Topic: Common Mistakes people make in Trading - page 4. (Read 1116 times)
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, sometimes you even get to a point when you become very advanced trading, you may not want to abide by all of this because eat that pint you will be operating with a system that provides you with maximum efficiency.
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.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.
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.
This doesn't mean "not at all" but rather "rarely experience losses", but on the other hand there are also some professionals who experience losses that exceed their profits, in terms of time yes they have more flying hours than beginners but the results are not much different. with beginners, that means, as you said, there is most likely something wrong here, in the sense that it is very likely that while they are going through the process they do not learn various things about the world of trading well so that the results are monotonous or there is no progress, and if we talk about the beginners, yes, I think experiencing losses more often than profits is normal, but over time they should get better.
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.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.
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.
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Trading have different types. You can not be a swing trader and be expecting yourself to use stop loss. Stop loss is good for people that use high leverage. Short term traders are the ones that use high leverage. Stop loss is often used by short term traders. Long term traders may not use it at all.
People that chase loss will lose all.
agreed with this take, using SL for long term investment feels like purposefully trying to sabotage our own investment.People that chase loss will lose all.
just recently I tried to catch the dip of ETH with SL and finding out the SL got triggered just to find out that the price actually sky rocket not long after.
it's overall a bad tool for the long term trader but really effective for high leverage future trading to limit loss based on breaking of resistance.
definitely a thing that any trader must know.
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.
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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.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.
Minimizing losses while maximizing the profits. Risk management is a must!
2. 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.
Solution: Develop a trading plan and stick to it. Set clear goals, and avoid making decisions based on emotions.
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.
Solution: Develop a trading plan and stick to it. Set clear goals, and avoid making decisions based on emotions.
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.
Most common misconception people have about trading is that they have to trade all the time. Sometimes there could be even a whole week you may not find something, and while the market may still move and you may regret, the fact is simply that maybe you di d not see that move, no reason to jump into unknown if you are not sure. I have seen way many people trade without knowing what they are doing and they probably shouldn't start trading in that case.
That's the importance of planning in trading, you need to have a plan about when is the best time to enter and when is the best time to exit the market, as is done by people who also suggest limiting involvement in trading, such as making a plan regarding how many sessions what you have to do in a week or a month that is adjusted to your financial management, where this planning is useful for keeping us mentally and psychologically awake, because of course in any case when everything is done excessively it tends to always produce bad results .So we must avoid overtrading or trading excessively in terms of time, even though for example you have quite a long knowledge and experience, but that still doesn't mean we will avoid possible losses, and overtrading is one approach that can trigger unnecessary losses. necessary, which is usually caused by our mental and psychological problems being disturbed or our minds being tired of analyzing the market so that many decisions are missed, and in most cases the overtrading approach usually often leads a trader to an MC situation.
The point you listed down here are quite valid not doubt, but you fail to add some of the most vital thing that is needed in the craft, which are;
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.
Lack of risk management : knowledge and self control makes money for you in trading, but lack of proper risk management strategy makes you loses money, so risk management is very much important in trading.
Not knowing when to stay off the market: most traders don't actually knows that knowing when to stay off the market is also a very important skill a trader must have in other to be successful in the craft.
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.
Lack of risk management : knowledge and self control makes money for you in trading, but lack of proper risk management strategy makes you loses money, so risk management is very much important in trading.
Not knowing when to stay off the market: most traders don't actually knows that knowing when to stay off the market is also a very important skill a trader must have in other to be successful in the craft.
The point is that a lack of understanding of skills when carrying out trading will give bad results.
Where we will continue to experience losses caused by weak knowledge about trading.
To prepare for trading we have to improve adequate skills, we have to learn the basics and we also need to know the correct trading strategy. So that we know how to carry out trading correctly.
People who have good experience and skills also experience losses at certain times, what about people who trade with poor skills.
Trading has different types and it must be recognized so that we have a plan when implementing it and if this is not mastered then the trading plan will not work as expected.
Let us put it this way, even long-time traders can experience losses because they are also basing their decisions on their experience, skills and guts. And there are times that even if you master those TAs, it won't help you in any way because the market trend of that particular coin doesn't follow any of those TAs.
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.
