Topic: Dangers of trading - page 4. (Read 713 times)

OP you’ve made a good write up here, actually I feel beginners should not rush when it comes to trading. Though I understand the fact that everyone wants to make profit so fast, but they need to understand the consequences. They shouldn’t be all about the money, when you seek knowledge first money will definitely come with it. But if beginners feel they want the money at all cost they can rather go for Copy trading though it still depends on the exchange they’re using, it’s only few exchange that have copy trading feature, exchanges like Bitget and Bybit has copy trading, but then beginners need to check the track records of the trader they’re selecting so as to make a productive trade.

As OP mentioned greed shouldn’t be a trait a good trader should carry, little profit is okay than running into loss. Both on your personal trade or even when you’re copying trade. 

Crypto trading is generally risky, not only for beginners; even experts in trading are losing money on trading regularly.
 
What I understand about trading is that if you have the knowledge, basic foundation, skills, and experience with huge capital, you will make a profit in trading. You will actually lose money, but you will make it up in some trades because, since you have the knowledge and experience, you cannot keep losing anytime.
 
Some people, mostly beginners, always have the mindset of learning everything at once or in a short period of time just because they are eager to start making money, and this usually results in losses in trading because everything is a gradual process and requires some time and experience to reach perfection.

Trading will become danger to people who don't know and understand how trading works, but if you know how to deal with it you can now benefit a lot on it, make an earning through sleeping because you make a good position and make a stop loss and take profit once the market price hits the designated amount, those are just the example how you deal with trading. Now before committing a trade always make a plan so if you lose with the current situation you have the chance to get back and not just hope to get back your losses.


Seems like you experience a lot of redundancy topics created here or in the trading discussion.

If one wishes to succeed in any type of business, knowledge is the first step. I will argue that there are no other ways that someone will be a successful trader without no proper understanding about trading because when someone does not have the right information of the kind of business they are entering into, they are likely to lose. Even though we are aware that trading is challenging, some individuals lose money in trading quite quickly because they lack the necessary trading skills. A person needs to be well-versed in trading before they start trading. Trading differs from investing in Bitcoin in that anyone with some basic understanding may get started.

Op,  you have listed very important factors that every trader should be aware of if they are looking to become the successful trader they dream of, However, As I advance my knowledge of trading, I came to realize that trading has a lot more to do with your experience in the market, some profitable traders we know of are not profitable because they know it all but due their years of experience with the market, and thus far taught them numerous ways of dealing with the market and avoiding those mistake they know will result into losses.

Danger or not with trading depend with your decision make trading as an adventure or trading is your profession, all business are trading or not always danger with potential getting loss but when making trading as profession I think you will make maximize of loss in trading. Don't be afraid when hearing about how danger with trading if you have more knowledge and make research before investing in some coins. Many people make trading as their profession and know more how to manage and consistent to earn profit, not always trading is danger exactly is bad words make beginner will not try with trading in cryptocurrency.

Important thing if want trade should learn what most required from analyze about coins want to trade until how to manage risk when getting position with coins trading have lower price. For analyze method depend which one easily for understanding because all trader have difference their method with research and analyze coins will trade.

I mean that is why it is not actually recommended to do daily trading because it is just way too risky especially if you dont really have the knowledge and experience on it to actually make an analysis or speculate the market price daily, There are still a lot of traders that actually do day trading but most of them are losing money and only a small percentage of them is actually making a good buck because you actually need to be updated to what is happening in the market making a lot of research about the possible things that are going to affect the market price or just analyzing the charts, etc. With that it could cause a lot of stress, in my experience losing money daily is not a good feeling.

I wouldn't recommend it for sure for beginners, because it was way too risky for them, the best strategy, in my opinion, is always DCA since you could easily minimize the risk of cryptocurrency, also you could probably gamle most of the time trading a small number of your funds just for fun if you really want to do daily trading, but you really need a financial foundation first before even starting to have any kind of investment because it is basically your savings or some kind of emergency funds in case you lose all of your investment you have a money that is going to help you easily recover from a big loss.

That is why Before you begin trading you should educate yourself on it because trading is not an easy task and is very risky which is why you should educate yourself on it before you can profited, Another thing about trading is that even if you know how to trade, you will lose because the market will not always be favorable to you, which is why you should trade with money you can afford to lose because even professionals lose money sometimes when they trade But they are used to it because they feel they will recover their losses, because they have gained enough knowledge and understand how the market works, and they will recover the money they have lost If you have dread in your head, you will never succeed in trading because you cannot risk.

Not all unemployed can able to take a risk on trading since not everyone has a long patience. That's why trading is called not for everyone since to many people got easily discourage when they lose their money on first try and they never bother to try for second time since they get afraid to earn the same result.

But if they could just able to be more careful on decision making and learning some strategies that might work for them maybe we can see the taking full risk trading crypto in any form.

New investors should need to invest small amount so that they sill not get hurt if market fall down and their bought coins or tokens got affected on situation. Also they should learn from their mistakes since this could help them analyze on what possible actions we need to do if we see some movements that need to take care on.

Trading without having analytical skills will be detrimental to the trader. The current market is still volatile and has no signs of recovering, so if someone trades randomly, he or she will make the wrong decision. Maybe he didn't enter at the right time or couldn't determine when he should exit the market.

If you want to trade, you should first learn what is required. You have to know how to use existing indicators in the market and analyze market conditions to know what you have to do. You also have to know how to reduce risk in trading so that you don't experience big losses.

And don't rely too much on other people in deciding which coins to trade with. That's because each person has different analysis techniques, so entry and exit positions from the market will also be different.

