Topic: Some essential trading rules beginners! (Read 686 times)

When starting, losing in trading is just a test, no one is winning everyday at trading, losing means we will have the ability to learn, and we can only learn if we let ourselves analyze what was our mistake why we lose, we are realizing a lot of things, what matter is that we keep going and try and try again until we reach the altitude of success. But, once everyday we are losing for a couple of months, then we should stop first, maybe we are too emotional, let's take a break for a while.

It depends on the way you lose, if you did everything right, you bought a coin when you had to and sold it when it was the right time, you took your time to analyze the trade, you managed your money properly and you did not let your emotions take control over you then losing is OK since losing while you trade is inevitable.

But if you lost money because you did something wrong then that is something you need to correct otherwise it will keep happening and it does not matter if you think you have the capital to sustain those losses because no one does.

The control over negative emotions and thoughts come with the passage of time. The more time one spends in market, the more he is exposed to variety of situations and is also able to practice his strategies. This is true that most of the newbie traders are found losing money in day trading just because of panic selling or buying. Newbie traders are highly affected by market related news.

Emotion is the most common enemy specially for those who start-ups even on veteran ones but its totally different when you are a newbie since this is the hardest
to control when you do see new things ahead and since you dont have experience you would most likely or destined to commit mistakes and we know
that the best teacher is our mistakes and if you do learn from it then you would able to know on what you gonna do in next time.

The two points that you highlighted are the building blocks for successful trading. Those beginners who understand the crucial nature of them never face big losses in trading. Often new traders are seen investing more than what they can lose simply because marketing of particular coin or because they are so excited to make money. In both cases, they end up losing money and learn the lesson in hard way.

This is really a very good topic for most novice traders and beginners in this forum.  I have practically not achieved anything in cryptocurrency trading, although I have some knowledge in this activity and get my small income, which I hope will increase in the near future.  But lately, I have not noticed that useful information that would give me the opportunity to get real benefit from what I read as a beginner.  Guys, I think that every sane person understands that before you start something, you first need to study all the information and before proceeding with practical actions, you need to weigh all your possibilities, and you repeat this in almost every post.  Of course, I understand that before I get any personal advice, I must talk about my trading so that someone sees my mistakes.  But this is not about mistakes, but about those tips that are very important for each trader.  Guys, I ask you, write something significant that can improve my and others' results in trading.  Thank.

It's okay to lose sometimes or even often, but the most important part is you will learn in every trade you are gonna make. Losing your money is part of the trading.

Then, experience will be the very best way to be good at trading, You don't need to spend all your time reading tips on how to be a good trader. Start trading and be a good trader in the future.

It is interesting because those that could benefit the most from a strict adherence to the rules are the beginner traders but they are the ones that do not understand why they need a set of rules to begin with, so when the times comes they make the same mistakes the rules were trying to prevent them to do, when I think about this I cannot help to think that despite how much we would like to help the beginner traders to make money in the markets there are some persons that cannot handle trading no matter what we do.

These tips may be old but it could really help the forum's members especially beginners as their starting guide. Also, tip number 5, which says not to trade when you are emotional regardless if you're happy or not, they both could lead you into messing up your trade because emotions being at its pick will just cause you making decisions impulsively, emotions don't have a place in this field. And, tip number 7, baginners should take note that they shoyld only trade or invest what they can afford to lose because regrets is heavier.

Even though things like this have been discussed a lot of times in this forum, it's still good that sometimes we bring it up and go through it once more, so that traders who have joined the community newly will come across it and learn as well.

Like you have said, everything is a process, you don't just jump on it and start trading or else you're going to end up with losing your money in trading. Before starting day trading, one has to learn the basics of trading and they can start when they understand the basics. As time goes by they will be able to go deep into it and learn things that they never knew.

They should never forget to make use of stop orders while trading, because there are times you will place the wrong order and this limit and stop order is what's going to save your ass. So knowing all these are very important.

There are lots of temptations, and I think the most popular temptation that one that has to do with price. Many people who are trading or investing in bitcoin does not have a set goal, they only go in with the mindset of putting small and catching big, and when the opportunity arises for them to take profit, they don’t take it until they will watch the market dump again, and then they start having regrets for not taking the profit at that time.

The most important rule for e is that we must have our set goal first and it is when we have a goal, that we will be able to have a set profit that we will reach before we deactivate our investment, and also the goal is the one that will help us to also make some decision as at when to also buy some of these coins again.

Very excessive in anything wouldn't give us good feedback. I think every people might think about "i will maximized my profit while i can" that is why some people maybe force themself to keep do trading, when they get the ritm of market. I'm not resist, in past i do it too. Keep trading when i see pumped and dumped coin happen a lot in market. Although in the morning i must go to work.

