Topic: Few Tips I learnt from trading that blew my account. - page 4. (Read 594 times)
Greediness and not having patience to take things easy are one of the problems in that has been a serious challenge for some traders. For one to be successful in trading it is important for one to understand that greediness and not having patience are the set backs that can make a trader to loss all what he/she has been building for sometime. Traders should learn to be satisfied with little profit.
[3].Don't predict the market ,react to current market situation.
This is what that cost me blew a lot of my trading capital. Always wait for trend direction and follow the trend , As they say... trend is your friend until it's finished.
And even you follow the trend as long as you don't have enough idea or should i say information what will be the next move of the market base on your technical analysis it is useless and surely can blew your account afterwards..
So don't just follow the trend, learn to how to make a proper technical analysis as well because it's a big advantage.
These are few challenges faced when I newly got into trading, which I think I should share so people who are new traders should know.
[4].Don't outsmart the market :
market does whatever thing it wants to do, so don't be too smart wait for confirmation.
This is actually very important to understand and is often misunderstood, people should understand that market knows everything and it has discounted everything, you should never be like my analysis is 100% correct it's just a small deviation we will be back on track soon, these sort of things are what actually lead to your failure in the market. Think of market as a giver and be the taker by obeying the rules, the moment you want to outsmart the master you are tricked into losses. The biggest example of such a thing is holding onto a losing trade which is clearly visible as bad. People think that there analysis was right market will retrace for sure but forget the fact that market is what is always right if you hit your SL just get out of the trade. [4].Don't outsmart the market :
market does whatever thing it wants to do, so don't be too smart wait for confirmation.
Love it when he mentioned don’t be greedy, it’s master of all! Lolz. He got the feel for it already I guess and learnt the lesson. Exactly it is real enemy whether it’s simple investment, trading, gambling or even buying sugar! If you become greedy then you are pulling big trouble towards you. I learnt this the hardest way after loosing handsome money to altcoin market. After that I literally focused on bitcoin and few well studied alts only. Moreover I am also just feeling up my wallet and hodling them and not really trading just because of that horrible experience. So yes those who would be starting new or whose already into it, just take this as reminder and keep safe trading.
What happens is that as Warren Buffett once famously answered to a question of Jeff Bezos about why was not everyone copying him: ‘Nobody wants to get rich slowly’.
The vast majority of those that come to the markets do so with the intention of becoming rich quickly, some are thinking to achieve this in a few years while the most desperate for profits are thinking in terms of months or even weeks, no one wants to take decades for this to become true, and yet this is the safest and the method that will most likely produce those results.
The vast majority of those that come to the markets do so with the intention of becoming rich quickly, some are thinking to achieve this in a few years while the most desperate for profits are thinking in terms of months or even weeks, no one wants to take decades for this to become true, and yet this is the safest and the method that will most likely produce those results.
I understand that it took warren buffet decades to reach where he is, and he definitely managed to do something magnificent. However let us not forget that he was the son of a senator, who helped him get his first stock when he was just a little kid, and Warren Buffet never had any problems finding money to invest even before he was rich.
However the mindset stands. He did the old long term deal and he stick to it. %20 a year is a very difficult thing to do if you would like to do that for 50 years in a row, he averaged that much, which is awesome and in return people trusted tens of billions of dollars to him. If we could do the same in crypto, just invest for the long term, and keep doing that for 50 years? Boy oh boy, we would get SOOO much more than %20 on average.
Warren Buffett has proven that his approach to investing works, so even if we could not do what he did and invest in bitcoin and hold for 50 years I suspect that even holding our bitcoin for as long as 10 years can be more than enough to give us incredible profits, however the number of people that can do something like that is incredibly limited.
[5]. Don't be greedy:The master of it all.
Indeed. We have to learn to control ourselves, not only in trading but also in everything that we do that involves money. Its a human nature to be greedy sometimes but be wise to not regret your decision.We can stop greediness in real life, I can tell I was greedy then but I know it wasn't at the highest level of greediness where we lose control of our emotions and have been in hard to make good decisions.
Earning more wasn't greediness at all, it was just the result of hard work and dedication. This is what I saw in myself.
Agreed, when you start winning trades, such as three in a row, greediness drugs kick in. always think that you'll always win the trade and that no one can stop you. It is really hard to control, but practice makes perfect. This word is really used by most traders, and when you are watching any tutorials, this is really what they say, because no matter how good your strategy is, if you can't control your emotions, you'll end up losing. But again it is easy to say but difficult to be done.
These are basics to become an professional trader who want to last long in the fast moving market, I can't say these things will blow oir account and create immense profits but definitely can save you from huge loss the main thing in that is greediness which is actually the reason why many traders goes bankrupt.
I agree about all of the things you've mentioned.
My favorites are "Don't chase the market" and "Don't be greedy", because I totally can relate to that. After you lose a trade, a good reentry is a must, if you lost your trade because you went short then it pumps, doesn't mean that the next trade you'll do is to buy, you need to make another TA for that, not just randomly making trades.
My favorites are "Don't chase the market" and "Don't be greedy", because I totally can relate to that. After you lose a trade, a good reentry is a must, if you lost your trade because you went short then it pumps, doesn't mean that the next trade you'll do is to buy, you need to make another TA for that, not just randomly making trades.
[5]. Don't be greedy:The master of it all.
Indeed. We have to learn to control ourselves, not only in trading but also in everything that we do that involves money. Its a human nature to be greedy sometimes but be wise to not regret your decision.We can stop greediness in real life, I can tell I was greedy then but I know it wasn't at the highest level of greediness where we lose control of our emotions and have been in hard to make good decisions.
Earning more wasn't greediness at all, it was just the result of hard work and dedication. This is what I saw in myself.
[1].Don't Chase the market:
Thats right. If you missed an opportunity to either buy or sell, dont chase it and panic. Learn to wait for the opportunity to come again or else you might get rekt.[5]. Don't be greedy:The master of it all.
Indeed. We have to learn to control ourselves, not only in trading but also in everything that we do that involves money. Its a human nature to be greedy sometimes but be wise to not regret your decision. [5]. Don't be greedy:The master of it all.
Greediness can reap you off all your profits already gained from the market when you're trying to gain it all. Be comtempted with the profit you've got and have plans for profits taking.
This is one the biggest challenge I faced during my early time of trading and even now but it's reduced and controled.
True, when we are too greedy for big profits then we will regret it, I often get when trading there is an opportunity to sell when the price skyrockets to thousands of percent, unfortunately I thought that the price would continue to rise but what happened was the opposite, it dropped more than 90% and continued drop so I lost the moment to profit.
even though at that time of course we felt sorry for not taking advantage of this moment to sell,
maybe if we do some research and analysis it will help to make a decision
These are few challenges faced when I newly got into trading, which I think I should share so people who are new traders should know.
(...)
[3].Don't predict the market ,react to current market situation.
This is what that cost me blew a lot of my trading capital. Always wait for trend direction and follow the trend , As they say... trend is your friend until it's finished.
...
You have all stated right but this #3 gives me more attention. (...)
[3].Don't predict the market ,react to current market situation.
This is what that cost me blew a lot of my trading capital. Always wait for trend direction and follow the trend , As they say... trend is your friend until it's finished.
...
Being a trader we should have to be
* Calm and
* Be patient
If we are being reactive to the market trend, tension may grow and even blow our minds started to think about selling. Instead of being too emotional, we have to act according to our plan as pro-traders do and wait for the right time to sell.
Learn up something from the mistakes that you had committed and realize on how you do able to commit those mistakes.Trying to find out on whats the reason so that on next encounter
you are fully aware on possible action that you would make.
If you do really make yourself confident then thats would surely commit or make more mistakes.Be mindful and setting out less risk with your capital.
That's why we shouldn't chase our losses and control our greediness. And maybe you forgot to add this in OP, it should also have a stop loss so that you can minimize your losses once there is.
I know it's very easy to say these things but for sure it's hard to do this especially when you forgot your goal. Trading it's always been crucial, we should have these skills, knowledge plus instinct.
It's all about how we can manage ourselves in trading, there's no shortcut, everything should gain with pain.
What you should do as a trader is actually quite simple when you write it down. I am not even joking, if you could write down what you should do as a trader in order to earn a lot of money, we would all mock about how simple it is.I know it's very easy to say these things but for sure it's hard to do this especially when you forgot your goal. Trading it's always been crucial, we should have these skills, knowledge plus instinct.
It's all about how we can manage ourselves in trading, there's no shortcut, everything should gain with pain.
But, the reality is that we are talking about something that is a bit more than that, human mind and emotions gets the better of us whenever we are trying to do something decent and that results with us eventually getting worse and worse. This is why it looks so much easier when you put it into words and that is why we do not have too many people doing those easy things. It is easy on paper but when you try it, your mind and emotions play you a game.
Greed is definitely one of the worst in this one. I have seen a lot of people who trade and their trades turn into investments. If you are trading then you are trading, stop trying to make it into something bigger and better just because you got in at the right time. Sure, it is great that you bought it and right afterwards it started to skyrocket, but if you were aiming at trading it, then trade it.
If you start to turn your trading into long term investment then it could be fine as well but know that it is a long term investment and realize it will go down eventually as well. Some people forget about that part in the long run.
If you start to turn your trading into long term investment then it could be fine as well but know that it is a long term investment and realize it will go down eventually as well. Some people forget about that part in the long run.
These are few challenges faced when I newly got into trading, which I think I should share so people who are new traders should know.
(...)
[3].Don't predict the market ,react to current market situation.
This is what that cost me blew a lot of my trading capital. Always wait for trend direction and follow the trend , As they say... trend is your friend until it's finished.
...
You have all stated right but this #3 gives me more attention. (...)
[3].Don't predict the market ,react to current market situation.
This is what that cost me blew a lot of my trading capital. Always wait for trend direction and follow the trend , As they say... trend is your friend until it's finished.
...
Being a trader we should have to be
* Calm and
* Be patient
If we are being reactive to the market trend, tension may grow and even blow our minds started to think about selling. Instead of being too emotional, we have to act according to our plan as pro-traders do and wait for the right time to sell.
Spending time in trading with lower amounts will going to teach everything that we looking for. I always learn one thing is that when everyone is in panic and selling cryptocurreny then this is best time to take entry. Always buy at low. After buying at low never in hurry to sell because this is the time that determined your portfolio balance. Always sell in high to make maximum gains. This is just simple trick you can apply on your trading.
Trading is not an ordinary job and you need to compile different factors in order to survive in this crypto trading field for long term.Some of your points are right that don't be greedy in this space because it could have negative circumstances which can leave you with nothing in your hands.You see some temporary profits in any coin and you make them but your greed grows more to earn but after the dump period you have nothing left with you so it's better to be satisfied with what you get.The other points are fine but also learn from your past mistakes that will give you more experience of the trading failures.
[5]. Don't be greedy:The master of it all.
Greediness can reap you off all your profits already gained from the market when you're trying to gain it all. Be comtempted with the profit you've got and have plans for profits taking.
This is one the biggest challenge I faced during my early time of trading and even now but it's reduced and controled.
True, when we are too greedy for big profits then we will regret it, I often get when trading there is an opportunity to sell when the price skyrockets to thousands of percent, unfortunately I thought that the price would continue to rise but what happened was the opposite, it dropped more than 90% and continued drop so I lost the moment to profit.
[5]. Don't be greedy:The master of it all.
Well, a certain amount of greed made you start trading in the first place
So I'd better say: don't be overly greedy and stick to the plan. If you planned to cash in at a certain point, stick to that and plan the next step accordingly, because another opportunity should come.
very true! we all want to earn something the reason why a lot are getting involve with trading, for the hope that they will get nice profits. but being overly greedy will be the reason of your mistakes or possible downfall. not cashing out while you are still positive, still waiting "to this moon" price, you will find out soon enough that the right time has passed already. so yes, being greedy is good at times but you should know your limits.
in some moments greed is still acceptable even so it must be based on research and analysis,
seems like every trader has been greedy and I think that is part of learning
The vast majority of those that come to the markets do so with the intention of becoming rich quickly, some are thinking to achieve this in a few years while the most desperate for profits are thinking in terms of months or even weeks, no one wants to take decades for this to become true, and yet this is the safest and the method that will most likely produce those results.
Wow! Makes total sense here, this is one the problems facing most traders, people really wants to become rich over night with just one or two traders while it's not so most successful traders I have met narrated to me that the most profitable way they grew their account was through gradual process.
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