Trading has the risk of financial loss which should means it's not something everybody should be doing unless you have the experience to defeat the market. Trading are for those that want to make short term profits and not investors. The volatile nature of the market makes trading not the ideal way to invest in the market, we should become hodlers instead of traders. Holding has proven to be the most reliable way to invest in Bitcoin as those would hodl gets the biggest profits from the market. We have more traders that are losing than those that are having a successful trading career. People are just joining the trading trend without getting any results. They think trading gives the most profits because the so called social media experts say so. You're at the risk of losing your coins each time you trade and it shouldn't be an activity newbies should be engaging with.


Or better still, to avoid all those danger, we should be Hodling instead of trading. When you're not in the market trading, you won't put yourself in those dangers Hodling has more Pros than cons but the same thing can't be said about trading because trading comes with so many side effects. Financial loss are just one of the side effects as we have other effects like mental health and other things. As a newbie if you don't have the knowledge on trading, don't bother going into trading because it mightn't be worth it instead accumulate Bitcoin and HODL.

Yes, trading has high risk when a beginner still doesn’t understand how the market behaves, which is one of the most important tools for a beginner to have basic knowledge and technical analysis of trading. However, even professionals sometimes lose a huge amount of money compared to beginners. My opinion is that some professional traders today think they have knowledge of any aspect of trading, and this kind of professional trader spends huge amounts of money thinking that they will be able to handle the market when it’s low and when it's high to sell. They think they are smarter, forgetting that the market is not by their side.

 
I don’t normally apply this to only beginners in trading because we cannot say that someone who is already professional in trading should put a huge amount of money seriously. For me, it’s wrong, and some people will lose some certain amount of money in their trading journey that will affect their work. However, professionals think they already know how the function works, which is not a save to me. They also need to invest the amount they can afford so that they won’t say because they already know everything, which will result in a big loss. And their trading journey may come to an end.

Those that are mostly in danger of losing money and blowing their accounts are crypto newbies because they lack the proper knowledge of crypto trading and just jump into it and fund their account with some significant amount of money. While trading, they could also attach emotions that could just force them to keep chasing losses as if it were gambling. Some newbies at some point conclude that trading is just so much like gambling, while they were the ones who never paid any proper attention to acquiring the proper knowledge of trading. Some years ago, I tried to trade futures on a CEX, but regrettably, I can't even explain how my asset got liquidated. I just know that one thing that really caused it was that I did not have very good knowledge about futures trading then.

I don't think danger is the correct term, Risk is more suitable, danger is by nature, but risk is only for people who are not prepared. No one will be in any danger if they were prepared for trading, they know about the risk, they know about signal, the nature of the market, and how to manage their money.


And yeah I totally agree with this, to say that trading is an adventure seems like OP is underestimating trading, no one should do that, trading is full with analytic, it's not entertainment like gambling, and definitely not adventurouse, everything must be carefully calculated in trading.

Trading can be a great venture for the unemployed in today's world, but it is very risky for beginners.  But it is not too much risk for those who have experience about trading.  One of the risks is financial loss.  Also many investors invest all their funds to get more profit which is not right at all.  I think those who are new to trading sector should invest small amount.Everyone should get good training and advice from someone experienced on how to reduce risk.

In whatsoever thing we want to do in life, we should expect it risk coming along, if you're into business, there will be peak periods that you experience good sales and profits, there will also be season of dryness when things will seem to have paused, this is how the economy we are is being affected on both sides and we can't do without taking the risk.


If we loss on same market or business that have always been profitable to us, this shouldn't be a discouragement at all on us because we can still come back at it again doing well, market rises and falls, this is one of the beauty with cryptocurrency because they are volatile.

TBH, I cant find this OP beneficial. First of all you should have highlighted the benefit of trading before talking bout the risk involved. Are you trying to tell traders to stop trading? Perhaps the title of your post should be Precaution measure to avoid danger on day to day trading or Things to put into consideration as a trader.. 

In respect to the theme of the topic, some danger may occur with volatility and time decay. There might be a loss even though the underlying price is breakeven to the price you bought the option at. Another one is lack of patience. Don't expect the trade to go exactly your way quickly and correctly when ever you place a trade.

Everything has risks, not just trading. People who tend to stay in safe areas may not thrive. In fact they will tend to fail. Trading can be learned and mastered so that you will be trained to have ways to minimize risk. But some people simply can't fight because of the risk of destroying their mentality. Those who are serious will keep trying, because they learn from mistakes and don't give up.

It's about time you guys stopped seeing trading as an adventure. It should be seen as a profession or at its worse definition; a business. When we do this, our mindset towards trading will definitely change. Those who go through college or any form of tertiary institution will do all they can to obtain a certificate by attending classes and doing course work but will be quick to skip learning process to acquire a set skill that will guarantee them food on the table when it comes to trading. Why spend all that years struggling to acquire just a paper but can't burn the midnight candles to master the art of trading. That's the rhetorical question anyone who's serious about trading should adjust to.

I read all that you listed and I want to affirm that trading is a serious business, not just a haphazardly done stuff. But of course, there's nothing in life that doesn't come with risk. So, why should we expect trading to be an exception?

Trading is really a risky choice of investment if you play fool around since it could make you lose all your money if research is absent when you want to buy some altcoins in the market. Its important for us to know the latest updates or developments done by the project so that we can potentially see on what will be the possible outcome to them since without doing research then its like you are just waiting for some miracle to happen from the altcoins you bought.

Lack of knowledge is really a big issue here so don't get lazy to learn more about it everyday and always have critical thinking towards what you see on the devs actions so that we can do some action base on the research we conduct.

Trading can be a solid way for us to earn money and its just we need experience and skills before we can get into a earn some decent profit from trading.