Having a right attitude is very important, one of those is the eagerness to learn and to earn (but not too greedy) and having a lot of patience that you will need every single moment of your life in trading.

We've seen a lot of experts in trading, but they are still unsatisfied with what they are earning, why? They were too greedy to earn more, they even have lack of sleep and worst, instead of having a profit, they loss everything because of the aggressiveness they have, they can't have much patience and they were too risk taker.

It is not possible to earn huge profits form trading if a trader lacks patience and self control. Knowledge is the other important factor. Then a digital trader must be owner of bitcoin, as it is the most beneficial and volatile coin. The mindset of a trader has a lot to do with his career. Trading demands a calm mind. Taking the right decision at right time cannot be done with low patience and no discipline.

This is the first thing that we have to do before we start trading. We really need to have an actual understanding of the basics before we use huge funds just to gain a huge profit. It's better if we'll learn about it first than to risk our funds and pressuring ourselves. It's a step by step process. Trading is a long process of learning so we have to have the eagerness to learn at least the basics of trading.

It's true that anyone can earn a lot of money by trading on the cryptocurrency platform even on the general financial system, before going to start you need a good orientation regarding this issue. if you come to this trading platform then you also should be ready to accept the financial loss because no one can will always, I agree with you on these pints which you mentioned here, obviously, Keeping control over emotion is the main thing to get a good deal, I think social media's influence and emotional decision could bring a bad impact on trading very much. also, we need to start trading with a low amount, I believe too much trading could be hazardous for trading very easily.

The rules of trading are known to everyone, but the most important rule is to firmly follow these rules is often broken. Therefore, the main rule of trading is discipline and strict adherence to your previously drawn up plan. It is impossible to succumb to the temptations arising in the market, because the market severely punishes those who treat trading as a casino game. Only strict discipline and following your strategy can lead to success in the market.

Those essentials trading are easy to remember but hard to implement for beginners, because to become a trader we should have much loss experience first. No traders instantly become a pro trader and can live their live just by trading. They've must experienced much loss before they know the nature of the market and what they should do in many different situation.
But i don't say they have to ignore those essential rules, they have to know it also. But do it based on the current situation.

For beginners it is necessary to be careful in starting trading because I have read the article 95% of the novice traders experience
loss when you first start trading. In fact, it's simple to trade only buy when prices are low and sell when prices are high, but most
people use a lot of theories, sometimes it is wrong to buy when the price is topped by FOMO and sell it when the market goes down
because of panic. For that there are some basic rules, especially for novice traders to minimize losses include investing money that
we can afford to lose, do not be greedy when it has direct profits to sell even if only a little profit, do not fixate on just one coin, and
do a detailed analysis by yourself so you can take the right decision.

      Same as me, I use trading as my part-time job and I give my spare time to gambling. For me its really reliable job to trade for long term and use my extra time in making researches as i have heard that a trader must have knowledge and fine information about trading. So being new trader people should trade but with care and gain knowledge as much as possible it will help a lot.

Let us also take into consideration our attitude in trading, it is not enough that we do have a lot of learnings and experience if we don't know how to keep calm.patience and discipline, then all those learnings that we have cannot apply properly, so we need to be careful on it.

I think this is the most important tip. Every one thinks that trading is like a fairytale the moment you will step in after ready a couple of books you will start winning every trade and you will be able to earn $500 each day for every day of month. This actually is not true. Even after complete study you require persistant practice to sharpen out your trading system and strategy it's because market has different phases and you need to find out at which phase does it works. It's not easy and quick money otherwise the whole world would have been just trading.

Not really sure if newbies tried to understand this or they are just eaten by their emotional greed and low thinking. For us who experience already losses in trading, it gives us a lesson to learn and quitting isn't a solution but rather to take another try. Trading is not all about the money that we can afford to lose cause we're not aiming for that in the first place. And thinking for that will only give us a hint that we surely lose any time soon and could put negatives in our mind.

Guys, it does not matter. I think we have all understood what is meant here. Being a beginner in trading, you need to be 100% sure that even if you lose in this business, you will have at least one-two other reliable income sources bringing you profits constantly. Trading cannot become a single job for a newbie.

The truth is that a beginner trader is not going to have too much of a choice, it does not matter how many books or videos he watches he is never going to be fully prepared until he becomes a full time trader.

Only then he will discover if he has what it is necessary to become a trader, because even if has all the knowledge of the world it does not matter if you do not have the necessary control of your emotions that is a must when you are trading with money that could change your life.

even though it doesn't guarantee you anything even you are knowledgeable at least that is better as the starter.

experience is everything in this trading business and to gain the experience -as everything has a beginning before it turns experienced- just do it ! execute more important rather than thinking too much , sometimes it even makes you stepping back doing it.
you can learn more when things has been running, don't scared to fail.
i learned a lot from the mistakes that i made in trading and it makes the better version of me after that.
the real learning is through experience, even if you bought it on the all time high which it is really a big mistake but in the next days , next time you will become a better trader as you have gained experience.

Why discourage him/her to do crypto trading? don't you think its good to have people like him/her who wants to learn and understand the risk involve in crypto trading. Let me remind you that traders plays a big part on this industry because they are one of the reason why we have a lively market so for me its a good thing to have more active traders in crypto-space.

The more experiences they can get will help them to build characters in trading so they can have the power to control themselves. Profit and losing are something that every trader will face it, and they should accept if they lose because that is part of trading. If the traders can learn from the loss, they will know how to prevent it in the future, so that will help them to gain more profit. They will see more things that will happen in the market because one experience in one coin will not be the same as the other coin.

I think it's okay if beginner trader doing trade with less knowledge first, they have to experienced loss and learn how to avoid it.
No traders that instantly become pro traders, i'm sure the pro traders are having a hard time in old times. and by experience and learn much technical and fundamental analysis, they can manage their loss and profits.

Being knowledgeable about bitcoin is easier and more simpler than going for altcoins which done reveal what they are doing and dont have enough of a marketplace to sell their service. In other terms those which do not have a sustainable market of their own are easy to detect and not invest in.

I think greed has an importance but the more important thing is the FOMO. People need to stop getting FOMO over some coins. Do not buy at the all time high. If you feel a certain coin is worth putting money in watch it for when it does go down and not go up, because once its up it will be dumped hard.

Watch them like a hunter preys its food. Pounce on them when they are weak.

I have these just four suggestion for new traders. But sometimes new traders aren't taking friendly tips over here. Most of go without any of in depth knowlede. So here it is. Remember What, While and How. So let yourself know what you really need to watch closely and not to watch closely to avoid false conclusions. Second is How should you work with what have you seen in the chart and lastly is While you are in there, if there are some shortcomings you should be always ready to coped up. Final is that never ever let your emotions control you.

That is not voice idea dude, do not focus in crypto trading because already many traders lost their funds and mood out for investment kind of businesses.
Well if you want to try the trading still without any hesitation, please take some time to learn trading strategies and then you can invest for day trading.

I highly agree with this. The market movement is very unpredictable, investing and trading will be a rollercoaster ride of predictions, hoping and thinking what would be next. Prices, which is highly affected by the actions and movement of crypto enthusiasts inside the crypto space could kick up to the highest possible price now then go back down to the lowest, that's why being impulsive doesn't have a place here. Everything should be calculated and decision wise.

This points are indeed helpful I'm actually new here and my inttention is to focus fully on trading coming across those points just give me some inserts about some possible risk and what to do to limit them. I was actually thinking of selling a landed property but with what I see here its not advisable thanks for this brief information.

Almost all points I agree, many things are missed by traders from these simple rules. I see a lot of traders who missed point 5, here if you can control your emotions it will be fine, but those who don't usually panic easily and end up with self-inflicted panic. I do not agree with point 7, because in my opinion you do not trade seriously if you are willing to lose money.

See there are many tips which can help the traders to trade in this highly volatile market but most important of all is that level of knowledge and skill that one implies in trading techniques to gain huge profits even when the market is low.But you have mentioned some good points like controlling your emotions in the market while trading and invest only that you afford to loose.

^ These magic words are very common in trading. Invest that you can afford to lose is good advice as well. It means not the daily needs you are going to invest in. OP has shown good advice but I noticed that it is a lack of tips there are too many not to mention and need to have improvement. Nevertheless, if you are a trader just research your own and dont rely upon others. Reading here in the forum will bring good benefits if you want to trade and gain knowledge.

I don't see anything wrong for those bitcoin investors who do sell off on earlier time and as long they are profiting then I do consider it to be a good move.
Yes, its different compared to those who hodl for long but profit is profit they do only differ on the intensity.Feeling of regret is there though but past is past and we
cant changed it up. Trading rules for beginners are quite basic which do involves out mostly on emotion matters.

You made good points. 
 Number one is a good advice especially for the newbies. They need focus on making little profits until they become experienced enough to try the big profits. 

Number three is another good point. Not advisable to trade coins based on advice or recommendations from any kind of trader. You could however follow the advice of traders with good trading records.

Finally, "invest what you can afford to lose"... this's the most important of them all.

Anyone who lacks understanding of his asset will do blunders regardless of his experience. There is always dear of losing when a person does not understands the potential of his asset. That fear is the major cause of such mistakes like panic selling. Even bitcoin investors fail to become rich because they never ever understood their coin but only focused on making money and did what news said.

I agree to your thoughts. But I think there is only two important things things that we need to always to apply in trading as a beginner or even a professional. First we need to always knowledgable and have a continues learning to become motivated. And last one is avoid too much greed because it will drives you going to loss.

That list will be a good guide for new people who want to start trading. They need to know about that so they can prevent the losses, although the losses can come to them at any time. At least, new people will have some guide on how to control themselves in trading and what should they do and don't related to trading. But the important thing here is how much they can use their money in trading and only use the money you can afford to lose. Don't go all-in if the market is not good for trade.

Not only beginners, even the experienced trader often to panic when something wrong happened in the market.
Crypto market is so different with stocks, everything can be loss in one night or price dropped more than 20%
So it's really hard i think for not panic because sometimes a bad news can effect the entire market

Yes they may all imply. Better yet start trading now or die tryin', get rich already let experienced taught you all the way long. But before all of this made out some little plan just a bit, like setting a budget plan, and after that stick with and do the thing above.

While, trading or in the progress of trading monitor your short comings as a new trader, think of something different, think of your flaws as a trader and do compare all of it among the ideas of experienced trader by searching tips and whatsoever. Surely, you will improve a lot.

from the nine points you mentioned I took three points which I think are mandatory for beginners, those three points are numbers 5, 8 and 9,
number 5 is the thing to watch out for, number 8 is the basis, and number 9 must be done if number 8 and number 5 are understood,
besides those three numbers are additions,
this is just my opinion in order to make it easier for beginners to start what should be done first.

Always remember that someones profit is another persons losses. There is no such thing that everybody a winner in trading.You must equip and armed with knowledge,strategy in executing your trade.Be not afraid to cut loss whenever the market results do not coincide with your analysis. The main goal in trading is to maximized profit and minimize losses.

Good thing you put this at number 1.

One thing I have seen that most of the newbies mistaken is that there is always profit in trading.
That aint true.
Higher chance of losing everything than making money if you have the wrong idea of it.
Greed and fear will come up and next thing you knew there is nothing left.

Well, I do think it will be helpful to those first visitors here or maybe just searching in google.

The post doesn't claim there's a way to predict the market for 100% but by following some rules you can increase the chances of being right!

This should be know when we are already trading a lot, at the start we can try in minimal amount to risk and to understand how it goes, to explore and see what will happen if we let our self control us, after that we will realize that this 2 especially setting target were indeed needed. Learning from experience and trying to explore some risky moves are good so when we fully trade a lot we know the things that we should really avoid. We must not greedy and we must accept that we need to stop being loss that make our self hope more that can broke us more.

indeed the rules you mentioned are some that should be important points of traders because they are new and do not have trading experience so they do not know the position of buying the right coin and selling coins at the right price, and usually beginner traders are also still easy to panic.

I also noticed this. Especially here in our country, they are totally spreading anywhere, shilling their own profits just to lure some newbies to subscribe on their trading group or courses.
Even in twitter, there are lot of famous twitter profile of different traders that are very aggressive especially on their courses. Well, we can't force them.
But it is really advisable to learn by ourselves especially when we don't have that much money for starting to trade.

These has been talked for years now, there is no reason to open topic after topic on how to trade and what are the trading rules. If you want to trade the only thing you should be aware of (the only rule) is bitcoin can go up or down. That's it, nothing more and nothing less, you may think bitcoin will go up and it can either go up and you would be right or it could still go down, you can think it will go down and it may go down and make you right but it could also go up.

When bitcoin will go up and down is known by no one but the whales or manipulators who have enough money to change the price, sometimes they are not even involved so it is just hype around bitcoin. Do not think bitcoin will do something and be 100% sure, never be 100% sure about bitcoin movements, you may end up losing a ton of money.

Finally someone who understands how newbies are.... the part I don't really agree with is where you state that people don't care about good and correct trading rules, because they do and are willing to pay big money for it to "experts".

There is a thriving industry of social media influencers who offer courses on everything related to trading and investments, where some charge even $2k for a full course.

One must be quite desperate to learn how trading works to actually pay that much money to someone who pretends to be an expert but in reality only knows the basics. If people didn't care they wouldn't pay that much.

Risk management is very important. But it is going to be a minor consideration to one who has yet to know the basics of trading. Learn to analyze and trade first before anything else. Even if you are very careful in every step of the way and risk too little, if you do not win in your orders, you are still losing.

Both points in 8 and 9 may be tied to emotions.

 Let me add this rules.

• Always set stop loss in every trades.
  
  We can't predict when will the btc's price will go up or down. In short, there are so many sideways that can lead to the big losses. However, setting stop loss will definitely lessen the possible huge lose..
  
  
• Set target profit.
  
  When we are greedy to aim foe high profits, sometimes itnis unhealthy and can probably mess up everything. Setting target profit will eventually give you a smooth trades.

For me, this is the most important. The risk management.
There are lot of traders nowadays that has still lack of knowledge in risk management, event they are already trading for months or years. Newbie or not, day trader or not. They have still not risk management which is difficult. I admit that I am also like that before, but when I learned the risk management, my portfolio becomes healthy.

Thank you, but these tips are as old as the world and in general, trading will not teach. If you want to engage in day trading, then you definitely need to study for a long time, it is better to take special courses and practice for a long time on demo accounts. The best thing for a beginner is just to buy good cryptocurrencies for the long term. Great investors say that the chances of losing money with day trading are much greater than with a simple investment.

This results to information overload and most beginners will end up not mastering anything at all if not corrected. This was one of my mistakes when I started.

I think what you say is indeed very important for traders but you should know that new traders are more lazy to learn because they come in bitcoin just want to get instant profit, they sometimes don't care about good and correct trading rules.

There's a lot of tips and guide that has been already discussed here it seems all are saying redundant and usually are basin in trading.
Just like on these links, there are more of them but I only got those well-detailed posts about the trading tips.
Crypto trading tips based on years of experience --- by Raja
5 Big mistakes for a beginner in cryptocurrencies ✌

Trading is not just as easy, you need to have a knowledgeable enough before you're going through. OP has a good insight even though this is not fully detailed but there's a lesson to get. You may look at those links and add them into your OP.

This is not only good advice for trading, but for anything in life. Whether you're playing poker, crypto trading, or putting an alternator in your car. If you get emotional, step back away from it for a minute and clear your head. You'll probably come right back to it and handle whatever issue came up. It's happened to me many times. It's just hard to think straight whenever you're all worked up over something.

Most beginner traders go in blindly without knowing anything. Reading about terminologies and market movement is nice and all, but your own analysis and takes to the market is what builds you up as a trader. It's your so called foundation in the business.
You should probably add avoid trading when in debts or currently paying a loan. It's pretty hard to remove emotions themselves or the hope of hitting it off when you're desperately looking for money after all.

Problems that must be really concerned by people too btw. A lot of people now, start to make a loan and then use it to trading. And the others, collect money and make it as "investment" from people, then do trading. Some people like that maybe not think about "use money that we afford to lose".

thanks fixed it! Yup agree with you it's not easy to turn off your emotions which means trading is not an easy job at all. Anyway traders must follow teach themselves how to control over the feelings or do another job.

You must mean afford.

All in all, these are great points to remember. These reminders and warnings have been discussed her many times though. I hope they have helped a lot of traders. Take note, however, that it is always easier said than done. For example, the most common advice is that be objective rather than subjective or emotional in your trades. The problem is that the objective assessment could be both erroneous and uncertain. And secondly, emotions are really hard to turn off, believe me.

Yes there's massive information on trading regardless its crypto or other financial markets and there are some vital facts that you must now before going into it!
1. Yes, it's theoretically possible that you can make huge money in a very short period of time but there's very high chance you would end up loosing all your money so never think of making easy and quick money!
2. There is a big difference between Demo and Real trading although somehow everything looks almost the same. So if you are doing good in demo it does not mean you will succeed in real trading as well!
3. Never ever trade just by reading social media opinions! If you want to be a successful put work into it, study a lot. Understand the market itself, terminology, market participants, etc!
4. Once you have a comprehension what crypto/forex/stock market is now study trading strategies! They can be different and every trader has their own ways of trading.
5. Never trade when you are emotional (it does not matter happy, sad)! Be always calm and just have a rest from trading when you are not!
6. Never trade just because you have not traded today unless you are sure! There are days when is better not to make any deal and it's absolutely normal.
7. Always invest the money that you can afford to lose!
8. Always have risk management and money management! (Unfortunately half of the trader even don't know what these two are)
9. Start from learning by little instead of putting pressure on yourself and making the process stressful!

I hope someone finds this useful! Wish you all "take profits"!

UPDATE: And here you can read a related article based on real trading experience.