Major mistake all traders make | Bitcointalksearch.org

Canis Majoris

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Quote from: GoldenLad on March 01, 2018, 04:29:34 PM

I think to make it in day trading, one has to maintain a working and certain strategy that could be maintained for long time. Though, I don't day trade but I have heard and read that it could be way risky than the normal cryptocurrency trading if not properly managed. I think its best if one brings out a certain amount of money for day trading to prevent them from losing all investment when no gain is made. At least this will convince the traders to know when to quit.

Actually, it is not as risky as it is boring. Basically, when you get the hang of it, it becomes more like a daily treadmill routine rather than a fascinating journey. So if it is not your thing, then definitely stay away from it. Many people have tried their hand at this and they left not because they lost but because they thought the profits they earned were not worth it. And for them, it is likely the best choice.

Canis Majoris

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Quote from: helen28 on March 01, 2018, 10:11:28 AM

Major mistakes that a traders makes was when they don't know how to control themselves or how to discipline themselves, well all of us here has started with less understanding or even zero knowledge when it comes to trading so it is up to us how we will gonna study it.

It is not only about controlling your actions and bridling your emotions. This is nowhere near enough, though it is definitely a required prerequisite for a successful trading journey, one of. It is not about just acting in cold blood, in a purposely ruthless and unfeeling manner, it is also about choosing the right direction of your trading decisions. And personally, I would rather stick with the latter still being emotional and all that. Really, what's the purpose of being emotionless if you are losing, even though in a somewhat disciplined and controlled way?

This seems to be another interesting facet of trading.

Digital_Lord

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Quote from: gabmen on March 01, 2018, 07:43:23 AM

Quote from: Basmic on February 28, 2018, 01:33:26 PM

You should always have a supply of Fiat. If you really missed a moment to sell your coins then it is better to stop selling coins and pause. Most cryptocurrencies recover after a fall. This allows a failed trader to recover lost capital and think about changing his profession. But from errors nobody is insured. If you react to market behavior in time, you can quickly recover losses.

Yeah and usually it takes time before a trader develops patience and composure to survive a drop. Sometimes it takes longer before a coin recovers and people give up on their coins. It's true that you only really lose a trade is if you sell at a loss.

You only end up losing if you sell at a loss at the wrong time. There are some times that several indicators will give you a signal about the market and then it is left for you to make use of those signals to you advantage on when to drop from a market and look out for another buy in indicator.

A lot of people have complained that TA does not work, and sometimes, yes it may not, but it is rare as long as you do your analysis well.

Canis Majoris

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Quote from: ivrynx on March 01, 2018, 09:09:45 AM

From what i see and hear and alsk have had experience, there are several mistakes that investors always do, first is they tend to think that they already know what they are doing without relying on the charts, they tend to speculate more rather than do analysis. Second, they tend to be greedy, they rely on their speculation that a certain coin will go high in value, but failed to do further research on the coin, they might bought it at a low price, but it may not go higher than they think, and they might just be set up for a trap. Third one that is see, is they go with the flow, they invest on the hottest coin and again failed to research the coin as well, theh never see to it, when is the best time to buy and sell, that's the reason why people loose a lot of money. The main reason that i see why investors makes major mistakes is that they fail to do research and in all cases, that is the reason they loose, be it a new investor or an old one.

I agree with your in-depth inquiry into the types of mistakes that many traders and investors do, especially the rookie ones. All these mistakes are real without doubt, but they can still be characterized or explained using the methodology outlined in OP. For example, you say that mistakes are due to a lack of proper analysis. But how do we know beforehand that an analysis performed was (not) proper? It may be quite extensive but this alone doesn't make it correct, right? So the real question should be whether an analysis is correct or not correct with respect to future prices. But we can't know that in advance before we actually open a position. And here's the core of the problem discussed. When you see that your analysis is incorrect, no matter how much effort you put into it you should immediately accept that humble fact and take steps to minimize your losses. I think this approach is more practical and robust but you are welcome to discuss it further, of course.

justspare

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Quote from: ivrynx on March 01, 2018, 09:09:45 AM

