Topic: This bad habit will cost you a lot in trading (Read 561 times)

There is nothing wrong with learning, we should learn every new thing and as you said, we should learn and understand every type of trade, it is not necessary to keep doing the same type of trade even if you are profiting from it. or take a loss but if you get a profit in spot trading then you should not take up futures because futures trading is very risky but if you are not getting any special benefit in spot trading then you should change your way. There is nothing wrong with that.

Understand that you have learned about futures trading and given it a try on your part because the people who always succeed are the ones who keep trying and the ones who stay in one place for fear of risks, they live, but they never achieve success.

I'm a spot trader myself and don't have much knowledge about futures trading. I'm learning about futures trading and I'm confident that I'll be successful in futures trading as well, just like I am in spot trading if I work hard and focus on learning and understanding things.

Well, trading against trend works but one has to understand that it's not easy to trade against the trend and such traders have to be patient because sometimes they'll have to hold their trades longer to make any profits out of those trades.

Sometimes such traders make way more profit than other type of traders as they're trading against the trend and if the trend goes inverse then such traders make huge profits.

Personally, I shorted Bitcoin when it was at $73k and from that short I made some profits but If I had hold that position of mine for long time then I could have made so much profit from that trade.

I'm pretty sure that there might be other traders who trades against the trend at those times and many of them might have made huge profits by holding their positions.

Trading against the trend seems to be theoretical as I have never seen anyone do that. Unless the whales which I am not aware of. An average trader follows the trend. An average trader follows the market movers to mitigate losses when they come.

However, I have relieved myself from the stress of all these analysis by choosing long term investment. This give somewhat a peace of mind even if it will not give the desired return.

Trading against the trend is more risky because you're fighting the whole market when you decide to do that. You can win this fight if the market direction chances and it begins to go in your predicted direction but you can only know this when you are done analyzing the market hence before trading, we should make findings for any news that is about to be announced because they have their effects on market reaction. Each trader has their own bad habits that can cause them to lose when trading. If you don't have the bad habits of tracingy against the market, you might have other bad habits and it might be the cause of your recent losses. Letting go of the bad habits will help us to improves and begin to get better results when we are trading. How to identify bad habits is to look for things that you do when trading that it makes you to not make money from the trade

We should put up into our mind is on that on the time that you would really be dealing up with this market space then embrace yourself about into the condition that you are really that against with other traders on the other side on which it would really be just that understandable that you should really be that making yourself those good decisions towards your trading. This would really be that survival of the fittest on which
on the time that you would really be making yourself dealing up with this volatile space then you should really be that making yourself at least be prepared on what are the things that could potentially come. This is why it would really be that best that you should really be trying out to get rid of those things that could potentially hinder out on making good trades. We cant really be able to be perfect traders and there would really be those habits and doings on which we do keep on doing despite of resulting into those negative impact towards our trading analysis. This is where it would really be sensible that you should really be trying out to make some changes. We do know that as a trader then you would really be finding yourself getting involved into tons of trials and errors along the way. Trading is a never ending learning kind of career on which
the more experience you are getting into this market then the lesser the risks that you would really be having but of course there would really be no guarantees anytime. Market is unpredictable and something which is really that random. This is why you should really be having tons of back up plans just in case when things turns out to be messy on which this is a normal approach.

Yes, that's right. One of the tips for success in trading is that we must understand the market, and of course we cannot fight the market, although not all trading, but most of the time if we fight the market we will lose. Therefore, to achieve success in trading, we must be able to ride the market by predicting where the market will move. To read the direction of the market, there are many ways. This is the importance of knowledge before jumping into trading. So that we will know whether the trend in a longer time is heading in a different direction from the prediction or not because the market cannot be ascertained.

But what is certain, bad habits in trading are not market trends. But because of yourself, sometimes being greedy, sometimes being afraid so that this is what makes you unable to be disciplined which makes you often lose. So, learning to recognize and master trading psychology is important to achieve success in trading.

