Topic: Common mistakes by unskilled traders (Read 852 times)

Money is, of course, the reason why we all trade but it would be disastrous for any trader to have their focus on it whether they are skilled or not. However, particularly to unskilled traders, learning is the key as you've said, and the more they learn, the better for them as it exposes trading to them and beats it to its simplicity over time.

Regardless of that, in addition, what I would advise the unskilled trader is that;

1. They should start small and grow it big depending on their experience.
2. They should trade only with the money they can afford to lose.
3. They must use stop loss and take profit features.
4. Their account must be well managed in terms of the money and risks.
5. They should avoid greed and overtrading.
6. They should always have their trading plan and never be overconfident.
7. And more importantly, they should have a working trading system.

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I believe that we are not going to be doing it all that easily, but the greatest and the quickest way for a newcomer to make money would be not putting their money in at all for the first two or three months. What should they do? They should put their time to learning about TA and FA to learn more about indicators and charts etc etc, after that they should use it to make sure that they use a demo account with fake money but real market to see if they could make money. If they pass all those then they could start with a very small amount, like 10% of their capital and then they could end up with a good return.

This chance must be used and the lost money seen as a lesson, rookie mistakes will not happen so easily (for example, to want to "save" runaway trades again by investing more money in the trade).

It is normal for newbies to make mistakes so it is better not to start trading in new situations. I didn't totally forbid trading in new state I mean learn about trading in new state and try to get real experience then a new trader can definitely start trading. You may say how can a new trader learn if he doesn't do real trading yes of course a new trader needs real experience but not as trading to learn. A new trader can start his trading education with minimum amount of dollars to learn. I don't think trading with small amount of money will result in much loss. The advantage of trading with a small amount of money is that a new trader can gain practical experience and protect himself from losing money.

Money is, of course, the reason why we all trade but it would be disastrous for any trader to have their focus on it whether they are skilled or not. However, particularly to unskilled traders, learning is the key as you've said, and the more they learn, the better for them as it exposes trading to them and beats it to its simplicity over time.

Regardless of that, in addition, what I would advise the unskilled trader is that;

1. They should start small and grow it big depending on their experience.
2. They should trade only with the money they can afford to lose.
3. They must use stop loss and take profit features.
4. Their account must be well managed in terms of the money and risks.
5. They should avoid greed and overtrading.
6. They should always have their trading plan and never be overconfident.
7. And more importantly, they should have a working trading system.

Many newbie and crypto enthusiastic think trading is easy until they lose on the first day, 1 week,1month, 1year and they finally quit.
There are common mistakes they usually makes which are,

_ Not planing there trades: there is a popular saying that he who fail too plan, plan to fail.
   Before entering a trade, an entry point and exit point must be spotted if you want to succeed.

_ Don't make emotional driven decisions: Emotions like fear and greed can cloud our sense of reasoning and leads to impulsive action, just stay calm and stick to your plan.

_ Not managing risk properly: this protect your capital, by using stop loss other, It minimize potential losses.

_ Not doing enough research: knowledge is key in trading , knowing the craft is very important, take your time to study the market, analyse chart pattern, and stay updated to news that can impact your trade.

Remember trading requires not just strategy, but discipline

Market may be volatile but the frequency are I think can also depend on the coin that we choose. As you said, losses are always there, therefore don't say that we can avoid it. The first one that you said which is to reduce the loss is already okay.

Yes, no one wants to lose continuously, that sucks. I'd rather donate my money to the charity than lose it for nothing. I know, we can gain an experience but it's useless if we are not improving. In trading, consistent profits for a long period of time is not possible but it's fine, as our losses in some days can still be compensated by our profitable days. Traders who are like this are already pro or skillful but if they can learn more and improve more, why not?

Of course if we can make our profits much greater than the losses for a week or a month in calculations for example then obviously it is quite an achievement, you have been able to reduce the level of risk to be smaller and after that all that is needed is to remain consistent. But to be able to achieve such a position is not easy and for some people it is very difficult, there are quite a lot of factors that hinder, among them as you said, they must have proficiency and skill in observing the market and also of course with sufficient knowledge.

The fact is that it is very difficult, the fact is that even if you spend all day reading books in terms of learning but still when you really plunge into the market then maybe only a few percent of the knowledge that you can use there from reading the book. That's because the nature of the market is always changing - changing and of course this is a difficulty for every trader in my opinion. Not infrequently also some of those who can be said to be quite advanced traders can still be fooled when entering the market, they bring strategy A but apply it in a market that is B, of course the results will not match expectations. Of course everyone has their own choices, and you may be one who prefers to be an investor rather than a trader, because maybe you have seen that the profession as a trader is too difficult and complicated. Everyone has their own perspective in seeing things and maybe they will definitely choose one of these two professions, investor or trader? yes you know which one is better for yourself.

Many newbie and crypto enthusiastic think trading is easy until they lose on the first day, 1 week,1month, 1year and they finally quit.
There are common mistakes they usually makes which are,

_ Not planing there trades: there is a popular saying that he who fail too plan, plan to fail.
   Before entering a trade, an entry point and exit point must be spotted if you want to succeed.

_ Don't make emotional driven decisions: Emotions like fear and greed can cloud our sense of reasoning and leads to impulsive action, just stay calm and stick to your plan.

_ Not managing risk properly: this protect your capital, by using stop loss other, It minimize potential losses.

_ Not doing enough research: knowledge is key in trading , knowing the craft is very important, take your time to study the market, analyse chart pattern, and stay updated to news that can impact your trade.

Remember trading requires not just strategy, but discipline

Unskilled trader will always be after money because that was the only reason that brings about his justification as an unskilled trader when he refused to learn how to trade before getting the name of an unskilled trader, this also means not everyone knows what he's doing and not every traders are ready to pass through the rigorous experience in learning in other for them to also have the basic skills for trading without making mistakes or anyone having to teach them over time.

You're right.  A lot of them just want to start trading and make profits without learning the basics. This accounts for the unnecessary losses. If they do not take break and re-strategize , they will keep making same costly mistakes over and over again.  It takes commitment and discipline to trade effectively.

A lot of new traders don't learn the basics before starting, but it's important to learn and stick to a trading strategy. Learning comes before earning. Many traders struggle due to mistakes like not having a plan, not using stop losses, and lacking risk management. Overtrading and trading out of revenge are common mistakes too. Remember to take breaks and stay disciplined. Trading is a psychological game!

Unskilled trader will always be after money because that was the only reason that brings about his justification as an unskilled trader when he refused to learn how to trade before getting the name of an unskilled trader, this also means not everyone knows what he's doing and not every traders are ready to pass through the rigorous experience in learning in other for them to also have the basic skills for trading without making mistakes or anyone having to teach them over time.

Unskilled trader will always be after money because that was the only reason that brings about his justification as an unskilled trader when he refused to learn how to trade before getting the name of an unskilled trader, this also means not everyone knows what he's doing and not every traders are ready to pass through the rigorous experience in learning in other for them to also have the basic skills for trading without making mistakes or anyone having to teach them over time.

Many newbie and crypto enthusiastic think trading is easy until they lose on the first day, 1 week,1month, 1year and they finally quit.
There are common mistakes they usually makes which are,

_ Not planing there trades: there is a popular saying that he who fail too plan, plan to fail.
   Before entering a trade, an entry point and exit point must be spotted if you want to succeed.

_ Don't make emotional driven decisions: Emotions like fear and greed can cloud our sense of reasoning and leads to impulsive action, just stay calm and stick to your plan.

_ Not managing risk properly: this protect your capital, by using stop loss other, It minimize potential losses.

_ Not doing enough research: knowledge is key in trading , knowing the craft is very important, take your time to study the market, analyse chart pattern, and stay updated to news that can impact your trade.

Remember trading requires not just strategy, but discipline

Many newbie and crypto enthusiastic think trading is easy until they lose on the first day, 1 week,1month, 1year and they finally quit.

_ Not planing there trades: there is a popular saying that he who fail too plan, plan to fail.
   Before entering a trade, an entry point and exit point must be spotted if you want to succeed.

_ Don't make emotional driven decisions: Emotions like fear and greed can cloud our sense of reasoning and leads to impulsive action, just stay calm and stick to your plan.

If a new trader makes any decision about trading, his decision will be 80% wrong.  If a person who has no idea about trading tries to trade directly without understanding, then it is normal for him to make mistakes. For those of us who think trading is easy and anyone can make money trading then I say to you that you are living in a state of fools and wake up. There are many people who spend years to become proficient in trading then how can we think that trading is very easy and anyone can profit from trading. I deposited money in an exchange account and bought a coin with that money, but not trading. Those who are new to trading do not think this profession is so easy first try to learn about trading then only you will be able to do something good in trading otherwise you have to leave the trading platform to lose money.