Topic: Mistakes to watch out for - page 2. (Read 698 times)

We need to admit that sometimes the volatility that exists in this market is simply too much, and even experimented traders will find themselves doubting themselves if the market crashed unexpectedly and they were losing money at a rate they did not expect.

So as way to reduce that anxiety you could reduce the size of the positions that you open, as in this way even if the volatility was high, your losses will not be as significant as before and it will be easier for you to hold your coins.

I couldn't agree more with your first point. There had been a few times where I cowered and got scared of the situation that I cashed out too early. I guess it's just something that's in my nature but holy hell does it suck to always be wrong in my predictions. This coming bull run, I'm making it a point to keep at my spot trading/futures position according to my analysis and predictions, would trust myself more this time cause I feel like I do have a knack for trading, it's just that even I don't trust my predictions and inferences even though they are pretty much based on factors that are real.

Thanks for this post, much of an eye opener even for the peeps here who've been in this industry for literal years now.

I think this is more or less FOMO type of trading. One does this when they think if price has gone up then it may go up more so I must go and invest now so that if price goes even up then we might profit. But that's not how it works. To be honest if prices has risen for coins then they are already in the risk zone. There is nothing logical in investing coins that are hot already.

Peeps shall start buying coins when they are already inbred zone. Somehow it's uncontrolled purchases that are done during such FOMO period.

or you can try the multiples theory, if the prediction you choose is wrong, you open a position opposite to the entry 2 times the previous one.
Of course this has risks, but the chance is the same, 50:50.

Not most or the majority of traders, but only novice traders who do not understand how to do good management and do not fully understand about crypto trading.

They are only dominated by the desire to win and end up being too greedy.
They keep putting money in and always buy, but when the highest target is reached, they don't sell it and hold it because they hope to get more profit.
This would be a perfect trap because they would panic when the price kept falling and eventually sell at a price below the first purchase and only get a loss.

Perhaps, they should know first the consequences of trading without sufficient knowledge. Sadly, with the influence of social media influencers pretending experts in trading, most newbies fall into traps.

We all come from newbies but this time with so many tutorials and advice, it was easy for newcomers to learn which will make them not totally newbies when they start trading. But what it makes difficult for them is to adapt to the situation and understand the behavior of the market. And most of all, the struggle to handle their emotions when crisis comes.

If a person is new to trading, he should not try future trading. Most novice traders are tempted to follow other traders in future trading. They think future trading is the same as spot trading but it is different.

If they are not careful and do not have sufficient skills to analyze the market, they will have difficulty and will panic when the market changes too quickly. Another problem with trading is that someone can become greedy and want bigger profits. He will not want to close his trade because he thinks the market will still move in the direction he wants.

One more thing that @OP should add is only to use money you can afford to trade. Most traders still use all-in to trade because they hear the news circulating. They think that market conditions will change soon so they can enter and make huge profits by going all-in.

i agree with you sir, i feel same thing when i was newbie traders, i started my trading with 100$ initial fund,
i lost all in the few days for my wrong strategy, then i was confused and panic if lose again and i stopped my trading for a month,
then i am again motivated of my some friends, and a lot practicing in the demo trading, i learned then continued it till now.

Yet another common mistake newbies make is that they do not make an attempt to reduce the impact such mistakes have on their capital, trading is one of those activities in which even if you read hundreds of books about it you still need practice in order to master it.

And during that process everyone makes mistakes, however if you make a mistake in which you only lose 1% of your capital then you can easily recover from it, but if the mistake that you made claims half of your capital then there is almost no way to recover from that, as such a heavy loss will most likely cause a newbie trader to make even more mistakes down the line.

It's a fact that a lot of people ignore. No one, literally no one, can always time the market perfectly and have a perfect score when it comes to the percentage of success of their trades and even the most expert traders will make mistakes in their journey and it's normal when you are dealing with an extremely volatile and unpredictable market like the cryptocurrency market and you are right that as long as one learns something from their mistakes, such mistakes don't go wasted.

The biggest mistake newbies make is that they make one mistake, and then stop trying instead of learning from their mistake and trying to improve and do better in the craft. When it comes to trading, a lot of people stop trading right after they incur a loss at the initial stage because they feel they will lose more if they try more.

This will tell us how important not to rush in trading but to have time to know more about the market sentiment and be able to understand the situation. Yes, I could agree that trading against the trend will end up losing. Therefore,  we have to analyze the market pretty well and with the help of many trading tools and updates on the current trend, we have the chance to put our buy/sell almost right.
Knowledge and skill are very important in trading and only those who have the capability to understand how the market moves only survive.

Strategies are still the most important thing in trading, not even in trading but when we start some other business in our life we have to make some strategies for it before the start and after we fail to do so in one strategy then we should think again on another one and then apply it sometimes using the same resources or sometimes we have to change it.

In trading it is also necessary as well, we can't say that trading can only happen by learning, as I can give you an example in school we also learn something and keep that in mind but when we come to practical life we can apply that learning using different strategies, without that we can't make our learning valuable, it should be only done when we apply them in trading as well.

If one is not familiar with the knowledge about trading and investment then I think he should not trade or invest because the little sum which he has will also loss due to less or no education. Trading is not about buying and selling coins like everyone says but it also about to know the actual price and actual timing to do trade.

Not only in trading but in every job you should be mentally prepared because your mental health can play a vital role to overcome risk and take a beneficial decision. Emotions are truly an opposer for your success therefore try to not sell and buy coins when you are angry, Impatience or in doubt of what to do. If you are in doubt about taking forward step then remember that don't sell when you have loss and don't wait more when you have profit.

I agree with you that trading is risky but unfortunately I disagree that using strategy isn't important and there is a risk of losing money under any circumstances. By creating certain strategies in trading, it can be controlled correctly, profits can be made and the amount of possible losses can be minimized. Of course, a strategy used by someone else may be a successful method for that person and not for another but everyone can ensure proper risk management by creating their own strategy.

I also trade using some strategies and sometimes I can take a break from trading because I have a lot of losses. With the strategies I use, I can make good profits in some periods and minimize my possible losses. Not only professionals but also amateur traders cannot make money every day and certainly the strategy set by one person cannot help achieve similar results forever. For this reason, it is very important for everyone to create an ideal strategy for themselves and as you mentioned to trade with an amount of capital that they can afford in case of loss in trading.

Yes actually I think you or they can do it themselves without involving some references from other people is suspicious and unreasonable, of course with this then you can know that the role of stop los is very important in your investment involvement, none other than because this is the only thing that can prevent you from experiencing a significant amount of loss in certain conditions.

Of course they or we will only be able to do that when we have full confidence in the planning and also the potential that exists in bitcoin itself, and also several other factors will greatly affect this condition, for the initial stage yes you can just plan to firmly hold the number of coins you have, but know that there will definitely be some conditions that force you to sell them, not only because of the opportunity for haunting losses but also other things such as for example you need emergency funds for your living needs, or for example one of your family is sick and you need money for treatment but there is no other budget left except to sell the coins you have as the only way out in that condition. Therefore, every investor is advised to keep using a cold budget to be allocated to their accumulation so that you can stay calm, and also you must have other savings to minimize if something like what I have said happens so as not to interfere with your bitcoin accumulation. So basically even though bitcoin looks very promising and tempting in terms of its potential as you said but there will still be some conditions that are enough to make you confused and force you to sell it, and above I have suggested some effective ways to minimize it.

Learning is very necessary in crypto investment because without knowledge we will be confused and even tend to make mistakes. Apart from that, maintaining psychology is also important because this is one of the determining factors in a trader's profitability so that we can control our emotions in trading. That way we know how to overcome fear when making decisions, how to overcome FOMO, overcome trauma, overcome greed, and learn to manage money management trading.

We all trade with utmost caution in trading but sometimes due to some simple mistakes we face huge losses in trading. My point is that no mistake can be made in trading because if you make a mistake in trading, the effect of that mistake will directly affect a trader's money. Before doing every work we have to think first. After working, if we think that it is not right to make such a decision in our trading or it would be better to adopt different strategies here, it cannot be done. There is no point in regretting after trading but if our thoughts are deep then we should take the right decision in trading even if it is late. Many times due to the instability of the market we are in a hurry and due to the haste we take many wrong decisions, in the case of trading we can never be in too much of a hurry but we have to be patient and take decisions with a cool head so that we do not make mistakes.

Once you do surf on the internet then you shouldn't trust no one, despite on having those kind of titles like being that a profitable or known trader on which we know that the market cant really be that possibly be that predictable and with that alone then you could really be able to tell on whose the one is really that making those obvious false claims on trying out to boast out that they are profitable or having that
good winning percentage because if they do then they wont really be bothering themselves on asking people to follow them on the first place. Mistakes are something inevitable once you do touch up trading or
crypto investment. You would really be able to eventually be able to experience those common scenarions and common possible outcomes or results.

Once you do gain up that experience then it would really be something that makes you more better compared when you are just starting. We know that experience is the best teacher so as with those
mistakes that you have encountered on which it would really be molding you into much better trader/investor. It is really that impossible that you cant really be able
to make out thosek kind of realizations.

Obviously, you were totally deceived by this ineffective trader that claims to be expert on his own. Using stop loss is actually more advisable especially if you are trap in the middle of your trading and you have no other choice but to sell just to cut your losses. Yes, you might lose from your trades but know that it's way of preventing yourself from losing a lot.

However, it's not bad to keep on hodling on your coin and decide not to sell because you believed that bitcoin price will continue to surge high. But that's not how bitcoin works. Since it's highly volatile, it's price is more capable to move up and down and sometimes do the sideways. That's the reality about bitcoin. If you can't drive with its volatility, expect that you will really get a hard time on making your trades profitable.

Having sufficient knowledge in investing in crypto is very necessary, because without having sufficient knowledge we will not be able to invest in crypto and if we start investing in crypto without having the knowledge we will definitely experience losses from the investment we make.

In my opinion, those who still have a little knowledge about crypto must be able to learn it well and after having this understanding they can invest in crypto, don't just listen to a little understanding from people who immediately try to invest in crypto, of course this will result in losses in investment what we do.