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Topic: Common mistakes by unskilled traders (Read 848 times)

hero member
Activity: 2730
Merit: 632
October 24, 2023, 05:52:05 PM
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.
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.

1. Making use of big capital to be start up is never a good idea
2. Always the golden rule
3. SL would be relevant for day trade or scalping but for swing positions then its just be depending or according to preference
4. Money and risks management would be always crucial
5. Greed and over trading? Very common but really hard to control once your'e there.
6. Overconfidence is a poison
7. Analysis and plans would be always the key


Just make yourself do follow with those realistic approach and does have that good control and self awareness
on things around. Then i would really be saying that you could really be able to survive  this unpredictable space.
It is really just that not easy but doesnt mean that it would be impossible. It would really be just that depending on you on how to handle yourself.
legendary
Activity: 2296
Merit: 2721
October 24, 2023, 02:10:57 PM
[...]
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 is also exactly what I strongly recommend to newcomers in trading. You don't need any trading apps with demo accounts, paper and pen are enough (that's where the name "paper trades" comes from).

You simply trade in the desired time window on paper (or in an Excel document), for example "2023-10-24 20:00 BTC SELL" and check the outcome of the trade after the time window has expired. This gives you a very good feeling for your own reactions to market events, e.g. whether you lose your nerve quickly or can sit out trades. After a few weeks, you can then also adopt other concepts such as stop loss and take profits in your paper trades.

I would personally recommend the paper trading phase for at least 2-3 months before betting real BTC.
legendary
Activity: 3318
Merit: 1128
October 24, 2023, 01:59:53 AM
Quote
However, it can be a frustrating and costly experience for many new traders, leaving them with little to show for their efforts. Based on several brokers' studies, as many as 90% of traders are estimated to lose money in the markets.6 days ago

Source
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).
That is because newcomers do not know what to do and do the wrong thing and that shouldn't be the case and they should take their time. They do not take their time and that results with them losing a lot on the long run. I think the best thing to do would be making sure that we are making a profit for the long term and that could be a lot more important.

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.
hero member
Activity: 2828
Merit: 518
October 23, 2023, 03:48:20 AM
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.
I don't get what you are trying to say but this is my take regarding learning trading. If you want to learn about this then make yourself ready to lose money as well. You can't learn more if you are always afraid and you can't learn more if you never spend money. That is why I could say that trading is not for risk-takers but this is for those who want to change their emotions and be proactive in every mistake and loss they have experienced.

The most common mistake that we make is we already think about profit while we are still new. It should not be on our mind but instead, on how to improve our knowledge and skills.
sr. member
Activity: 658
Merit: 280
October 23, 2023, 02:00:19 AM
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.
sr. member
Activity: 1428
Merit: 308
October 23, 2023, 01:43:00 AM
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.
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.


This is a great list. Maybe we can add in this is to find someone who has been in trading for a long time and learn from them. Whether it's a friend, a relative, or at least someone that they know. We always advice beginner trader to educate themselves about trading and that they should expose themselves more because their experience is something that would make them as a great trader. But let us admit it, it's hard to learn trading if you are going independent and that you are only relying on the available sources you can find on the internet and other social media platforms. Personally, I think it is still much better to learn from someone who have acquired lots of experiences from trading because they are the people who can give you the best advice and you will learn a lot from them. That is why other beginner traders are considering having a mentor, because it's really hard to learn by yourself.
sr. member
Activity: 1022
Merit: 368
October 22, 2023, 06:05:03 PM
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
Newbies and unskilled traders shouldn't trade.
Why go through the stress of buying Bitcoin and then wanting to blow them off in a very volatile and risky market that doesn't care about your level of experience. It will eat you up and it is unforgiving to newbie traders.
Like some had said on this forum earlier better hold than trade. Trading is not the only way to make profit. There are many less risk methods to get bitcoins. I feel that trading should if ever be the last resort.
hero member
Activity: 3178
Merit: 661
Live with peace and enjoy life!
October 22, 2023, 05:30:46 PM
Basically trading is very risky because the nature of the market is very volatile and anyone will not be able to predict with 100% accuracy, even those who are experienced still have difficulty. Losses will always be there, and I am sure you will not want to continue to experience losses, well so the only way to reduce the amount of loss is to learn a lot about something that can make you lose and avoid it. So you will be able to get profits consistently but with a lower level of loss because you always learn to be better.
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?
Trading is highly risky not just because of its highly volatile market, but because some traders have set their minds that there is huge profits in trading which I don't think will be possible if they don't learned trading the hard way. The bigger the urge to trade most most especially for unskilled traders, the higher the risk of losing. Although losses are sometimes inevitable in trading, but if they chose to acquire knowledge and experience first, for sure committing inevitable risks will be somehow reduced.

This is possibly the reason why a lot of traders are just good at the start but when they start losing consistently, they end up quitting for good. If that is their mindset with trading, they will never learned and become skillful in trading because they easily become fearful when their losses have start to outnumber their profits when in reality, committing initial losses are normal before they will be successful and profitable in trading.

legendary
Activity: 2968
Merit: 1130
Leading Crypto Sports Betting & Casino Platform
October 22, 2023, 02:54:40 PM
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.
I believe that taking lesser risk but still staying in the crypto world is the best way to make money. For example I have been just buying and holding bitcoin, that is the least risky thing that you can do in the crypto world and you could still make a profit from it.

