Topic: reasons for bad trading - page 9. (Read 1867 times)
It’s a general problem for a traders. But, Some days before, I see a topic that's name: Cryptocurrency is a playground for rich. Actually, When you have too much money, You will fill comfortable by taking any decision.and when you need money, You will fill something bad for every decision.
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Depends sometimes on how money is badly needed.Say for one invested Bitcoin for long-term. S/he wouldn't just let it do its own price increase/decrease for just a week/months.
There are long-term hodlers that wouldn't touch the coin for years and there will also be time that people will be unemployed due to economic reason and they would obviously badly need that money so they'll cash it out.
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?
I agree with you, purely trading based on our gut feeling is wrong. Emotions are going to take over our decision making and we won't trade optimal anymore. While it is important to follow the media and see what other traders are doing, we need to make our decisions with our own goals. It is better sometimes to swim against the flow, instead of just following everybody. If we just follow others, we will never sell at the highest point, or buy at the lowest point, we will always leave profits to other people to be picked up. If we have our own trading goals than it is much easier to trade on those rules instead of just a feeling.
If you're all set in Trading, like you all have the knowledge you need, the only problem you're gonna have is being not contented in most of your trades, that is the reason of the profit loss in the long run. It's not bad to think about having a good profit, but it's bad to ignore the profit we have by the analysis we did, and reaching beyond that will only give you a profit loss, that's why being contented and self-discipline is needed, especially if you put high leverage on your trade.
The reason for bad trading is that if there is no knowledge about the market trading will get worse and traders will be at risk. You need to know and learn about the market by applying your skills first it is important to avoid weak decisions if your business is to survive and make money it is better to review as much information as is available and carefully than to make an immediate judgment based on very little information. Perhaps you should try to take some bad steps and discuss them with your advisory team before taking any action.
The most common reason is lack of control. Control ensures that you stick to the plan, and often, due to market volatility, our strategic decisions change, which, being initially made with a cool head, are most often more correct than those that we make on the fly in a fit of emotion. You need to learn this, a little bit every day, always follow the plan strictly, regardless of the events that take place, in extreme cases, always place orders at breakeven.
It's more than just control in my opinion, I think the biggest one should be the lack of knowledge and inexperience when it comes to trading because I believe that if those two are not present, I don't think that we are going to be able to do what should be done when we are finally trading. Knowledge is important but so is information about the market so you can get a perfect timing. 
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)
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)
Using "hot money" to invest is absolutely not justified. This applies to any type of investment, not just the crypto market. This can also affect the psychology of traders in making decisions and more lead to wrong decisions, especially when they are pressed by needs when the market situation is not supportive.
The most common reason is lack of control. Control ensures that you stick to the plan, and often, due to market volatility, our strategic decisions change, which, being initially made with a cool head, are most often more correct than those that we make on the fly in a fit of emotion. You need to learn this, a little bit every day, always follow the plan strictly, regardless of the events that take place, in extreme cases, always place orders at breakeven.
In fact when it comes to lack of self-control I'm sure almost everyone has made this mistake,We certainly also need to learn with events like that and it won't be easy either,
Market volatility really affected our plans at the start and we need to analyze that
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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?
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?
One thing the cryptocurency market is known for is her community and how they affect the price. When these articles are read and we feel moved, there are chance too others like us will be moved in the same way so in anticipation of this, we begin to take positions that'll make us profits or reduced our loss and this is how fomo and fud get developed.
The media are quite aware of this which is why they come up with different article at these different scenarios to force us into making decisions that'll favour them making us feel as if we were making those decisions to favor ourselves.
Which is why we're advice not to listen to the media or do the exact opposite of what they're saying. They don't care if you suffer lose instead only interested in enriching their own pockets.
The most common reason is lack of control. Control ensures that you stick to the plan, and often, due to market volatility, our strategic decisions change, which, being initially made with a cool head, are most often more correct than those that we make on the fly in a fit of emotion. You need to learn this, a little bit every day, always follow the plan strictly, regardless of the events that take place, in extreme cases, always place orders at breakeven.
If greediness will come in the mind of the traders whether they are newbie or old member here, surely in the end they will end into nothing
and their capital or assets will be loss. Second is lack of knowledge or pretending to know a lot here is not a behavior for the individual traders.
These two are the only reason for me when we do trade in the actual exchange.
Majority would be thinking off on how they would make out easy profits with trading which is mostly the common impression when we are just starting out on where we do believe that things would be easy and their capital or assets will be loss. Second is lack of knowledge or pretending to know a lot here is not a behavior for the individual traders.
These two are the only reason for me when we do trade in the actual exchange.
once we do get involvement but when we are already on the actual situation then this is where we do realize that things arent simple as it sounds. Set your goals and do your best to suppress the risk
as minimal as you can and make yourself sustainable and this is should how people to think when they do trade or make out investment.
Dont let yourself get dragged along with greediness because this would really be putting you into big trouble.
Greed might be helpful at times though. Imagine investing in a great project and cashing out too early, so that is where greed can save you. But overall I agree, holding some coins for too long is greedy and I would say, 7/10 times it won't pay off.
Greedy is not really bad as it was but TOO MUCH greed is something we don't want. It kills us, honestly.In this case, you need to use a stop loss to avoid a sudden dump after a long growth. As the price of the coin increases, I move the stop loss higher and thus I fix my profit, but I do not limit myself to making a profit, which can increase as the price increases further.
This way when the market finally moves in your predicted direction you are still going to have enough capital to recover your losses and to make profits, while those that do not use a stop loss eventually get kicked out of this market and miss the bull run and get mad about it.
If greediness will come in the mind of the traders whether they are newbie or old member here, surely in the end they will end into nothing
and their capital or assets will be loss. Second is lack of knowledge or pretending to know a lot here is not a behavior for the individual traders.
These two are the only reason for me when we do trade in the actual exchange.
and their capital or assets will be loss. Second is lack of knowledge or pretending to know a lot here is not a behavior for the individual traders.
These two are the only reason for me when we do trade in the actual exchange.
the biggest impacts to our psychology? maybe the media, the news, the rumors.
If you’re going to end up selling your coin because you’re in need of the money, lol, it doesn’t make any sense to be investing in the first place. It shows that the money you invested is not even meant for investment. You will always see people in this forum when they are saying “don’t invest more than you can risk”, there is a reason they are always saying that, but most of us would always choose to neglect it and even laugh over it because they think that it is nothing.The reason more experienced investors and traders are always saying that is because of things like that, and they are always repeating it all the time because they newbies to see it, so they don’t end up making the same mistake.
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it's not human nature, greed in trading there is a ridiculous thing that must be eliminated,
I'm sure everyone has their own way, because if we are greedy in trading we always do that, then you will never win,
I always remind everyone , that greed is the key to trading
No, greed is human nature. When you got money, there is a part from your other side that will say that you can make more money or get those chances while you still have it. If you can not control your greed in anything, not just in trading, you will get doom, which will be the end of your life. We can not eliminate greed but we can control it so that greed is not possessed us. If we can control greed, we will see what we already get something, and we realize that we need to stop for a while and try to get a good result the next time. I'm sure everyone has their own way, because if we are greedy in trading we always do that, then you will never win,
I always remind everyone , that greed is the key to trading
Greed might be helpful at times though. Imagine investing in a great project and cashing out too early, so that is where greed can save you. But overall I agree, holding some coins for too long is greedy and I would say, 7/10 times it won't pay off.
Greedy is not really bad as it was but TOO MUCH greed is something we don't want. It kills us, honestly.In this case, you need to use a stop loss to avoid a sudden dump after a long growth. As the price of the coin increases, I move the stop loss higher and thus I fix my profit, but I do not limit myself to making a profit, which can increase as the price increases further.
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?
Actually the "Not Need Money now" is the most stupid reason for not selling when it already grow up to 20% profit, Not unless you are willing to hold for very long term and you will be not needing that money for long time. 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 not human nature, greed in trading there is a ridiculous thing that must be eliminated,
I'm sure everyone has their own way, because if we are greedy in trading we always do that, then you will never win,
I always remind everyone , that greed is the key to trading
I'm sure everyone has their own way, because if we are greedy in trading we always do that, then you will never win,
I always remind everyone , that greed is the key to trading
At this point you are absolutely right, greed is necessary but to keep it at a certain level, because if you get carried away by greed mistakes come one after another and you don't see when it can stop, but to lose everything.
The most important thing is that if you have a good plan, you can make the most of it and let it run until it reaches the point that was established, one of the things that can fail is when the market starts to go against, every trader says or hopes to recover and what is achieved is to generate large losses, the best thing here is to cut the loss with the Stop, and when the majority of traders are winning and reaches their take profit they leave the market because they think they cannot continue winning , and it is not like that, it is the best opportunity to lengthen the losses, I think that greed there plays badly for any trader.
i choose to sell and earn small than to sell when everyone is dropping and i dont need to wait for the times where i need money because that can ruin my trade but i will save money early away from my trade for future emergency use .
i wont blame the media , the rumor and the news because they are part of our daily life . what you can only do is to train your brain to accept things and to have to have a control if you hear or see something that is unpleasant
i wont blame the media , the rumor and the news because they are part of our daily life . what you can only do is to train your brain to accept things and to have to have a control if you hear or see something that is unpleasant
it's not human nature, greed in trading there is a ridiculous thing that must be eliminated,
I'm sure everyone has their own way, because if we are greedy in trading we always do that, then you will never win,
I always remind everyone , that greed is the key to trading
Greed is part of human nature. But we all have our own ways of dealing with it. Good and experienced traders, are fine to take profits around 10%-20% and that would have it a safe profit taking.I'm sure everyone has their own way, because if we are greedy in trading we always do that, then you will never win,
I always remind everyone , that greed is the key to trading
While the newbies that just got in because of FOMO, they'll think of more than 100% profit and that leads them to lose even their own capital. It's true that it must be eliminated but it should start on our own.
People got bad in trading which result in huge losses because they wanted to make their profits as fast as they can but to know that trading is not like that. They misinterpret the situation, they'll think that the market will keep surging high and neglected to see any possible dump to come. If traders thinking that way, I'm for sure that they won't stay long in trading, I'll surely seeing them leaving.
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