Trading have different types. You can not be a swing trader and be expecting yourself to use stop loss. Stop loss is good for people that use high leverage. Short term traders are the ones that use high leverage. Stop loss is often used by short term traders. Long term traders may not use it at all.
People that chase loss will lose all.
agreed with this take, using SL for long term investment feels like purposefully trying to sabotage our own investment.People that chase loss will lose all.
just recently I tried to catch the dip of ETH with SL and finding out the SL got triggered just to find out that the price actually sky rocket not long after.
it's overall a bad tool for the long term trader but really effective for high leverage future trading to limit loss based on breaking of resistance.
definitely a thing that any trader must know.
Most common misconception people have about trading is that they have to trade all the time. Sometimes there could be even a whole week you may not find something, and while the market may still move and you may regret, the fact is simply that maybe you di d not see that move, no reason to jump into unknown if you are not sure. I have seen way many people trade without knowing what they are doing and they probably shouldn't start trading in that case.
Best thing we can do right now would be just realizing that life isn't always that much sunshine and rainbow, and we should be considering how to get better with time. All in all, if we know what we are doing, then nobody could stop us, and things will be much easier for us.
This is so true, and yet so few people know about this. I think we should be aware of the fact that people are not really aware of the fact that they do not have to trade constantly. I think they should realize that we are going to end up making some money based on what we have, and sometimes that's not going to be that easy, we could potentially see that changing.Best thing we can do right now would be just realizing that life isn't always that much sunshine and rainbow, and we should be considering how to get better with time. All in all, if we know what we are doing, then nobody could stop us, and things will be much easier for us.
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.
Most common misconception people have about trading is that they have to trade all the time. Sometimes there could be even a whole week you may not find something, and while the market may still move and you may regret, the fact is simply that maybe you di d not see that move, no reason to jump into unknown if you are not sure. I have seen way many people trade without knowing what they are doing and they probably shouldn't start trading in that case.
Best thing we can do right now would be just realizing that life isn't always that much sunshine and rainbow, and we should be considering how to get better with time. All in all, if we know what we are doing, then nobody could stop us, and things will be much easier for us.
Best thing we can do right now would be just realizing that life isn't always that much sunshine and rainbow, and we should be considering how to get better with time. All in all, if we know what we are doing, then nobody could stop us, and things will be much easier for us.
By avoiding these common mistakes, you can refine your trading strategy, improve your discipline, and increase your chances of success in the markets. Remember, trading carries risks, and education is key to making informed decisions. Stay informed, stay disciplined, and trade wisely.
The point is that a lack of understanding of skills when carrying out trading will give bad results.
Where we will continue to experience losses caused by weak knowledge about trading.
To prepare for trading we have to improve adequate skills, we have to learn the basics and we also need to know the correct trading strategy. So that we know how to carry out trading correctly.
People who have good experience and skills also experience losses at certain times, what about people who trade with poor skills.
Trading has different types and it must be recognized so that we have a plan when implementing it and if this is not mastered then the trading plan will not work as expected.
Let us put it this way, even long-time traders can experience losses because they are also basing their decisions on their experience, skills and guts. And there are times that even if you master those TAs, it won't help you in any way because the market trend of that particular coin doesn't follow any of those TAs.
To avoid such heavy losses, one should be patient in learning more strategies not only those TAs, fundamental analyses. Some can get good hints from the social media platforms of the project. If you are aware of their social media channels, better subscribe if you have significant amount of money at stake. Exchange of ideas sometimes in those channels are very informative that you can already come up with a good decision.
2. Emotional Decision-Making
The common mistake on which I do believe that most people would really be able to commit even if you veteran or old, there would be no exemption and this is one of the most common mistake on why traders lose money on the moment that emotions would really be that get involved but basing up on the list above on which these are indeed precise and correct.
Somehow on the moment that you do already get that expience then you could really changed up the possible
Outcome or at least having that much better trading position because you do already know on what you are doing basing up on the
Past engagement you do have on which it's a common reaction to have.
There’s this funny attitude people exhibit, it has happened to me once or twice… maybe more lol.The common mistake on which I do believe that most people would really be able to commit even if you veteran or old, there would be no exemption and this is one of the most common mistake on why traders lose money on the moment that emotions would really be that get involved but basing up on the list above on which these are indeed precise and correct.
