Psychological Mistake of the Beginners Traders - page 2.

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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

gabmen

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Quote from: buwaytress on December 22, 2019, 09:20:44 PM

Quote from: ?? on ??

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.

I don't think trading is sustainable at all. BUT I will say that the mentorship sector isn't as bad as it's made out to be. Sure, there are charlatans out there, but these are guys selling signals and strategies. But genuine trading schools, I think they're all right. I actually think if more traders actually picked up some of these lessons, and learnt basic fundamentals and took a bit of coaching from experienced traders, they'd learn how to trade a little bit better without emotion -- the timeless killer of amateur traders.

Right. Finding the right people to guide you is a bery good way to be efficient. If you're only trying to imitate what your mentor is doing, then obviously you're not learning from them and you're just basically wasting your time. I've had one or two people whom i consider to be my mentors when it comes to trading and i can say i do things differently from them. Though i learned a lot during the times that i'm just trying to feel the market.

Shasha80

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I strongly agree with the psychological mistakes that have been mentioned in the opening post. Indeed, many beginners traders suffer losses.
In my experience trading based on feeling and trading by following a friend's prediction is the most common happened. From that I always
give advice to beginners do not believe in the predictions of others, do your own analysis and research to make decisions in trading. That way
it will prevent us from loss. Because usually the analysis we make ourselves is more effective and accurate. So from that It's important that
beginners have the knowledge and abilities about the world of trading, before deciding to trade.

buwaytress

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Quote from: ?? on ??

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.

I don't think trading is sustainable at all. BUT I will say that the mentorship sector isn't as bad as it's made out to be. Sure, there are charlatans out there, but these are guys selling signals and strategies. But genuine trading schools, I think they're all right. I actually think if more traders actually picked up some of these lessons, and learnt basic fundamentals and took a bit of coaching from experienced traders, they'd learn how to trade a little bit better without emotion -- the timeless killer of amateur traders.

Darooghe

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In my own opinion the more doubts you have about your edge and strategy, the more heavily psychology comes into play. If you know with fully confidence your signals, your take profit and stop loss, your risk and your expected draw down, then it's easier to have the correct psychology to execute your trades as planned. That's why I have a problem with over emphasizing psychology, because even a perfect psychology won't help you at all if you don't have an edge and a super reliable strategy.

danherbias07

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I used to trade a lot before using the Binance android application but recently I don't do it much.
There is just not much profit from altcoins anymore and I don't really want to risk my bitcoins out there. It is like a jungle over there and you will get eaten if you are weak.

One thing I learned from that experience though.
Never trust your feelings. It had always been wrong.
I do regret my early sells. NEM and Lisk. I have bought a lot of that before and used in trading but at early stage it doesn't move much but it is cheap. I got like hundreds of thousands of those two just sold at a bad time because of panic.

supercanada1

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Quote from: pajak666 on December 21, 2019, 10:18:50 AM

I think the biggest problem is not closing losing positions quick enough. We tend to wait and wait and wait to see if it bounces back and capitulate very late with huge loses. On the other hand closing winners too early goes in pair and they are both super costly mistakes.

New traders and rather old ones shall also pay maximum attention to this thing i.e. when exactly they need to quit. As you said most of the times trader keep hoping that may be some miracle happen and the prices of coins will start moving upwards. This does not happen in maximum cases and the more they wait, the more they lose. If the things are not going well, then simply don’t sell of your coins.

beerlover

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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.

Those are not enough reasons to buy a coin and it could never represent the real value of those coins since those coins have a real value by looking at what makes it so high or low in price and not the feeling you have about the coin that decides on the price of it. If you can overcome that there is still a long way to go to become a good trader but if you can't move beyond that, all other warnings are useless since you will fail anyway.

pajak666

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I think the biggest problem is not closing losing positions quick enough. We tend to wait and wait and wait to see if it bounces back and capitulate very late with huge loses. On the other hand closing winners too early goes in pair and they are both super costly mistakes.

ashmodeus

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about selling to fast , oh come on baby , we dunno when the exact time to sell , i also have a problem with that , when i selling , then somehow i just quite dissapointment to market condition , they changes .
although i still get some profit from selling too fast, its still dissapointment for me.

Kevondo

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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.

Twentyonepaylots

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Quote from: vintages on December 02, 2019, 08:46:35 AM

I think from all you listed in your write-up, the worst of them all is them all is 'trading because of your influencer friends do so'. I have seen alot of people do this, and where it all get frustrating is when they just jump into trading without learning the behind concept. At the end, they come back to whine on how bad it is.

It's okay for someone influence you onto trading but at least, if they do, you should try to learn it before jumping into it

lol you can't just be influenced in a way that you'll start doing it without even knowing it first. When we say influenced that is a process of being interested on a particular matter, like on trading if you are influenced by one of your friends then you'll be interested in trading and you'll try to learn it. I also have friends whom I influenced with trading and crytocurrency, what I did is I tell them a news or a story that could touch their mind some kind of catching attention so they'll be get interested, but I did not taught them how trade, they learned it themselves.

