If I may add up there are also two psychological mistakes a trader have;
1.Unwillingness-this seems to be the usual problem. Lazily learning all the useful and informative materials. From basic to complicated infos.
2.No passion-some doesn't trade from their heart. What I mean is that they just trade without an effort and they don't treat it as a job.
Hope this serves as a mirror for each trader.
Topic: Psychological Mistake of the Beginners Traders - page 4. (Read 718 times)
An extension of trading based on your emotions is trying to chase losses which a lot of traders end up doing, even more experienced traders sometimes. It's sometimes hard to accept losses, especially if you've risked and lost more than you initially planned through something like a fault in calculations, but cutting losses is an extremely important part of trading and something you should learn quickly. Things could always be worse, but be glad they aren't.
Before you even enter a trade, determine where you're closing a trade and where your stop is located and only change things when market conditions significantly change or when your initial technical analysis is invalidated (you should close in this case). This should help with closing too early or too late; I highly suggest using stops if they're offered on the exchange of your choosing.
Before you even enter a trade, determine where you're closing a trade and where your stop is located and only change things when market conditions significantly change or when your initial technical analysis is invalidated (you should close in this case). This should help with closing too early or too late; I highly suggest using stops if they're offered on the exchange of your choosing.
Speaking about productive trading, it is worth remembering the fact that investing in cryptocurrencies is not your ticket to a happy future. This is not a saving, but a cost. The best trading strategy is to realize that you need to learn how to find the best ways to reduce costs. That's when your income will be able to get used to your spending.
The ability to cut costs is just as important as the need to choose the right project or find the right time to start investing. For many beginners, these are significant difficulties. I agree that we need to develop own trading scenario, but learning from the strategies of other traders, as the taklimakan platform offers, is also a great idea. First, you use other people's moves to understand how the process is generally built, then you begin to see the difference in positions and find the most profitable ones. Learning by harnessing other people's experiences is our instinct
If I may add up there are also two psychological mistakes a trader have;
1.Unwillingness-this seems to be the usual problem. Lazily learning all the useful and informative materials. From basic to complicated infos.
2.No passion-some doesn't trade from their heart. What I mean is that they just trade without an effort and they don't treat it as a job.
Hope this serves as a mirror for each trader.
1.Unwillingness-this seems to be the usual problem. Lazily learning all the useful and informative materials. From basic to complicated infos.
2.No passion-some doesn't trade from their heart. What I mean is that they just trade without an effort and they don't treat it as a job.
Hope this serves as a mirror for each trader.
Expected for most people to do such thing yet it cant really be removed on someone on not to rush into things specially on making money and the initial mindset of most noobs when it comes to trading they do mind on making easy money with it thats why they do just simply jump into things or hurrying up to trade without even having that research or preparation which in result of a loss and learning will vary if a certain noob trader would make it as a stepping stone or just simply ignore those mistakes and continue on doing things.These kind of mindsets should really be removed on someone if they do like to succeed on trading field.
Speaking about productive trading, it is worth remembering the fact that investing in cryptocurrencies is not your ticket to a happy future. This is not a saving, but a cost. The best trading strategy is to realize that you need to learn how to find the best ways to reduce costs. That's when your income will be able to get used to your spending.
The ability to cut costs is just as important as the need to choose the right project or find the right time to start investing. For many beginners, these are significant difficulties. I agree that we need to develop own trading scenario, but learning from the strategies of other traders, as the taklimakan platform offers, is also a great idea. First, you use other people's moves to understand how the process is generally built, then you begin to see the difference in positions and find the most profitable ones. Learning by harnessing other people's experiences is our instinct2.No passion-some doesn't trade from their heart. What I mean is that they just trade without an effort and they don't treat it as a job.
It depends on each person individually, but treating trading as a job isn't the right thing to do if you're sitting at home. It's great if you're a seasoned trader working for a firm where you have a fixed income with additional bonuses.If you are trading from home it should be an additional income stream rather than your main income stream, especially with how you aren't guaranteed to make profit to begin with.
No way that pressure isn't going to affect your trades negatively. It also increases the probability of taking unnecessary risks to gain back what you lost, which is a common mistake traders make.
Speaking about productive trading, it is worth remembering the fact that investing in cryptocurrencies is not your ticket to a happy future. This is not a saving, but a cost. The best trading strategy is to realize that you need to learn how to find the best ways to reduce costs. That's when your income will be able to get used to your spending.
The ability to cut costs is just as important as the need to choose the right project or find the right time to start investing. For many beginners, these are significant difficulties. I agree that we need to develop own trading scenario, but learning from the strategies of other traders, as the taklimakan platform offers, is also a great idea. First, you use other people's moves to understand how the process is generally built, then you begin to see the difference in positions and find the most profitable ones. Learning by harnessing other people's experiences is our instinct
So most of the mistake's root cause will be lack of knowledge and self confidence about crypto trading.If they are not sure about something then they should try to learn the things more as possible before doing it in the real life.Get more experience by trying simulators by applying all the learning strategies lot of them offer free for certain amount of level which is more good enough to learn the things.
