Topic: Mistakes to watch out for - page 3. (Read 753 times)

A stop loss is a form of insurance, so even if the position you opened made you to lose some money, those losses will be limited, so the next time you open a new position then you will not be hindered by the losses you incurred on your previous trades.

Still a great deal of traders do not really understand why a stop loss can be a very useful tool and refuse to use it, and unfortunately there is no way for them to learn, other than the hard way, about the usefulness of a stop loss.

Learning will be our investment as traders here in the crypto business. It will help a lot if we have enough and deep knowledge of crypto or bitcoin. Because if you know and have it, you will not be fooled or led astray by anyone who tries to stalk you.

If the people who have extensive knowledge here make mistakes even though we are experts who still lack knowledge, it is even more so that we are prone to becoming victims of exploitative people.

Sometimes, using stop loss is crucial in order to help you cut your losses and to help you avoid making emotional decisions that would definitely put your trades into a negative loss. Once you resort into stop loss, it does not mean that you are actually at the losing end, but its definitely a big step to free yourself from big losses that might happen while you are in the process of continuous trading.

By being greedy, you certainly think that the price will keep on growing that's why you decide not to sell. However, if you don't act upon seeing your trades are not doing good anymore, then you could experience more losing if you don't decide to sell at a stop loss. Using stop loss is not actually accepting that you are already losing your trades, but its the best option that could help you out from the big losses that you would encounter later on.

Nice advice you got there but I don't think it will be fully understand by most especially those with lack of trading experience yet.

It's better for me to see people commiting mistakes on the way as experiencing it will give them the real feeling of being under that mistake. Since they don't want to repeat the same mistake over and over again, these people will do their best to avoid it or minimize the chances of commiting the same mistake.

There's no perfect trader. Mistakes happened even for those long time trader and knowledgeable ones. No one can fully deal with the crypto market volatility.  As long as these traders learn from their mistakes and trying everything to minimize it from happening again, then they are all good.

Also, using too many indicators can complicate trading strategies. As a matter of fact,  I find it very counterproductive and it leads to confusion rather than providing clarity. Once you are doing this, it makes it challenging to interpret and act upon the information. As a trader you would then receive mixed messages, that leads to hesitation or, worse, making ill-informed decisions. This is one mistake to watch out for and avoid.

I agree with this, and that was my biggest loss in trading several years ago, always thought the price would go up again and continued to wait for that to happen because I thought selling at a loss is stupid and it turns out that the biggest stupidity of traders is when they don't stop loss, and the strangest thing is that there is a trader who considers himself an expert but advises on his channel not to do stop losses because as long as you haven't sold it, it means you haven't made a loss, and this is the stupidest advice I've ever heard and he said that on altcoin trading.

This advise is very vital because some persons fail to understand that consolidating markets have no direction and are sometimes almost unpredictable as to how they will eventually turn out after much consolidation so it's usually much safer to avoid trading such until it's clear that the market is now moving in a certain direction.

Taking too many trades at same time could be very risky and dangerous especially when you are simultaneously taking traders on different pairs at the same time. You find it almost difficult managing all of them at the same time, it will be much safe if you do just a pair and probably have multiple entries on them and if you must do more than one pairs at a time then it shouldn't be more than three pairs so you can be able to effectively manage them.

Buying at the right time and price will give you a better profit ratio than simply entering without knowing if it's the right time or not.
And vice versa, there are profit limits that should not be violated when you have a strategy, so use the strategy.

If it is profitable and reaches the set price, then take profit, or just need to set an order at the specified sales price.
To keep the capital in good condition, use stop loss to stop losses at a certain decline, it can maintain the integrity of capital with only a small loss, if indeed the market does not go as predicted.

Trying to be greedy does have a bad impact when prices suddenly cannot be predicted.
Going beyond what has been determined and then falling at a deeper price will cause considerable loss and regret.

In trading we should take utmost care in every aspect. Those of us who are trading should have two types of thinking that if I trade I can gain as much as I can lose. Trading will never be self-sustaining if trading is done with only profit in mind. 

Everyone has their own trading strategies. Some follow one day trading and some follow weekly trading whoever feels comfortable with trading conducts his trading. If a newbie wants to succeed after seeing someone else succeed in his trading strategy, chances are he won't succeed there. 

Every trader should have his own trading strategy. When each of us has our own trading strategy then we can get success by trading according to that trading strategy. Patience is very important in trading, so if we claim ourselves as traders then we must be a person with enough patience.

I think this advice of yours is very useful for newbies and following these a trader will never face loss again. The tips you have given here are many things about trading that a newbie can have a good experience if they try. But if you follow these tips and trade and get profit then definitely good and if not then it's not worth it. Controlling Emotions is Valuable in Trading Only a person who can control his emotions can survive in the trading field. And if you don't have trading experience then you can trade well by following these tips. And if you forget all these things then surely you can face loss while trading so you should always trade by these valuable tips.

