Topic: Common mistakes by unskilled traders - page 6. (Read 848 times)

Without all the Knowledge you mentioned meaning they are not a "Trader"
Instead  those People are just either Newbie or a simple  Buy and Sell person.

Calling them "Unskilled trader" isn't correct  because they seems to be Now knowing
what true traders mean.

The person Buying  something in trading but knows nothing from what you mentioned are just a normal buyer.
When you are labelled to be a trader then you should know at least 2 or more of what you said .

I myself admits that when I was starting in all trading , i have no complete knowledge but eventually as I wanted to pursue then I must say , I am now a Trader and yes I have Idea of what is needed to be one.

Trading is easy if they know how. But most people don't learn trading like traders do. They only see buying at low prices and selling at high prices. Even though there are still other things, they need to learn so they can have the opportunity to make a profit. They continue to learn more about trading, especially market analysis because market conditions always change.

By learning what is required, they will know when to trade and when to stop or take a break. And they also won't force themselves to trade if market conditions are not good. They will use stop-loss in every trade because it is part of trading. And if they experience a loss, they will not panic and can remain calm to find a solution.

And trading indeed requires discipline in addition to a strategy to make a profit. Traders will try to use only the money they can afford and never go all-in because it risks losing all their capital.

From what I can see, this is also a common issue of new trading. We can say they already know how to analyze, open a trade, exit, or stop a loss.
But without managing risk or no risk management, they are all useless. The important thing in trading is our trading capital, without it we can't trade that's why it is always better to preserve the capital, protect it at all cost, and here comes the risk management.

You quoted the wrong post. Maybe you mean DVlog, not me.

I tend to agree with this, FOMO and hype would be the main reasons why newbie traders suffer from massive losses.  When they heard it just because of the trend, they rushed to buy a hype crypto which could be a result of poor entry trading point.

IMO, the best weapons in trading while you are a newbie in the trading world are trading plan and the stop-loss.
Both are useful strategies if you are an unskilled trader.

Eyyy this was me. Looking back, my entry points were when the market was at its peak, exit points were when my investment returned negative. Guess panic was just that influential to me because then. Well I guess I was hit with FOMO back then. The only thing I knew was Bitcoin was something big, and that the price of it at that point was incomparable to the ATH so it can only go up.

I have to agree. Well ads are like that to attract people so I guess if people get attracted then they're pretty successful, sadly their pretty borderline scams at that point imo. While some groups are helpful in trying to provide information you can use, some groups just use empty words, almost close to how some religious group works where they just say complicated sounding but empty concepts.

We I started trading, I thought I would just eyeball some chart's and guess the direction the markets will be taking and sometimes it worked, but lack of a plan/strategy caught up with me and I had more losses than I could count my wins which opened my mind and approach of the markets buy trading with a strategy.

Learning to control emotions is one difficult skill to learn especially of you aren't profitable yet.

Failing to manage risk can be associated with greed, alot of us want to get reach quick but this process can only happy with a good risk management system to survive these markets for a long time.

The problem I was getting too many of these YouTube videos that claimed to have the perfect strategy and thought I would take the shortcut and win but unfortunately trading takes a lot of time for you to become a natural at it.

So, that's why we need extra time and energy to filter this information to become analytical data before trading. It is indeed a bit troublesome, but if we are used to and disciplined in looking for credible data then the trading activities we carry out will be successful.

I personally only monitor Twitter on the official accounts of crypto projects for updates on major events in their milestones, not from accounts other than their official ones which have the potential to spread fake news.

The first point and the last point of this advice is in correlation.
To be able to understand the plan or numbers or moments for entering and exiting, you need to do research first. And how they are able to do research well, again, the capital is being willing to learn first. Equipping yourself with knowledge about crypto trading is very important. There are many sources that we can use to learn. At least, we find several points to analyze the market, what coins we will take and also what the current market conditions are. This certainly won't be easy, especially for beginners. It will be very difficult, especially to do TA and FA. but at least, if we have studied and have knowledge, we will not really be zero in this matter. This will lower the risk a little, rather than not knowing at all. This is an effort that must be continuous, whether we will lose or gain when trading, we can carry out various evaluations of our plans and strategies. But here we are, sometimes the road won't be that smooth, especially in the world of crypto trading which is actually very difficult and high risk. So we really have to be able to manage our emotions to be able to control ourselves better.

quiting trading after lossing for days months and years are the way to avoid losses but many traders never quite trading even they realize that they are doing mistakes. everyone should quite trading for sometimes because when they never quite they will never learn about their faults.



Emotions are like and enemy because you think different and act different so in such situations you can just loss your money but nothing will come in your hands so I will suggest that don't over think about profit and think that it is blessing for you so your mind will never be under the control of your emotions. keep calm for longer time can also cloud our sense therefore neither be too quick nor be too lazy and get the advantage even its too small.

I would say hype is one of the biggest reasons, FOMO could be another name for it as well. I think its quite important to realize that we are going to end up with a lot of newbies who get into crypto thinking that they could make easy money, and make it quickly as well, then join in some small cap shitcoin and that's going to ruin them without a doubt. It should be important to remember that not all trades are that easy and you can't make that profit all that quickly either. You should be a lot more careful and should be doing it a bit more decently. I hope that it can get to a point where people could make some return if they are smart about it but most people will not be patient and they will try to make money quickly and end up losing it quickly instead.

