Psychological Mistake of the Beginners Traders

wxa7115

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Quote from: IHF on January 06, 2020, 07:40:03 AM

Quote from: redsun114 on November 27, 2019, 12:13:53 PM

But, simply adopting method of holding way of trading, you can solve all those mistakes.

I would say it depends on your goals. If you like trading you should do it but when efficiency in investing is your Nr1 goal, the buy & hold approach comes into play.

Also you should keep in mind: With cryptos you dont have any underlying upward current like in the stock market over the last 100 years yet. Stocks reflect at some point more than on another the steady grow in the economy and for good reason, stocks are company share. This is proven and logical. Crypto is a lot more speculative at this time and therefore my standpoint is, cryptos are especially good for Trading short term. High Volatility delivers lot of potential.

Bu you absolutely need to know, what you do as a trader. If not, then Buy & Hold is way better.

Of course it's a valid option to buy and hold some Bitcoins for long term investment anyway. Dont get me wrong!

Cheers...

This market is very attractive precisely because of that reason to traders, the volatility of the market can make you a lot of money if you know what you are doing, just yesterday the price of bitcoin moved 300 dollars in 15 minutes, and any trader that captured most of that movement made very good profits and depending where you live that could be the salary you receive in a week and in some cases in a month.

However as you say that volatility attracts a lot of traders but it also attracts many newbies which dream with leaving their jobs and making a lot of money when with their level of knowledge they should at best just buy bitcoin to hold it for the long term.

IHF

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Quote from: redsun114 on November 27, 2019, 12:13:53 PM

But, simply adopting method of holding way of trading, you can solve all those mistakes.

I would say it depends on your goals. If you like trading you should do it but when efficiency in investing is your Nr1 goal, the buy & hold approach comes into play.

Also you should keep in mind: With cryptos you dont have any underlying upward current like in the stock market over the last 100 years yet. Stocks reflect at some point more than on another the steady grow in the economy and for good reason, stocks are company share. This is proven and logical. Crypto is a lot more speculative at this time and therefore my standpoint is, cryptos are especially good for Trading short term. High Volatility delivers lot of potential.

Bu you absolutely need to know, what you do as a trader. If not, then Buy & Hold is way better.

Of course it's a valid option to buy and hold some Bitcoins for long term investment anyway. Dont get me wrong!

Cheers...

giltc148

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I may agree with others that every aspect of trading is questionable. And depends on each personality. But I think most mistakes come from lack of knowledge, experience, and self-confidence. And to my mind, to avoid or minimize such unpleasant factors you need to choose beginner-friendly and easy-navigate exchange. Like those of CEX.IO, Coinbase or Kraken.

wxa7115

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Quote from: Johnyz on December 30, 2019, 05:40:43 PM

If you let your emotion in trading to decide for you, then don’t expect to earn profit. Trading is not about luck and emotion, its about how you work for it and its about your analysis in the market. Newbies need to learn to forget their emotion, learn this process and have a meaningful and successful trades.

While I agree newbies are never told how to do that, they are only told they should not let their emotions to take over but they are given no alternative, when newbies and many other traders enter a trade they do it because of their emotions, they let FOMO take control of them and also their greed takes a huge role as well, so as you can see they do not really know how to trade without using their emotions in every single decision.

And for what I have seen the ones that are able to successfully manage their emotions are those that have created a way to trade in which their emotions take no part at all in any of the moment in which the market forces you to take a decision.

shield132

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People here talk about beginners mistakes like they are the only one who make mistakes and they are our profit sources. We don't have to forget that trading depends on luck at some point.
But to return the topic, personally I think the most common psychological mistake is that they have very high confidence when entering in trading and this caused ehole problems: 1. The more he/she get - the higher it gets for newbie and finally it leads lose and 2nd - when they have high confidence but lose, it makes them more nervous and often leads them to go on va bank.

Johnyz

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If you let your emotion in trading to decide for you, then don’t expect to earn profit. Trading is not about luck and emotion, its about how you work for it and its about your analysis in the market. Newbies need to learn to forget their emotion, learn this process and have a meaningful and successful trades.

wxa7115

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Quote from: semobo on December 27, 2019, 08:07:28 AM

Try to over trade due to their greediness which could become risk to their inital capital so have to stick with their strategies and make trading time period less often to decrease the risk of losing capital unexpectedly.

Overtrading is one of the most common mistakes that I see in beginner traders, they do not understand they do not control the markets, just because you are trading it does not mean that you will see plenty of opportunities to trade, some time ago when I tried to day trade it surprised me how long I had to be looking at the charts and do nothing, there were even days in which I did not made a single trade since there was not a single signal for me to react to.