When it comes to trading, if you compare stuff like intraday trading of some altcoin on 100x leverage that would be insanely risky, but trading a bitcoin pair once every week? That's still trading, you bought it today and sold within the next 7 days, it was a bitcoin-other coin type of trade as well, and you are still taking a bigger risk than holding bitcoin but it is way way less riskier than the other one. So you need to know what's the risk before you trade.
jr. member
Activity: 280
Merit: 8
BTC Lover|Crypto Educator| We Grow by Learning!
October 22, 2023, 02:40:27 PM
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

Literally wrote something about this. I think it will help new investors and traders along the line. Some new traders tend to rush trade just to avoid missing the trend

https://bitcointalksearch.org/topic/m.62989230

I just hope this helps a lot of people
full member
Activity: 504
Merit: 212
October 22, 2023, 01:43:29 PM
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.

Don't all the traders want money? The primary reason for a trade is to make money. In this process some people take it seriously and put time and effort into learning about it when out of impatience, they try to find shortcuts to make money. In this second category people mostly rely on others suggestions and signals from various groups and influencers. This is the reason why many traders will never be able to make any positions in the trading industry.

Unskilled traders can make all sorts of mistake and that is why we call them unskilled traders. We expect them to make mistakes because they don't have the knowledge to justify their trade and learn from it. You can be your best teacher if you are really serious about improving your knowledge and skills. All the traders start their careers as unskilled trader and they pile up their experience and knowledge to gradually tighten their skills.
hero member
Activity: 1470
Merit: 555
dont be greedy
October 22, 2023, 01:33:05 PM
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.
Typically, individuals embark on their learning journey after experiencing their initial losses. Those who enter the realm of crypto with the intention of profiting are sure to endeavor self-improvement when they make their first mistakes. Improvement indeed demands time, and it becomes expedited, particularly for newcomers, when they have the guidance of an expert or mentor who imparts knowledge about crypto. Self-directed learning is undeniably challenging and will take considerably longer, especially for those who are new to the crypto world.

As for discipline, it is also an essential element. Every trader must possess strong discipline, as it is one of the key factors for enduring in the crypto space.
hero member
Activity: 1036
Merit: 625
BTC, a coin of today and tomorrow.
October 22, 2023, 03:25:05 AM
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!

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.
sr. member
Activity: 812
Merit: 252
Free Crypto Faucet in Trustdice
October 22, 2023, 12:27:47 AM
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.
In trading, skills and knowledge are really needed to be successful in trading so that they don't make the wrong decision when trading, but in my opinion, for those who are not skilled and have knowledge about trading, of course they only aim for profit without caring. how to get it so they don't know whether they are doing it at the right time or not. You are right, everyone who wants to trade should study well first and it would be better if someone accompanied them when they first started trading, if they do it consistently I am sure they will be able to make a profit from the trades they make.
hero member
Activity: 826
Merit: 641
Leading Crypto Sports Betting & Casino Platform
October 21, 2023, 09:56:38 PM
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.
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.
sr. member
Activity: 672
Merit: 416
stead.builders
October 21, 2023, 06:59:18 PM
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.
full member
Activity: 1120
Merit: 151
Catalog Websites
October 21, 2023, 04:36:57 PM
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
discipline in trading is not easy, there are many things we have to do to discipline ourselves in trading, one of which is to set an initial budget or capital in trading very wisely, put your money in 2 or 3 assets that you believe can provide you with profit (not investing in just 1 assets), try to relax and control the emotions well and evaluate (or what is often called correcting) the trading results that we have made so far.  anyway, at the beginning, I said that discipline in trading is not easy, but that doesn't mean you can't master it, if you really work hard for it then you will definitely become very disciplined in trading.
hero member
Activity: 2506
Merit: 645
Eloncoin.org - Mars, here we come!
October 21, 2023, 01:08:17 PM
Many newbie and crypto enthusiastic think trading is easy until they lose on the first day, 1 week,1month, 1year and they finally quit.

Trading is not easy but only those can understand who are a part of trading. People enters into trading because they have heard that their money will be doubled in few days due to which they accept the habit of greed without knowing the reality.


_ 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.

 Planning is must in trading because if you regularly use money without knowing that how much you loss and how much you win then you cannot realize about your success therefore always make a plan and follow it if you desires to fulfil your dreams.



_ 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.

There is nothing to control your emotions completely because if you don't have emotions then you cannot be a part of trading as people rushes towards trading and emotions to enlarge their money but it will be true that when we have profit we should take and accept it instead of increasing our desires for more so in this case a person will be able to minimize his emotions and continue his journey of victory.
full member
Activity: 1190
Merit: 123
★Bitvest.io★ Play Plinko or Invest!
October 21, 2023, 01:07:19 PM
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!
sr. member
Activity: 336
Merit: 292
Vave.com - Crypto Casino
October 21, 2023, 06:39:50 AM
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.

If you don't have knowledge in any field and you enter it, you will surely lose. Newbies must gain experience and expertise before trading, but experience and expertise will be gained only when they start trading. I think even if someone starts with a demo account, he will have the real experience when he involves himself in real trading.

If our theory is very strong, but we haven't entered the field practically, then our experience does not begin. Of course trading is not that easy, it takes years to master it, but we should not scare newbies so much that they give up trading. It would be the best decision to start with a small amount after having complete knowledge and learning about trading, because the risk of loss is high in the beginning so even if a mistake is made, there is no chance of losing much.
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