Topic: Common Mistakes people make in Trading (Read 1116 times)

TA might not be working for you but it does not mean it is not working for others. If TA was not worth it, we would not be taught how to analyze the market using it when we were learning how to become a professional trader. TA tells you how the market is likely going to react and you can decide based on that information if you are going to follow what your analysis is saying or ignore it. You do not just use one analysis to make your judgement. The market direction can depend on what happened in the past because alot of traders are depending on the past reaction of the market to make their own decision. You can not tell me to ignore TA and be following our mind. Both of them can be wrong but you learn something new when you analyzed the market and I always do this before I start trading.

If the context of the discussion is the spot market then of course stop loss is not used, I also do not use this feature in my weekly allocation of Bitcoin, but if we talk about other types of trading such as futures or forex then clearly I think stop is a risk management that is very necessary to apply so that we avoid significant losses.

You have said the correct scenario by increasing the amount of allocation when the market is bearish because the concept of trading is to buy when the price is cheap and sell when the price is bullish, and for the issue of assets I think it always depends on the trust and confidence of each person, for me there is usually no other asset that I would choose other than just bitcoin. One thing, as you said, make sure we buy it with an amount of money that we can be responsible for whatever the results are, and also try to only use cold money so that your mental and psychological state can be better maintained.

TA is probability calculus at best, but in most cases similar to using a crystal ball or tarots. I believe that most people see what they want to see, and use only indicators that support their feeling about the market. They adjust their TA and chart based on their needs. And even with people who use it for calculating the probability; one could ask if the past market information even can be used to predict the future in any kind of accuracy. It's like predicting a coin toss from the past throws, because when you are calculating the probability, next throw has always 50/50 change, no matter what the history is.

And i bet my left eye that any experienced trader has plenty more failed TA predictions then successful ones.

You don't need to use a stop loss if you don't make stupidly risky bets. Especially if you are trading on spot, there is absolutely zero reason to use a stop loss. Just don't buy more than you could afford to lose and if you believe in the asset add more as it goes lower. If you think the asset is crap and you can't afford to support it with more money as it goes down, then don't buy in the first place. Buy buying it from the current price, you are making a decision which says "the asset is good, I like it" So if the price goes lower, you should be buying more because it is a good asset for a cheaper price now. If the asset is crap, why buy it in the first place?

Of course trading requires knowledge and skills, profit always depends on how much knowledge and skills you have, but to get all that, someone must first go through an adaptation process for maybe a few months or even years with every characteristic owned by each market, meaning that it is impossible for a trader to immediately have such knowledge when they are still beginners, because knowledge will only be obtained when someone has tried.

And as you said about stop loss, where of course you also agree that not a few traders do not apply stop loss when they are running a session, and most of them may be beginners who do not know much about the importance of stop loss to the security of money in their balance.

It's all about knowledge and experience. A trader needs knowledge and experience to be able to execute their trades in a way so that they don't lose the capital they are using for that specific trade by using risk-management techniques such as stop-loss. Believe it or not, not every trader can use stop-loss efficiently. You will find a lot of traders who might be using the option but it isn't always effective for them.

The parameters that one needs to set for options such as stop-loss to work require one to have ample knowledge about the market and its movements. If you don't even know what you are doing, you wouldn't know how to set the parameters for your stop-loss to work efficiently and save you from excessive losses or bring you maximum profit.

Everything has it relevance in trading because they can be used for guidance for you to have a good result. Analyzing the maket with TA which is what it is used for, would not make you to be capable of predicting the exact movement of the market biit it can guide you to make a good decision. You will have an idea of the market is moving up or it is falling down. At times, the predictions can be exactly what you got and if you did not modernized your analysis, you win for that trade. Not analyzing the market before trading is a big mistake, make use of TA and get a better view of the market before you ruin your account.

And here comes 8. Chasing Losses on which on the time or moment that will really be experiencing some loses then this is the time that they will really be just that making it just like when doing gambling
and this is basically a thing that shouldnt really be done in the first place because this would really be that definitely be resulting into that kind of approach on which that it is really that similar to gambling.
On the moment that you would really be having those losing positions then you would definitely be mainly thinking on how you should really that make out such recovery on which we know that this isnt something recommended on this kind of condition because you will really be thinking about on getting back those loses on which its obviously that this is really that a very common gambler behavior.

Never ever make out such behavior or condition on which this is basically where some gamblers been doing, and this is why on the moment or time that they would really be  that experiencing
a series of events like losing positions then they would really be that become impulsive on this case and this is really that something not that recommended to do such acts.
You would really be finding out yourself on much tougher situation on the moment that you will really be losing up control in speaking about financial management on which this is something
which is really that very crucial among all.

Honestly, I don't agree to say that trading is not difficult, because whatever I feel and what I also hear from some people involved in the world of trading, they say that trading is a difficult and complicated profession to do, and I really feel it when I have to prepare various things where the most difficult is maintaining consistency related to the willingness to continue learning and also another difficult thing is managing yourself and emotions.

On the other hand, of course I agree with the idea that doing research first before we jump into something is an action that must be done by anyone and in any field, because with this you will be able to measure your abilities and this is also useful for making you know what to do and what to avoid. Another thing about greed that you said, yes that is also included in a big mistake in an activity that involves money and risk, but I am sure that when you know and understand about a field that you are working on, I think it is unlikely for you to act greedily.

Every trader believes there is a perfect time to buy and sell, you don't have to be successful trader for that. In fact that's the sole reason why people even trade, becayse they believe that they know when to buy and sell. And waiting for a sell, isn't really a skill imho. It's just waiting. Some people wait because they are afraid to sell and they turn to investors instead. Waiting for the right time to buy can be because of being afraid as well. But it's not about waiting, but about timing. It's about following your plan, and sometimes acting fast or "panic selling" is actually worth it, if you sense that people will dump it more.

I know this could seem controversial to anyone who is "believing" the relevance of most TA indicators, but imho selling in time and buying in time is rarely because of research anyway, because there's really no way you can even prove you have beat the market by analyzing it. Especially when it comes to day trading.

Not being able to control emotions when trading of course will make it difficult for someone to make the right decisions when trading because with emotions someone will trade in the hope of making a profit but they do not do any analysis on the trading they do which of course they will not be able to make the right decisions when trading.

I think everyone has a strategy that suits their abilities and of course they will be able to make a profit from it and anyone has ever experienced failure when trading and those who can learn from the mistakes they have made and fix them and no longer repeat the same mistakes when trading again.

That is the attraction and also the pitfall of trading. beginners in trading are very eager to make money quickly. watching videos may provide knowledge related to the trading process or may show how to analyze the market. but the video will not explain how risky trading is for a beginner. maybe some video makers give warnings.
There are many aspects to learn in trading before a beginner tries their first trade. I will not say long-term trading will be less risky. because, for a beginner who is inexperienced, it is still very easy to move their mind.

For those who want to start trading, it may be better to find a mentor who can guide them first. videos may help but will not be optimal in providing experience and learning.

We are all guilty with this or something that could inevitably happen into us and this is why there are people who do really succeed out and there are ones who do really fail and everything would really be that according into someones perception and  their views towards on the things that they are dealing with on which if you are someone whose really that serious when it comes to trading then of course you would really be needing up to exert effort and hardwork. You cant really just that make yourself that do some trades without applying any analysis or simply effort on doing things like making up some research or any other correlated things.
Mistakes and errors are just that normal since we arent that perfect traders on which means that it is really that something that could inevitably for you to experience out and instead on seeing this to be negative then it would really be that better that you should treat it instead as a learning stone for you to become better. People are really just that too easily give up on the moment that they do experience these moments.

