Topic: Some trading mistakes beginners make - page 5. (Read 633 times)
Since we've been beginners for a long time, it's not necessarily true that we can't escape trading mistakes. Nowadays we make more mistakes by not engaging in day trading anymore. It is for this reason that many things we find and prefer to be long term holders. So that you don't have to be mentally stressed every day.
Even after years of trading actually I have not done any diary for all the trades I have been doing. If I have to look back I guess I can just check my trading history in the pairs I have been trading.
No target prce too for me because I constantly watch the price and chart that I execute whenever I see in real time. When the price is oversold or have botttomed, this is the only time I do trade. I dont see it as mistake.
No target prce too for me because I constantly watch the price and chart that I execute whenever I see in real time. When the price is oversold or have botttomed, this is the only time I do trade. I dont see it as mistake.
- Trading futures too early: Beginners make this mistake frequently, and I made it myself. When trading futures, the risk is always high, and the reward is also high, so most newbies focus on the high reward and ignore the high risk and some might not even about the risk because they don't really know much about future trading. I feel that before you begin future trading, you should have mastered spot trading, else you risk losing money without earning any profit, or your loss could be more than your profit.
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To be a note, newbie or not always make sure we are ready for trading, in physic or mental. Don't let our emotion take control in trading and we do something reckless. Because any strategy or maybe analysis wouldn't help if our emotion already get break down, we can take wrong decision and it can cause us to more suffer than losses. Fear and greed will be part of this, especially for traders who do not control themselves. They should quit as soon as possible if this happens to them and not trying to continue trading if they can not calm down.
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.
I agree. Most of newbies believe they can easily be rich when start to trade, either in cryptocurrency or Forex or any type of asset. And even the wisest person can misjudge his current position. There are a lot of newbie trader but there are only a few professional traders (more than 3 years of experience) because they cant stand seeing themselves throwing money out of a window lol 
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To be a note, newbie or not always make sure we are ready for trading, in physic or mental. Don't let our emotion take control in trading and we do something reckless. Because any strategy or maybe analysis wouldn't help if our emotion already get break down, we can take wrong decision and it can cause us to more suffer than losses.
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..
Another mistake that should be added in the OP is, there are short term/medium term cycles in the market that a pleb-trader should do NOTHING. This was my problem before my HODLing days. I always wanted to have a trade opened.
Beginner always forget to do their own research on a particular coin. They try to trade their emotions first which is very risky and with time they get frustrated. Beginners also think that the crypto space is a get rich quick scheme and this leads to impatience and this always attracts a very big trading error and in turn money is lost .
The reason why is that, they can’t control their emotions yet and they listed to FUD and HYPE that’s why many are losing money, and I see this one as a normal scenario for every beginners. More importantly, they learned from these mistakes and hopefully they work hard to learn things about trading, it takes a lot of practice and hard work because trading is not easy at all and you money at stake here.Trading needs courage and motivation if we wanted to reach our goal, no matter how many times we lose but still, we are able to stand and face the consequences for our mistakes. Being new in trading doesn't mean we can all make it right, as all had to experience losses. It becomes usual but if we don't accept and understand this thing, then I think there is no reason to stay in trading.
Beginner always forget to do their own research on a particular coin. They try to trade their emotions first which is very risky and with time they get frustrated. Beginners also think that the crypto space is a get rich quick scheme and this leads to impatience and this always attracts a very big trading error and in turn money is lost .
That's a total waste of money for an investment if they would just act like that. I'm sure most of newbies did their own research first but the fact that they don't have a trading experience is still a big risk factor that they would lose a certain amount of money. Trading is not that easy as you may think, even the best best trader losses sometimes, there are no exceptions.And what the OP said is all true.
Newbies are desperate when it comes to earning a quick money and a result that would lead them to losing their investment in the future.
Beginner always forget to do their own research on a particular coin. They try to trade their emotions first which is very risky and with time they get frustrated. Beginners also think that the crypto space is a get rich quick scheme and this leads to impatience and this always attracts a very big trading error and in turn money is lost .
