Topic: Dangers of trading - page 2. (Read 729 times)

To do any work, the knowledge is very important part also necessary for trading beacause we are using money, where the profit is made and the losses are tolerated, we can understand it only if we study the rules and regulation for trading and we can bear the losses.

We should take the help of a teacher who is knowledgeable about trading or he has a lot of experience in this field so that we can save ourselves from losses by learning the real way of trading. teacher he can teach you all the rules of trading we can search it in different ways.

The moment you decide to trade, be ready for a financial loss. That is very certain as no one gets their desired profits without passing through certain amount of losses. And from there, learn from your mistakes that resulted into losses so you won’t be susceptible to creating the same mistakes again. And while trading needs knowledge and proven skills, a trader should also have long stretch of patience so he can timing the market when to make the best and profitable trades.

I am not here to discourage anyone about trading but I will say it still not suitable for beginners unless they pass through all the normal skills required for trading, it's risky that's why they are been warned almost every time on the forum, beginners are better off investing in Bitcoin rather than trading, and while they are holding Bitcoin they should devote time to start learning trading too.

I could remember when I was new to trading, I use some money to even copy trade and I lost over five hundred dollars just from copy trading, until I decide to start learning trading over time, that's when I know how important stochastic RSI is and still there are times I made the wrong trades and lose money.

There is no way you can get better at trading without losing money, because you can't always be right even with all the analysis and tools, it's even more risky to engage in day trading because of the way the market moves.

Trading can indeed be very dangerous if entered into by someone who does not have sufficient insight at the start of entering the trade. And it is even more dangerous if someone enters a trade based on feelings or because they are exposed to hype.

And it is much more dangerous if you don't learn Money Management. Well they trade with all their money without arranging for their living needs first.

The point is that everything requires preparation and a long learning process. And actually the OP has mentioned these important points.

But this topic seems more appropriate on a trading discussion board.

For those that have good understanding of trading may tell you that no matter how bad the market may be, there are still people making profits. Whether bear or bull, there are people still being favored, it's just for you to know the Dynamics of the market

Trading can cause you financial loss so it is advised to first study enough about trading and then engage in trading. Trading is never for inexperienced people, those who have enough knowledge about trading and risk takers can join trading but for those people who are interested in trading only to see the profit of others, trading is very dangerous. If trading in a coin is taken impulsively without understanding the market in new conditions, then that person is undoubtedly putting his money at risk. If there is an illusion of money then we must try to gain enough knowledge about trading, besides gaining enough knowledge about trading, when we try to do practical trading, we will have enough practical knowledge about trading and use that knowledge to trade with money risk later on. Which can be a very positive aspect for a trader.

These two things are very important, as they are all the same. However, it is very important that we study what we are doing. We should try and study whether it’s investments or trading. We should at least study them all to avoid losses. It will also protect us from emotional conditions that will affect our journey during the trading process because, as traders, we should need to overcome our emotions before deciding to trade. Also, knowledge is something we need before entering the market. Without knowledge, the risk will be higher than that of other people.



I don’t think higher risk if trading will create opportunity for profit makes there some risk we take. We ourselves know that we won’t get any positive outcomes, but due to negligence, we risk it, so for me, there is nothing important like knowledge, technical analysis, and other things that are needed, but saying the higher risk, the more opportunity to get profit. Nah, all we can say is that we should try and invest the amount we can afford to lose.

However, there's no money to lose, mate. As you said, even a little loss won’t make us happy, but we don’t bother because we know that's how it works naturally, so there’s nothing bad if we lose, but we should invest the amount we can afford to lose.

I heard that like 80% or even more of the traders loose money and that the rest doesn't make so much money that it's worth investing the time instead of a normal job Except you belong to the top 1% of the traders or so

Trading is very dangerous of course for certain people, such as lack of knowledge and insight, and not being able to analyze the market, but in my opinion trading and long-term investment also certainly contain risks, so in this case knowledge and insight are really needed because without knowledge everything it will be useless unless there is a miracle. and op I also want to add that in trading you still have to use quality crypto with the aim that the risk is not too big, for example like btc or ethereum
because BTC or top 10 altcoins on CMC have good trading volume.

However, usually the higher the risk of loss, the more opportunities there will be for big profits. However, the most important thing in trading is to use money that is ready to be lost because market movements and crypto prices are very difficult to predict.

Theory is not always useful when you put it into practice, but it supports your knowledge. I have traded in the past, but something has made me realize that day trading is not better than long term investing. I could use 10% of my budget for trading, but I tend to avoid trading for long-term investments.

I'm sure most of your points are credible, but things are always risky regardless of whether you invest or trade. Trade carefully and always use the best strategy to avoid serious financial losses.

I highly agree, volatility is the reason behind the loss and gain in profit but it is not the reason why trader suffer losses, the reason behind why traders suffer losses is the lack of knowledge and preparation and planning on trading.


I disagree that we cannot successfully deal with fear and greed, we might experience feer and greed but with self-control and the right knowledge, we can deal with these two.


True! But if the trading system we are doing is effective, we can just rinse and repeat until the strategy become ineffective.



In everything we do, knowledge and understanding the core of it is required.  Without them we might end up messing things up.

