent profit.

I agree, your patience is important but if that is all what you have then you don't really have a lot to work with, it is better to try to work in many other aspects that will help you to make money in the markets and this includes your strategy, money management skills and your ability to find out what's happening in the market as soon as something important happens, if you can do all of this then your patience is going to increase tenfold because you know what you're doing.

We don't need to learn everything about trading before we start, to have the basic knowledge like chart reading, simple strategies, and the right choice of coin for trade are good enough. Learning could be a process and from time to time, the experience will give us more and understand the market movement.

Trading don't give assurance that we can make a good trade having them. And talking about the security, nothing would change, it totally depends on us and what exchanges we have used. Why many traders have not urged us bots it is because they don't see huge changes from it. I know it works for us on behalf but all the decisions are still coming from us.

Actually there are also training in trading in which the exchange will let you try to trade without losing money,meaning they are giving you a chance to trade in free trials.
why need to bother yourself when you are having trouble with money?just do the free trading and practice well so when the time that you already have the money then at least the chance of profiting is indeed on your side.

Many platforms offer different bots and their strategies, but I think anyone who uses a bot to trade must have their own custom bot and made solely according to their trading strategy. Such bots are more expensive, but in the long run they are more cost effective because they offer greater security and flexibility.

Having the strong mind that it takes to endure the losses you will experience in trading is not an easy to get. But the most important thing is starting small, so that if there are losses, it wouldn’t be something that would worry you that much.

But, to be sincere this is not the issue for a lot of people. I can use myself as an example, because when I started I was damn broke and couldn’t afford to take any risks, and I know this is the same issue that some people will be having. There are people who are broke and they can’t have extra money that they can risk to gain that experience.

I agree with you. Trading requires a lot of patience, you shouldn't panic if the price goes down just hold it and wait for the perfect time to sell it. Before, bitcoin goes up to 1 million and then drops up to 300k. As you can see, bitcoin's price is not stable so, maybe tomorrow the price will be on its highest peak, we aren't sure.
Another thing is, in trading there are some patterns like every end of the month (pay day) the price goes up .

Great thoughts on discussing basic but essential things to be known about doing trading. (1) Indeed older traders do know better but it does not mean that new traders cannot do the same thing for we cannot underestimate the concept of thinking new traders have for before they enter trading they must have already got prior knowledge on doing trades because if they do not, then it is a risk and at the same time a gamble. (2) It is true that patience and mind setup is in need on this industry because if you loose patience and you have negative mindset, you will just end up getting driven by unnecessary acts on doing impulsive decisions that might just lead you into worst scenario.

(3) Trading is really not an Alladin's lamp that it can make you instantly rich for there are certain processes and time interval before you can earn a large amount which is also dependent or reliant on the behavior of the market. (4) That was true that higher risks do offer higher rewards in return but if you put up a wrong risk taking, then you will just end up doing a gamble and gain higher amount of loss as well.

Doing trades do require prior knowledge on which upon doing trading you could build up creating your own strategy on how you can make your trades profitable. Following such strategy can make you survive and make profits but such assurance won't always make happen so always be open for anything to come and better know how much loss you can tolerate or endure so that you won't get stressed out.