Beginner mistakes and how to avoid them - page 4.

martyns

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Quote from: tjtonmoy on April 25, 2023, 03:11:53 PM

Quote from: Kara3 on April 24, 2023, 05:32:31 PM

if anyone have more to add, so I can also learn?

Emotions, first thing that comes to my mind is having control over emotions. If anyone asks me about learning trading, first I will ask them if they have the will to rely on data analysis and strategy rather than taking decision based on their emotions. This is a very important thing in trading, which many people ignores, thinking that it's not that important. This is the reason why they face those problems which you have mentioned.

Also when learning trading, you should always start with low amount. Try out your strategy and skills, and then go for the big round.

Your own contribution is really nice too,the little I want to add is that so many beginners don't like making research before engaging into trading.Research gives you the opportunity to know the type of coin you will invest in,it also gives you the opportunity to know whether the coin will grow or not,it also make you to know the different seasons that the market is favourable and when it is not,it also gives you the ample opportunity to know projects that will do well in the nearest future and the one that will be a waste of resources.These and many more are what research does.Most of the beginners who end up losing multiple times normally fall victims of this mistakes.

suzanne5223

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Quote from: Kara3 on April 24, 2023, 05:32:31 PM

I don't if anyone have more to add, so I can also learn?

Yes, good management is needed to thrive in the crypto space and so is the security of holding from online theft. However, the only will make wrong in what you write is trading which is also what I want to add because crypto trading is not meant for everyone especially newbies until they have concrete knowledge about crypto trading it's better for newbies to start with strictly long-term investment in Bitcoin.

GeorgeJohn

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What I want us to understand in trading is that no mistake is newbie mistake, maybe what you isolate in trading is what another person will come in contact and the person refused to be victim in trading, so I believe that trading have to deal with different strategies if you really want to make your own profits, so what I'm trying in nutshell, is that you have to understand the scope of Trading and master the system with your mistake, because its obvious that if you are try avoid all the mistake that you may encounter during trading you might end up in making huge losse, its obvious that you have to derived your methods of trading.

tjtonmoy

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Quote from: Kara3 on April 24, 2023, 05:32:31 PM

if anyone have more to add, so I can also learn?

Emotions, first thing that comes to my mind is having control over emotions. If anyone asks me about learning trading, first I will ask them if they have the will to rely on data analysis and strategy rather than taking decision based on their emotions. This is a very important thing in trading, which many people ignores, thinking that it's not that important. This is the reason why they face those problems which you have mentioned.

Also when learning trading, you should always start with low amount. Try out your strategy and skills, and then go for the big round.

Stable090

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Quote from: alik111 on April 25, 2023, 11:36:12 AM

The most important point is to learn the deep about crypto trading and using stop loss in every trade. I have been liquidated many times because I never used stop loss in the past. Now I am aware. Always know that every trade will not go on the right way and anytime market can be crashed. So using stop loss is a very important matter to trade crypto professionally.

Some newbies are making mistake of starting how to trade with future trading, if you want to learn how to trade it’s better you start with spot trading, you shouldn’t be in rush to make money, it’s easier to lose money in future trading compare to spot trading. If you are in rush to make money in cryptocurrency, then you Will easily lose money.

Stop lose is important but I don’t think it’s mandatory, some people don’t really like using stop lose in their trade, some people believe immediately their stop lose have been triggered in a trade, the market always bounce back, so they don’t use stop lose. But as a newbie it’s a good idea if you make use of stop lose in your trade, but also newbies should avoid future trading.

blockman

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Futures.
Newbies do think that futures are easy and everyone can do it. No, it can't be for everyone and it's not for everyone. Futures are high risk just like spot trading but the risk there is more than what you can expect and can trigger you once you start seeing those profits being done by the others.
That's why the encouragement is high when you get to see others doing well in futures but, don't be too inspired by them because they mostly show their wins and not losses.

usekevin

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Mistake at the beginning of the trading is the common one,you should use it as the opportunity and learn more from it.The basic thing to the beginners is holding at the hard times and in the bear market.Many people with less experience in the trading will sell at the beginning of the bear market.They also sell when the small pump is happen and never ready for the big rise in the price of the invested coin.Learn about the trading in you tube or any social media and apply the trading principle with the minimum money as the capital.Directly inverse without investing in the crypto currency leads to the big loss.So you need to avoid such things.

MFahad

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Yes having large sum of money does not implies to the fact that you will be able to earn more but instead of this you will loss more if the market is not well for you. Having large sum means great trouble and having low sum invested means low trouble and also enhance your knowledge prior to the trading. Setting stop loss can minimize your losses and you will not face any consecutive failure. Trading plan is necessary because if you don't have any plan then I don't think that you will perform well because if a person does not have think about destination then how he will try to achieve that successful destination.