Of course, the worst risk is losing money. That's why we always state that we must invest/trade with the amount of money that we afford to lose. It is a very common advice that we often saw/read in many discussions about Bitcoin investment/trading in this forum. Because investing or trading crypto is high risk, we are always expected to use safe money only.

Volatility is a risk, it can make people to suffer losses. But we must know that the volatility is also the reason why people can earn huge profits in crypto. The volatility enables the prices of crypto to increase very significantly. If crypto has no big volatility, we can't expect to see the prices skyrocket during the bullrun season.

Whatever is done excessively, there is always the potential to end badly. We must know when the right time to trade, we shouldn't force to trade if it is not in the ideal condition for trading. If we force ourselves to trade in a bad time, surely we potentially get losses. Anyway, having sufficient knowledge is a must for every trader. Trading isn't something easy, it can be very complicated sometimes. It is totally a bad idea to trader with lack of knowledge. Trading with lack of knowledge rises a bigger risk and chance for a loss. That's because he may not know what to do when he experiences the difficulty in trading. For me, trading with lack of knowledge is the same as gambling. It means we only try our luck in trading crypto. 

It makes that everyone suffers loss and it is also the bedrock of profits. Without volatility, no profits

Fear and feed is part of the cryptocurrency market and we cannot successfully deal without them. But a good trader will have to a way to deal with them.

Too much of everything is bad. There should be a clear duration for trading. Whether you are winning or losing, have a time to close the tab.

This is a suicidal mission. If you don't know how to trade, pls don't gamble it.

If we can control our fear and reduce our greed, then we can practice a good and healthy trading experience, as we can reduce and minimise the rate at which we lose on trading.
 
Greed is one thing that always makes someone see a point where they could have called it a take-profit point. After calculating their buying time, the fee spent, and any expenses that they have incurred during their buying period, whatever price one has set as their selling price, if that price is being reached or close to that price, the person should call it a take-profit time and don't wait for it to get bigger than that, as that can lead to losing even the profit that was realised.
 
In the aspect of fear, as traders, we should learn how to control ourselves when we hear some news that is unverified, from an unwanted source, and out of fear that the price is going to sink to the ground. If one can control all this, know what's good news and what's bad news, and also know that no matter the drop, the bitcoin price is going to survive and go back up to where it was,

When we talk about trading is not as easy as it seems to be, there are so many dynamics and factors involves that is very essential for you to understand before going into, merely looking at the market chart it seem a bit easy but venturing into it you will understand the need to acquire knowledge before trading.

Especially a beginner who has no knowledge about trading, your target shouldn't be on getting rich overnight because that's one of the things that propels most people on venturing into trading when there are more important things to consider, which is the risk involved and how you can manage your capital from getting blown.

So after considering those things the only way to navigate well through your trading is through knowledge perhaps you could look for trading schools or online research about trading and preferably watch some trading YouTube video because it enhances you to understand the fundamental and technical analysis of the market as such giving you the insight on market direction.

It is a mere fact that a trader must understand how trading works. We can earn profit from trading but we also suffer losses if we get wrong especially if we have no knowledge about this. A reason why we did not rush to enter trading nor we would think about earning fast but instead, make it a priority to learn it first. Many people got a huge mistake from thinking that trading will be a way to becoming rich because it was not that easy, you may be earning today but can't be sure of the next day.

The decision to trade can be good, but there are many risks in it, so firstly caution should be taken. When a person goes into trading he has to consider various things, if the person is not well versed in trading then he will never be able to profit. If he is not knowledgeable first, then he needs to know the market first, so it can hurt his money the most. Unreasonable decisions often lead to losses, so good decisions must be made before making decisions. And avoid being emotional when starting trading, if you can't control yourself, you will never be able to make a profit in the market. When you are trading, it is normal to lose your capital if you suffer losses due to market volatility and don't get emotional and break down. Many times due to lack of knowledge one has to take risk, that is why different strategies have to be adopted in order to have a good experience about the market. Practicing all the things then taking the advice of good traders and trading according to proper management is possible, only then it is possible to profit.

no one in this world can escape from risk, so risk when trading is a very natural thing that can be experienced by everyone who tries to become a trader, currently there are many videos or tutorials that explain the best steps to reduce risk when trading.  trading, and knowledge like that is something that every trader must have, especially beginner traders, remember that trading is an activity that requires intelligence, a lot of capital is not that important, if you have good skills then you can make profits quickly.

Apart from being able to bear losses, someone who has started trading must also be able to be patient so as not to panic sell when he is in a loss condition. Because when he doesn't sell at a loss or in conditions that make him lose after selling, he is a person who is quite tough in being patient because he can still survive and will get more returns when he encounters better conditions for what he is trading. Because apart from knowledge and strategy, every trader also needs patience so that they don't easily experience losses when market conditions experience bigger changes.

This two above is a wrong step any body must go through, trading requires good knowledge and it is impossible for anyone to trade without any knowledge. Their is no shortcuts to gain profit in trading , every profit happens as result of having knowledge which is the principal tool everyone must possess in trading.

Understanding makes trading easy and interesting,  their must be an understanding how the market works and their must be understanding of strategies on how to make profits from trade.  Getting knowledge and understanding is very important abd something everyone needs to go after in trading.