Topic: reasons for bad trading - page 12. (Read 1867 times)
The main reasons for unsatisfactory trades is being impatience and the fear of missing out. I've come across both of them, I often found myself being impatient and selling too quickly, which lead into losing a decent profit in the long run, while I've also sold when the market was facing a crash. Sometimes, we're also affected by what others are doing, if for instance the forum is going nuts about Ethereum's crash (just an example), we'll be tempted to also sell because that's what everyone is doing.
This is why traders need to be more responsible and always have a concrete strategies on when to sell and when to buy, because the market is very volatile and we cannot chase everything here so don't be greedy. Don't put your money in trading if you think you'll need it in the coming days, because you will be forced to sell even if its not your target price, have some small capital intended for trading alone, this can be a big help.
That is probably the number one reason why people lose their money to the markets, they trade using their gut feeling and they do not have any plan about what to do in the case their prediction does not go as planned, which by the way this happens almost all the time, because even on the trades in which the market goes in the direction you predicted it is very rare that it is going to move exactly in the way you were expecting.Which means that just when you need it the most you are left wondering what to do in a market that is known by its volatility, and if you are also using leverage and you are a short term trader the time you use to think about what to do next will be more than enough for the market to move against you and make you lose money.
There's no need to complicate things for those who did bad trades or still staying with bad trading habits. If you're done with that, you don't have to put much effort if you want to avoid it anymore. The easiest to go with the market is to follow the simple advise like this quote below. And that will make you satisfied to be an investor of bitcoin if you keep on committing such bad trades with those indicators that are affecting the market from time to time.
Exactly, you don't need to have a scalping strategy each day in trading if you know that you have a bad habit of trading. There is long-term trading that easy to execute when you are going to trade, just buy low and sell high prices in the market. Trading is not just an easy way, they are a complicated strategy that you should not apply on your side, however, possible consequences should always remember. OP, or invest something that you know will be part of the world’s established financial machine. Bitcoin will become a part in that machine. A BIG part, an IMPORTANT part. Invest in Bitcoin where you will be safe, with the best developers, with the biggest market, with the most acceptance.
However, when it comes to trading, always remember that it is very risky to gamble your money and there should be high odds.
If they are in that situation, I've got nothing to say against them but maybe if they're not or they're on it, they should consider thinking of this very effective strategy.
There's no need to complicate things for those who did bad trades or still staying with bad trading habits. If you're done with that, you don't have to put much effort if you want to avoid it anymore. The easiest to go with the market is to follow the simple advise like this quote below. And that will make you satisfied to be an investor of bitcoin if you keep on committing such bad trades with those indicators that are affecting the market from time to time.
Exactly, you don't need to have a scalping strategy each day in trading if you know that you have a bad habit of trading. There is long-term trading that easy to execute when you are going to trade, just buy low and sell high prices in the market. Trading is not just an easy way, they are a complicated strategy that you should not apply on your side, however, possible consequences should always remember. OP, or invest something that you know will be part of the world’s established financial machine. Bitcoin will become a part in that machine. A BIG part, an IMPORTANT part. Invest in Bitcoin where you will be safe, with the best developers, with the biggest market, with the most acceptance.
However, when it comes to trading, always remember that it is very risky to gamble your money and there should be high odds.
There's no need to complicate things for those who did bad trades or still staying with bad trading habits. If you're done with that, you don't have to put much effort if you want to avoid it anymore. The easiest to go with the market is to follow the simple advise like this quote below. And that will make you satisfied to be an investor of bitcoin if you keep on committing such bad trades with those indicators that are affecting the market from time to time.
