Topic: Some trading mistakes beginners make - page 4. (Read 633 times)
You can always treat certain circumstances wisely and be able to analyze it, this will give you the opportunity to move forward and develop.
Newbies make a lot of mistake but wishing for high profit in a single day is the best one. We shouldn't try to make huge profit in a single day. We need to choice best trading pair and generate a minimum amount of money daily. It will help us to see the progress of our trading.
Indeed, choosing those good trading market will definitely give us hope in order to gain good outcome on our profit. However, commiting mistakes is really unavoidable when you're a newbie so we must learn from every errors we had. To prevent reoccurring problems, don't ignore those certain circumstances that leads us to bad situation. Keep your eyes closer and be careful in you every moves towards trading.
We can't avoid these things and I don't think we have to be afraid about this coz for me this could help us of getting better by correcting those mistakes we commit. I'd found this as a part of the learning process and I don't think that someone had ever experience but probably we all did the same.
-emotions
-analysis
-knowledge
all of these things have a huge impact on why we usually got these mistakes. I think this is what we have to focus on and need to improve.
-emotions
-analysis
-knowledge
all of these things have a huge impact on why we usually got these mistakes. I think this is what we have to focus on and need to improve.
OP, another mistake newbies always make is, over-estimating their intelligence, and capabilities. Trading is a zero-sum game. To get money from the market, another participant must lose it. We are mere plebs, and the game is always won by professional traders.
This is that simple, the truth is that newbies have a completely mistaken idea of what is the market, it seems they think that just by trading the markets money is going to begin to appear on their accounts, while the truth is that each extra dollar that you see in your account is a dollar that was in the account of another trader and that you earned by being better than them, so if a newbie traders wants to make money then they need to be more capable than half of the traders out there and most of the time this is not the case.
Common Mistakes To Avoid While Trading
Avoiding Stop Orders.Failing To Cut Losses.
Making Trades With Bad Risk/Reward Ratio.
Taking Positions Of Uncomfortable Size.
Excessive Focus On News.
Ignoring News.
Changing Trading Strategies.
Making Trades For Fun.
They also make the mistake of trading their emotions in the crypto space.
Avoiding Stop Orders.Failing To Cut Losses.
Making Trades With Bad Risk/Reward Ratio.
Taking Positions Of Uncomfortable Size.
Excessive Focus On News.
Ignoring News.
Changing Trading Strategies.
Making Trades For Fun.
They also make the mistake of trading their emotions in the crypto space.
Maybe your money is unlimited so you can afford to make purchases when it goes down and down again. But not all traders are like you, let alone a beginner.
It is natural for a beginner to make mistakes, because they are still in the learning stage. I've been trading for almost 7 years but sometimes I also have mistakes. I just continue to minimize mistakes by continuing to learn to do analysis. In addition, psychology determines that you will become a great trader if you are able to have fundamental technical analysis followed by good emotional management.
You do not have to keep buying every time it goes down, but you could do that some time to time right? I mean nobody says have unlimited amount of money, for example if you have 100 bucks then you should not have big hopes from bitcoin since even at x10 from this price that is only 1k and that is not a much amount.It is natural for a beginner to make mistakes, because they are still in the learning stage. I've been trading for almost 7 years but sometimes I also have mistakes. I just continue to minimize mistakes by continuing to learn to do analysis. In addition, psychology determines that you will become a great trader if you are able to have fundamental technical analysis followed by good emotional management.
However, if you have 100$ and doing something in BSC or another cheap fee place, then you could do like buy with 50 bucks, then keep on buying whenever it drops with 10 bucks, meaning you could handle 5 big drops like these, because you have 50 bucks left after the initial 50 bucks purchasing and it takes 5 times with 10 dollar each additional buying. So, as you can see even if you are a 100 dollars investor, you could still do what I said. Doesn't require you to have unlimited funds at all, can be done with anything above 100 bucks very easily.
Newbies make a lot of mistake but wishing for high profit in a single day is the best one. We shouldn't try to make huge profit in a single day. We need to choice best trading pair and generate a minimum amount of money daily. It will help us to see the progress of our trading.
Trading pump and dump coins: There are a lot of coins out there now that are mostly pump and dump. You should always avoid pump and dump coins when trading. If you're trading, make sure you're exchanging high-volume coins and stay away from low-volume coins.