Speaking about productive trading, it is worth remembering the fact that investing in cryptocurrencies is not your ticket to a happy future. This is not a saving, but a cost. The best trading strategy is to realize that you need to learn how to find the best ways to reduce costs. That's when your income will be able to get used to your spending.
In order to be a successful trader in the cryptocurrency market, traders should equip themselves by studying the existing methods of analysis, both fundamental and technical analysis. Learning and applying these methods will greatly help traders to predict the direction of movement of a token. Even so, there are still many traders in the global market who may already have good knowledge about analytical methods but still not easy to get profits in the cryptocurrency market. There are still many who are affected by news, rumors and fluctuations in the movement of the price of tokens or coins which are sometimes full of traps. As a result, they become distrustful of the analysis that they have built themselves or also they become impatient waiting for the momentum (either selling or buying) which is best to appear, if such is the loss that is unavoidable.
Traders good ability about fundamental and technical analysis will be in vain if the traders are not able to manage their psychological emotions as well. So this time let me write about some psychological mistake of traders that might be useful for you in this forum.
1. Being Stubborn To Keep Using the Loser Method
The loser method is a method that may be true but this method is not in suitable with the psychological character conditions that cause traders to experience losses. And strangely, many traders find it difficult to change their habits in trading, they are often trapped in the same and repetitive patterns of thinking. It could be because they do not know how to use the method especially because of laziness to read and add insight about trading.
2. Trade based on feeling
Still related to the first mistake, this second mistake was caused also by the unwillingness of traders to study analytical methods, especially technical analysis is the main cause of traders of the type like that to continue to trade only by using feeling. In fact, trading without using scientific analysis is the same as gambling.
3. Trading only because of the influence of friends.
Get used to receiving advice from friends, the losses that will be experienced not only financially but also the most detrimental is not getting the knowledge of how to make the right investment. This is experienced by many beginners who usually do not yet have a solid knowledge and understanding, therefore, this is typically used by scammers to make a profit. Only enough with sweet promises of the luxury that can be gained if they enter the investment and finally blop, loss all the asset. Incidentally, traders like this are still dominant in the cryptocurrency market, considering crypto itself is a new thing in this trading world.
4. Buying when prices move up (Buy High To Sell Higher)
When the Token price moves up, many traders think that the price will continue to moving up, even though there is a greater risk for the price to fall. Psychologically, this happens because there are excessive expectations from traders that prices will continue to rise, especially supported by a general theory known as "buy high sell higher". This theory is not entirely wrong, but it is good to be used by those who are experienced and have a good foundation of technical knowledge, not the other way around. The psychological tendency from the basic thinking of the traders is because of fear of being left behind by the "train". When the price of coins rises, traders like this think as if prices will continue to move up, not realizing that they are late to enter. This buy high sell higher theory can be used safely if it is supported by adequate knowledge of technical support and resistance theories. A simple understanding of this theory is that if the price of the token rises through the resistance level, then the token is still worth buying, and vice versa, if the price drops through the support level, immediately sell the token.
5. Mistakes in Predicting Trends
Mistakes in predicting trends include mistakes that traders do when they want to make long-term investments. One predicts the trend of movement of a commodity is also a fundamental mistake of individual investors in investing. Mistakes in predicting this trend are aimed more at investors' mistakes when they want to invest in the long term. This usually occurs because of the excessive reactive attitude of investors towards the movement / fluctuations in the price of tokens in the short term. Often when a token is moved quickly, both moved up and down in the short term, investors immediately draw the conclusion that the short-term movement will represent its long-term trend. In some cases, the consequences of this error do not infrequently cause traders to experience substantial losses because the token price drops drastically and continues to stagnate at a low value and in a relatively long period. Even if there is a change in trend, the price of the token only rises slightly and does not return to the position when it was purchased.
6. Selling Too Fast
Actions that can be said to be true in buying tokens are buying tokens that are fundamentally good when the token price is decreasing. But again because of a lack of understanding of fundamental and technical analysis, many traders who sell and sell are just a fear of losing, so when they have a little profit they rush to sell the token. The hasty conditions of selling these tokens usually occur in the type of short-term investor who is impatient to make a profit in a longer period of time.
7. Belief that Low-priced Token will provide greater profit margins.
The first reason why many traders do this is their fear of analyzing high-priced tokens because according to them the price is not affordable anymore, therefore they only play in tokens that are low in value. But what needs to be known, cheap tokens are not necessarily cheap. It could be that after being analyzed fundamentally it turned out that the token was already expensive. From this kind of thinking, traders will have a narrow perspective, losing momentum when large capitalized tokens are moving up.