Most newbies think that was really it happen as many people had said about it. In fact, that is what we heard in promotional ads and that is the reason why they come into trading. However, it was not literally we should have to trust people talking like that but instead to have our own research to further know if that is real or not. Well, committing mistakes is not new, no one has been exempted from this as we all did some. But if we don't find a way to correct it, I don't see any success but failure.
Beginner always forget to do their own research on a particular coin. They try to trade their emotions first which is very risky and with time they get frustrated. Beginners also think that the crypto space is a get rich quick scheme and this leads to impatience and this always attracts a very big trading error and in turn money is lost .
Also do not sell now that bitcoin is under 50k, buy right now.
I know that may confuse some people, the price is dropping so why should you buy right? You would lose since it is dropping right?
Well, the reality is that when it is going down, that usually means the only way left is going up, it could go down only so much and eventually it will start going up.
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.
I know that may confuse some people, the price is dropping so why should you buy right? You would lose since it is dropping right?
Well, the reality is that when it is going down, that usually means the only way left is going up, it could go down only so much and eventually it will start going up.
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.
I think a better post to talk about because every trader can learn from its mistakes and the traders who are newbies didn't made a mistake since now then they didn't know about trading really well. But the most important thing for newbie i would suggest is that they should not lose their patience and that is it.
The trader must have patience when he wants to trade. But it is not always possible to get the right trade with patience. This requires gaining knowledge about trading, and developing your own skills. In most cases traders face losses only because they have little knowledge about the market. When a trader has no knowledge of the market he trades based on emotions which are later considered as wrong decisions. So it is very important to develop trading skills.
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Another one. Overcomplicating things especially in losses. There are people thinking that there might be ways to "revert" those losses immediately, almost like panicking which is quite common here in crypto especially in dips, and yes I might be like talking about those panic sellers.Use indicators by the way.
Some of the newbies' mistake is probably going off track really easy, i see a lot of them dump their money and trading some shitty altcoins that are not that developed and they are just a pump and dump scams thinking that they will be able to hit the jackpot with, where they should be focusing on trading the more known ones, and one other thing as soon as they win a trade or two using a certain strategy they just stick to it even though it might not be working for that time.
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 definitely a big problem. I have seen a lot of people who come into crypto with "if there are so many people who made money in crypto, then I will be able to do the same as well" logic. First of all, not everyone makes a profit in crypto but since it went up so much, people who did literally nothing but watching the price go up managed to make money, so it was easy, doesn't mean it will be easy for you as well.At the end of the day, it is something not as entertaining as you would hope, it is a big dangerous to keep doing this for a long time. What we need to explain to newbies is that trading is a risky business and it takes time to master it. If they jump in without much knowledge, and high confidence then they will keep on losing money.
I think a better post to talk about because every trader can learn from its mistakes and the traders who are newbies didn't made a mistake since now then they didn't know about trading really well. But the most important thing for newbie i would suggest is that they should not lose their patience and that is it.
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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 rich overnight are also two reasons of making mistakes in trade by newbies.
. You can say newbie in this case. LolI think the panic and greed of become rich overnight are also two reasons of making mistakes in trade by newbies.
- Not doing analysis
These are the traders that will rush in and rush out, they will start to trade with luck which is gambling and they will fail and lose huge amount of money. - Revenge trading
Not even only in trading but also in gambling, the weakest period to traders and gamblers is when they lose and continue to trade, emotion will set which will lead to poor mindset, they will trade the more and lose until their money are all gone. - Not keeping a trading diary:
I do not have a trading diary but I learn from my mistakes which I think is enough for me, I do not see how diary is important. - Not using stop lose
It depends, what if I use stop lose and the market price of the trading coin decrease up to the stop loss and the market was closed, after the market pump back which should have been a profit. It depends on the traders, stop loss also have disadvantage. Jump to: