Common Mistakes people make in Trading - page 3.

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Quote from: Nanga Parbat on July 25, 2024, 05:10:57 PM

Quote from: IceLincoln on July 09, 2024, 06:28:56 AM

Emotional Decision-Making

Fear, greed, and euphoria are common emotions that can cloud judgment and lead to impulsive decisions. Traders often make mistakes when they're emotional, such as closing positions too early or holding onto losing trades

Correct, Most traders risk and lose when they are unable to control their emotions. If we trade from the point of view that loss and profit are side by side and don't worry about losing your trade because cryptocurrencies are very volatile, everyone knows this. So keeping this in mind if we trade then surely we will also have the feeling that your trade is in loss, the next moment may be in profit. So understand that your emotions are under your control and not your trading.

The most difficult to control is indeed emotion and that is what often makes a trader make mistakes in his decisions, I will affirm this because it often happens to me personally, such as emotions on profits that are greedy, not patient and making decisions based on emotional situations becomes a bad decision and more like gambling.

But about this mistake is a natural thing in a trading business, because controlling emotions in trading takes time and effort so that we can be logical and idealistic in the correct trading principles, in this case we need the right trading strategy and trading plan to be able to limit some things that trigger our emotions out of control.

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Quote from: irhact on July 25, 2024, 02:43:53 PM

Quote from: Barikui1 on July 21, 2024, 03:53:20 AM

No to Trading, as a newbie: most times newbies thinks that trading is quite easy, and they feels they can milk something good out of the market without any knowledge of technical and fundamental analysis, but after some tries and they got burned, they will start saying that trading is a scam, so the best thing is to avoid trading as a newbie.

No trading as a newbie shouldn't be a mistake as then how do you become a professional at trading if you don't start as a newbie, nobody starts trading as a professional, they had to start small, learn and made mistakes that made them who they're. What I think you should say is that newbies shouldn't start trading if they haven't learnt how to trade properly and have done some practice with demo accounts that has no risk or little risk with small money to prevent lost of big capitals. You can't avoid mistakes as a trader as you will have to make them to be capable of learning from your mistakes. Trading isn't gambling and we should not forget about that.

Also, even if newbies are not advise to trade, we can’t stop these people from entering into trading despite of their lack of knowledge and experience in the market simply because most newbies these days are very aggressive to trade thinking that trading could bring them bigger and faster profits. That’s why a lot of newbies these days are now trading earlier, but the good thing is, they will also learn trading earlier from losing their funds earlier.

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Quote from: tygeade on July 21, 2024, 02:01:51 AM

We need to consider the fact that we can make it work some way or form. I believe that its going to cause a lot of trouble, and things won't be that easy. Just realize that life isn't simple, and things won't be easy, and we can make it work some way or not.

If you keep on trading when you shouldn't, you will get bad results, and just because professional traders trade every minute, doesn't mean that you are a professional trader just because you trade, if you trade like them but make a loss, that means you are not ready to be like them, and this is why they are professionals and you are not. Just keep doing what you know, and trade when you are entirely certain about a trade, and even then make sure you double even triple check your decision, then you can make it, could be once a day, could be once a week, or even once a month.

Unfortunately there are other thousands of mistakes that every trader commits more often. It means you need to be more careful in crypto trading for profit making or better become a holder of bitcoin by leaving off trading completely.

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Quote from: beerlover on July 25, 2024, 11:02:43 AM

I would guess that, there are some different sort of traders, and that is the difference. Some people might buy and try to sell within a few minutes, some people may buy and want to sell that same day, some people may want to buy and sell within a week of it, and some may buy and sell three months later. All of these are traders, just because you hold it for three months doesn't make you a long term holder, those are people who hold for years. This is why I think it's quite important to realize that we are going to deal with something that is different among the traders.

Stop loss used for short term traders that deal within a single day, and long term trader that deals within a month, may not be the same. Long term has a higher chance to keep it holding for a while longer, and I think short term one will not want that, and want a quick profit and if not get out, which is understandable thinking about the situation as well. This is why it's quite important to know what you are doing, sometimes it is not an easy thing to handle, and sometimes it's quite easy to do it all. We should consider how mistakes could even be different among each type of trader, and not the same among all of them.

Stop loss is good for long term too if you know how to use it, not for bitcoin maybe but for some other stuff. Like imagine if you were holding Luna for a long term investment, and you had stop loss at 50%, instead of losing 100% of your money, you end up losing just 50%, and that seems like a better situation if you ask me. That's why it can still be used, but the bigger mistake has always been getting too confident and not worrying about losses and trying to do more and more risky stuff.