Findingnemo

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Quote from: Kara3 on April 24, 2023, 05:32:31 PM

Most of the newbies in crypto space believe once they have a large capital they will definitely succeed in the crypto space, but they are wrong, not knowing that if you can't grow/manage a small account, you can't grow/manage a big account either, their are common mistakes they usually make an I will be giving out tips on how to avoid them,
* Over trading-- it's very important for a day trader to limit the number of trade he/she took in a day.
* Lack of trading plan-- develop a strategy an stick to it, do not ever enters a trade blindly, if not the market will remove you blindly.
* Failure to use stop-loss-- to me it's the most important thing I do while trading, an it's always close to my entry price, I do it that way so that if the trade didn't go as planned, I won't lose more than 10% of my margin.
I don't if anyone have more to add, so I can also learn?

First of all doing trade with $1000 and $1M is entirely different and ofcourse trading with huge capital has its edge but someone with small capital has to stick with their own strategy instead of following the popular traders who is dealing in millions.

I would like to suggest that avoid doing day trading with all of your crypto trading capital because as we know day trading is highly risky so we don't have to put all the capital into high risk.

Keel the things simple will actually help us to get better results than instead of applying strategies, analysis, indicators,etc.

Litzki1990

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Quote from: Kara3 on April 24, 2023, 05:32:31 PM

Most of the newbies in crypto space believe once they have a large capital they will definitely succeed in the crypto space, but they are wrong, not knowing that if you can't grow/manage a small account, you can't grow/manage a big account either, their are common mistakes they usually make an I will be giving out tips on how to avoid them,

Success cannot be achieved by having a large amount of money. What is the use of more money without investment ideas. A person who has enough knowledge about investing even if his money is relatively small, still he knows about the market and he knows when to invest and when not to invest. Because he has an understanding of these things, he is more likely to succeed in whatever amount of money he invests. Since he is more likely to succeed, he will be able to convert his relatively small amount of money into more money.

But even if a person has a large amount of money, if he has no idea about investing, he is likely to lose money instead of increasing it by investing. So in my opinion it is more important to have enough ideas than to have excess money.

Nrcewker

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Basic beginner mistake is that lack of knowledge. When someone hears the term trading, they think of only making money. But the harsh reality is that, in order to make money you need to make profits and to make profits you have to keep knowledge about the market and the coins. But many beginners don’t have patience and they directly invest without proper researching and knowledge. And then after investing on the coin they research whether it will increase or not and later regrets on this decision. These are some of the big mistakes that all newbies and beginners need to avoid.

alik111

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The most important point is to learn the deep about crypto trading and using stop loss in every trade. I have been liquidated many times because I never used stop loss in the past. Now I am aware. Always know that every trade will not go on the right way and anytime market can be crashed. So using stop loss is a very important matter to trade crypto professionally.

gabbie2010

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Quote from: Kara3 on April 24, 2023, 05:32:31 PM

* Over trading-- it's very important for a day trader to limit the number of trade he/she took in a day.

An experience or a very skillful trader always have a trading strategy that give few signals weekly obviously that will take care of over-trading of course the few A++ trades will yield reasonable profits if multiple entries and multiple exit is executed with a proper money management.

Quote from: Kara3 on April 24, 2023, 05:32:31 PM

* Lack of trading plan-- develop a strategy an stick to it, do not ever enters a trade blindly, if not the market will remove you blindly.

It's a pity that some newbies dump trading strategies after one or two losses and jump into another strategy, there is no any Holy Grail or any perfect trading strategy, it's advisable to pick a strategy work on it.
[/quote]

Quote from: Kara3 on April 24, 2023, 05:32:31 PM

* Failure to use stop-loss-- to me it's the most important

It's the most critical or complex part of trading stop - loss is a vital tool that is used to reduce risk thus a trader is expected to place the stop loss above resistance zone when selling and below a support zone when buying this also needed some experience in placing it.
]

ultrloa

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Quote from: jeraldskie11 on April 25, 2023, 08:54:50 AM

Quote from: Kara3 on April 24, 2023, 05:32:31 PM

* Over trading-- it's very important for a day trader to limit the number of trade he/she took in a day.

This is one of the reasons I was never profitable in trading. You will also get the impression that trading is simple as long as the setup entry is working. So, instead of being profitable, because you overtrade, the market recoups your earnings, and you may even lose money.

Most people can't monitor themselves when they trade, which is why they have many winning transactions but a negative port at the end of the month.

Many people hype up trading as it is so simple way to earn money that's why some people creates wrong impression about it. But when you start to trade you realize how hard to gain profit with this especially when you are new and doesn't know what to do on certain movements happen in the market. To win on trades we shouldn't follow other doing that over trading since if we settle up for profits we already seeing for sure we may became a profitable trader in the long run.

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Quote from: Kara3 on April 24, 2023, 05:32:31 PM

* Over trading-- it's very important for a day trader to limit the number of trade he/she took in a day.

This is one of the reasons I was never profitable in trading. You will also get the impression that trading is simple as long as the setup entry is working. So, instead of being profitable, because you overtrade, the market recoups your earnings, and you may even lose money.

Most people can't monitor themselves when they trade, which is why they have many winning transactions but a negative port at the end of the month.

danherbias07

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Combining them all means we need deep research before jumping the gun. IMO, planning is one of the most important parts when you are trading, you cannot be arrogant just because you have enough money in your pockets and you can cover all the losses by using it. Planning everything will have an important role especially if you are following it in a disciplined way.
I am not a big trader and I only do manual trades by reading the historic movements of the coin I prefer but it had never gone to me to be greedy and not follow the road that I had already written. Once I see profit at the aimed timeline, I take it, with no doubts, and no regrets in the end. Get over it and find a new one.

palle11

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I don't think I need to add more to the points you made because the topic has been a public notice to trade with stop loss and not to over trade. I want to add something in the area of clearification of my understanding on the points you listed already.

Quote from: Kara3 on April 24, 2023, 05:32:31 PM

* Over trading-- it's very important for a day trader to limit the number of trade he/she took in a day.

I think over trading is not only about how many trades that a trader enter in a day. I believe when a trader is doing high risk trading then he or she is over trading because at a little change in direction, the account of the trader can wipe off. So having a moderate number of trading and good money management, is right psychology for trading.

Quote from: Kara3 on April 24, 2023, 05:32:31 PM

* Failure to use stop-loss-- to me it's the most important thing I do while trading, an it's always close to my entry price, I do it that way so that if the trade didn't go as planned, I won't lose more than 10% of my margin.

Keeping your stop loss close to entry price is good like you do because it doesn't eat up much of your balance when goes wrong but at the same time, that will also not give your trade space to "breath" and you will find your trade always logging you out in stop loss at little shift in your entry price. My suggestion is to have a certain measurement of percentage in risk for a trade you are taking.

DevilSlayer

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Trading plan is very crucial, those traders who are entering without any sort of trading plan cannot be considered as traders because what they are doing is for gambling. They are hoping to win without any organized planning and for me it is the reason why they are consistently losing. Trading is not about luck, it is about probabilities and you can have your edge if you have organized plan that you can use in order to react when the opportunity comes. What is this organize planning that I'm talking about? For me an organized plan consist of knowing when you will enter, knowing how to spot a trend, knowing how to plot support and resistance, knowing when you will cut your losses, knowing how much money you will spend and lastly knowing what kind of strategy that you will use.

If you have these in your plan, then it is considered that you have organized planning. If you enter in a trade without a plan, it is considered as FOMO and FOMO is one of the factors why traders are keep losing in trading. In order to avoid it, you should have a organized plan that will guide you and help you to have wins in your trading career.

Vaculin

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Quote from: yhiaali3 on April 25, 2023, 12:59:55 AM

For me, my advice to beginners is to trade in the long term and stay away from scalping until they have a good experience in trading.

Patience and not being greedy are also important tips. These negative traits are the main reason why many novice traders lose.

In any case, beginners should not enter into large deals at the beginning, and it is always better to enter with what they can afford to lose.

Not only for beginners, but definitely for all traders out there, we should always trade only on the amount that is still manageable to lose. Otherwise, if you let your greed motivate you and think that huge capital will also create huge profits, you will see yourself losing consistently. And for beginners, never believe that trading will make you rich instantly, of course you have to work hard for it and obtain significant knowledge and experiences so that you will achieve that certain phase in life.

Kara3

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Quote from: John Abraham on April 25, 2023, 03:44:00 AM

You pointed out some good points. But it always amazes me when I see Newbies show up with the details of what mistakes newbies should avoid. Well, your forum rank doesn't define your trading experience. But, I would like to see such advice from more veteran traders. I am sorry if you are an experienced trader. The points you mentioned are good but can you explain the solutions as well?

If you are a professional trader, you must have a limit and target for each day unless there are some special events in the crypto market. You shouldn't go beyond the limit. About stop loss, sometimes it depends on greediness. Sometimes people want to see if market bunch back from the downtrend. They want to recover it in the same session. Which is why they end up getting liquidated.

You made a good point here, my rank in this forum shows as a newbie because just got into the forum last month, when a friend of mine told me about this forum an how I can learn more things here, but I really do have a bit of experience in trading, because I trade daily in my binance account.
This forum is really worth the hype because I find it so educative for the past month I have engage in it.

Topic: Beginner mistakes and how to avoid them - page 4. (Read 500 times)