Usually we need to stay with trend because it's important for us if we are having not good knowledge of trade and having better things for analysis and other related things but if we have some good knowledge base, and also we are able to have good things related to us, we can go against trend because this is risky but with having more profit option as well even as mentioned few loves to do this for fun but still it's good option to check.

Usually while you are going against trends you are having more risk factor but still things are good because this will bring creativity for the person who is dared to this most of the time peoples never like this because here we have few peoples those are love to have big risks because they feel not comfortable but if someone have this then he is keeping because this is also just like addiction once you enter you are staying here until all end.

This is so true, and not many people understand why it's so true as well. However, there are situations that are not that similar, so if you have same strategy for all the situations then you are going to have to find something that works for all of them, which isn't easy. I am not saying that's wrong, I am not saying don't do it neither, I am just saying that it is not that common and it will probably not be done that easily neither, just avoid that if you can and you will do fine.

We are talking about everyone's habit that will not be easy to handle, and because of that I believe that the best thing to do is try to find that strategy which works for every single situation. It may take a long long time, you may even never find it, because I have never found one that works both on bull a lot, and bear a lot.

Yes, but probably just 1% of all the traders, so there numbers is really small to be called exceptional traders and for sure, one of this days, the number will go against you because of you going on the opposite side of the trend. It's like you are betting against what the market is offering and it's hard to do that even if you are really that good or above the average mindset of the traders. But maybe this is why some of them become so rich because of counter trading. However, it is not meant for everyone, again, you might be superior, but at the end of the day, still boils down as to how you make money and how much it is.

Having the habit of buying and selling in every situation to put yourself in a stronger position by trading according to market trends. Considering accuracy for overbuying in bearish times and selling in bullish times. But more attention should be paid to ensure proper use of capital in every situation which is expected from a trader. Adjust your money flow and portfolio accordingly to maximize profits and increase currency holdings to multiply profits as a trader. Tempting yourself with buying sentiment at every level of the market to avoid risk in trading. I try to arrange my capital in a way that avoids risk and maximizes profit.

Your advocacy for trend trading is laudable but at the same time traders should not entertain fear of trading the opposite, after all, traders can profit both ways. Trend is our friend and I have never seen any trading approach that is associated with lower risk and gives the rest of mind than trend trading, nonetheless, when the trader knows how to speculate the market well, there will always be a reversal and retracements, which are the situations where the opposite of the trend are best traded.

The caution is that a good safety measure must be adhered to where the trader will ensure that a tight stop loss is placed immediately after opening the opposite orders to the trend. If done well, proper risk management would still be achieved, but the trader must first ensure that trusted strategies are deployed and sure trading signals are patiently waited for. I prefer a situation where a support and resistance strategy would signal it while a price action pattern would confirm it before pulling the trigger.

There are too many people who are stuck with one way, and do not want to see any other methods, not only they do not want to do it but they do not even check how it's done or the results of people who do the others.

I would say spot trading is the best way to move forward, in any direction but that doesn't mean that I do not check leverage for example, because futures have their own way of helping people, in your example if it is going down then shorting before it goes down helps you make a profit, point being that it's something we can make profit from.

In the end, it is something that everyone should do, everyone should take a look at all kinds of trading, and in the end they can make a calculated decision based on what they know and can trade accordingly, it would allow them to be a lot better and could result with a good result. It is going to be something that can definitely give you what you prefer, and you would be a lot better at doing what you like.

It’s really hard to win when you go against the trend, but I think some exceptional traders still manage to go against the trend and end up making significant profits. But if you’re still learning the process of trading, I suggest just go with the flow, go wherever the market leads you. Do not counter-trend because that would only mean more risks on your part as a trader. Reality is we are trading following the trend of the market, not to end up going on the reversal.

In reality, it is true that futures trading tends to be more difficult than spot trading. Even though the trading strategy can be the same, sometimes the difficulty traders experience is when they have to fight themselves not to play with high leverage. Many future traders experience losing all their money due to margin calls when they play with high leverage, obviously they get big losses.

Futures trading is not bad and I think it is quite liquid for those who understand it. Playing with low leverage, for example 5 or under 10, is certainly better, but sometimes the market is very unfriendly. A futures trader doesn't always make a profit even if they really understand how it works, but occasionally they can make big profits.

