Topic: Dangers of trading - page 3. (Read 729 times)

Trading is really a profitable endeavor for those who have build knowledge and experiences with trading. However, for newbies, while trading can be more productive than investing, but it can be more dangerous if you jump into trading without prior knowledge and experience on the trading market. You can lose all your hard-earned money in just a blink of an eye if you trade with closed eyes. But if you invest in yourself with knowledge acquisition and develop your skills and strategies at first, I guess trading will be a lot more successful in the future.

Acquiring knowledge is only our stepping stone towards entering into trading as its not actually a guarantee that you will easily overcome the risks and be a successful one. However, it's an edge over the others if you decide to trade with prior knowledge and just continue to educate yourself everyday until you get to hone some skills and strategies that will work perfectly on your trading career. With that, you can already say to yourself that even if there are inevitable losses in trading, at least you learn to minimize them while trying to maximize your profits.

And real thing that happens is that most traders just focus on the wonderful venture and sure profit while neglecting to see the dangers that await them. More traders suffer losses because they underestimate the volatile nature of the market and regret it. We could say that we usually just learn when we already commit a mistake and it is acceptable in a fact that this will also teach us where to get wrong and guide us on what we have to do in order to avoid it. The more we experience actual trading, the more we understand how it really works.

Whether you self-educate or you learned from an educated trader, what is most important is that you learn to apply all what you have learned into your own trade. By doing so, you become more capable to trade on your own which will eventually result into a positive and successful trading outcome. That way, you are not only an educated trader but also a skilled and capable trader that can easily overcome the dangers in trading.

Trading is complicated and it is not like turn on a computer, login your exchange account, click on a trading pair, glance at the chart and open a position. In trading, a trader must have ability to control activities like when to trade, when to stay away from trading.

By chasing to open trading positions, a trader will take higher risk when chance to get profit is small but risk to have loss is big. It's time to stay away from trading because if you don't trade, you don't lose money. If you trade wrongly, you lose money and might reacts as revenge the market and get more losses.

Aside from doing some actions that we think a good option to do we should better check out the latest happening or condition of the market so that we can determine if its good to trade or when should we enter and secure our profit since its will be bad for us if we only think about such possible strategy that we can use on our current trades. To many incident happen while we are away so we should know the latest before taking some decisions since it can help us a lot especially if we are engaging on daily trading or short trades. The risk is so high that's why we need to be more resourceful before starting up so we can maximize the risk and can potentially gain from current coins that we wish to acquire.

Although its hard to execute all of it but if we are eager to learn new things on trading for sure we will get use to it and proper researching will be part on our trades then it can make our decision making more better. To many technicalities needed to learn that's why many lost because they want to have a shortcut learnings and they failed to know how to do some good counter measure if some events didn't meet on their expectations.

It's fine if they lose money in trading, at least they will gain something after losing money, it only sucks if you lose money and you learn nothing in return, we have discussed this a few times a year only, and many still won't care about your advice, all your points are going to be forever inevitable, emotions can't be beaten for many people so how will they control themselves?

Prices like this are what you pay when you decide to take steps into something you don't know much about, you should have seen it coming but people don't listen to advice until they make mistakes, I have stopped advising people about trading specifically because they think you some want them to be prosperous.

Trading is better for those who can control their emotions and also for those who want to learn everything about trading and still be able to spend much cash on a few trading tools, you can make trading a better experience for yourself if you get the right setup and tools, find the best gurus and learn from them.

Exactly! Once you are liquidated, you're liquidated, there's absolutely nothing you can do about it. That's why, like you rightly said, make sure you know exactly what you are doing.

Moreso, trading isn't for everybody. It's very demanding and not everyone can afford to pay that price.

It's probably a risk, not danger.

Trading is similar to gambling. You trade with other traders, but you have different predictions based on short-term price movements, so either party can be right or wrong, but there's only one winner every time, and that is the exchanges. As long as you are trading a legitimate and highly liquid assets(coins/tokens), there should be no danger of losing money easily. The risk is still there, but with a careful evaluation of your technique, you're likely to end up winning.

It's a game, my friend. You need to win most of the time to be profitable. So, I can say that trading is not for everyone. Those who are afraid of taking high-risk ventures should stay away.

