Topic: Fast ways to lose money trading - page 3. (Read 1542 times)
one of the rules which i find very important is the one that say leaving a losing trade instead of cutting it short and reduce the loss. this is mostly caused by the ego of not wanting to sell cheap and the hope of waiting for it to get back to entry point. it has happened to me and i have leant from it. holding a coin to recover when in a dip is something that is not definite. just keep learn and allow yourself to make mistakes and better them. n
Trade too much - You don't have to enter a trade everyday even if you're a day trader.
Trading too much will create a kind of poor mindset that can expose traders to high risk. Trade randomly - Don't trade every coin. Be smart, choose coins you're comfortable with. Don't gamble, always have a plan and follow through on it.
Trading better coins will be the best, number one of them is bitcoin. Some coins are just not good while may coins are shitcoins, shitcoins that people will trade but keep losing. No stop loss: This happened to me once. I lost a chunk of my capital. Stop loss was created for a purpose use it for every one of your trade.
This depends, and also depending on the analyses. If it is spot trading, there are may times there will be correction, and after the correction is bullrun again. Stop loss can help but it has its own downside too.And in addition to what you just said dude, if anyone will become greedy in doing trade activity due to aiming to earn big in a fastest way, will surely lead them into nothing but losing their money in the end. Then, the next one is lack of discipline for themselves, because with this it can destroy our good mind condition, mindset, and our good plan as well in the end to get a nice profit into trading.
No stop loss: This happened to me once. I lost a chunk of my capital. Stop loss was created for a purpose use it for every one of your trade.
Yep, stop loss is very important but I have seen some people say that they don’t like making use of stop loss because they can set it and forget to start the trade again when it stops and they might end up missing out on an opportunity.I have always laughed at things like this, from the name (stop loss) I believe that a lot of people should already know that that’s how it’s meant to be, the work of the tool s just to stop your losses so that you wouldn’t have to lose so much money. It’s up to you set the trade again, and moreover if you set your stop loss properly you wouldn’t have to stress that much.
I would say this is a refresher thread for those who hasn't seen it before or read something like this regarding trading.
Many threads are happen to present based on trading and it's aspects while doing so. However, I have observed that it's better to enter the market on daily basis with low volumes if you are long term holder for the same. I mean every bitcoin or other coins will take small or big dip on the downward trend which shall be taken as good entry point.
I mean anything that you buy below ATH is always good entry point. Bitcoin and other currencies are completely safer for future investment considering its solid history. It has shown periodic cycle of going upwards thus if you have got the money you better keep buying and holding.
I wouldn't say much about day traders but for long term holder multiple entry points are indeed needed.
That is called DCA, if you get in small by small but consistently, you are going to have a good base of entry points, and do this daily for couple months period and you are going to have an excellent one as well. Bitcoin is something that goes up in the long term, sure it may go down time to time but it always goes up in the long term, but if you invest just 100 bucks, even if it does 10x increase (which is unlikely anytime soon) it is going to be 1000 dollars, that is a good amount of money but that is not life changing amount in the poorest of nations, it is a good amount but you are not going to suddenly retire and live forever with 1000 dollars in any nation in the world.Many threads are happen to present based on trading and it's aspects while doing so. However, I have observed that it's better to enter the market on daily basis with low volumes if you are long term holder for the same. I mean every bitcoin or other coins will take small or big dip on the downward trend which shall be taken as good entry point.
I mean anything that you buy below ATH is always good entry point. Bitcoin and other currencies are completely safer for future investment considering its solid history. It has shown periodic cycle of going upwards thus if you have got the money you better keep buying and holding.
I wouldn't say much about day traders but for long term holder multiple entry points are indeed needed.
So that means if we are going to end up with something much better, we need to keep investing consistently, every day, every week, every month whenever we find some money, because if we invest and have 10k invested, it could be 100k and that could be life changing.