Trading against the trend is risky as others say you are “catching a knife” then this will be a loss in the end because instead of following the market trend it is the opposite direction.

Here we must be able to do the combination we have in the skills by looking at market sentiment you will know where the market is going but if you continue to fight the trend then you will enter the abyss.

Yeah trade according to the trend in the market and don't want to get FOMO.

If you go in spot and your goal is hold - why not? Only use the funds that you are okay to spend

As a trader, you cannot trade against the trend, obviously, although they are different types of trading, so basically you did not classify the one you are talking about, but in one way, what I know is that you can't trade against the market trend, especially if you are into spot trading. Following the trend is one of the favorable things a trader will do to make money; without that, the risk will be higher. 


Did you think so? Because, in my opinion, mastering one strategy as a trader is one thing that a trader is supposed to do so that he or she can have his own strategy they use while trading, but a trader using a different strategy is at high risk of losing money even if he knows how to trade.

However, I don't think if someone trades with the intention of making profit, there is an increasing chance of losing money because the main aim is to make money. If you want to say things that are increasing a trader's chance of losing money, it is insufficient knowledge, greed, and a and a lack of emotional control, but putting in mind that you need profit is not an issue.

I hope you do realize that there are different types of trades, while there is spot trading which is always favorable when you follow the trend, when the market becomes uncertain and doesn't move in your direction, that's when you look at other type of trades, there is option, there is future trading which has its own forms again and we also have margin trading. You can enjoy all these tradings when the trend decide to go against you and there is money on them.

However, because of the leverage involve in them, you can't enjoy such trading in way to make money comfortably, if you increase your leverage, the more risky the trade becomes and the less you leverage your position, the better it becomes again but less the profit. Whichever you want, the choice is yours to make but low leverage are the best with future trading, anything other than that is gambling and you know what gambling is about.

It's good that you know this fact because there are many traders especially newbies who trade against the trend and lose money.
One of the things I have learnt over the years is that we should never trade against the trend.
I have myself made this mistake earlier and lost some amount of money from my portfolio.
But I paid the price for my lesson and I am determined enought not to repeat this mistake again.

There's a case to be made for this. Just cause you're trading against the market current doesn't necessarily mean that you'll lose out on profits, especially when everything's going to the shitbox nowadays courtesy of the ongoing recession in most western countries, particularly the US, it's anybody's game in here, which could very well mean that the market could go either way, and choosing to go against the current market situation is just as a valid action as following the wave.

Don't force people to be these cookie-cut traders who only do one thing and are not venturing into other ways to trade and earn money, this gig get's boring after some time and if you seclude people from getting into other ways of trading, it might get old way faster for them.

In my trading journey a lot of times i am invest against market trend, provably i success in one or two trade and those was unexpected profits because my entry was against market trend, so it’s of course dangerous move for everyone to trade against market trend. Beginners traders can mistake because they are not enough skill in trading.

But I hear scalping kind of very short term trading strategies will be good when you go against the trend. You will get multiple entry and quicker profits. I am not sure still because personally I haven't tried scalping and that too against the trend. Basically I am a long term holder but these days I started planning for day trading if any working strategies are available.

Many of my friends are still warning about my plan, but I look for exploring new things which would be profitable by the end of the day.

Trading against the market trend seems more risky to me. Because if the market conditions are not in my favor, even if I only trade against it, I may end up with a lot of financial losses.  But it depends on some things. If I am trading short-term, I am less likely to profit by going against the market. On the other hand, if I am trading long term, I may go against the market thereby increasing my chances of getting more profit in the future.  But for this, of course, where I am trading is also very important. But in the case of trading, risk must be taken. And if I trade against the trending of the market then maybe it will bring profit for me.

It's rare to win when you trade against the trend, you will only lose in the end. Just like gambling, when you try to take advantage over the house edge, you will only get frustrated and lose all your funds. That's why if you want to trade nor gamble, just go and follow the market trend, no need to take a revenge and go against with it.