Remember the proverb about teaching a man to fish?
; Teach a man to fish and you feed him for a lifetime

mersal

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Quote from: vintages on December 02, 2019, 08:46:35 AM

I think from all you listed in your write-up, the worst of them all is them all is 'trading because of your influencer friends do so'. I have seen alot of people do this, and where it all get frustrating is when they just jump into trading without learning the behind concept. At the end, they come back to whine on how bad it is.

It's okay for someone influence you onto trading but at least, if they do, you should try to learn it before jumping into it

One who influence the market is really bad IMHO, because they want the price to be manipulated so they call themselves as price prediction experts,etc and convince the crypto related audience to trust their predictions and act accordingly.

But one who want to trade without much manipulation from others should learn their TA skills and also they have to analyse the news related crypto so they can get an idea how the price trend will be but again it may happen or may not be still you control your decisions which is important in decentralized market.

nydiacaskey01

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#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.

wxa7115

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Quote from: vintages on December 02, 2019, 08:46:35 AM

I think from all you listed in your write-up, the worst of them all is them all is 'trading because of your influencer friends do so'. I have seen alot of people do this, and where it all get frustrating is when they just jump into trading without learning the behind concept. At the end, they come back to whine on how bad it is.

It's okay for someone influence you onto trading but at least, if they do, you should try to learn it before jumping into it

At least to me one of the greatest mistakes that newbies make all the time is that they adopt a strategy which they do not know if it is profitable, they simply believe whatever they read on the Internet and think that they have a way to earn money in the markets without testing that strategy.

And that is a huge mistake after all they are risking their money doing something which they do not know if it has the potential of give them profits, I know that I will never do something like that and yet the majority of the newbies that I see in the market do not really know for sure if what they're doing is the right thing to do to obtain money from the markets.

vintages

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I think from all you listed in your write-up, the worst of them all is them all is 'trading because of your influencer friends do so'. I have seen alot of people do this, and where it all get frustrating is when they just jump into trading without learning the behind concept. At the end, they come back to whine on how bad it is.

It's okay for someone influence you onto trading but at least, if they do, you should try to learn it before jumping into it

Baby Dragon

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Quote from: Triffin on November 30, 2019, 04:21:17 PM

Quote from: aardvark15 on November 27, 2019, 10:24:07 AM

I know that when I began trading Bitcoin, I made lots of mistakes. I would fomo buy at a high price and the panic sell when it dropped. It’s easy to fall into that mindset.

The main reason behind this behavior is lack of knowledge. A bitcoin trader needs to hold understanding of two subjects; his asset which is bitcoin and his profession which is trading. Listening to others can be informative but following them in order to make decisions is not a wise act. After knowledge, perseverance and courage are essential traits to gain. In the beginning, a demo account must be used too.

Indeed, knowledge is the powerful thing that can help and guide us to overcome the possible challenges that we can encounter along the way. Some traders doesn't take it too seriously because they think that they can easily handle it but little did they know that trading is speculative? it takes a lot of effort and time to earn profit and it depends on how you manage your trade. They tend to make decision without even thinking about the result of it because it making decision you have to consider a lot of things which they usually don't that's why they end up feeling remorse about it. Also, you should always remember to learn from your mistake because it can help you to avoid doing the same mistake and it will guide you too.

rijaljun

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Quote from: ?? on ??

Making mistakes is good since it provides more opportunity to learn from what has gone wrong.
But traders tend to repeat their mistakes which makes them suffer and encounter huge losses.
So making mistakes is good but repeating them is not.

That's the point I forgot to mention. When you notice you just made mistake you ideally will learn and look for the right decision to take while you will keep the mistake for yourself so you won't make same mistake in the future.

1Referee

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It isn't bad to make mistakes actually. You can make mistakes as many as you can cause whenever you know what is wrong, you learn it then you must know what is right. So making many mistakes lets you know what right things to do, unless you don't want to learn from your mistakes.

In fact, plenty of high tier traders do make mistakes quite often. What matters here is that when a trade doesn't work out, they take on the other side of the trade if there is enough up/down side left. It will force them to take a hit on their initial trade, but that will be turned into a profit by going with the flow of the market, and thus not stick to the initial trade hoping it will still work out.

Some traders hedge against faulty trades through options, but that's something most people aren't familiar with. I have to admit that I'm not comfortable trading options myself. My motto is to not overcomplicate trading so I'm not planning to use options. Basic trading is already super time consuming on its own.

kro55

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Quote from: Triffin on November 30, 2019, 04:21:17 PM

Quote from: aardvark15 on November 27, 2019, 10:24:07 AM

I know that when I began trading Bitcoin, I made lots of mistakes. I would fomo buy at a high price and the panic sell when it dropped. It’s easy to fall into that mindset.

The main reason behind this behavior is lack of knowledge. A bitcoin trader needs to hold understanding of two subjects; his asset which is bitcoin and his profession which is trading. Listening to others can be informative but following them in order to make decisions is not a wise act. After knowledge, perseverance and courage are essential traits to gain. In the beginning, a demo account must be used too.

This is the main reason why many investors lose money in crypto market. They dont start with demo account rather with a heavy capital. There buying and selling is mostly on news, WhatsApp group etc. Many dont realize that crypto trading is an art and one has to learn that prior to starting crypto trading.

Topic: Psychological Mistake of the Beginners Traders - page 2. (Read 704 times)