And it is entirely possible a newbie trader experiencing those situations decides to make a few trades just to get some action and try to make some money when it is obvious he will not make any given the circumstances.

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Quote from: Subbir on December 30, 2019, 08:16:32 AM

Quote from: Asmonist on December 30, 2019, 07:53:05 AM

There are really lots of guidelines in trading. Many advisers and predictions to affect our decision making. In the end the decision lies on ourselves. Its really hard when to decide to sell and the risks will always there. There are no perfect trading and mostly we must be ready for every gains and most especially the losses we encountered.

In my opinion, if an individual isn't mentally healthy then any decision he makes can fail there So first of all you would like to possess peace of mind but only then you'll get seven peace by doing any mining trade or anything. This is definitely important for beginners.

And actually there's a lot of new traders who were just excited to trade at first month, but once there are distractions, they were easily distracted until they lose their fund and that they begun to feel unfulfilled in their trading journey. So I think that once starting trading, we should list our target goal and let's focus on it.

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Quote from: Asmonist on December 30, 2019, 07:53:05 AM

There are really lots of guidelines in trading. Many advisers and predictions to affect our decision making. In the end the decision lies on ourselves. Its really hard when to decide to sell and the risks will always there. There are no perfect trading and mostly we must be ready for every gains and most especially the losses we encountered.

In my opinion, if an individual isn't mentally healthy then any decision he makes can fail there So first of all you would like to possess peace of mind but only then you'll get seven peace by doing any mining trade or anything. This is definitely important for beginners.

Asmonist

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There are really lots of guidelines in trading. Many advisers and predictions to affect our decision making. In the end the decision lies on ourselves. Its really hard when to decide to sell and the risks will always there. There are no perfect trading and mostly we must be ready for every gains and most especially the losses we encountered.

wajik-tempe

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Quote from: drlukacs on December 30, 2019, 07:42:54 AM

Yes, it is one of the common mistakes of anyone who is new to trading. I also learned a lot about these things but when I practice I still make the same mistakes. and the important thing that makes new traders lose all their money is that they carry the psychology of a gambler. they have no plans when trading for 1 day or no capital management skills, which has cost a lot of newbies a lot of money. Statistics in the US show that new traders often lose more than $ 15k in just the first year of trading and the reason comes from the lack of knowledge in capital management. Therefore, I strongly recommend that new traders learn to manage their capital carefully before starting a trade.

Some of them are also people who already have much experienced in trading cryptocurrency but don't have patient. Patient is really important in crypto trading because the market will waving your assets and if we're not patient enough we'll lost all of our investment due to the price movement which so fast

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Yes, it is one of the common mistakes of anyone who is new to trading. I also learned a lot about these things but when I practice I still make the same mistakes. and the important thing that makes new traders lose all their money is that they carry the psychology of a gambler. they have no plans when trading for 1 day or no capital management skills, which has cost a lot of newbies a lot of money. Statistics in the US show that new traders often lose more than $ 15k in just the first year of trading and the reason comes from the lack of knowledge in capital management. Therefore, I strongly recommend that new traders learn to manage their capital carefully before starting a trade.

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Quote from: SoeNan89 on December 30, 2019, 03:30:47 AM

Quote from: Webetcoins on December 30, 2019, 02:42:10 AM

Quote from: semobo on December 27, 2019, 08:07:28 AM

Try to over trade due to their greediness which could become risk to their inital capital so have to stick with their strategies and make trading time period less often to decrease the risk of losing capital unexpectedly.

Trading can also end up in addiction if the person is unable to control his or her trading time and money. As far as new traders are concerned, indeed they often make these silly mistakes of investing too much into coins for great and immediate returns without keeping in mind that market can go against them. They do lose good amount of money when the coin starts falling down because the team is not updating it. They shall invest small in the beginning.

That's because they only spend their money to buy only one type of coin, don't put eggs in one basket,
we know the term but many beginners don't practice it. So that when a price drops, the value of his assets will also plummet.

One of the rising earnings today is the use of cryptocurrency this kind of exchange gives a lot of profit to the users that provide a lot of investments. In cryptocurrency, there are three methods of earnings, first is the stake, where you buy any amount of the coin that you want in the low price and sell it when the price becomes profitable. the second one is the gambling, this is the best to the people who love play card games and dice they can wage all the money they want, but this time it is more risk because it depends on your knowledge and skills in playing if you will win or not. Lastly is the trading, it is the same as the investment, but the more problem is when you will sell or buy your coins. Not all the time the cryptocurrency gives a volatile price and also it is hard to predict many people trusting their guts to sell if it is the right time to buy or to sell. This kind of strategy is perilous because we are talking about money, if you make one mistake, it can cause of loss of your income.

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Quote from: Webetcoins on December 30, 2019, 02:42:10 AM

Quote from: semobo on December 27, 2019, 08:07:28 AM

Try to over trade due to their greediness which could become risk to their inital capital so have to stick with their strategies and make trading time period less often to decrease the risk of losing capital unexpectedly.

Trading can also end up in addiction if the person is unable to control his or her trading time and money. As far as new traders are concerned, indeed they often make these silly mistakes of investing too much into coins for great and immediate returns without keeping in mind that market can go against them. They do lose good amount of money when the coin starts falling down because the team is not updating it. They shall invest small in the beginning.

That's because they only spend their money to buy only one type of coin, don't put eggs in one basket,
we know the term but many beginners don't practice it. So that when a price drops, the value of his assets will also plummet.

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Quote from: semobo on December 27, 2019, 08:07:28 AM

Try to over trade due to their greediness which could become risk to their inital capital so have to stick with their strategies and make trading time period less often to decrease the risk of losing capital unexpectedly.

Trading can also end up in addiction if the person is unable to control his or her trading time and money. As far as new traders are concerned, indeed they often make these silly mistakes of investing too much into coins for great and immediate returns without keeping in mind that market can go against them. They do lose good amount of money when the coin starts falling down because the team is not updating it. They shall invest small in the beginning.

semobo

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Try to over trade due to their greediness which could become risk to their inital capital so have to stick with their strategies and make trading time period less often to decrease the risk of losing capital unexpectedly.

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Quote from: avatar_kiyoshi on December 23, 2019, 05:10:57 AM

Quote from: beerlover on December 22, 2019, 01:36:46 AM

No matter what mistakes you do, nothing will be ever as wrong as "not knowing the exact reason for purchasing" for a coin. I have seen sooooo many people who bought some altcoins just because it was going up, or buying it because there was a hype and everyone was talking about it and it was trending topic for a day.

Exactly true, panic buy or panic sell is really worse scenario, it's happen to Bitcoin market when the price at peak. I saw much people drowning in hype and hope the price will be higher than the peak, most of them do not see the history of price chart properly or maybe they are too lazy to learn before taking the risk. I have never seen so many complaints about the Bitcoin market at that time, most of them blame the exchange, how funny isn't Cheesy

Panic selling is the worst of all offenses when it comes to trading. Not only are you losing money by trading when the price is below what you're looking for, but it also tends to have a snowball effect on the market. It seems like once one person panics and sells whatever coin he was holding on to, there is about 100 other people behind him doing the same thing and it ends up destroying the trading price. I usually don't mind people who fomo buy into something as that actually raises the price. It's these people that panic sell and cause the market to snowball downward that I can't stand to watch.

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wxa7115

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Quote from: Kevondo on December 20, 2019, 02:45:51 PM

Quote from: nydiacaskey01 on December 19, 2019, 07:09:11 PM

#3 is the reason why I started to trade, its because I was influenced by a friend but so far this friend of mine is still active in trading and remains approachable for any question that I have about trading. However, there are those who are not lucky enough to find a mentor to help them out when they trade, their “should have been” mentor left them as soon they signed up on a link and hot the referral bonus.

Mentors are not easily available these days and they are not willing to guide you even if they know about trading skills and great knowledge about trading strategies. I am going to never join trading or anything just because my friend is suggesting it. All friends are never ever sincere with you. I am seriously feeling angry at your friend who is not guiding you. You shall not call him friend at all.

I kinda have the same feeling that having mentor would just either give you bad practice for years or just literally do nothing with your skills because probably they're just gonna want you or at least expect you to imitate what they do.
My friend introduced me cryptos but that's the end of the line of our communication that is crypto-related.

It is natural that your mentor is going to try to make you to follow the same principles that he follows, but your job as a student is to question everything that he does even if at the beginning it may seem like a pointless exercise because your mentor knows more about the subject than you, but as you learn more about trading and investing you are going to find out that many of the things that he does are completely ineffective.

But this is a great opportunity for you because that means that if his system was able to give him profits this is going to become even more true for you which will use an improved version of that system.

Topic: Psychological Mistake of the Beginners Traders (Read 704 times)