8. Believe in the Rumors
There is a profound difference between Rumors and News. News is information that is officially issued by the relevant company or issuer. While the rumors essentially are information that is not clearly announced by whom, the truth of this information needs to be analyzed more deeply. One of the popular cases that the world will always remembers on how terrible the rumors are detrimental to a country was when Nathan de Rothschild immediately sold his shares in the British stock market in an attempt to spread rumors that Britain lost to France in the War of the Waterloo. But thanks to his agent who was able to provide information one day faster than the British government itself, Nathan made a scenario so that everyone in Britain was hit by panic and sold all of his shares at the time, and bought all the shares by Rothschild.
Well, that’s all from me, maybe some of you can add the other mistakes or maybe correct my opinions abovementioned?
Traders good ability about fundamental and technical analysis will be in vain if the traders are not able to manage their psychological emotions as well. So this time let me write about some psychological mistake of traders that might be useful for you in this forum.
1. Being Stubborn To Keep Using the Loser Method
The loser method is a method that may be true but this method is not in suitable with the psychological character conditions that cause traders to experience losses. And strangely, many traders find it difficult to change their habits in trading, they are often trapped in the same and repetitive patterns of thinking. It could be because they do not know how to use the method especially because of laziness to read and add insight about trading.
2. Trade based on feeling
Still related to the first mistake, this second mistake was caused also by the unwillingness of traders to study analytical methods, especially technical analysis is the main cause of traders of the type like that to continue to trade only by using feeling. In fact, trading without using scientific analysis is the same as gambling.
3. Trading only because of the influence of friends.
Get used to receiving advice from friends, the losses that will be experienced not only financially but also the most detrimental is not getting the knowledge of how to make the right investment. This is experienced by many beginners who usually do not yet have a solid knowledge and understanding, therefore, this is typically used by scammers to make a profit. Only enough with sweet promises of the luxury that can be gained if they enter the investment and finally blop, loss all the asset. Incidentally, traders like this are still dominant in the cryptocurrency market, considering crypto itself is a new thing in this trading world.
4. Buying when prices move up (Buy High To Sell Higher)
When the Token price moves up, many traders think that the price will continue to moving up, even though there is a greater risk for the price to fall. Psychologically, this happens because there are excessive expectations from traders that prices will continue to rise, especially supported by a general theory known as "buy high sell higher". This theory is not entirely wrong, but it is good to be used by those who are experienced and have a good foundation of technical knowledge, not the other way around. The psychological tendency from the basic thinking of the traders is because of fear of being left behind by the "train". When the price of coins rises, traders like this think as if prices will continue to move up, not realizing that they are late to enter. This buy high sell higher theory can be used safely if it is supported by adequate knowledge of technical support and resistance theories. A simple understanding of this theory is that if the price of the token rises through the resistance level, then the token is still worth buying, and vice versa, if the price drops through the support level, immediately sell the token.
5. Mistakes in Predicting Trends
Mistakes in predicting trends include mistakes that traders do when they want to make long-term investments. One predicts the trend of movement of a commodity is also a fundamental mistake of individual investors in investing. Mistakes in predicting this trend are aimed more at investors' mistakes when they want to invest in the long term. This usually occurs because of the excessive reactive attitude of investors towards the movement / fluctuations in the price of tokens in the short term. Often when a token is moved quickly, both moved up and down in the short term, investors immediately draw the conclusion that the short-term movement will represent its long-term trend. In some cases, the consequences of this error do not infrequently cause traders to experience substantial losses because the token price drops drastically and continues to stagnate at a low value and in a relatively long period. Even if there is a change in trend, the price of the token only rises slightly and does not return to the position when it was purchased.
6. Selling Too Fast
Actions that can be said to be true in buying tokens are buying tokens that are fundamentally good when the token price is decreasing. But again because of a lack of understanding of fundamental and technical analysis, many traders who sell and sell are just a fear of losing, so when they have a little profit they rush to sell the token. The hasty conditions of selling these tokens usually occur in the type of short-term investor who is impatient to make a profit in a longer period of time.
7. Belief that Low-priced Token will provide greater profit margins.
The first reason why many traders do this is their fear of analyzing high-priced tokens because according to them the price is not affordable anymore, therefore they only play in tokens that are low in value. But what needs to be known, cheap tokens are not necessarily cheap. It could be that after being analyzed fundamentally it turned out that the token was already expensive. From this kind of thinking, traders will have a narrow perspective, losing momentum when large capitalized tokens are moving up.
8. Believe in the Rumors
There is a profound difference between Rumors and News. News is information that is officially issued by the relevant company or issuer. While the rumors essentially are information that is not clearly announced by whom, the truth of this information needs to be analyzed more deeply. One of the popular cases that the world will always remembers on how terrible the rumors are detrimental to a country was when Nathan de Rothschild immediately sold his shares in the British stock market in an attempt to spread rumors that Britain lost to France in the War of the Waterloo. But thanks to his agent who was able to provide information one day faster than the British government itself, Nathan made a scenario so that everyone in Britain was hit by panic and sold all of his shares at the time, and bought all the shares by Rothschild.
Well, that’s all from me, maybe some of you can add the other mistakes or maybe correct my opinions abovementioned?
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