Just like OP mentioned, trading cryptocurrencies isn't something one should just dabble in else you'll burn your fingers. Like I used to tell people, trading takes more than just the willpower to be a successful trader, you have to actually take time to invest in yourself. By investing in yourself, I mean taking time to gather all the necessary skills and knowledge required for trading
Another important thing that needs to be learnt is risk management. No matter how skilled you are, you'd only be setting yourself up for a failure if you don't practice risk management
Topic: Newbie traders - Learn from my mistakes - page 5. (Read 896 times)
I believe that not all people are suitable for trading. You have to have a certain set of skills in order to trade successfully. First and foremost, this is patience and strong psychology, and also a fixed plan of what you will do if the market changes one way or another
Those are the very basics - Not panicking and not getting overjoyed!But I think with time I have felt like even in crypto trading there is a need for tools and learning features like Stop-loss which can help you avoid emotion losses. Sometimes stop-loss might feel bad because the coin you sold at the stop-loss limit might pump later but overall as I read all these threads, it feels like stop-loss is way more worth and useful.
I think what turns an average trader into a professional trader is experience and capital management. I have seen some very discipline day traders who know their limit and that came with time and now they are trading with $100-200 difference and make easy profits, not very big but stable and sustained profits. There are times when they have to wait for weeks but there is enough patience and discipline which they have learned with time.
I am trying to learn leverage trading now days, I know about it already but just polishing my skills so I can also take benefit of the bullish market.
Doing trading can really be done by everybody but we cant really deny the fact that there are people which arent effective in terms of trading even though they had been trading in the market for a while now.Just like my friend which is trader but eventually quit after 2 years of doing trades still end up on a loss.
Not all things would really goes well into an individual so this will really be varying on someones persistence on what he had been engaging.
Trading is difficult as you can not control your decisions, greediness and fear. You can win big in some days but can lose all in one day.Not all things would really goes well into an individual so this will really be varying on someones persistence on what he had been engaging.
Experience is in fact the best teacher but the issue with that in the markets is that any mistake can be costly and sometimes the price you have to pay is so high that it is impossible to become profitable ever again.
Basically trading is incredibly unforgiving, think about almost any other activity you do and you will see that a mistake is for the most part not costly at all, so you can make several mistakes, learn from them and improve until you are good, but when it comes to trading if you make a big mistake it is impossible to fix it and for the most part that mistake causes you to make yet another series of mistakes which can end your career as a trader before it even begins.
Because of this, traders or investors who are totally new in crypto market have to be careful with every decisions. They need to have preventive plans for their capital and lives. Borrow to trade and go gamble with margin then high leverages will make them paranoid, weak and end with terrible decisions.Basically trading is incredibly unforgiving, think about almost any other activity you do and you will see that a mistake is for the most part not costly at all, so you can make several mistakes, learn from them and improve until you are good, but when it comes to trading if you make a big mistake it is impossible to fix it and for the most part that mistake causes you to make yet another series of mistakes which can end your career as a trader before it even begins.
Cost of learning will be a mixture of time and capital. You have lot of time to spend but you won't have much capital to waste. If you use all capital to do trading or invest at the beginning, you will lose it after one or two big failures.
Let's get started to trade or invest with small part of your capital, and use a few other parts for later lessons.
Honestly, it is a long story to read OP. It is nice sharing about your past and worse experience in trading but to tell you that, it is a common thing to happen while you are still learning in trading. We often mistake but from that, we able to stand and getting better, and that is what happens to you now, right?
Experience is in fact the best teacher but the issue with that in the markets is that any mistake can be costly and sometimes the price you have to pay is so high that it is impossible to become profitable ever again.Quote
Trading is an art where you are the teacher as well as the student. One can teach you how trading is done or how to read signals, but eventually, the final outcome will be up to you.
experience is the best teacher, that is what we know. And that supposed we need to do in order to get what we want but some people never think about it, instead, they step back when suffering losses. Basically trading is incredibly unforgiving, think about almost any other activity you do and you will see that a mistake is for the most part not costly at all, so you can make several mistakes, learn from them and improve until you are good, but when it comes to trading if you make a big mistake it is impossible to fix it and for the most part that mistake causes you to make yet another series of mistakes which can end your career as a trader before it even begins.
I believe that not all people are suitable for trading. You have to have a certain set of skills in order to trade successfully. First and foremost, this is patience and strong psychology, and also a fixed plan of what you will do if the market changes one way or another
Doing trading can really be done by everybody but we cant really deny the fact that there are people which arent effective in terms of trading even though they had been trading in the market for a while now.Just like my friend which is trader but eventually quit after 2 years of doing trades still end up on a loss.
Not all things would really goes well into an individual so this will really be varying on someones persistence on what he had been engaging.
I believe that not all people are suitable for trading. You have to have a certain set of skills in order to trade successfully. First and foremost, this is patience and strong psychology, and also a fixed plan of what you will do if the market changes one way or another
I am indeed averse to reading when it comes to too much technicalities, so I also watched Youtube videos for tutorials. We kinda share the same story, OP but then I truly quit, because I didn't really have the moment to trade.
I guess I immersed myself when you mentioned that we shouldn't use demo account to practice trade because emotions aren't really going to kick in.
Or maybe such platforms would make limitations on making demo accounts so that learners would get the feel of actual loss.
I guess I immersed myself when you mentioned that we shouldn't use demo account to practice trade because emotions aren't really going to kick in.
Or maybe such platforms would make limitations on making demo accounts so that learners would get the feel of actual loss.
I have often said this time without number, there is nothing a newbie want in trading. Take your time to learn about how it is been done. If you don't want to waste your Investment. Do not rush to start trading, and what caused this is greed. You want to make quick money, just because you heard if someone making it big time in trading. And yiu think you can start and start making the money on that same day. I pity you. Let me ask you a question, is it the day you enter into a university you will graduate? No, the answer is capital NO. To everything worth doing worth doing well. Learn this thing before going into it.
Completely agreed with you here and one reason why guys are rushing trading is because they feel like the bitcoin market is the best option right now, which indeed it is I would agree but that does not mean anyone can just jump into the market, buy any shit coins and get rich overnight. It takes time and skills to actually cope with the market because just think about it .. what actually makes the crypto market or any market? It is the like minded people like us and every time someone earns money in the market there is someone who is losing money on the other hand so its not that easy.These things mentioned in OP are basics and although important I think the best way to learn trading is by actually experiencing it and making mistakes but with either a demo account or with minimal capital.
In trading we should learn from our mistake and not from other mistake. Because the mistake done by us and other won't be the same one. Secondly if you find the mistake, it mean you are learning. Once you completely learn of trading, you can avoid of panic selling. Patience is essential tool of trading.
I do agree that trading is not something someone with a weak mind could handle. I am sorry OP, I do not want to call you weak minded and I know that you are doing whatever you can to make it work as well. However one thing I am 100% certain in crypto trading is that you need to be very careful and very patient, if you pick the right coin (not like silly ones but the top good ones that have a solid tech and decentralization) and can wait for years, you are going to make a lot of profit, there is no doubt about that.
This is why I am in crypto as well, I do not really care about the money I have invested in bitcoin, and I had very very tiny amount in investment but thanks to this bull run I have managed to make it go higher and higher. This wasn't because I am a great trader, all because I was capable of waiting for things to go up, and that allowed me to get richer.
This is why I am in crypto as well, I do not really care about the money I have invested in bitcoin, and I had very very tiny amount in investment but thanks to this bull run I have managed to make it go higher and higher. This wasn't because I am a great trader, all because I was capable of waiting for things to go up, and that allowed me to get richer.
Honestly, it is a long story to read OP. It is nice sharing about your past and worse experience in trading but to tell you that, it is a common thing to happen while you are still learning in trading. We often mistake but from that, we able to stand and getting better, and that is what happens to you now, right?
Quote
Trading is an art where you are the teacher as well as the student. One can teach you how trading is done or how to read signals, but eventually, the final outcome will be up to you.
experience is the best teacher, that is what we know. And that supposed we need to do in order to get what we want but some people never think about it, instead, they step back when suffering losses.
It is for traders to understand that there are price we pay in life to better in what we do. Just as people want to acquire some level of education,this is also the same with trading. But the using of plenty of indicator at a particular time is capable to confusing the trader to make big mistake and indecision.
Using crypto trading often and it works quite well. Pain points: Only Bitcoin and Ethereum withdrawals, taking hours to days! Inconsistent UI (APP, Web). Happy to see more frequent improvements e.g XRP withrawals, direct trades between cryptos (XRP-BTC..), UI Enhancements
Mistakes happen more or less in everyone's life. But he doesn't have to be wrong. We have to assume that the mistake is instruction for us and we have to legislate our trading from that instruction. Those who are big successful traders in life also made mistakes in the beginning and it cannot be said that mistakes are not made even now. My suggestion to the Newbies would be to go down patiently with appropriate knowledge. It would be right to be wrong.
Not only you who have a rocky road experience in trading. I have been not doing good lately. But that doesn't stop me from believing that my mistakes are part of growing up, part of improving the way I trade. There are enormous reasons not to give up.
Reading indicators are also not that easy, even an expert reading technical analysis may experience failures and lose. When times that we tend to lose more than we take profits, reimprove and find the mistakes where you will gonna change and improve.