When you do all these without emotional discipline, your trading will be bitter cos you'll be subject to unnecessary panic and desperation especially in the face of loss. When you're panicking and desperate, the risk of losing all  your money becomes  relatively high as you're hell bent on recovery and thus might pay less attention to details and reality. In essence, don't bring emotions to trading, you need only principles to decipher when the markets are moving in your favor and when its not, when its time to quit for the moment until things get back under control and the maximum amount that you'll trade with.

I also recommend you've your trading account separate from your main account. Fund it with the worth of coins your can afford to lose before even starting the trade and be disciplined not to go beyond that in case of loses.

Also you can remove your gains as  soon as they come to maintain a steady trading margin and not lose your profit if the markets finally turns against you.

Of the several ways you discussed for a trader to avoid losses in crypto trading, the first and most basic is a lack of knowledge. Knowledge is really needed when you do anything, including trading in crypto assets, without knowledge you will be very vulnerable to the risk of loss.
Arm yourself with knowledge about crypto, then you can trade according to the amount of money you can afford to lose. Avoid greed in trading, especially if you have just started trading with limited knowledge in the crypto field, choose crypto assets that have strong fundamentals in the market to prevent greater risks.

This sounds like how you would have it on the wildlife adventures where you can really have problems when it comes to having to survive dangerous situations lol. It's all about the "risk" I think and that's what you are talking about when it's about danger.

I believe that it's more dangerous when you gamble compared to trading but it has the same components at it.

That's obviously because each trader has a different way of analyzing their coins and determining when to trade. But even so, many traders still don't want to learn analysis and anything related to trading.

They prefer to seek trading signal information from people in the group so they can buy and sell according to predetermined targets. This often makes traders, especially new traders, experience losses because they only follow advice from other people and don't want to learn to analyze.

We can only suggest what is needed by those who are just starting to trade. The rest is up to them to decide.

This is a must always, trading already involves money, it's not just a game where you can just test something or do some plays.
For me, before we start trading, we must say and think first. Make sure you know what are you doing because whenever you made some mistake in trading, you can't get your money back anymore.

All the recommendations you mentioned are banal for an experienced trader, but useful for a newbie. Where did you get this information from to make such recommendations? Perhaps you are an experienced trader yourself, or did you just share here the information you learned during the training process?

There's risk involved in all of man's endeavors, not just related to trading.
But I quite agree with you that you need knowledge before getting involved in trading. Moreso, you also need to trade with what you can afford to lose, because the market can turn south.

Overthinking which is in other words regarded as emotions is one thing that has lead to greater downfall of a lot of traders in the trading industry and people need to learn how to control their emotions as far as trading is concern if they truly want to succeed in trading, I learnt this the hard way while still trading wit demo account and later switched to real account then I understood that emotion was really real and over think came into place and with all of that, chasing after losses comes in which leads to blowing of account.

Op you did a really brew job with your post and I just comment it but I think this post should be moved to the trading discussion board to get better attention and discussion on this thread.
Good luck

A new investor should practice with a demo account. There are platforms that offer demo accounts and fake balances to trade in various market even bitcoin. So it will be wise to use those platforms to get a better understanding of market behavior and take notes about every trade. This note can be used to plan a strategy that will be suitable for your trading behavior.

Now, many features are present in the world of trading and some features will also help improve a person's trading experience to invest and pursue profits from crypto trading. But, if there is no one to guide it, I think the result will be zero, in fact the result is always negative, where the estimated asset figure decreases every day.

Trading in the “crypto” market or in other markets like in business. Of course this is not free from risks. Because this is a worldly system that cannot be separated. In essence, if something can bring profit, then indirectly it can also bring loss. Likewise with trading in the crypto realm, it is clear that risks will always exist. But even so, all these risks can be minimized properly. Namely by learning everything about trading in the crypto realm well. Because the key word or medicine for minimizing risk in crypto trading in particular is learning all the knowledge in it.

Of course, the main risk in (crypto) trading is financial. Because even a small mistake can have fatal consequences for the trader's life. It could be that the trading capital used simply runs out, and the financial situation becomes very bad. Especially if you use very hot capital, the negative impact will definitely be even more pronounced. Therefore, everything must be prepared carefully. So, start with knowledge first, then after that look for capital or really cold money, and after that can start trading. Even so, don't immediately use too much capital. But use small capital first. So basically, don't rush, but start slowly first. Because if trading is like in the crypto market, if you cannot control your emotions/passions, there will definitely be a greater chance of experiencing losses.