OP, or invest something that you know will be part of the world’s established financial machine. Bitcoin will become a part in that machine. A BIG part, an IMPORTANT part. Invest in Bitcoin where you will be safe, with the best developers, with the biggest market, with the most acceptance.
many times while trading we let our goals down and get greedy or fearsome. the problem are the reason behind, mostly psychological reasons.
two scenarios
a. price went +20% up, we dont sell.
reasons
we dont need the money now
we anticipate more gains (greed, market sentiment)
we see others with more gains (greed, jealousy)
we dream of million (greed, new life vision)
b. price went -25% down, we sell.
reasons
we need the money now
we are fearing it will crash more (fear, market sentiment)
we doubt our initial decision to buy (judgement by single point of time)
we see others leaving the investment (fear, mass psychology, group)
we see other investment that are not -25% (fear)
thats why many books advice to trade in smaller steps. dont go with a gut feeling, set a goal and stick to it.
the biggest impacts to our psychology? maybe the media, the news, the rumors.
we read something and anticipate that it will move 'others' and so we act on our own.
we do it, but we have no idea what it should mean. what should a musk tweet mean to a price? 3%? 10%? what should india banning crypto mean?
two scenarios
a. price went +20% up, we dont sell.
reasons
we dont need the money now
we anticipate more gains (greed, market sentiment)
we see others with more gains (greed, jealousy)
we dream of million (greed, new life vision)
b. price went -25% down, we sell.
reasons
we need the money now
we are fearing it will crash more (fear, market sentiment)
we doubt our initial decision to buy (judgement by single point of time)
we see others leaving the investment (fear, mass psychology, group)
we see other investment that are not -25% (fear)
thats why many books advice to trade in smaller steps. dont go with a gut feeling, set a goal and stick to it.
the biggest impacts to our psychology? maybe the media, the news, the rumors.
we read something and anticipate that it will move 'others' and so we act on our own.
we do it, but we have no idea what it should mean. what should a musk tweet mean to a price? 3%? 10%? what should india banning crypto mean?
Trading with emotions is probably one of the worst method of trading. Quite a lot of people have lost so much because they give in to their emotions while trading.
As much as it is necessary to master your emotions such as fear, greed and sentiment, I realised that it's actually very easy to slip into it while trading.
Just like OP said, the best way to mast these emotions is to set a goal and once that's achieved, exit the market.
What I do is that I've a particular of number of trades I make per day and once I'm done with that, I quit for the day. It doesn't matter how well the market is doing, I always quit after my target is met.
Everyone should understand that trading is very difficult if you don't understand this. Just looking into what OP had said, these things are a sort of barrier and hindrances that a trader must have to win. Nobody could help us with this but just our own.
Because no matter how many strategies you have but these all make no sense if you have a problem within yourself. What we do will it depend on our mindset and if we have a positive one, the chances are big. But most of the time it becomes more challenging as we are also influenced by our emotions.
Because no matter how many strategies you have but these all make no sense if you have a problem within yourself. What we do will it depend on our mindset and if we have a positive one, the chances are big. But most of the time it becomes more challenging as we are also influenced by our emotions.
the main reason why our trading is bad is that we lack flight hours or experience in trading. learning techniques maybe a month can be mastered, but to regulate psychologically I think everyone will be different in controlling our emotions. therefore do not be discouraged, a professional trader has experienced mistakes, and our job is to continue to learn
many times while trading we let our goals down and get greedy or fearsome. the problem are the reason behind, mostly psychological reasons.
two scenarios
a. price went +20% up, we dont sell.
reasons
we dont need the money now
we anticipate more gains (greed, market sentiment)
we see others with more gains (greed, jealousy)
we dream of million (greed, new life vision)
b. price went -25% down, we sell.
reasons
we need the money now
we are fearing it will crash more (fear, market sentiment)
we doubt our initial decision to buy (judgement by single point of time)
we see others leaving the investment (fear, mass psychology, group)
we see other investment that are not -25% (fear)
thats why many books advice to trade in smaller steps. dont go with a gut feeling, set a goal and stick to it.
the biggest impacts to our psychology? maybe the media, the news, the rumors.
we read something and anticipate that it will move 'others' and so we act on our own.
we do it, but we have no idea what it should mean. what should a musk tweet mean to a price? 3%? 10%? what should india banning crypto mean?
two scenarios
a. price went +20% up, we dont sell.
reasons
we dont need the money now
we anticipate more gains (greed, market sentiment)
we see others with more gains (greed, jealousy)
we dream of million (greed, new life vision)
b. price went -25% down, we sell.
reasons
we need the money now
we are fearing it will crash more (fear, market sentiment)
we doubt our initial decision to buy (judgement by single point of time)
we see others leaving the investment (fear, mass psychology, group)
we see other investment that are not -25% (fear)
thats why many books advice to trade in smaller steps. dont go with a gut feeling, set a goal and stick to it.
the biggest impacts to our psychology? maybe the media, the news, the rumors.
we read something and anticipate that it will move 'others' and so we act on our own.
we do it, but we have no idea what it should mean. what should a musk tweet mean to a price? 3%? 10%? what should india banning crypto mean?
It’s always important for us to set our stop loss no matter if it’s spot, margin, futures, derivatives or copy trading. Been there done that. If we don’t do this, it’s one of the reasons that the way we trade is bad if that certain coin or token is going downhill.
This is a relevant topic nowadays there are a lot of people right now as we can see right now because of the downtrend of the bitcoin there are a lot of people getting feared to lose their assets and what's the cost? they sell most of them just to save their money but again if you are not having a strong belief and hands with your coin have it's hard to get back on track. Once you make an investment its better to make a background check, check the market trend, analyze the graph and more possible data that might give you an information about the coin you want and you have avoid getting a speculation of other people they cannot survive your coin its all up your decisions.
That is why good decision making in trading is a must, you have to decide properly on what you gonna do when the price of bitcoin goes down or goes up, ...
I guess the major problem is: What is a good information? 90% is rumor, or maybe, or if. But solid information is rare and overshadowed by thousands of 'fake' news and opinions.
This is why traders need to be more responsible and always have a concrete strategies on when to sell and when to buy, because the market is very volatile and we cannot chase everything here so don't be greedy. Don't put your money in trading if you think you'll need it in the coming days, because you will be forced to sell even if its not your target price, have some small capital intended for trading alone, this can be a big help.
Yeah, those are the pretty close feelings or emotions for any trader. I think whether it small investor or bigger whale they will shake their hands when market is going up and down with that much fold. Small investors troublesome because they have less money to trade and are always afraid to loos even that much. On the other hand whales would shake because they have huge amount of money invested and small up and down in the market makes mega change in their investments.
So yeah like you said, planning and execution of goals is very important here. It would be always advisable to learn technical analysis chapters, self control and how much to invest.
So yeah like you said, planning and execution of goals is very important here. It would be always advisable to learn technical analysis chapters, self control and how much to invest.
many times while trading we let our goals down and get greedy or fearsome. the problem are the reason behind, mostly psychological reasons.
two scenarios
a. price went +20% up, we dont sell.
reasons
we dont need the money now
we anticipate more gains (greed, market sentiment)
we see others with more gains (greed, jealousy)
we dream of million (greed, new life vision)
b. price went -25% down, we sell.
reasons
we need the money now
we are fearing it will crash more (fear, market sentiment)
we doubt our initial decision to buy (judgement by single point of time)
we see others leaving the investment (fear, mass psychology, group)
we see other investment that are not -25% (fear)
thats why many books advice to trade in smaller steps. dont go with a gut feeling, set a goal and stick to it.
the biggest impacts to our psychology? maybe the media, the news, the rumors.
we read something and anticipate that it will move 'others' and so we act on our own.
we do it, but we have no idea what it should mean. what should a musk tweet mean to a price? 3%? 10%? what should india banning crypto mean?
two scenarios
a. price went +20% up, we dont sell.
reasons
we dont need the money now
we anticipate more gains (greed, market sentiment)
we see others with more gains (greed, jealousy)
we dream of million (greed, new life vision)
b. price went -25% down, we sell.
reasons
we need the money now
we are fearing it will crash more (fear, market sentiment)
we doubt our initial decision to buy (judgement by single point of time)
we see others leaving the investment (fear, mass psychology, group)
we see other investment that are not -25% (fear)
thats why many books advice to trade in smaller steps. dont go with a gut feeling, set a goal and stick to it.
the biggest impacts to our psychology? maybe the media, the news, the rumors.
we read something and anticipate that it will move 'others' and so we act on our own.
we do it, but we have no idea what it should mean. what should a musk tweet mean to a price? 3%? 10%? what should india banning crypto mean?
Jump to: