Topic: Common mistakes by unskilled traders - page 2. (Read 852 times)

That’s because trading without skills and analysis can definitely feel like irresponsible gambling. Discipline and market knowledge are key to making informed decisions and it’s all about learning and improving those skills to navigate the trading world effectively, not just luck.

Entering the world of trading without having skills is indeed a very bad decision because they will certainly experience losses in the trading they do, even for those who can understand it well, there are still those who experience losses in trading, so it is very important to understand well what will we do so that if we experience failure we can still fix it so that the losses we experience are not big. Yes, you are right, having discipline in trading will indeed make us get good results in trading.

Making a position without a proper execution of plan with your trades especially when the market makes a sideways move has a higher chance of market liquidation, like giving free money, im just wondering its already 2023 and many people makes their trade is this still happening that they make a trade not having basic understanding in trading and not making research?, seems as always redundant. I will understand if they make a trade with their emotions but without having a background in trading putting large amounts of money is the worst decision.

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.

A novice trader always trades with the hope of making a large amount of money in a short period of time. But when that person chants here without understanding, it is seen that he keeps losing money. Basically, the mistakes of those people are that they are not well experienced about the market and start trading without getting good education, and thus they lose money. I have seen some people who started trading by taking loan for trading, and he later lost his money and he got very emotional and broke down. To trade, one must learn to control one's emotions and first of all correct the small mistakes where there is a lack of knowledge about the market. And to be cautious about market volatility is to stay away from trades when market volatility starts, and abstinence is most important. But some newbies trade without knowing all these things, and sometimes they lose money, and later they cannot control their emotions. That's why beginners should first learn about the market and trading and how they can make a profit if they maintain the advice on all these things, it will be possible to make a profit.

Being an unskilled trader is already a mistake, so without needing to mention anything else, when you enter the world of trading without skills, it is a mistake, because every decision taken to buy or sell is very likely to depend on feelings, signals from other people or circumstances that are happening at that time so all actions just all look like gambling, without analysis or knowledge of the market to be entered, and discipline is part of the trading method to be able to gain skills in trading.

At the top of most amateurs' / losing traders' list would be cutting profits too soon and getting married to losing positions in the hope that they might reverse...

Many studies have shown that losing has a stronger emotional effect on one's psyche than winning the same amount does, so the human instinct is to avoid realizing a loss at all costs, that's how losing trades often culminate in account blow ups and margin calls.

To become a robust trader, one of the top lessons is to be familiar with taking losses, understanding that it's part of the game, and being very agile and vigilant about when to get out of a bad position...

Though everyone can fall under the issue of making mistakes but the very common ones are the types experienced from the unskilled traders, the mistake they do often is base on wrong assumption, they don't know something and yet they keep pretending to fake it until they see the end of everything being under failure, part of which are wrong indicators, inaccurate speculations, wrong timing and poor interpretation of what the chart is just to say few, there are other mistakes they do that led to waste of money while trading but we cannot dive into them in details than these common ones.

Losses is inevitable and even if you are professional or expert then there's no way that you could really be able to avoid such situation because the market is unpredictable or random then it would really be just that
normal that losses would be there.The difference on here is that in between experts/experienced ones to those noobs who doesnt really have that knowledge on what you should gonna do.
Those unskilled traders would really be that becoming skilled  later on on the time that you would really be able to gain experience. We cant really be just that directly on making yourselves becoming that skills or knowledgeable without getting those experience. This is why there's nothing wrong on being a noob because we are all going or experience this time or moment.

It is really just that normal that we would really be making mistakes in terms of decisions and choices due to lack of awareness and knowledge which is normal
Whats not normal is that you dont make yourself do able to adjust and tolerate out those mistakes and this isnt recommended on doing so.
You cant really be able to make yourself that progressive if you wont really that making adjustments.

It is natural to make a bad decision which can cause massive losses for your portfolio. These types of circumstances decreased over time as our trading experience increased. So we should have a stone craved money management strategy that can assist us in minimizing our losses in case our trade goes bad. A newbie can not control his emotions and can make bad decision but he can not ignore his money management strategy. This can be his best savior from his bad trade.