Applying only one strategy to all conditions in trading I think is not too bad, in fact if the strategy is carried out consistently then the trading is likely to be successful but back to broad knowledge in trading to avoid unwanted things I think all traders must have that knowledge or learn it. In trading anything is possible to happen and the level of risk for that I think all traders understand and understand that traders must also try to minimize the risk, namely by expanding their trading knowledge.

Trading only on one side or following one strategy will never make you a good trader. To become a skilled trader, the trader should start trading after knowing the trading related knowledge. Trading when there is a trend in the market increases the chances of profit. However, in any favorable or unfavorable conditions, when the trader can gain the courage to trade according to the market position, he will be able to make profit if he trades. If he decides to trade, he must take risks. Trading with the sole intention of making a profit increases the chances of losing. Every trader must be thoroughly researched before taking a new entry in trading.

Newbies who actually trade against the market trend are not aware with that, probably because they don't know either what's the current market trend. They only trade for profits, not knowing that the best strategy to trade for profits is by trading in line with the trend, and not above or beyond the trend. However, there are also well-experienced traders who sometimes go against the trend, just like while others are buying, they chose to sell instead. That's how they also make profits, and as long as they are actually aware of its consequences if ever, then for sure they do it with caution as well.

Most of the time, I would go with the trend just because it may become true, especially if there is a lot of confluence with other indicators in the trading strategy I am using. What I like to do with my risky account is to get on the most famous possible trends and go against them. It's like the reverse creamer thing. It's like that, in my opinion. It is just for fun.

Every trader knows the saying of the trend is your friend!!

Trading against the trend is like trying to catch a falling knife and you can imagine the aftermath...

Agreed, but the only problem about trading is that you can't trade with only one factor, to increase your winning rate you need other confluences such as multi-timeframes analysis, knowing which order block will hold, your premium and discount etcetera

One thing is for sure, if you trading on the wrong time frame you might think you are trend trading when infact you are counter trading which goes to show multi-timeframe analysis needs to be mastered!

Otherwise trend trading is much easy to trade with unlike counter trading which takes time to hit your take profit 🎯

What about buying when the market goes down? You do go against it, but you wait out for the dip to correlate eventually. Of course, it shouldn't be done on unstable coins, but rather on big fellas of the market.

Yes, one of the skills needed in trading is adapting to circumstances, and that includes trends. However, many people have made small or large profits just because they suddenly followed the trend. However, this also needs to be accompanied by analysis, because when market trends occur, quite a lot of people take advantage of this to their advantage. So, although following trends is good, we need to carry out analysis and speculation, while adapting to it.

A trader with years of experience knows when it is time to sell and when it is time to buy, but newbies find it difficult to determine. Going along with the trend does not guarantee profit as well, but I believe it will work when carefully analyzed. This will happen if you spend time analyzing the market and checking the time frame of changes. It really takes time to do that, which is why we necessarily need patience for this because rushing makes no good results but losses and wrong orders. 

With all the things needed in trading, we can conclude that this is not an easy job. It needs focus and dedication, or else we are putting ourselves in a losing position. This is the reason why many traders fail, as they assume they can ride the market volatility easily, yet they do not. 

I learnt my lesson the hard way. Now, I don't go against the trend. If the trend is for price to go down, I have to go down with it and vice versa. One thing I didn't realize and I think a lot of traders don't realize too is that we have no control or power over the market so when it's going up and we try to make it go up, we will just get our capital eaten away. I had several trades during the last black swan like dump that happened due to the blowout from the Japanese carry trade. Instead of agreeing that the trend is downwards, I tried to stay long for as long as possible and that cost me.

Never again.

You don't trade and go against with the market, that's never trading at all. Trading simply means that you consider all the market trends and its sentiments, and abide with how it moves in the market. That's the safest way to trade so you won't be dealing with possible losses in the end just because you trade following the opposite path.

Trading needs to be a smooth sailing activity, so you need to befriend the market as much as possible and learn not to go against its way.

Trend is not always your friend, its not always your enemy neither, it depends on the day and the trends. Sometimes it is your friend and if you follow the trend then you make money from it, and sometimes the trend isn't your friend and then you end up making a loss if you follow it.