Believe me, if we believe we are confident enough because we trade longer than the others. The more we should continue to learn more because crypto market is really hard to predict. One's mistakes is one's inspiration to grow.
I think we can all agree and say that trading especially day trading is hard, however while we are all bound to make mistakes and that is inevitable the magnitude of those mistakes is probably the biggest difference between expert traders and newbies, when a newbie makes a mistake the mistake is so big and so devastating that for the most part is impossible for him to ever recover from such loss and that is what ends up discouraging them to the point they give up on the market, and with good reason since they have suffered massive losses.Reading indicators are also not that easy, even an expert reading technical analysis may experience failures and lose. When times that we tend to lose more than we take profits, reimprove and find the mistakes where you will gonna change and improve.
Believe me, if we believe we are confident enough because we trade longer than the others. The more we should continue to learn more because crypto market is really hard to predict. One's mistakes is one's inspiration to grow.
An expert trader could even make the same mistake as a newbie, that happens all the time, the difference is that he is able to realize very soon that he made a mistake and cut his losses, so even if the expert trader still loses money the amount he loses is very low and as such he can continue to improve his abilities and still make money if given enough time.
It's good that you're sharing the mistakes you've made as a first time trader, not a lot of would do the same and I think that a lot of newbie traders today still need guidance from the experienced traders like you.
Trading is not for everyone and shouldn't be taken lightly, It takes time and energy to really grasp how the trading works and to work it perfectly. But the thing is, a lot of people still don't know the difference of Trading from Investing and I actually understand that especially with the way market works these days. For example, a lot of has been buying BTC nowadays because of the news that institutions are investing on BTC on KuCoin but they can actually do some trade to earn more.
Trading is not for everyone and shouldn't be taken lightly, It takes time and energy to really grasp how the trading works and to work it perfectly. But the thing is, a lot of people still don't know the difference of Trading from Investing and I actually understand that especially with the way market works these days. For example, a lot of has been buying BTC nowadays because of the news that institutions are investing on BTC on KuCoin but they can actually do some trade to earn more.
As a newbie, you would prioritize your capital for investment, not for trading.
- Use 80% of your capital for investment
- Use 20% or even only 10% of your capital for trading.
- Don't try to use leverage trading if you are not in the market more than 1 year.
80% of your investment in bull market will bring money to you, and in bad practice and if you lose your 10% or 20% for trading, you can use some of profit from investment to practice your trading again.
Always try to not use more than 20% of your capital for trading.
- Use 80% of your capital for investment
- Use 20% or even only 10% of your capital for trading.
- Don't try to use leverage trading if you are not in the market more than 1 year.
80% of your investment in bull market will bring money to you, and in bad practice and if you lose your 10% or 20% for trading, you can use some of profit from investment to practice your trading again.
Always try to not use more than 20% of your capital for trading.
I agree with you, trade can, of course, psychologically put pressure on a person, which you can go into yourself. When you constantly trade in the red, this happened to me, the most important thing is to believe in yourself and in your strength, everything will work out inappropriately.
I'm really not sure that's how it works, most people have a hard time learning new things from other people's experience and improving themselves accordingly, and that means they have to experience what you had experienced themselves, specially on trading which there could be a lot of emotions involved in it that could make it hard to make rational trading decisions.
The best thing beginners can do to minimize losses when they're just in the start of their way is to start trading with a small amount of money and instead of looking at how much they profited/lost in Fiat, they should look at +/- percentage on the trades, and that's because if you are trading with a small amount of money and you keep looking at your profit/loss as Fiat it wouldn't be anything significant and you will be bored soon and you would want to increase your capital which is not a very good idea when you have no experience, instead learn to look at the profits/losses in percentage.
The best thing beginners can do to minimize losses when they're just in the start of their way is to start trading with a small amount of money and instead of looking at how much they profited/lost in Fiat, they should look at +/- percentage on the trades, and that's because if you are trading with a small amount of money and you keep looking at your profit/loss as Fiat it wouldn't be anything significant and you will be bored soon and you would want to increase your capital which is not a very good idea when you have no experience, instead learn to look at the profits/losses in percentage.
For beginner traders, of course, it is still difficult to know market movements because there is not enough knowledge or analysis for it. One of the things a novice trader must do is study market signals. There are many videos and books that discuss this. Learning from my personal experience, I have also been following the development of stocks, crypto and BTC for a long time. it is not easy for a beginner trader but try it with a little capital and keep learning.
*continuous learning is the key to success in trading...Weak hands are very normal for a newbie, without continuous practice, it will be very difficult to control emotions when trading. *keep learning and don't be complacent so you can feel the profit of trading
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