There are numerous mistakes made in the sector by traders who are still yet to implement calculative risk management; these traders are unconcerned about their blunders; all they care about is that they are making enormous profits. The trading space is sufficiently massive to accommodate everyone, and experienced traders have a perpetual grin at the end of triggered trades. There are enough dangers that should be monitored and calculated. Unskilled traders are most frequently newcomers who are keen to make an extensive amount of money in the market but lack the proper trading strategies.

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.
     

Indeed. It can influence our decision making, therefore it's a must that you can handle your emotion. Because this is one of the reason why we lose in our trade, the fear and greed. So if you're going to decide based on it you'll likely fail to profit.

The problem is, many people think it's easy to learn and enter in trading (like choosing an exchange to use then will buy and sell a certain coin) but that's not how it should be. It takes time, and you must be prepared. If you're going to rush to become a trader, chances are you might lose your hard-earned money for not being careful. Sure you'll learn from your experience but it is still different if you enter with knowledge since you're aware of what you should do.

even making our win more than our losses is such a feat in trading sometime it really requires adequacy and proficiency in both resources and skills in observing the market.
but the fact that the market always dynamically change, basically can't be too fixated on a certain book about knowledge in trading mean that our win and lose rate would be inconsistent as well so really can't be sure whether our win will be more than our losses.
honestly this is one thing that make me devoted investors instead of trader, because it just make sense, wait it out, and it will rise.
with trading not so much, you can be trapped in a bearish, losing 80% of your traded capital, and make decision whether to become "investor" or just cut loss.

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?

There are traders that want to do calculated risks and for some reasons, there goes the others that does the opposite.
They don't calculate their risk and they don't manage the risk that they're taking. But what's new? They are unskilled and that's why they will mostly commit mistakes.
Because if they are skilled, they're not going to make or it's just minimal but it's normal for a starting out coming from being unskilled into becoming skilled.

A fault at first. Some newbies thought trading is all about making profits, not thinking how much they could lose through it.

No, a trader only requires money, a platform, a little knowledge to buy and sell. A good trader possesses knowledge through researches, money, platform, enhanced cognitive skills, and discipline. Actually, a mere trader does not think about the risk, it is least of their concern.

Being involved in trading is being involved to the entirety of crypto space, a small news could spark the status of the market. Every trader should be wary of the events happening around crypto, this is why researches is a good weapon to fight against the volatile market.

To the newbies, trading seems entirely like a platform where a trader can make profit only by investing money. But the idea changes when they start losing. It is said that everything related to money requires knowledge and trading is no exception. For a trader to trade he must acquire knowledge of many things otherwise he will face loss. A trader must develop a risk appetite. Before making any investment, he should also do adequate research about the said investment, especially the history, current status and prospects of the asset. You have to stick to your own rules. Sometimes there may be various rumors in the market which should be analyzed and decided with your own skills. A trader should be aware of such issues before trading. Since there is no limit to human learning, he must continue to acquire knowledge.

Reading books can give you knowledge but not experience. You can be motivated by reading how others enjoy swimming or driving a car but you won't get how it feels until you actually do it. Having knowledge and experience is not the same thing. An experienced person seems knowledgable but a knowledgeable person can be inexperienced. You can learn from others mistake but it won't give you the confidence to face the challenges.

Time is one of the most important resources to employ when trading, and judging by the way things are going, trading cryptocurrency is going to be difficult because it demands a lot of mental effort. I don't think the irritation is exclusive to rookie traders; even in this forum, you can see that many investors in Bitcoin are anxious for their profit since everyone wants to succeed. After trading, your thoughts will remain focused on that deal until you make money before you can let it go. and they might even trade and not get anything but that does not mean you should give up.

Since even a small amount of distraction can do significant harm, trading takes intense concentration if you want to enjoy it. Focus and a solid internet connection are good ingredients for a tasty meal, and if the correct energy can be changed there, it will be of amazing importance to the trader.