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Topic: Common Mistakes people make in Trading - page 3. (Read 1274 times)

legendary
Activity: 3010
Merit: 1156
Leading Crypto Sports Betting & Casino Platform
July 28, 2024, 04:11:18 PM
#73
Over-trading that's a serious mistake many traders make because they want to make profit at all cost. I'll refer it to as trade chasing, chasing trade is a very bad habit and can make a trader miss opportunity in the market. After you may have lost all funds as a result of impatient by chasing trades you re mostly left behind with empty account when the right market opportunity to make profit eventually shows up.
I've seen this happen to people who set to themselves impractical goals, like "i need to earn X money this month by trading", and then they manically try to find the right chart. When enough crappy, unclear charts have been browsed, suddenly some of them start to seem better to deal with. To me it's like trying to win poker by entering with every given pair to the game. And then there will be weeks that will be worth whole rest of the year of trading, This is what i understand of patience in trading; Waiting for the right moment to enter and exit.
full member
Activity: 784
Merit: 115
July 28, 2024, 01:09:28 AM
#72
Over-trading that's a serious mistake many traders make because they want to make profit at all cost. I'll refer it to as trade chasing, chasing trade is a very bad habit and can make a trader miss opportunity in the market. After you may have lost all funds as a result of impatient by chasing trades you re mostly left behind with empty account when the right market opportunity to make profit eventually shows up.
That is common thing that many traders do, not just new traders but also veteran traders. They don't thinks that they can really miss opportunity in the market especially if they can't analyze the market position. Chasing the trade can cause us getting lose money because we are in rush without making analysis because we don't want to late to take the opportunity to buy the coin.

We don't have to be like that because we must realizes that we still have the opportunity to enter to the market in the other time. So we must use that to analyze the market movement and find the right time to enter the market. We don't have attract to the market because of panic because that can makes us can't thinks clear. We must have to be patience to check the market before we decides.
hero member
Activity: 1666
Merit: 513
Leading Crypto Sports Betting & Casino Platform
July 28, 2024, 01:04:58 AM
#71
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.
When it comes to cryptocurrency trading, there are many new traders who cannot control their greed. When they come to know about the price of Bitcoin and some other altcoins, they jump without any knowledge. There are many investors who have not even mastered the basics of investing but are desperate to trade. The first thing that is required to become a trader is trading knowledge. This trading knowledge consists of a combination of many things that a trader needs to acquire. Traders who joined trading without any knowledge lost their money due to wrong trading and some due to safety reasons or emotional and some lost their money due to greed. There is no guarantee that a trader will make profit if he is inexperienced but the possibility of loss is high for those who start trading without experience.
legendary
Activity: 2492
Merit: 1001
Leading Crypto Sports Betting & Casino Platform
July 28, 2024, 12:50:36 AM
#70
Well that's true for one to be able to be successful in trading he or she need to have some good principles and also have good emotion management. Alot of trading don't normally take their time to gather some good knowledge on how trading work they just want to make it pretty fast through trading , neglecting the fact that they can easily lose their funds in trading by just making a slight mistakes. That's why trading not something one need to rush , one need to take their time to understand the system of trading. Is not like holding that don't require any complex or technical knowledge.
Emotional management is something that is very important for every trader to be able to control their emotions when trading because it will make it difficult for them to get good results from the trade, so it would be very good for those who want to get good results on the trades they make to be able to train themselves to remain patient when seeing market conditions that are not favorable for them.

Taking the time to learn more about trading before deciding to trade is of course very good, but they also have to be patient with every learning process they do because it is very unlikely that someone will be able to make a profit without good knowledge about trading and for some people who ignore this, of course they are very unlikely to be able to make a profit from trading and what they will definitely get is only a loss if they do not go through the learning process first.
hero member
Activity: 2828
Merit: 611
July 27, 2024, 11:41:59 PM
#69
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!
Actually all items in the list are part of risk management, so all of them are important, however when it comes to stop-loss I think there are traders that can sometimes trade without it. I think this is because they are not in a hurry and are willing to wait for the price to recover. It's like they are a hybrid trader and investor. I think that a short capital can be able to last long in the good hands but it is still different if we will start with a big one. By this, we can be able to increase the size of our trades and this can allow us to earn a bigger profit, though the risk will now be a bit bigger too, if we experience a loss. By having a big capital, we can also be able to last longer than usual if we will minimize our trading sizes.
sr. member
Activity: 644
Merit: 262
July 27, 2024, 05:29:35 PM
#68
Over-trading that's a serious mistake many traders make because they want to make profit at all cost. I'll refer it to as trade chasing, chasing trade is a very bad habit and can make a trader miss opportunity in the market. After you may have lost all funds as a result of impatient by chasing trades you re mostly left behind with empty account when the right market opportunity to make profit eventually shows up.
full member
Activity: 560
Merit: 225
July 27, 2024, 05:17:00 PM
#67

 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.


Well that's true for one to be able to be successful in trading he or she need to have some good principles and also have good emotion management. Alot of trading don't normally take their time to gather some good knowledge on how trading work they just want to make it pretty fast through trading , neglecting the fact that they can easily lose their funds in trading by just making a slight mistakes. That's why trading not something one need to rush , one need to take their time to understand the system of trading. Is not like holding that don't require any complex or technical knowledge.
hero member
Activity: 2184
Merit: 599
July 27, 2024, 04:29:28 PM
#66

 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.
legendary
Activity: 3080
Merit: 1292
Hhampuz for Campaign management
July 27, 2024, 03:58:38 PM
#65
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.
hero member
Activity: 2408
Merit: 584
July 27, 2024, 12:19:23 PM
#64
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.
hero member
Activity: 2100
Merit: 546
Leading Crypto Sports Betting & Casino Platform
July 27, 2024, 12:11:23 PM
#63
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.
sr. member
Activity: 392
Merit: 303
Enjoy the beauty of nature 😊
July 25, 2024, 04:10:57 PM
#62

 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.
hero member
Activity: 616
Merit: 749
July 25, 2024, 01:43:53 PM
#61
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.
sr. member
Activity: 784
Merit: 364
July 25, 2024, 12:57:24 PM
#60
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.
hero member
Activity: 2814
Merit: 618
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July 25, 2024, 12:54:07 PM
#59
(...)
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.
legendary
Activity: 3038
Merit: 1188
July 25, 2024, 10:02:43 AM
#58
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.
full member
Activity: 532
Merit: 181
July 25, 2024, 09:30:36 AM
#57
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.
legendary
Activity: 2898
Merit: 1253
So anyway, I applied as a merit source :)
July 25, 2024, 09:07:23 AM
#56
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.
legendary
Activity: 1708
Merit: 1280
Top Crypto Casino
July 25, 2024, 08:49:37 AM
#55
(...)
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.
hero member
Activity: 1050
Merit: 844
July 25, 2024, 05:27:42 AM
#54
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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