If a beginner is really going to try to make use of pump and dump coins as a way to earn,then they are really taking a huge risk. They don’t know anything about the market yet and are likely going to be the ones that will have the coins being dumped on them. It is very important that when they are starting newly they should start with a good coin and not just any coin they see in the market which is very bad.As for analysis, not every beginner knows how to do analysis, majority of them don’t know how this works. In cases where they don’t know how to do it, it’s best to learn it or rely on a friend that is well experienced. I wouldn’t advise them to be paying some random groups and all that, since most times those groups fail them.
Mistakes made by beginners when trading often occur, maybe because they are also not used to and do not master market strategies. Especially with unstable market conditions, it will definitely make them swayed and confused when to buy and sell. If the decisions they take are just random without doing any analysis first, they will usually be trapped and suffer losses. In addition, beginners are also less able to control their emotions even though trading is a race against time which can drain extra super patience. And lastly, there are many beginners who don't understand stop losing, so they ignore it even though it is very necessary just in case.
Actually beginners often make mistakes is a natural thing, but what is scary is that beginners repeat their mistakes over and over. In fact, to become
a successful trader, must be able to correct the mistakes that have been made, so that the same mistakes will not be made again. You have mentioned
all the trading mistakes that beginners often make, so there must be a strong desire to fix them. That's why it's important to learn a lot for beginners,
so they know what to do and what to avoid when trading. The problem is that many beginners are lazy to learn about trading first, they think
trading is easy and can generate profits instantly. So it is not surprising that there are articles that say the number of beginners who lose when
trading crypto is very large.
Mistakes made by beginners when trading often occur, maybe because they are also not used to and do not master market strategies. Especially with unstable market conditions, it will definitely make them swayed and confused when to buy and sell. If the decisions they take are just random without doing any analysis first, they will usually be trapped and suffer losses. In addition, beginners are also less able to control their emotions even though trading is a race against time which can drain extra super patience. And lastly, there are many beginners who don't understand stop losing, so they ignore it even though it is very necessary just in case.
Most of the mistakes mentioned is not limited to beginners alone, those who have been trading Cryptocurrency for years also fall into the same mistakes! I think mistakes are meant to be made so we can learn and grow in our knowledge of how trading Cryptocurrency works! We should not be discouraged when we make these mistakes over and over again, what is important is the learning! As soon as you have learnt and mastered the lessons that came with our experience, then we stop making these mistakes!
Even experiencr trader miss to retain their self then get panic on some movements of the market thats why we see many crying about losing their money for certain dumped happen in the market. It takes a lot of year to master this things so to avoid getting panic better trade the amount what you can afford to lose and don't put your last money in crypto since for sure once bear market season occur then you can sit around wait for another pump if the money you use is just a extra amount where you can afford to lose.
Entering many trades at once
This mistake is really dominant among traders who are losing money. In greed for making more money, we sometimes trade assets that we haven't analyzed properly. Sometimes it might be purely based on the hype on social media while sometimes it may be just the emotional feeling for a project.I am not sure whether not using a stop-loss is a mistake though. When BTC crashed some months back, someone who had a stop-loss setup would have faced massive loss but when you don't use stop-loss, you give yourself a chance for recovery. But, not every coin can recover so I mean if you are trading new or unknown altcoins, then maybe stop-loss is crucial.
The current market situation is the best illustration of when NOT TO DO ANYTHING! Don’t check the price, don’t look at the chart, it’s time to sit on your hands! Be in control of your emotions NOW! But if you’re HODLing a shitcoin, I can’t do anything for you. Hahaha.
Most of the mistakes mentioned is not limited to beginners alone, those who have been trading Cryptocurrency for years also fall into the same mistakes! I think mistakes are meant to be made so we can learn and grow in our knowledge of how trading Cryptocurrency works! We should not be discouraged when we make these mistakes over and over again, what is important is the learning! As soon as you have learnt and mastered the lessons that came with our experience, then we stop making these mistakes!
It is natural for a beginner to make mistakes, because they are still in the learning stage. I've been trading for almost 7 years but sometimes I also have mistakes. I just continue to minimize mistakes by continuing to learn to do analysis. In addition, psychology determines that you will become a great trader if you are able to have fundamental technical analysis followed by good emotional management.
We learn from our mistakes, and the point is that as long as we have confidence in the crypto asset being traded, then we cannot rule out a profit. Doesn't that also include applying positive psychology to what we trade. Our trading is responsible for what we choose, so we will learn from all the points you make.
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I think you meant rich
Ah yeah, it was a typo and already fixed. Thank you for notifying.
