Topic: Common Errors of Trading (Read 2272 times)
To be a successful trader, requires acquiring the right knowledge and skills of trading. There are so many errors traders make on a daily basis and even repeatedly. For one to become a successful trader, you need avoid the common errors of trading - most especially not trading with emotion and the application of risk management on trades.
Awareness is the first step towards improvement. Making mistakes is not bad at all as it is part of the learning process, but when mistakes are made repeatedly, bad and unprofitable habits are formed. The common errors in trading that I considered are not having a trading plan, not being prepared, and not expecting the unexpected. Trading is risky, so it's important that we possess traits that can help us survive, learn to control emotion, have mental toughness, never stop learning, and be patience,. The more bad behavior we can eliminate from trading, the better.
I agree.There's nothing more important in trading than your own knowledge onhand in trading and your own expertise.And trade only for profits and not with emotional satisfaction because if you try to trade with emotions,you might only lose in the end.And when you trade,make sure that you have your own plans in trading because it will be your guide to minimize losses and maximize profits. 
Awareness is the first step towards improvement. Making mistakes is not bad at all as it is part of the learning process, but when mistakes are made repeatedly, bad and unprofitable habits are formed. The common errors in trading that I considered are not having a trading plan, not being prepared, and not expecting the unexpected. Trading is risky, so it's important that we possess traits that can help us survive, learn to control emotion, have mental toughness, never stop learning, and be patience,. The more bad behavior we can eliminate from trading, the better.
Can relate to #1 - trying to get back what you lost... crazy stressful and not smart. Becomes #6 - emotional, not carefully considered/planned and executed.
Here are some interesting facts about trading I stumbled across from CryptoCred which I think may be helpful
Common error to avoid when you day trade, I modified some to reflect my own opinion.
1. Revenge trading, trying to get back a trade that has been lost or chasing a trade.
2. Never using a Stop
3. Not having a plan (Risk/Entry/Exit/Stop)
4. Not sticking to your plan
5. Greed — risking too much/not taking profit
6. Being too emotional about a trade.
Plug these equity drains & increase your odds of being profitable.
You could add to the list and make better trades
Common error to avoid when you day trade, I modified some to reflect my own opinion.
1. Revenge trading, trying to get back a trade that has been lost or chasing a trade.
2. Never using a Stop
3. Not having a plan (Risk/Entry/Exit/Stop)
4. Not sticking to your plan
5. Greed — risking too much/not taking profit
6. Being too emotional about a trade.
Plug these equity drains & increase your odds of being profitable.
You could add to the list and make better trades
In addition, parience is a virtue that without patience then losing will be more than earnings as we really need patience so that we could surely avoid all of these errors in the future and exhibiting patience means that you can be persistent and stay in something for the long run.
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5. Greed — risking too much/not taking profit
Greed is making every investor cry, while many are laughing at the big profits. Those who control the greed of the body will always have success and achieve what they want in Cryptocurrency. But those who can not manage it will be drowned out by failure.
Some exchanges have a good potential if you gonna pick a good profit at good time will know how to resolve some errors from tradimg.
Most of the traders fall in greed trap they buy in price pump mostly this mistake is done by newcomers
yes because newcomers are too lustful of money and don't think about the risks that will occur. Greed is the stupidest thing in trading because it will plunge someone into loss. Most of the traders fall in greed trap they buy in price pump mostly this mistake is done by newcomers
It is particularly hard to rule out this greed trap since its an inbuilt mechanism. But I do agree that for many people this was the common mistake that caused them to lose money. Since this is such a trading underlying problem one way to deal with it is by acknowledge the its possibility, then at least you was aware of it.
exactly what you said, the things that you mentioned earlier we should avoid if we are successful, the most important thing we should pay attention to is what kind of follow-up plan if we are out of plan then what will eventually be chaotic 50% will achieve according to expectations, which in the end is not a success that you can regret instead.
Most of the traders fall in greed trap they buy in price pump mostly this mistake is done by newcomers
It is particularly hard to rule out this greed trap since its an inbuilt mechanism. But I do agree that for many people this was the common mistake that caused them to lose money. Since this is such a trading underlying problem one way to deal with it is by acknowledge the its possibility, then at least you was aware of it. Here are some interesting facts about trading I stumbled across from CryptoCred which I think may be helpful
Common error to avoid when you day trade, I modified some to reflect my own opinion.
1. Revenge trading, trying to get back a trade that has been lost or chasing a trade.
2. Never using a Stop
3. Not having a plan (Risk/Entry/Exit/Stop)
4. Not sticking to your plan
5. Greed — risking too much/not taking profit
6. Being too emotional about a trade.
Plug these equity drains & increase your odds of being profitable.
