Topic: Some trading mistakes beginners make - page 6. (Read 693 times)

Yes that’s well quoted.
Many newbies think that they have gained enough experience to make wiser decisions and place big bets.
Bet here they lack the intelligence and make mistakes.
Some trading mistakes beginners make is investing big when they have less experience.
For which when it becomes loss, they regret on it.

I believe also one of the BIGGEST mistakes newbies, and plebs like us make is HODLing shitcoins, convincing themselves that it’s “better” than Bitcoin then therefore should give plenty of ROI for investors like Bitcoin. “They” too said Bitcoin Cash, and its fork Bitcoin Cash SV is “better” than Bitcoin.

This is important to trading yes because it is like moving a truck to a place or down the road and you have to be careful about it to get to where you going but regarding to trading, the challenge is greed. I see sometimes you wait to grab bigger profit but at the end the market traps one to losses and unfortunately you begin to regret...A good lesson to learn.


IMO this is not a problem. Entering more than one trade at a time isn't bad but what is bad is a martingale without a stoploss applied to each entering 



The most important part of trading is to use stoploss which is part of money management skill. A skill trader not using stoploss has his day of reds.

Well they should simply take it slow. Taking trading as something that gives instant profit just because you entered it is one of the few expectations that newbies have (I myself am included), but really it's not. If you were going to dedicate yourself to trading, it may take years for you to actually get comfortable with it and get profit. It takes experience, and even with that, a profit isn't a guarantee that's why take it slowly. You're not going to stay there for a short time, but rather for a very long time, might as well take your time with it.

when trading, we must be responsible for the capital we use. indeed this thought as you mentioned is experienced by many beginners, of course we must eliminate it and concentrate on the analysis made previously and try to be consistent with the framework. so that over time we can correct the mistakes we made for a better future

Trading and making a profit is not something easy to do,
if it's easy I think people are already rich of course but apart from that all beginners have to learn a lot so as not to repeat the same mistakes in trading,
because in trading the risk of losing money is high so you need to be careful

Being too cocky and thinking that trading is an easy thing to do and that there's no way that you can probably fail from doing it just because you follow the principal of buying low and selling high.

Additionally, beginners should not also say or think "I am a beginner, it is okay to lose". To be honest, this is bad practice, you should always be positive like you should not learn at first because you are a beginner and it is good to lose your money?
But we manage to educate ourselves at the beginning, it will continue and that will be your practice as time goes.

Beginners always wanted a very quick earnings, and I think that was a mistake. because if we rush to get earnings we will possibly loss. The best strategy to do as a beginners is to study hard on ways on how to trade and how to control the emotion, make some research first and do basic trading and only use a small amount of capital to avoid discouragements if ever you loss you can only loss a small amount.

Trading with funds you cannot afford to lose should be on top of the list. Borrowing funds to trade should never be an option. I have personally done that mistake before when was a novice trader and once you lose even one trade, emotions get ahold of you, and you start revenge trading and making so many poor decisions that can lead to more losses.

Also, greed should be completely avoided. If you go with a mindset of getting rich quick though trading, you are less likely to succeed. Trading and making significant gains takes time and experience. Greed can turn your small profits into huge losses and even less equity in your portfolio.

It all has been said OP...and it was sad to say that these mistakes will often happen again and again as newbies are not able to see and realize their mistakes before they start trading but it happens after.

I know that we wanted not to commit mistakes and lose in trading, even newbies wanted to earn profit instantly but the truth is that we can't avoid these things as this gonna happen no matter how careful we are, no matter if we have knowledge and skills as this couldn't be perfect.

Keeping a trading diary is a necessity at op you are rightly nailing down the points for newbies but this thread isn't just limited to newbies alone, from an amateur trader to the professionals this information is very vital. Trading diary certainly helps keep a statistical record of all your trading history and how much improvement you have made ranging form your losses to your gains and pointing out areas which needs improvement

I've seen those posts about futures and think that they can enter onto it and manage the risk that it has easily. They probably saw someone who makes a decent profit from that and they thought that it's just the same as spot trading. You buy low and sell high and you're good to go with higher profits than it potentially has. It's really a mistake for those newbies that are looking into futures as if everyone can bear the risk that it has, well, I can't even trade with futures because I don't want to.

That’s precisely why the term F.O.M.O. is used in investing/trading, or was it actually invented in Bitcoin’s trading/investing community? I don’t know. But it means Fear Of Missing Out, also called Panic Buying.

Just to add, one common mistake as well is Hype trading (that's what I called it  ). A lot of newbies, tend to go all out by just joining the trend or hype of a coin without proper research. Why is it common? Well, let's accept the fact that when a person hears about generating a huge amount of money by doing this or that, we are persuaded to try it out. The reason normally is "If they can, I can", then sooner or later they'll be caught up being scammed or worst broke.

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.

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 doing analysis: Many people, especially newbies, have lost a lot of money in trading due to their inability to analyze the coin they are about to trade. You should know a lot about the coin and have done a lot of research on it, including all-time highs and lows, total supply, trading volume, and what the coin is used for, among other things. So, before buying a coin, do your research. Don't just jump into a trade without knowing anything about the coin.

- Revenge trading: I believe that most traders engage in this practice, which is quite harmful. Revenge trading is the process of buying back a coin because you may have sold it at a loss the first time you bought it, and you simply want to make a profit, so you decide to join the coin again without doing your research beforehand. Nobody is flawless, so if you are involved in a trade and you lose the trade, you must go on and not sit around waiting for retribution.

- 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.

- Not keeping a trading diary: As a trader, you should keep a well-documented trading diary that includes all of your previous experiences and the coins you've purchased previously. However, most newbies don't keep trading journals because they don't document their experience; instead, they simply wake up and decide to enter any coin they want and exit the market whenever they want. As a trader you should have a trading diary which will include the date which you bought a particular coin and the date you sold it, the price which you bought a particular coin and the price you sold it, in the trade if you make a profit or lose and why you make the profit or lost and many more.

- Not having a target when trading: When trading, you should have a target as soon as you enter a trade, and as soon as your target is met, I believe you should exit the market. Most people have lost money because they don't have a target. Some targets may be met, but greedy people will refuse to sell, which resulting in a loss.

- 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.

- Entering many trades at once: As a beginner in Cryptocurrency, you don't need to jump into many trades at once; instead, focus on one or very few trades that you believe you can monitor. If you have too many trades open, you may become confused and lose control of them; however, if you focus on just one trade, you can give it your full attention, whereas if you have too many open, your attention will be divided.

- Not using stop lose: Some people believe that using stop lose is a waste of time and money. While I understand that not everyone is interested in using stop lose, I believe that as a newbie, you should make stop lose a priority in all of your trades because it will help you cut or reduce your losses if things go wrong. However, as a skilled trader, you can trade without using a stop loss because not everyone prefers it.