People who do a few spot trading, will end up seeing their profits as a way of thinking they can make that even bigger, like go into leverage and all that, which causes a lot of trouble and I think it's honestly not a great way to do it, and I would suggest that people should avoid that all together.

The best thing to do would be just not have that kind of confidence and just think that you are going to slowly and gradually go up, not all together all at the same time. We should assume that it is going to be a very tough deal in the end. If you stop that confidence, but still invest heavily into big name coins, and do the things by the book, without getting cocky and making high leverage deals, you will gain slow by slow and get richer.

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Quote from: IceLincoln on July 09, 2024, 06:28:56 AM

Emotional Decision-Making

Fear, greed, and euphoria are common emotions that can cloud judgment and lead to impulsive decisions. Traders often make mistakes when they're emotional, such as closing positions too early or holding onto losing trades

Correct, Most traders risk and lose when they are unable to control their emotions. If we trade from the point of view that loss and profit are side by side and don't worry about losing your trade because cryptocurrencies are very volatile, everyone knows this. So keeping this in mind if we trade then surely we will also have the feeling that your trade is in loss, the next moment may be in profit. So understand that your emotions are under your control and not your trading.

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Quote from: Barikui1 on July 21, 2024, 03:53:20 AM

No to Trading, as a newbie: most times newbies thinks that trading is quite easy, and they feels they can milk something good out of the market without any knowledge of technical and fundamental analysis, but after some tries and they got burned, they will start saying that trading is a scam, so the best thing is to avoid trading as a newbie.

No trading as a newbie shouldn't be a mistake as then how do you become a professional at trading if you don't start as a newbie, nobody starts trading as a professional, they had to start small, learn and made mistakes that made them who they're. What I think you should say is that newbies shouldn't start trading if they haven't learnt how to trade properly and have done some practice with demo accounts that has no risk or little risk with small money to prevent lost of big capitals. You can't avoid mistakes as a trader as you will have to make them to be capable of learning from your mistakes. Trading isn't gambling and we should not forget about that.

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Quote from: IceLincoln on July 09, 2024, 06:28:56 AM

This is mostly for newbies and people interested in trading

This is beneficial for all, every trading knowledge is useful not only for the newbies but for even the professional.

Quote

6. Overtrading

Trading too frequently can lead to increased commissions, losses, and mental fatigue.
(There’s a reason for the time indicator).

Solution: Set a trading schedule and stick to it. Avoid overtrading and focus on quality trades.

This is a serious area that every trader needs to concentrate on. In as much as setting schedules is very necessary to have a balance trade and rest, it's more important to keep to the schedule.. Many traders have this schedule but can not work with it. Emotion is the primary cause of this and without learning how to minimize your emotion, it will be hard to stick to the schedule you set.

By the way, not trading often does not guarantee success. It all depends on how you manage your trade. Irrespective of whether one is making profit or not, overyrading has to be managed.

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Quote from: GreatArkansas on July 21, 2024, 08:22:23 PM

Quote from: IceLincoln on July 09, 2024, 06:28:56 AM

(...)
5. Not Setting Stop-Losses

Stop-losses are essential risk management tools that help limit losses. Many traders fail to set stop-losses, exposing themselves to significant risk.

Solution: Set stop-losses for every trade to limit potential losses.

Among the list, this is what I find very important because as you can see this involves risk management. Where it is important thing that you will remain in the trading - the more capital you have, the longer you will stay, so it is always important to protect your capital.
Minimizing losses while maximizing the profits. Risk management is a must!

Stop losses are indeed very important in gambling but most gamblers ignore it. That does not mean that they don't know about stop losses but they do not put stop losses because they do not want to end their trade even in a minor loss. They always want to end the trade in profit and it is not possible.

I have seen people in the loss of more than 60-70% of their trade because they did not put stop loss. If they had put a stop loss in their trades, they may ended in a 1, 2 or 5% loss, depending upon their trading strategy and would have traded again and recover the loss. Now without stop loss, they keep on holding the assets for long term in spot trade and may get liquated in case they are in future trade.

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Quote from: Fivestar4everMVP on July 21, 2024, 09:55:04 PM

as much as I understand what you mean, several other persons may not understand completely what you mean by the term "long term trader", I think using the term "low leverage trader" should have better been understood instead of using "long term trader", because ordinarily, this two terms doesn't mean the same thing.

A long term trader can use or not use stop loss, depending on the type of trading he or she is doing, while a low leverage trader may not have to use stop loss at all, because like you said, using stop loss as a low leverage trader will be the person destroying his or her own investment and opportunity to make profit.
I have experienced what you said on several scenarios and that have thought me never to use a stop loss when ever I set a low leverage between 1x and 2x, but anything as from 3x, should consider using a stop loss.

I would guess that, there are some different sort of traders, and that is the difference. Some people might buy and try to sell within a few minutes, some people may buy and want to sell that same day, some people may want to buy and sell within a week of it, and some may buy and sell three months later. All of these are traders, just because you hold it for three months doesn't make you a long term holder, those are people who hold for years. This is why I think it's quite important to realize that we are going to deal with something that is different among the traders.

Stop loss used for short term traders that deal within a single day, and long term trader that deals within a month, may not be the same. Long term has a higher chance to keep it holding for a while longer, and I think short term one will not want that, and want a quick profit and if not get out, which is understandable thinking about the situation as well. This is why it's quite important to know what you are doing, sometimes it is not an easy thing to handle, and sometimes it's quite easy to do it all. We should consider how mistakes could even be different among each type of trader, and not the same among all of them.

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Quote from: mirakal on July 09, 2024, 10:03:48 AM

Committing mistakes gives us a reason to improve and we believe that every single mistake is an opportunity to learn new things. But of course, I don't say we need to do this (mistake) for that sake when we know there is a chance. In fact, we know already these things, and a chance for newcomers to avoid them but why does still exist?

Well, there are somewhat called decision-making differences, and even old traders give some hints and warnings yet, our minds can be changed in the actual scenario. Most of the time we think it is okay but it is wrong, and we just realized it was when a mistake is made.

You are correct; mistakes are part of learning. Everyone makes mistakes in everything. And by making mistakes, you will undoubtedly learn from them and improve yourself.Anyone makes mistakes in trading because no one will say he never loses, and the market will never smile for you. What I've noticed in trading is that people lose a lot because they chase their losses, saying they need to get their capital back, and they don't have time to calm down and read the market very well before they stake another one, which is why it's so important to be disciplined in everything you do. Op, if someone learns everything you write, I am confident that person will succeed in trading. Because trading requires focus, you must devote a significant amount of time to it in order to gain all of the necessary experience. This is why you must be patient with everything you do. I'm trading, but I'm far from perfect. I'm still learning from my mentors in the hopes that one day I'll be as perfect as them.

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Behavioral control is very important in trading. Reacting to a big change is a common man's way of approaching the market. The wise trader does not react but seeing how they can use it to their advantage. You will see people will start coming to this forum when bitcoin rushes into another bull market and they will all start buying crypto. This is the wrong move and this same flock will cry once the price naturally starts dropping.

I think everyone should have their own dummy trading course done either on paper or on an spreadsheet to gauge how much emotionally charged they become when the market turns upside down.

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Quote from: GreatArkansas on July 21, 2024, 08:22:23 PM

Quote from: IceLincoln on July 09, 2024, 06:28:56 AM

(...)
5. Not Setting Stop-Losses

Stop-losses are essential risk management tools that help limit losses. Many traders fail to set stop-losses, exposing themselves to significant risk.

Solution: Set stop-losses for every trade to limit potential losses.

Among the list, this is what I find very important because as you can see this involves risk management. Where it is important thing that you will remain in the trading - the more capital you have, the longer you will stay, so it is always important to protect your capital.
Minimizing losses while maximizing the profits. Risk management is a must!

Traders have too much confidence in their trades even though they already set a stop loss and take profit with their trading chart because their emotions rise up and also the adrenaline to bring back their losses or gains sometimes they hold too much time instead of cutting their trades. Ideally is to take profit immediately and make another position at the end of the day we are counting the winning trades but not the wins in just a single trade. I prefer to stick with the trades plan and execute, cut the loss, and move on to the next trade.

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Quote from: Yamifoud on July 23, 2024, 03:15:42 AM

It has been said that all of them are common mistakes, and they still exist no matter how often a trader falls into any of them. No matter how we try to avoid them, as human beings who are born with emotions and weaknesses, we can't fully avoid them. It is a fact to accept that mistakes are usual, but we don't have to think this is a reason for our failure. We can be better traders even if we commit mistakes if we know how to accept them and minimize losses. Handling emotions is not easy, which is why achieving success is not easy either.

What you say is actually quite clear that every person can actually be successful even though they have made mistakes and experienced failure. Because success can come to everyone who never gives up and is always active in doing whatever they like and can bring in profits such as in trading and others. But on the one hand, there are also people who will not achieve any success in their life even though that person never creates excessive emotions in their life, that person is a lazy person.

So I think we all shouldn't be lazy at work even though we have failed due to mistakes or other things, because we need to keep moving by controlling our emotions and increasing our knowledge and skills in the field we are currently working on so that one day we can achieve success. Even though when we imagine this process it is not easy, all of these things will feel comfortable if we are willing to go through them slowly without stopping, because in every thing there must always be a high level of consistency.

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Quote from: Lanatsa on July 24, 2024, 05:29:57 PM

3. Impulsive Behavior

One of the most common mistake on the time that you do make up tradings is on the moment that you will be finding yourself that being too emotional on what are the
decisions that you are making specially on the time or moment that you do find yourself having those loses on which these are the common times on where traders becomes
that too emotional and on the moment that those impulsive behavior spikes in then this is where desperation and careless actions would really be taken.

We are just humans and its normal that we would really be having that kind of impulsive feeling but on the moment that you do let your emotions control your mind
and decision making then this is where shit things happen. Anything could turn out to be disaster on the time that you cant think up well or cant be able to assess
the situation on which despite on minding about back up plans, you would really be rather doing actions on which arent supposed to be done.

That's right, I thought of that and I think it makes sense too. In addition, there is also something else that is almost the same as what you said, namely the absence of good judgment. Because indeed, when we feel emotional or are in an unstable emotional state, of course we will usually make decisions that are not carefully considered because of the overflowing emotions that make the decisions made tend to be rushed. This can actually be prevented as long as we can know when to stop. Unfortunately, emotions must be owned by everyone and tend not to be able to hold it.

We must try as much as possible to be able to control our emotions so that our thoughts remain clear and can consider the decisions to be made. Don't follow your emotions, because that can make everything go wrong like you said with the bad things that will happen, and I think that's for sure. Having a backup plan doesn't mean that we can do things beforehand casually or recklessly, of course there must be precautions and always be careful in making decisions.

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Quote from: $weetne$$ on July 24, 2024, 03:22:04 PM

Quote from: Zigabel on July 22, 2024, 11:21:21 AM

Another thing you should know about gambling is in the fact that gambling can be very dynamic and it doesn't really get to follow a pattern in some cases, i understand that in trading, patterns are things most traders do look out for because most often, it does play out but importantly we should understand that it will not happen always. by all this I'm saying that all that you have said and stated are really okay and are really true but then exceptions do happen such that some may not keep to all of this rule and still trade well so its not a fixed thing,

There are other factors that can affect the results of a trade and what you thought was going to happen by your predictions will be different because the events happening when you are trading is not the same event that happen previously when the strategy that you are using was developed. We have to keep an open mind when trading and be willing to accept the outcome of our predictions. If things go as we predicted then we should be happy but when a different result is gotten, we should go back and look at our strategy to see if we made a mistake and when there are no mistake then we should just accept it as it is because as traders we can not make profits from all our trades as there are some trades that we are just going to lose regardless of how good we are becoming as a trader.

When executing a trade, of course, it will be very different from what we have planned well, I think when planning a trade, we also need to prepare ourselves so that we can solve the problems that occur when executing trades, yes, of course everyone will feel happy when they succeed in the trades that are carried out and I agree with you when we experience failure in trading, we must be able to re-evaluate what we have done and If there is indeed a mistake that we make, of course we must be able to correct it and do not let us repeat the same mistake again in the next trade.

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3. Impulsive Behavior

One of the most common mistake on the time that you do make up tradings is on the moment that you will be finding yourself that being too emotional on what are the
decisions that you are making specially on the time or moment that you do find yourself having those loses on which these are the common times on where traders becomes
that too emotional and on the moment that those impulsive behavior spikes in then this is where desperation and careless actions would really be taken.

We are just humans and its normal that we would really be having that kind of impulsive feeling but on the moment that you do let your emotions control your mind
and decision making then this is where shit things happen. Anything could turn out to be disaster on the time that you cant think up well or cant be able to assess
the situation on which despite on minding about back up plans, you would really be rather doing actions on which arent supposed to be done.