You could add to the list and make better trades
I think the 6th point is the most common mistake in trading activities, that is too emotional about trading. because in my opinion the most important trading activity is self-control which must be a benchmark because emotional attitudes will lead us to the wrong mindset.Common error to avoid when you day trade, I modified some to reflect my own opinion.
1. Revenge trading, trying to get back a trade that has been lost or chasing a trade.
2. Never using a Stop
3. Not having a plan (Risk/Entry/Exit/Stop)
4. Not sticking to your plan
5. Greed — risking too much/not taking profit
6. Being too emotional about a trade.
Plug these equity drains & increase your odds of being profitable.
You could add to the list and make better trades
I agree most of the error listed except don't put stop loss. In trading stop loss is like a two enge sword and I think it favour setting up than not set it up. Many have had their account wiped out by not setting stop loss and some times we loss when we set it but little.
Damn numbers 1,2 and 4 hurting me now,as this was my errors occurred when i was still do day trading,but now i am enlightened and may use this thread when i get back again this riskiest area of crypto profiteering..
I know many of us here are being shot by this mistakes and realizing how stupid we are for not making this seriously wayback
I know many of us here are being shot by this mistakes and realizing how stupid we are for not making this seriously wayback
Here are some interesting facts about trading I stumbled across from CryptoCred which I think may be helpful
Common error to avoid when you day trade, I modified some to reflect my own opinion.
1. Revenge trading, trying to get back a trade that has been lost or chasing a trade.
2. Never using a Stop
3. Not having a plan (Risk/Entry/Exit/Stop)
4. Not sticking to your plan
5. Greed — risking too much/not taking profit
6. Being too emotional about a trade.
Plug these equity drains & increase your odds of being profitable.
You could add to the list and make better trades
I think there two most common errors that every trader do Common error to avoid when you day trade, I modified some to reflect my own opinion.
1. Revenge trading, trying to get back a trade that has been lost or chasing a trade.
2. Never using a Stop
3. Not having a plan (Risk/Entry/Exit/Stop)
4. Not sticking to your plan
5. Greed — risking too much/not taking profit
6. Being too emotional about a trade.
Plug these equity drains & increase your odds of being profitable.
You could add to the list and make better trades
1) They expect way to much from very small and also very quickly,Which is very wrong because in this you can take rash decision and lose everything.
2) Being impatient:- This is most common one and riskier one.
Most of the traders fall in greed trap they buy in price pump mostly this mistake is done by newcomers
I sort of agree with some of the comments I've seen already that certain months may be less advisable to trade than others but if I one was to be particular about it then I would say there is no strong evidence that such months are September for example. I think it rather varies with time and people's perceptions at that time.
if we observe, indeed in that month, the market seems less friendly and difficult to predict. but patience to achieve the target is also important, remembering many panic then selling it, even though market ongoing reacts to rise
Thanks for this. Am new to trading. Wanna start. How and whar can I use to learn
Here is the link i can share to help aside from the op ideas about common errors in trading
https://m.youtube.com/watch?v=RwBklKnIXfQ
Watch at youtube to avoid mistake
https://m.youtube.com/watch?v=RwBklKnIXfQ
Watch at youtube to avoid mistake
Here are some interesting facts about trading I stumbled across from CryptoCred which I think may be helpful
Common error to avoid when you day trade, I modified some to reflect my own opinion.
1. Revenge trading, trying to get back a trade that has been lost or chasing a trade.
2. Never using a Stop
3. Not having a plan (Risk/Entry/Exit/Stop)
4. Not sticking to your plan
5. Greed — risking too much/not taking profit
6. Being too emotional about a trade.
Plug these equity drains & increase your odds of being profitable.
You could add to the list and make better trades
4 and 5 are very relatable, i always change my plan if any unexpected event on the market happens. There are a lot of things to consider changing the plan but mainly because of the price. Being greedy is not an error at all since market is volatile the price variation will going to give you that feeling especially when the market drops, weak minded trader will panic sell while some big fishes will take the advantage to buy however you must have things to consider also like the price chart, datas and market season. Common error to avoid when you day trade, I modified some to reflect my own opinion.
1. Revenge trading, trying to get back a trade that has been lost or chasing a trade.
2. Never using a Stop
3. Not having a plan (Risk/Entry/Exit/Stop)
4. Not sticking to your plan
5. Greed — risking too much/not taking profit
6. Being too emotional about a trade.
Plug these equity drains & increase your odds of being profitable.
You could add to the list and make better trades
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