You are actually right.  Many newbies have this notion that cryptocurrency trading is the new "oil well " hence the need to invest and get sudden financial boom.  Yea, this is because of the too-good-to-be-true testimonies they have heard or seen and when they meet the opposite of their expectations,  they quit.

This "investment" notion they joined cryptocurrency trading with made them not to do adequate research to know which cryptocurrency exactly they should trade or invest in. Imagine investing in a coin you know nothing about it's market volatility,  liquidity and security. You do not pay attention to happenings around the globe that might possibly affect the price of cryptocurrencies.Trading is a risk on its own but not doing proper research is an additional or unnecessary risk.

Trading requires patience,  discipline and consistency. If you are a long term trader, stick to it. If you are a day trader, be consistent.  Importantly,  know when to take Profit or stop loss. Trading is not just an investment,  there is more to it.

Losing in crypto is just a common thing, but thinking about quitting crypto is not a solution for it, even in every field quitting something is not a solution. We have to find a way for it. While planning in trading is just like petrol in a car, you know the importance of petrol in a car, so planning plays the same role in trading. Also, we have to plan for trading from the very beginning. Emotions should be controlled, if someone is not going to control his emotions, then more loss is expected, I learned one think from trading, if you don't play with trading, then trading will play with you.

All the crypto projects have their presence on twitter for a specific reason. Twitter is widely popular in the western world and a new startup project wants to attract investors from that part of the region. This also makes Twitter an attractive platform for scammers. So your investment should not be based on any research from twitter though it is advisable to invest in any project that has an active twitter handle and keeps its community updated.

YouTube has become more like a place for influencers to gain followers by sharing unique and attractive ideas. People easily get attracted because they often discuss something that no one knows. Most of them are paid influencers and add little value to their analysis.

If used correctly, social media will be a positive input to support trading. For example, Twitter, there is a lot of important event information on Twitter, we can use it by following the coin project account. Every coin project must have a Twitter social media account which they usually use to update each event and its developments.

Discussing YouTube related to trading activities is actually very helpful, especially for newbies who like to find information through video explanations. There are many videos related to trading and technical analysis that we can learn there by directly watching YouTube traders in action. However, unfortunately there are also influencers who do not educate and trade in a careless and misleading manner.

The basic mistake they make is that, they think trading is similar to investing. They need to understand that investing and trading are completely different concepts. In trading you have to remain active in the market whereas in investing you just buy the asset and hold. Many newbies also think that trading can make them rich overnight. But that’s not the reality. They come in this trading field in greed for profits and later when the profits are not achieved they just exits. So yes OP has made some great points which are often seen in the newbies.

I think all of these are very common to beginners because they have just entered trading and they do not have that much experiences that is why they commit such mistakes. Mistakes are quite common in trading and even traders who have been into trading for years still commit mistakes, but it can lessen overtime. I think the best way to avoid mistakes is to do research and learn the foundations of trading before entering it. This will equip you with proper knowledge and skills in which can help you to survive and to succeed in trading.
Remember that having a plan and sticking to it could help you to have better trading outcomes. Do not continue if you are unplanned and unsure. This is a very common mistakes that beginners commit. I also agree with you that some traders are driven by their emotions, and when you are carried away by your emotions, this will result you to commit impulsive decisions which is not advisable when doing trading.

Even though it is a mistake, usually good and serious people will learn from the experience and will not repeat it again. Unfortunately, not everyone is like that, some new traders actually blame crypto, considering this a fraudulent investment, without them knowing that their losses are actually due to their lack of knowledge about trading. I think we have to continue to educate beginners more so that they don't lose much here.

I believe that some people tend to equate cryptocurrency trading with gambling, which isn't entirely accurate. Gambling typically isn't structured for players to consistently win, whereas cryptocurrency trading offers a more structured pathway to potential profits. With the right timing and responsible management of greed, it's possible to multiply your investment in a good cryptocurrency. In fact, many investors in Bitcoin, for example, have historically seen returns that eventually recoup their initial investments.

I don't see what's the problem here. you are never meant to always win your first trade. there are no rules that in order to become a successful trader you need to win your first trade. and with all that you have said you missed out a very important point. it is to learn to lose. The basics rule of trading is to trade with something that you can afford to lose. The second is emotion control and the third is to learn to lose. there is no certain order in which this should be done, but these are the basic rules that we need to follow in the beginning.
so what is learn to lose? you start with a small amount for trading, and you do all your analysis based on what you have learned and set your goal such as opening the thread and choosing a closing point and also using stop loss or take profit.
no matter what happens you should never change anything on that first trade. if you lose the trade then you lose it. there is nothing you should do about this trade. you are following the analysis, and you should stick to it. if you lose this trade, then you just close it and move on to your next one. when you learn how it feels to lose and if you can conquer that feeling of losing then emotion would never influence you.
losing is not a bad thing if you are learning. and the key is to keep doing it and not give up. people who quit always put all their money in one trade and lose it on their first trade. and they keep on doing the same mistake over and over again. this is the thing we need to solve not losing trades. diversifying your trade is also a good idea.