It's hard to know which one you are in at that moment which is why most people do not make infinite amount of money. If we knew what we could do then we would be able to actually do something, but we are basically seeing this as the most normal situation because we are so used to it at this time. Because nobody really knows what's going to happen in the market, we just end up not really caring about any of this and try to avoid doing anything about it in general.

I personally believe that we are going to have some good results if we know what we are doing, and because of that we can make this work one way or another. Keep on investing the way you know and ignore the trends.

When you do make out some counter trend then you would really be just that basically putting up yourself into such potential risks or trouble in regarding into your trading position or open orders.
But as we do all know that telling on what would be trend will be into the next hour or days or weeks then it would really be that something that cant easily be predicted. There's no way that you could
possibly be able to make yourself precisely tell on where the market trend will really be going. This is why actions would be made will really be always remain random and speculative just as so with the market.
There would really be no assurance that you will be able to make yourself that making out that precise position but of course there would really be that significant differences in between to those traders
who are really that good when it comes to their trading analysis and other steps on which not all would really be having on the same skills and capability. Although it wont really be giving out that 100%
precision but it is really that so much better in compared into those traders who do make out some positions without having any basis or simply its really just that being random.
When dealing up with a speculative space then it would really be just that normal that you would really be needing up to be mindful in correlation to things on what must be done and mind on.

I believe a trader can only trade against the trend if they are in the futures market because, in futures, you can get profits whether the market is moving positively or negatively. So, going against the trend doesn't always make you lose when you are in futures trading. In spot trading, you can't go against the trend because that will surely not be a pleasant thing to do when you can clearly see which direction the market is headed.

Even short-term trades can't go well when you are trading against the trend. Imagine the market is constantly going down, and you are trying to get some profit from a coin. As the market stops for a while, you buy immediately because you think it is going to go up, but you avoid that the market is in a correction mode and signals are completely against taking positions for an upside.

It's a high risk, but smart money usually tries to break the trend in their own favor to get better positions / for some other reasons, thus, it's ideal if you try to follow them, both against and with the market

I think only as a short term trader can your trade for the short term go well. If you’re a long time trader, counter trading may not have an overall effect on your trading if your analysis shows that in the long run, the market will reverse in that trend and change the trend to the new one you’ve Analysed and expecting to start. Most traders don’t counter trend because it spoils their reputation especially those that have students under their mentorship that they're guiding and teaching how to learn trading. Counter trade is not for the newbies, so it should be avoided.

In my earliest days at trading, one of the many lessons i learnt was, to never trade against the trend. It’s a no for me as that lesson has sticked and is something I find to have been really helpful through the many times I’ve had to trade.
Basically, it plays out when my analysis is on course with the trend, I go ahead to place a trade after looking at certain indicators like the RSI, MA and a few others. It’s less risky having to trade by following trends.

I'm with you OP, I trade with trend also because I already tried several times countering the trend.

For example, there's a huge dump and you are aiming to buy the dips. So, you keep buying the "dips" where you were positive that's already the dip but after that, the price went dumped again and again, it's like you are catching falling knives.

Every trader sees the trend and understand the direction the market is going this is why the trend works. If you go against the trend as a trader, you're really just doing yourself and risking your capital because the trend is your friend.

Trading an upward or a downward trend may require different strategies and techniques, as a trader, your ability to identify the trend, or a trend really matters, because it can help make clear your trading decision.

I have to agree. No one trades and go against with the market, but the problem is some of new traders do not actually know when to trade in favor of the market, as they only trade following their own vibes hoping to get quick profits if ever their trades turn into success. They instantly rush into trading without weighing things if there is high rate of success afterwards or trading at the moment seems unproductive at all. And when they lose, they’ll only learn that their trades do not even follow the market trends but they’re trading against the market.

One who decides to trade against the market trend is obviously not a real trader. You need to trade in accordance with how the market moves, so that you will end up with trades favored by the market, not actually going against it.  Now if you think you could win by taking revenge on the market, you are very wrong there, no one wins and makes desirable profits if you trade not following the market trends and sentiments.