Quote
Most of the traders who are new to trading enter the market assuming that they will crack the market and make millions within days. It's similar to how a gambler feels when he gets some money, he aspires of cleaning the casino but ends up digging a hole.
Yeah this is the main problem for the newbies is assuming that they are invested some money in crypto means there is no way to stop them to become Millionaire. But they don't know how hard to understand crypto market. The funny word I have heard about cyrpto market that
"It’s very hard to understand the crypto market than understanding a girl mind" lol
The points what you had provided in the op about newbies mistakes are totally right. And even after 4-5 years experience in crypto world still I am doing few mistakes. Basically the opening few trades one time and taking decision too early . You can say newbie in this case. Lol
I think the panic and greed of become reach overnight are also two reasons of making mistakes in trade by newbies.
I think you meant rich. You can say newbie in this case. LolI think the panic and greed of become reach overnight are also two reasons of making mistakes in trade by newbies.
Most of the traders who are new to trading enter the market assuming that they will crack the market and make millions within days. It's similar to how a gambler feels when he gets some money, he aspires of cleaning the casino but ends up digging a hole.
Keeping realistic goals, faith in your assets and decisions is usually not considered by most traders. if you buy a coin and I suggest Bitcoin for the long term, then keep the faith and let the coin recover if it falls down.
If you get emotional surely you are trading with more funds than you should be trading with.
There's a lot of mistakes when it comes beginners, wherein making mistakes decisions because of emotions and because of being greedy reason sometimes they missed the big opportunity. Actually these was base on my experience and i know all of the beginners experienced such mistakes as well.. For me the best way to avoid mistakes, is to educate more our self because on that way we can really tell that everything will gonna be alright, unlike being lack of knowledge while trading because it can cause losses always.. Being smart is a big advantage.. So don't rely what you have right now wherein keep searching for new information that can help you to solve the problem in trading if you really care in your money..
None of those things are because someone is a newbie, that happens with veterans as well. Depends on the level, I have seen newbies who know more about finance then many year veterans, and seen veterans who are still not good at trading compared to newbies, it is a bit about someone's understanding of finance world as well. I have been here for so many years and I still do make mistakes you named time to time.Greed is in human nature and ignoring that is not something some people can do for example. However, great thing about crypto is that if you are greedy in crypto, you are still playing the same game and you will not be given any special help, unlike in fiat world where greedy bankers can either make money or get bailed so no loss for them.
~snip~
Buy as much bitcoin as you can without hurting your finances, and if it falls more then buy some more, keep buying more when the price is dropping. It is obvious that when the drop stops, it will not continue to go down and the only direction is higher to our profit and that's how I made my profit. So, if you see bitcoin price crashing, do not be sad, be happy, most newbies are sad to see it go down.
Maybe your money is unlimited so you can afford to make purchases when it goes down and down again. But not all traders are like you, let alone a beginner.Buy as much bitcoin as you can without hurting your finances, and if it falls more then buy some more, keep buying more when the price is dropping. It is obvious that when the drop stops, it will not continue to go down and the only direction is higher to our profit and that's how I made my profit. So, if you see bitcoin price crashing, do not be sad, be happy, most newbies are sad to see it go down.
It is natural for a beginner to make mistakes, because they are still in the learning stage. I've been trading for almost 7 years but sometimes I also have mistakes. I just continue to minimize mistakes by continuing to learn to do analysis. In addition, psychology determines that you will become a great trader if you are able to have fundamental technical analysis followed by good emotional management.
From my experience and from the research have done I believe some of this reasons might be among why newbies always lose in Cryptocurrency.
- Not having a target when trading: ...
- Entering many trades at once: ...
- Not using stop lose: ...
Those ones aren't even beginners specifics to tell you the truth. Veteran traders who are greedy and have that mindset of, "I can't lose trades" also have that mindset. A lot of traders believe that since the market is an UP and DOWN movement type of thing, whenever it goes against them that it would revert. By doing so they tend to incur more losses. Stop Loss (SL) is the best technique to guard against irreparable loss and save one the headache of constantly checking and rechecking charts.- Not having a target when trading: ...
- Entering many trades at once: ...
- Not using stop lose: ...
Talking about keeping trading diaries, I don't like doing it. It's cumbersome and a waste time for me. I can note tokens to buy but once I'm done buying I don't take record of what price I bought or sold. But that isn't to say I don't make a mental note of what level I bought. In all this, I make sure not to sell below cost price even without keeping any diary on my trades.
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