From what i see and hear and alsk have had experience, there are several mistakes that investors always do, first is they tend to think that they already know what they are doing without relying on the charts, they tend to speculate more rather than do analysis. Second, they tend to be greedy, they rely on their speculation that a certain coin will go high in value, but failed to do further research on the coin, they might bought it at a low price, but it may not go higher than they think, and they might just be set up for a trap. Third one that is see, is they go with the flow, they invest on the hottest coin and again failed to research the coin as well, theh never see to it, when is the best time to buy and sell, that's the reason why people loose a lot of money. The main reason that i see why investors makes major mistakes is that they fail to do research and in all cases, that is the reason they loose, be it a new investor or an old one.

That is a mistake that everyone who hits the charts without learning and either following other people's opinion to trade, or gambling their positions without the use of any indicator but the mindset that as long as they buy low and sell high, they are good.

That is how a lot of them always end up losing their funds. TA and the use of indicators are there for reasons and they are not decorations, and anyone who feels they can just do it on their own, I am really looking forward to their success stories.

upsidedown75

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Quote from: Canis Majoris on March 01, 2018, 12:57:17 PM

Quote from: Bitcotalk on February 27, 2018, 07:34:29 AM

Quote from: ktabb on February 20, 2018, 06:38:10 AM

The biggest mistake that day traders make (especially crypto day traders) is believing that they have an edge over everyone else because of the charts they look at. The biggest mistake is not believing that day trading is 100% gambling, because that is exactly what it is. The only way to consistently make money over the long term is to invest based on value and fundamentals.

Only if they could end up knowing that it pays to either do short or long positions in the market than spending the whole hour in front of a chart trying to day trade.

I agree with you that day trading is 100% gambling but it is worth the risk anyway and they have a place in the market, I have been there but even though all you use is RSI or stoch to buy into an oversold market, sometimes, you may just end up missing the other indicators to know when a market is turning long term bearish, which obviously brings the stop loss into play anyway.

As an aside, I always find it amusing that in TA you can always look for an indicator or two which would have predicted the recent price move close to perfect. The problem is you would know that only in hindsight. Simply put, TA works at all times, it is just a matter of finding the right indicator or method, though there is no guarantee that it will work next time. Apart from very simple techniques like spotting a trend, for which you don't even need TA in the first place, it is mostly complete mumbo-jumbo to me. Sorry if I hurt your feelings here TA guys.

No, you are not hurting those feelings because you are right and all traders know that sometimes, even TA may go wrong and that is why you set emotion apart and see how to get back into a position you left if things end up turning the other way round. One thing with a market is that, there would always be a time to step back in and to monitor the trend, which can still give you a chance of not missing at all. However, for a good TA and very good use of indicators, you will make huge percentage of better decisions than bad ones.

Canis Majoris

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Quote from: ?? on ??

The biggest mistake which new traders make is that they purchase some coins thee price of which increases quickly due to FOMO without actually knowing that its being pumped.

Some times the mistake what bitcoin traders do is that when they see bitcoin price falling,they wrongly predict it that bitcoin price would crash and they short their bitcoins with an idea o buying back those bitcoins at a much lower price.But unfortunately,bitcoin price starts increasing and they lose the game.This situation was even experienced a few months before by bitcoin traders due to wrong prediction.

I suggest that weekend or couch traders should stay away from shorting altogether. Naked shorts are a short road to disaster even for professional and highly experienced traders. Personally, I use shorts only if I properly hedge them, so in the worst case scenario my losses would be minimal if any. If you are tempted to short a coin, remember first that your profit side is limited while your losses are limited only by the size of your deposit.

malikusama

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Quote from: magneto on February 20, 2018, 05:23:28 PM

The most common mistake would be panic selling and weak hands, honestly.

If you invest in bitcoin then you are probably going to have to prepare for the long term. Trading bitcoin short term will mess up your entire trading psychology because you'll keep on trying to go for just that little more profits.

If you are trading bitcoin short term, make sure that you have a stop loss level in mind, and a target where you sell your coins. Otherwise, you'll always fall into the hole of selling low and buying high.