I would like to add that psychological trading, which depends mainly on you looking for a quick profit without specifying the amount of profit, is destructive to trading. The most important thing in trading is that the profit is the moment of purchase. Make a clear plan for the profit percentage and sell as soon as you get your profits. Trying to be greedy or accumulating more money is what often makes you lose money, and there is no trading with 100% profits, but sometimes you achieve profits and sometimes losses.

This is such a terrible way to lose money as well, it would definitely feel like you got fooled by someone. I mean influencers could end up with saying whatever they want, they could even lose their own money with the same investment, there is nothing stopping them from being wrong, and as long as they have a lot of followers, they can apologize for being wrong, some will leave, some will be mad, but there will still be a lot of followers and they will continue to make money.

With the new method at twitter, they could even make money from ads and subs too, and that will be something totally different. I believe that's a difficult situation for them because they won't lose much money, whereas they will make you lose your money.

I don't think this is necessary as we are just spending and wasting our time on a thing that won't help us.
Because we probably know what is the possible outcome when trading and we certainly lose if lose control of our emotions. It is very important that we know how to manage our emotions as this is the main reason why many traders have failed. It is a big challenge for everyone but it is a must if we want to gain success and achieve our goal and it was not impossible either if we are too determined about it.

Learning is really the first step for us to succeed as long as what we learn and acquire is correct, because if the information we acquire is wrong, it can also put us in a bad situation here in the crypto business for sure. Like, what we sow is what we will reap.

So we as individuals must also know how to choose the right thing to study and what we want to know too. Most of them want to learn trading, so if they usually make a mistake with the platform they enter, instead of the legitimate trading platform they go to, others are stranded in different group channels on Telegram, which are often and still are used as a place by pundits to cheat. So be a little careful so that the things we do do not go to waste.

Generally many traders lose money because they make the mentioned mistakes. There are many factors that need to be taken into consideration in order to be a successful trader and if these factors aren't managed well simultaneously they will cause negative results.

In general, when we examine the mistakes made by many traders we see that making transactions against the trend, constantly examining the chart movements and making wrong decisions accordingly, not analyzing the SL and TP points well, not knowing the exact expectation from the current position, choosing the right entry and exit level. We can make a list as follows: not using SL and TP, not using high leverage and making transactions based on only one or two indicators.

Finally, I would like to finish my comment by pointing out the most important mistake made by many traders. Establishing an emotional bond with a cryptocurrency or a position and controlling the position with emotions based on this bond is a serious mistake often made by many traders. Moreover, regardless of their experience level many people lose money or lose their some profit for this reason.

In summary, trading and making money in the financial markets is definitely not as easy as it seems. For this reason it is important to always be careful and pay extra attention to avoid making such common mistakes.

Yes that's right, in general, people think that if you enter the profession as a trader then inevitably you have to put a lot of time to pay attention to what is happening in the market through the charts that are being formed, that's good but I would not fully consider that action correct because of course as you said that it would apply if they did not use take profit and stop los which would be very useful to use when you cannot directly pay attention to market movements that are happening because there are other things you have to do.

Every trader does have their own way of looking for profits in the market, as you said swing traders and scalpers, for scalpers themselves really have to keep an eye on market movements when their trading session has started because only they can decide to make the right decision and wait until the results are answered whether it's profit or loss, but with you always in front of the screen then you can minimize the risk you take. Of course, it is true that basically for the way they use it depends on the comfort of each person, we can only hope that they will remain fine in planning and managing their trading.

OP got some good points to be honest. These do affect the results when we trade big amounts. Moreover one thing a trader should always keep in mind that, they need to set small targets and achieve it in regular basis. If you don’t set a goal and trade frequently, then definitely a point will come where you will face losses. So it’s better to be attentive, do good analysis and trade in limit in order to make the most profit out of it.

This depends on the type of trader that you are. It also depends on if you use take profit or not. If you are a swing trader, you may not bother yourself looking at the chat, but if you are a scalper, you may prefer to watch the chat. If you are scalping or a day trader, and you set stop loss or take profit, you may not bother to check the chart until certain time has passed. Not watching the chart is better if you use good strategies.

Yup.

They're going quickly and convincing people that's why they're making it look like trading is easy. That's the first mistake of the viewers and not the influencers.

It's because the influencers is just feeding anything to their audience and for the viewers, we need to always meticulous with the contents that are being fed to us.

If we're not verifying or curious, then we always end as the victim of these influencers where they did their job to refer or advertise. While they get money from us through that successful advertisement they just did.

In as much as it is advisable to allow trades to run to avoid attaching emotions without often checking on it,  however, it shouldn't be applied to all the trades because there are certain conditions where the market can suddenly change direction because of a news event, and if you are monitoring the trade you can take quick action by closing in a small loss or profit, one of my mentors did tell me that I should see trading as my office or shop, that if can't leave my shop to run on its own, same is applied when it comes to trading because of the constant changing market conditions.