I looked towards the thread, and most of it is pointed out to newbies which is understandable because they are like baby birds that try to fly. But believe it or not, newbie or not, we all made mistakes. We are all being held back by our emotions when in trading. It is just a matter of how strong the emotion is, and what kind of person are we to handle the situations.
I would say this is a refresher thread for those who hasn't seen it before or read something like this regarding trading.
Many threads are happen to present based on trading and it's aspects while doing so. However, I have observed that it's better to enter the market on daily basis with low volumes if you are long term holder for the same. I mean every bitcoin or other coins will take small or big dip on the downward trend which shall be taken as good entry point.
I mean anything that you buy below ATH is always good entry point. Bitcoin and other currencies are completely safer for future investment considering its solid history. It has shown periodic cycle of going upwards thus if you have got the money you better keep buying and holding.
I wouldn't say much about day traders but for long term holder multiple entry points are indeed needed.
Many threads are happen to present based on trading and it's aspects while doing so. However, I have observed that it's better to enter the market on daily basis with low volumes if you are long term holder for the same. I mean every bitcoin or other coins will take small or big dip on the downward trend which shall be taken as good entry point.
I mean anything that you buy below ATH is always good entry point. Bitcoin and other currencies are completely safer for future investment considering its solid history. It has shown periodic cycle of going upwards thus if you have got the money you better keep buying and holding.
I wouldn't say much about day traders but for long term holder multiple entry points are indeed needed.
I’m looking for trading job
Metatrader4 platform
EU GU XAUUSD pairs
Must be able to hedge
I like to offer my service here, provided you good capital to be invested.
Metatrader4 platform
EU GU XAUUSD pairs
Must be able to hedge
I like to offer my service here, provided you good capital to be invested.
The fastest way to lose your money is.
Invest in the coin you didn't know.
Trade with 70-100x leverage without having a plan.
Don't set TP/SL
Don't learn knowledge of why losing your trade.
I saw a lot of newbies in a group saying this coin is so bad it's better to not follow your (another member) decision. They become dependent on the opinion of other people.
Invest in the coin you didn't know.
Trade with 70-100x leverage without having a plan.
Don't set TP/SL
Don't learn knowledge of why losing your trade.
I saw a lot of newbies in a group saying this coin is so bad it's better to not follow your (another member) decision. They become dependent on the opinion of other people.
There is quite a rude but self-explanatory proverb: "The leverage killed more jews than World War II". That's the main reasons for big losses.
Trading a lot and trading with emotions are connected. A lot of people become emotional unstable when they discover some of their money has been lost so they keep on trading without any strategy. It is just like gambling, when you lose, you continue just to make sure that your money that was lost is being recovered but at the end you keep on losing. Stop loss is very important and it takes me a lot of time to understand how the stop loss works. Most time I stop my active trading when I won't be opportune to keep monitoring it
I had a big challenge controlling my emotions when I started trading for losing a trade based on my strategy, I will take counter trade in a bid to win back my loss but ended up losing again, however I was able to control it now.Stop loss has always been my saving grace in keeping my portfolio intact, it is very important to me, without it I would have rekted my account on many occasions.
Trading a lot and trading with emotions are connected. A lot of people become emotional unstable when they discover some of their money has been lost so they keep on trading without any strategy. It is just like gambling, when you lose, you continue just to make sure that your money that was lost is being recovered but at the end you keep on losing. Stop loss is very important and it takes me a lot of time to understand how the stop loss works. Most time I stop my active trading when I won't be opportune to keep monitoring it
Hey guys, I recently started trading on Binance and I read books, watched videos on fundamental analysis, support and resistance. I try to improve myself on crypto trading and also on psychology aspect of trading. The path of a trader is not as easy as most think. It is quite different lifestyle portrayed on Instagram. You could be a trader for five years and you'd still not have enough knowledge or experience. Maintaining profitability is a tough challenge.
🌟Fast ways to lose money trading;
👉Trade too much - You don't have to enter a trade everyday even if you're a day trader.
👉Trade too big - Don't use more than 6% of your capital when trading. Ensure your liquidity is low
👉Trade randomly - Don't trade every coin. Be smart, choose coins you're comfortable with. Don't gamble, always have a plan and follow through on it.
👉Trade based on your emotions - Trading is about 90% psychology. Guard your mind and your heart so you can properly apply your trading plan.
👉Trade based on predictions - Don't trade based on financial advice from someone on telegram or any of the social media platforms. Do your own research.
👉No stop loss: This happened to me once. I lost a chunk of my capital. Stop loss was created for a purpose use it for every one of your trade.
👉Cut winners fast: Don't be greedy!! Collect your profits.
👉Let losing trades run: This would kill you, if a trader is going bad I think it's better to close the position at your stop limit rather than letting it run in hopes it may come back to our favor.
🌟Fast ways to lose money trading;
👉Trade too much - You don't have to enter a trade everyday even if you're a day trader.
👉Trade too big - Don't use more than 6% of your capital when trading. Ensure your liquidity is low
👉Trade randomly - Don't trade every coin. Be smart, choose coins you're comfortable with. Don't gamble, always have a plan and follow through on it.
👉Trade based on your emotions - Trading is about 90% psychology. Guard your mind and your heart so you can properly apply your trading plan.
👉Trade based on predictions - Don't trade based on financial advice from someone on telegram or any of the social media platforms. Do your own research.
👉No stop loss: This happened to me once. I lost a chunk of my capital. Stop loss was created for a purpose use it for every one of your trade.
👉Cut winners fast: Don't be greedy!! Collect your profits.
👉Let losing trades run: This would kill you, if a trader is going bad I think it's better to close the position at your stop limit rather than letting it run in hopes it may come back to our favor.
I think you've already highlighted practically all of the ways to lose money being a trader. A successful trader must have learnt how to manage these ways of losing money.
I actually believe the fastest of all these ways is not setting stop loss. Not setting stop loss can make one lose all his capital. I almost lost all my capital when I didn't set a stop loss to one of my trades. It was one painful lesson I wouldn't forget in a hurry.
Actually it is if you are investing randomly.
Investing is a kind of mind game. Everything depends on your assumption power and well calculated decision.
You should only invest in those projects thus have a great road map for near future.
And also has a decent volume in the market place.
If you invest like clumsy You'll lose all for sure.
Investing is a kind of mind game. Everything depends on your assumption power and well calculated decision.
You should only invest in those projects thus have a great road map for near future.
And also has a decent volume in the market place.
If you invest like clumsy You'll lose all for sure.
Incompetence is just one side of the equation, after all you can be really bad at trading and as long as you used your common sense and stayed away from the market you will not lose money as you understand that since trading is a competition then that means that you are a great disadvantage against other traders thanks to that incompetence, so what makes people trade even when they know they are incompetent? Greed, when you add greed to the equation everything becomes more clear and we can explain why complete newbies invest all their savings in the market only to lose it all in a matter of weeks.
As you have stated above; Discipline is also one way with which we can lose money to trading; when a trader cannnot define whhen to trade and when to ignore the market it leads to losses; Also, a trader who is not disciplined will be greedy. I say this because self discipline in trading will help you to take the right decisions about trading, taking profits, exiting trades etc.
Newbies are prone making mistakes due to lack of knowledge.
There are lots of new investors who quickly lose their money because of rushing things out, thinking that it's just an easy access to make
good profits, not doing their research and proper study leads them to invest with the wrong assets or place their position in the wrong time making them trapped and lose their money.
Newbies making mistake is not the key problem for them, making mistakes that would end your financial freedom is the key problem. If you are a newbie, you are going to make mistakes and that's okay, you do not have to get in with everything you have and if you invest small portion of your savings in crypto and learn and make mistakes those are fine because those mistakes would allow you to get better.There are lots of new investors who quickly lose their money because of rushing things out, thinking that it's just an easy access to make
good profits, not doing their research and proper study leads them to invest with the wrong assets or place their position in the wrong time making them trapped and lose their money.
For this to work you have to do two things and you will come out better, first of all you should not be investing with all your money, only money that you are willing to lose, secondly you have to be willing to learn from your mistakes and check where you did wrong and act accordingly. If you do these and keep trading with small amounts for a good while, you will get better and better at it and you will be able to increase the amount you deposit and eventually make a good profit from it.
👉No stop loss: This happened to me once. I lost a chunk of my capital. Stop loss was created for a purpose use it for every one of your trade.
👉Cut winners fast: Don't be greedy!! Collect your profits.
👉Let losing trades run: This would kill you, if a trader is going bad I think it's better to close the position at your stop limit rather than letting it run in hopes it may come back to our favor.
👉Cut winners fast: Don't be greedy!! Collect your profits.
👉Let losing trades run: This would kill you, if a trader is going bad I think it's better to close the position at your stop limit rather than letting it run in hopes it may come back to our favor.
I think there is a better way to deal with a negative trade. If my trade goes against me then I can rebuy the same amount of token if the price dump 10 to 15% from my buying price. If the price still goes down then I can do one more buy but this time the amounts will be double. This dollar cost average will lower my entry points and if that project is good it will surely bull after sometimes. I have used these methods successfully my your chance of losing trade will be zero.
Lots of people have lost all there funds due to the reasons you just listed above the first thing I will like to talk about is trading with emotion that's one of the first thing you have to avoid when trading you don't have to fall in love with any coin or you might endup losing all you funds, as a trader somepeople will say stoploss is not necessary but to me stop lose is very important when trading is better to loss 10% of your fund than you losing 75% of your funds, don't always trade with too much of funds, always make sure you do your own research before buying any coin don't just buy a coin just because of what you hear about the coin. I think this my little wite up will also help.
I agree with the emotions part but stop loss can be tricky because I have seen guys selling bitcoins at 5-6k because they had stop loss enabled but imagine if they just waited and come on we all knew the prices will jump back even higher and it was all about time as we can see now.Yes one should avoid buying random coins, well said. But there are coins which I bought like UNI swap tokens and PolkaDOT tokens which I never heard or learned too much about, now I have learned a lot about DOT but when I purchased, I had no idea and still I was happy with my purchase. The reason was because there was serious hype followed by exchange listing and from what I have seen - any coin that gets newly listed on big exchanges like Binance, the price tends to go up at least temporarily.
You gotta be careful when investing, there are also fake Technical Analysis which will make it hard for you as you might get caught on it that will make you lose your investments..
One thing I missed on the list, not only for BTCUSD but in general, is:
Plan your trade.
Sit on your ass and do some work:
-Create a strategy, and backtest it.
-after backtesting, test it with demo accounts
-after 1-2 Months of demo accounts, switch to real money (small account)
-every continuous month you end in profit, add some money to your trading account.
-> That is solid trading. Everything else is pure guesswork imho <-
Plan your trade.
Sit on your ass and do some work:
-Create a strategy, and backtest it.
-after backtesting, test it with demo accounts
-after 1-2 Months of demo accounts, switch to real money (small account)
-every continuous month you end in profit, add some money to your trading account.
-> That is solid trading. Everything else is pure guesswork imho <-
Smile!!! I do not think there is any trader who has not had a share of loosing money while trading. My friend I and lost close to $1,500 in the space of just 25 days alone. We need money do badly, and we also want to make quick profit. We entered into multiple trade hopiy it will go in our favor, and the trades went otherwise. We refused to close the trade and take the lost, we were hoping the trade will later go up. And instead it kept going down. Until the account was closed down. I know this happens alot, cause that's what I personally refers to as learning period.
We have learnt the lesson of our lives with our hard earned money, but life continues. I just shared one way you can loose money while trading and I hope you guys can learn from my experience.
We have learnt the lesson of our lives with our hard earned money, but life continues. I just shared one way you can loose money while trading and I hope you guys can learn from my experience.
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