Indeed you explained quite well, the high expectations of beginners or inexperienced traders in a short period of time is the reason why they go for the panic selling during a dip. You should need to keep your calm in long term trading.

Claudyah

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Quote from: MartynasB on February 20, 2018, 06:41:27 AM

In my opinion, big mistake that a lot of new traders chase coins that price is growing fast like it was with Iota, Tron ant etc. They buy coins at all time high and think that it will grow much more

Minimize emotional involvement in stock transactions (if not eliminate). Emotion is one form of human subjectivity. Distinguish between emotion and instinct; new instinct can be gained from experience but there is still possibility to be wrong. Be sure to be ready with all possibilities.

Dreamchaser21

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Quote from: bitcad4u on March 03, 2018, 12:21:45 PM

Trading is not easy as like the posting,we should have huge knowledge before to start trade.Because with out the knowledge you had start a trade means,by seeing the minor fluctuation of price,you will buy the bitcoin with high price.So it's better to analysis the past chart of bitcoin,before you start trading.If you buy a bitcoin with 300$ lesser than current market price means,you can avoid huge loss even though fall in price.

Posting is not easy, you also need huge knowledge about this thing, well trading on the other hand is almost the same but with a higher risk so make sure you have to study everything about it because traders biggest mistake is to done it without proper knowledge.

Canis Majoris

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Quote from: raven7886 on March 03, 2018, 08:33:27 AM

Quote from: A L I E N on March 02, 2018, 08:11:12 AM

Quote from: mia khalifa on February 23, 2018, 11:21:53 PM

Quote from: Canis Majoris on February 20, 2018, 04:50:28 AM

An active day trader myself (sort of), I often think about common mistakes people make in trading. And it seems that I have traced back most if not all such mistakes to their root cause. In a nutshell, it all comes down to being unable to back out if something goes wrong. For example, you buy a few bitcoins at a December high and expect the price to continue rising, which is kind of obvious. Instead, the price starts crashing down and you find yourself in a situation that you didn't envisage or consider beforehand. So your best option would be to bring things back where they were as fast as possible even if it means some loss.

It is not so much about placing dumb stop-loss orders or other trading techniques aimed at minimizing losses as about your mental disposition or general attitude to immediately get out of what can be loosely called a decision limbo when you basically don't know what to do. In other words, search for the exit where the entrance is and do that fast.

most mistakes made by a trading player is that the player can not control his emotions and control his patience because his key trading is to have a very high patience if you do not have very high patience is certainly likely to get a loss.

The biggest mistake that people make (I do not mean here only traders) is that they are all in a hurry. We need to learn how to be patient and wait until the right moment comes.

Lol, patience also has some level of degree. Patience when a market is just showing some slight movement and you know it is still in the present trend or patience when the market is showing a change of trend and you are still in your present position.

Anyone who wants to be a long term holder, there is no harm in that, it is good, but putting too much patience into trading without the use of your analysis unless you are the type that is just buying at any bottom and expecting a huge rise to sell, then you may have the patience, but be careful the bottom you are buying as it may still be a top.

Agree with this point. People generally seem to overestimate the importance of patience (being patient). It is not patience (or lack thereof) that they should actually care about. They should rather think about what makes them impatient in the first place. And this is a gaping lack of knowledge and understanding. Really, if you knew for certain that the price would rise tomorrow or in a week or so, would you be so impatient about it today?

The lesson to take home is that if you feel impatient and restless for some obscure reason, it is most certainly that you are missing some important detail in the whole picture.

bitcad4u

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Trading is not easy as like the posting,we should have huge knowledge before to start trade.Because with out the knowledge you had start a trade means,by seeing the minor fluctuation of price,you will buy the bitcoin with high price.So it's better to analysis the past chart of bitcoin,before you start trading.If you buy a bitcoin with 300$ lesser than current market price means,you can avoid huge loss even though fall in price.

Canis Majoris

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Quote from: automail on February 28, 2018, 08:02:10 PM

Quote from: Canis Majoris on February 20, 2018, 04:50:28 AM

An active day trader myself (sort of), I often think about common mistakes people make in trading. And it seems that I have traced back most if not all such mistakes to their root cause. In a nutshell, it all comes down to being unable to back out if something goes wrong. For example, you buy a few bitcoins at a December high and expect the price to continue rising, which is kind of obvious. Instead, the price starts crashing down and you find yourself in a situation that you didn't envisage or consider beforehand. So your best option would be to bring things back where they were as fast as possible even if it means some loss.

It is not so much about placing dumb stop-loss orders or other trading techniques aimed at minimizing losses as about your mental disposition or general attitude to immediately get out of what can be loosely called a decision limbo when you basically don't know what to do. In other words, search for the exit where the entrance is and do that fast.

I agree. The rules of the game is simple, if the price is at its peak, don't even think of buying it. In my case, I always buy a coin when its at least 50% below of its price below (it depends, not usually the case). I found 3 coins who has then I sold it after 3 months. I gained some and I never regret my decision because I hold it long enough and I needed the money. The price went down on the 4th month but it recovered plus 10% on the 5th month. Always trust your instinct but be close to reality. You know what it is.

Actually, I like your trading strategy as long as you keep decent coins in your investment portfolio. As history has shown, expecting a ~50% major price retreat is not unfounded since such fallbacks are quite common these days and they can be used as a staple of a long-term trading strategy. As long as the cryptoverse expands, any correction will sooner or later be followed by a major bull rally, so it is kind of sure bet. But be warned, crypto won't expand infinitely.

Lancusters

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No trader can predict the depth of failure. Those traders who work on short trades will never keep the coins if they show a stable downward trend. They always fix their profit or loss very quickly. Those people who are set up for long-term storage of coins are not traders. They use crypto-currencies as a Deposit. These are completely different strategies.

raven7886

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Quote from: A L I E N on March 02, 2018, 08:11:12 AM

Quote from: mia khalifa on February 23, 2018, 11:21:53 PM

Quote from: Canis Majoris on February 20, 2018, 04:50:28 AM

An active day trader myself (sort of), I often think about common mistakes people make in trading. And it seems that I have traced back most if not all such mistakes to their root cause. In a nutshell, it all comes down to being unable to back out if something goes wrong. For example, you buy a few bitcoins at a December high and expect the price to continue rising, which is kind of obvious. Instead, the price starts crashing down and you find yourself in a situation that you didn't envisage or consider beforehand. So your best option would be to bring things back where they were as fast as possible even if it means some loss.

It is not so much about placing dumb stop-loss orders or other trading techniques aimed at minimizing losses as about your mental disposition or general attitude to immediately get out of what can be loosely called a decision limbo when you basically don't know what to do. In other words, search for the exit where the entrance is and do that fast.

most mistakes made by a trading player is that the player can not control his emotions and control his patience because his key trading is to have a very high patience if you do not have very high patience is certainly likely to get a loss.

The biggest mistake that people make (I do not mean here only traders) is that they are all in a hurry. We need to learn how to be patient and wait until the right moment comes.

Lol, patience also has some level of degree. Patience when a market is just showing some slight movement and you know it is still in the present trend or patience when the market is showing a change of trend and you are still in your present position.

Anyone who wants to be a long term holder, there is no harm in that, it is good, but putting too much patience into trading without the use of your analysis unless you are the type that is just buying at any bottom and expecting a huge rise to sell, then you may have the patience, but be careful the bottom you are buying as it may still be a top.

Canis Majoris

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Quote from: Basmic on February 28, 2018, 01:33:26 PM

You should always have a supply of Fiat. If you really missed a moment to sell your coins then it is better to stop selling coins and pause. Most cryptocurrencies recover after a fall. This allows a failed trader to recover lost capital and think about changing his profession. But from errors nobody is insured. If you react to market behavior in time, you can quickly recover losses.

Bitcoin had been quite forgiving in this regard until recently. But if you bought a few bitcoins at $20k in December and the price will never get there again in the future, you are pretty much screwed. Besides, I can't agree that most cryptocurrencies actually recover over time. The vast majority of these coins are clear-cut pump&dump scams, and not running from them in due time means losing money (still better would be staying away from them). So it is not about recovering losses like averaging down, waiting out, or anything to that tune.

A L I E N

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Quote from: mia khalifa on February 23, 2018, 11:21:53 PM

Quote from: Canis Majoris on February 20, 2018, 04:50:28 AM

An active day trader myself (sort of), I often think about common mistakes people make in trading. And it seems that I have traced back most if not all such mistakes to their root cause. In a nutshell, it all comes down to being unable to back out if something goes wrong. For example, you buy a few bitcoins at a December high and expect the price to continue rising, which is kind of obvious. Instead, the price starts crashing down and you find yourself in a situation that you didn't envisage or consider beforehand. So your best option would be to bring things back where they were as fast as possible even if it means some loss.

It is not so much about placing dumb stop-loss orders or other trading techniques aimed at minimizing losses as about your mental disposition or general attitude to immediately get out of what can be loosely called a decision limbo when you basically don't know what to do. In other words, search for the exit where the entrance is and do that fast.

most mistakes made by a trading player is that the player can not control his emotions and control his patience because his key trading is to have a very high patience if you do not have very high patience is certainly likely to get a loss.

The biggest mistake that people make (I do not mean here only traders) is that they are all in a hurry. We need to learn how to be patient and wait until the right moment comes.

GoldenLad

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I think to make it in day trading, one has to maintain a working and certain strategy that could be maintained for long time. Though, I don't day trade but I have heard and read that it could be way risky than the normal cryptocurrency trading if not properly managed. I think its best if one brings out a certain amount of money for day trading to prevent them from losing all investment when no gain is made. At least this will convince the traders to know when to quit.

Canis Majoris

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Quote from: Bitcotalk on February 27, 2018, 07:34:29 AM

Quote from: ktabb on February 20, 2018, 06:38:10 AM

The biggest mistake that day traders make (especially crypto day traders) is believing that they have an edge over everyone else because of the charts they look at. The biggest mistake is not believing that day trading is 100% gambling, because that is exactly what it is. The only way to consistently make money over the long term is to invest based on value and fundamentals.

Only if they could end up knowing that it pays to either do short or long positions in the market than spending the whole hour in front of a chart trying to day trade.

I agree with you that day trading is 100% gambling but it is worth the risk anyway and they have a place in the market, I have been there but even though all you use is RSI or stoch to buy into an oversold market, sometimes, you may just end up missing the other indicators to know when a market is turning long term bearish, which obviously brings the stop loss into play anyway.

As an aside, I always find it amusing that in TA you can always look for an indicator or two which would have predicted the recent price move close to perfect. The problem is you would know that only in hindsight. Simply put, TA works at all times, it is just a matter of finding the right indicator or method, though there is no guarantee that it will work next time. Apart from very simple techniques like spotting a trend, for which you don't even need TA in the first place, it is mostly complete mumbo-jumbo to me. Sorry if I hurt your feelings here TA guys.

helen28

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Quote from: ivrynx on March 01, 2018, 09:09:45 AM

From what i see and hear and alsk have had experience, there are several mistakes that investors always do, first is they tend to think that they already know what they are doing without relying on the charts, they tend to speculate more rather than do analysis. Second, they tend to be greedy, they rely on their speculation that a certain coin will go high in value, but failed to do further research on the coin, they might bought it at a low price, but it may not go higher than they think, and they might just be set up for a trap. Third one that is see, is they go with the flow, they invest on the hottest coin and again failed to research the coin as well, theh never see to it, when is the best time to buy and sell, that's the reason why people loose a lot of money. The main reason that i see why investors makes major mistakes is that they fail to do research and in all cases, that is the reason they loose, be it a new investor or an old one.

Major mistakes that a traders makes was when they don't know how to control themselves or how to discipline themselves, well all of us here has started with less understanding or even zero knowledge when it comes to trading so it is up to us how we will gonna study it.

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