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Quote from: Zigabel on July 22, 2024, 11:21:21 AM

Another thing you should know about gambling is in the fact that gambling can be very dynamic and it doesn't really get to follow a pattern in some cases, i understand that in trading, patterns are things most traders do look out for because most often, it does play out but importantly we should understand that it will not happen always. by all this I'm saying that all that you have said and stated are really okay and are really true but then exceptions do happen such that some may not keep to all of this rule and still trade well so its not a fixed thing,

There are other factors that can affect the results of a trade and what you thought was going to happen by your predictions will be different because the events happening when you are trading is not the same event that happen previously when the strategy that you are using was developed. We have to keep an open mind when trading and be willing to accept the outcome of our predictions. If things go as we predicted then we should be happy but when a different result is gotten, we should go back and look at our strategy to see if we made a mistake and when there are no mistake then we should just accept it as it is because as traders we can not make profits from all our trades as there are some trades that we are just going to lose regardless of how good we are becoming as a trader.

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Quote from: Egii Nna on July 21, 2024, 04:56:55 PM

I am more interested in these because if you cannot have a balance between your emotions and your decision, then you will have a good balance in your trading space, and this is one of the hardest acts to stay away from because if you can’t have that balance, you will never succeed or overcome your greed.

Because everyone is greedy, what just matters is knowing how to control your own greed, and that will never be achieved unless you have a strong balance between your decision and your emotions. With that, you will be able to stick to your plans, and it will be very hard for you to follow your emotions because there is balance, and if not, you will have to face the consequences of what you did.

Both are related, hell they are both included there. Our decision-making will depend on our emotions, so if we have a good or stable emotion, we can expect that our decisions will also be right and can ensure to give us a good outcome. It can help us to decide easily, which is great so that we can have a less stress in mind and then we can move on to other things that we are planning to do immediately. Once we already master the pointers given by the OP, why will we ever plan to abandon even a few of them? I think no one wants to have a poor performance in trading. If in case we are planning to lay low, or quit trading permanently, then we will also leave all of them, not just a few.

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It has been said that all of them are common mistakes, and they still exist no matter how often a trader falls into any of them. No matter how we try to avoid them, as human beings who are born with emotions and weaknesses, we can't fully avoid them. It is a fact to accept that mistakes are usual, but we don't have to think this is a reason for our failure. We can be better traders even if we commit mistakes if we know how to accept them and minimize losses. Handling emotions is not easy, which is why achieving success is not easy either.

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Quote from: justdimin on July 22, 2024, 05:50:52 AM

Quote from: Dewi Aries on July 21, 2024, 02:59:09 AM

Of course, as you have said, even traders who already have a lot of experience will never escape losses, or in that sense whoever you are, beginner or experienced, of course you will still experience losses, and it is also a fact that in Any activity that has the potential to be profitable will always have a negative side, such as the risk of loss. But perhaps the difference between beginners and professionals is in terms of losses, in the sense that beginners definitely experience more sessions that make them lose due to their knowledge being still very basic.

This means that skill and knowledge do not mean that they will always guarantee profits but are useful for increasing the opportunity for profit and minimizing the risk of loss, and if indeed skill or a lot of knowledge is a guarantee of always being able to make a profit and completely avoiding losses then surely the richest person in the world today is they are traders. Basically, the market will continue to run and create different prices. Simply put, as long as the market is running, of course the risk of loss will always be there.

I believe that even veterans may make some mistakes, but veterans do end up being a lot better most of the time as well, they do not end up with a loss, it should be pointed out that we are talking about something that takes some time, so it shouldn't really be a problem.

A veteran would rarely lose money, because they are a veteran or at least they should, because if they spent so much time learning and trading and still making a loss then there is something wrong with them. Majority of the veterans lose money very rarely, and while they do, newbies keep on losing money like crazy and that is something that we have to realize as a difference.

When it comes to mistakes then there's no such thing about being expert or simply its an inevitable stuff on which you wouldnt really be able to avoid because this market is really that volatile and something that cant be predicted. You shouldnt really be that making yourself being that perfectionist because on the moment that you would really be pushing yourself into your limits then you would really be having that kind of behavior on which you would really be ending up on being desperate on which this isnt something good when you do deal up with trading. This is why it would really be that important that whenever you do experience loses or mistakes then theb est thing to be done is to make yourself that learn with those mistakes. Mistakes do really give out that kind of learning and on the moment that you do gain up more experience then this is where
you do gradually make yourself being called as a professional when time comes.

It would never been ideal nor really that recommended on trying out to chase up losses. This is where it would really be testing out your patience and your emotion
on which this market will really be that like a roller coaster. So adjustments will really be crucial anytime.

Topic: Common Mistakes people make in Trading - page 3. (Read 1116 times)