There's a famous quote that traders and those expert in technical analysts are using and that is "The Trend is Your Friend".

Even the expert traders aren't trading against the trend because it will give them huge losses. I tried it one time personally when I'm trading in futures. I tried to trade against the trend and I end up losing a portion of my capital. I already put a stop loss before I did it that's why I didn't lose all of my capital, but for those who are thinking to try it, I don't know if there's a way for you to make up profit even though you're going against the trend. Even though we are saying that we should not trade against the trend, there are still some who are accidentally trading against it because they don't know how to read charts.

Overall, as much as we are saying that we should not make trades that are against the trend, there will still be traders especially those newbie ones that will do it without them knowing it.

Trading against the trend could actually be very good, because when people are selling, that is exactly when you should be buying and when they are buying that should be something that you need to end up selling. So that means trend chasing isn't always that great, while it can bring in a short term profit, the long term is doing the exact opposite in most cases. This is why there is an index called fear/greed, that means if people are greedy the index shows greed and that means you should be selling and when the index shows fear then you should be considering to buy.

This is literally what doing the opposite of the market means and you should be considering that as the most important part, there is nothing wrong with that. I do believe that we are going to make some profit if we do the opposite of what people are doing because in most cases people do not know what they are doing and they are wrong, so it would benefit to do opposite of them.

One of my mistake during my newbie days are making a trade against the current market state which cost me more losses. If the market is in a signal of a down trend better to go with it and not against with it because people keep getting FOMO reason to make a panic sell and panic buying and if the pressure is too much you will just liquidated to cut your loss and make another position. It's the same to go with the flow you will get hard if you are swimming against the current. Always stick with the strategy works on you.

It is very risky when we trade against the trend, we can do it but we must also be prepared for the risks that we will feel. Some people may go against the trend, for example when the market is down they will continue to trade and enter long, but usually they also have a lot of backup because when the market goes down again they will re-enter at a lower price. A much stronger mentality must also be had, because we will likely see much greater losses. Not many people do this and also when they dare to do it then they will be ready with large capital and they will certainly be very prepared for the losses they will face. So this depends on our choice, but I personally prefer to follow the market trend.

I would say that it depends on the type of trade. I don’t always do it the same way between one type of trade and the other.
A reminder that I always remember from experience is that all types of trading have risks. If you are acting as a trader, the answer is already there. Trading against the trend is high risk.

I don't think there is anyone who trades against the trend and I haven't found any friends or investors that I know who trade in the crypto market against the trend, In fact, to my understanding, market trends are a concept that must be understood fundamentally because it concerns money and the movement of prices of our trading assets in securities within a certain period or time.

As far as I know, anyone involved in trading activities in the crypto market, the main thing that needs to be understood is market trends, analysts and the direction of the trend to determine or draw mature conclusions in trading on the crypto market.

Even also professional traders will never want to trade against market trend, it's high risk trading and loss will confirm, so how dare a trader will go to trade against trend? in spot trading you can not successful trade if counter trend trading. I am following market trend specially in short term trading.

Trading includes different types. Trading with a long term trend or medium trend is what you meant. There is another trading type that does not care too much of market trend. It focuses on very short term trading but when a trader applies this trading type, he must zoom out to see the market trend in order to assess the market in general. If assessment gives some signals that market will have big movement soon, no matter up or down, he must step aside and keep watching the market. When a big market movement occurs, he can start his trading and enjoy market wild volatility after a big correction or crash.

Nope, trading against market trend is very dangerous especially trading with leverage. High risk takers will want to use leverages for making Short or Long positions and trade against the market trend but it's not recommended for newbies. It's risky and dangerous.

As a trader, know that the market trend is not your enemy; it must be your friend. Avoid trading against the trend. Following the market trend is crucial when trading because it helps you align your trades with the overall direction of the market, increasing your chances of success. Trading against the trend is risky and can result in losses, as you're fighting the market's natural movement. By identifying and following the trend, you can enter trades with momentum on your side, ride the wave of price movement, and make more informed decisions.

Do you only trade according to the trend or you counter-trend trade from time to time?