Somehow on the moment that you do already get that expience then you could really changed up the possible
Outcome or at least having that much better trading position because you do already know on what you are doing basing up on the
Past engagement you do have on which it's a common reaction to have.
The act of revenge trading, getting back at the market for your loss just immediately after, maybe you made a gain of let’s $500 and in your next trade you lost $300 and you feel like you can get it back but then you’ve allowed so much emotions already to set in and you end up loosing more than you bargained for.
That’s why discipline and strategy is strictly adviced
By avoiding these common mistakes, you can refine your trading strategy, improve your discipline, and increase your chances of success in the markets. Remember, trading carries risks, and education is key to making informed decisions. Stay informed, stay disciplined, and trade wisely.
If you are able to avoid all these mistakes, you will surely be a good trader, but can we avoid all these?We are humans, and we do make mistakes due to emotions; trust me, you can never remove your emotions from your trading activities, you can only limit your emotions because it is natural, but taking off greed will actually help if you have good knowledge.
Quote from: Stepstowealth
Quote from: AmoreJaz
Even old timers can suffer mistakes because in this market, there is no concrete strategy that you can deploy to every project.
knowledge is improving and more facts are established daily, as a trader who wants to consistently make profit from the market there is a need to stay informed about these improvement and changes in knowledge so that we can stay profitable and not suffer from mistakes due to our old knowledge.Old timers who refuse new learning and hold on to old knowledge are the ones who are more in danger to suffer these mistakes.
Despite the old tactics is still working for you to trade in the market to make profits doesn't mean you cannot add more new tactics to your trading, because market price is dynamic which it can change time to time to allow traders to make profits or lose profits, but if you have different tactics of trading your coins in the market, it will be hard for you to lose. I believe many beginners will like to correct their mistakes to add more tactics to their trading, so that they will not experience what other traders are going through in the market.
By avoiding these common mistakes, you can refine your trading strategy, improve your discipline, and increase your chances of success in the markets. Remember, trading carries risks, and education is key to making informed decisions. Stay informed, stay disciplined, and trade wisely.
The point is that a lack of understanding of skills when carrying out trading will give bad results.
Where we will continue to experience losses caused by weak knowledge about trading.
To prepare for trading we have to improve adequate skills, we have to learn the basics and we also need to know the correct trading strategy. So that we know how to carry out trading correctly.
People who have good experience and skills also experience losses at certain times, what about people who trade with poor skills.
Trading has different types and it must be recognized so that we have a plan when implementing it and if this is not mastered then the trading plan will not work as expected.
If I have to pick one mistake that I'd consider the biggest of them, overleveraging comes to mind. It's going to be my default pick because I have seen countless people on crypto Twitter got their account wiped out in moments of extreme volatility in opposite direction of a trade. There's a guy that was up $90K+ on his longs with about $40k worth of it being loan. All of it got wiped out when majority of the longs were flushed out during the recent crypto market downturn. I personally use leverage and knowing very much how it can be a make or break tool.
Make — if trade goes in your favor.
Break — if otherwise.
You can hold spot and the price of the tokens go another -99% after a -90% correction. The same can't be said about leverages. That's why even the biggest ct trades use a leverage between 1-5x with 3x being the most popular.
Make — if trade goes in your favor.
Break — if otherwise.
You can hold spot and the price of the tokens go another -99% after a -90% correction. The same can't be said about leverages. That's why even the biggest ct trades use a leverage between 1-5x with 3x being the most popular.
By avoiding these common mistakes, you can refine your trading strategy, improve your discipline, and increase your chances of success in the markets. Remember, trading carries risks, and education is key to making informed decisions. Stay informed, stay disciplined, and trade wisely.
If you are able to avoid all these mistakes, you will surely be a good trader, but can we avoid all these?We are humans, and we do make mistakes due to emotions; trust me, you can never remove your emotions from your trading activities, you can only limit your emotions because it is natural, but taking off greed will actually help if you have good knowledge.
People tend to focus on one asset rather than looking for one or two more. Although it's not good to trade too many assets because it leads to higher risk and a higher probability of liquidation, the mistake of focusing on one coin that doesn't really move much can cause some traders to have lower profits than others.
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