It is really that important that you would really be needing up for yourself to survive into this volatile market and not really just that simply easily give up when you experience some loses because we do know that
when it comes to this manner  then it will really be that basically needing up for you to learn and be wary on how things do really end up. You cant just able to get a good grasps towards trading with just few trades or few tries. On the moment that you do deal up with volatile market then you would really be needing up to sustain those challenges along the way. It would really be that up to someone on how they would be handling
out themselves when it comes into this aspect.

One mistake they should not make as a trader is to trade without analyzing the market. There are many people who have no idea about trade. They just watch videos of some individuals or somehow know that there are many people who have made huge profits by trading. It becomes a huge mistake for them when they trade based on this alone. Because if they start trading only based on them then they are likely to suffer big losses. Because in order to trade a person must acquire enough knowledge about it and be a skilled analyst. It is seen that most of the time people make mistakes in this regard. Again in the case of trading long term trading is more profitable but it requires a considerable amount of time. But short time trading is a very tempting thing through which people can easily make money quickly as well as lose money on the contrary. But people like to get results very quickly due to which they are not patient and take trades for very short period of time. This also involves a lot of risk which is why I think it should not be done as a trader.

Laziness may occur in learning. But a successful trader must keep an eye on that. If we embrace laziness we are deprived of learning which will cause us to lose out on change. It should be remembered that money never comes automatically to anyone. It has to be achieved. An apprentice must go through hard times to get proper education. Once that education is acquired, its benefits can be enjoyed throughout life. The biggest difference between a successful person and a failure is that successful people do not tolerate laziness. The most common mistake in the trading world is that many people start trading without knowing about trading. That is, starting trading without adequate knowledge is the most common mistake. I can compare knowledge in trading as the weapons in war.

There are many mistakes made by traders for various reasons according to their respective methods. A common mistake that often occurs is that traders are unable to control their emotions because they are too ambitious in pursuing instant profits. The stop loss system is the best way in trading to hold existing assets so that they remain in the same number of coins, which is usually done by high level traders, with the mistakes we have experienced becoming an experience so that the same mistakes don't happen again and we want to learn things the new one.

There is no alternative way of research in trading that can be very successful without doing it, so lazy people will never success in the trading, they will lose everything today or after a few months, they can not control their greed to get quick rich in trading and can not keep patience due to lack of knowledge about strategy.

It is easy for people who can fight laziness, unlike people who are still unstable, sometimes they are enthusiastic and sometimes they are lazy.
Yes, in trading we must have patience and patience will be achieved if we have a lot of positive energy in us. We can bring positive energy or we can create it, it depends on whether we want to activate it or not. Laziness is a form of negative energy and we must fight it so that positive things grow in us.
This will not be easy at all to do, because sometimes we just want to get something from instant ways without going through a long process, while in my opinion it can be said to be impossible if you want something instantly.

however, trading is not something that can be done by people who only rely on luck. there is a learning process that must be done to master trading well. this will be an important factor because it will only make your trading lose when you don't learn anything that a trader needs.
after you have the knowledge to trade, then with your trading experience you will automatically grow a positive attitude to manage your trading more comfortably. don't trade more often, maybe most people think trading more often will increase experience. but when you can't control your emotions, trading more often will only make you greedy and out of control.

If someone is lazy in getting education and knowledge is the biggest problem in recent time because I know many peoples those were ruined themselves just because of this laziness because they are doing things not as they are looking for and having bad results so this usually kill motivation and also having negative impact on person's life even with taking not good education and staying with greediness also never works with if you are capable of having good education and knowledge base this is always working for you and give you better motivation which is most important while you are having your stay into trading and other things in life.

Always having better things and staying into middle of things works because usually lazy peoples suffer due to their lack of knowledge and lack of understanding as they are not doing things on time and suffering just like this we have few peoples those are tried to rush and this also give them setbacks because doing things like these in rush is also not ideal you need to be stayed on better way for having better results. For better understanding and having better results always try to stay on better lines because this is important with rushing or having lazy mind-set never works.