Topic: Trading can ruin you - page 5. (Read 2042 times)

Thanks for a best thought for sharing in this platform because a lot of people thinking that trading is giving only profit while trading can ruin you by not following trading rules as well as we should know how to start the trading and when we will take entry and when we should exit so it important thinks for trader is rules of trading

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Only knowledge is not required for trading also we require a good budget for trading it means we should have an extra money for trading when we have a loss in trading so that we should save ourselves from losing the plan budget  and we can make other trades in the remaining budget  it better we should invest in many stages so our money will be safe and trade can never ruin us.

Everything that includes risk can ruin you, there is no guarantee for success when it comes to gambling, trading or many other things in life. We are taking risks every day just by walking out of the door, there is no real risk-free world. We need to decide for ourselves what kind of risks we are happy to take and live with comfortably. Some people can’t handle stress and risk at all, for them trading is not a good idea and they are better of to just buy ETFs or give their money to an investment manager. Whereas other people are risk seekers and are looking for the highest possible return. The thing we need to understand that without any risk there is also no return. Trying to achieve higher returns that what we can get on a savings account means to take in risks that could lead to losses. For me it’s important to make a difference between realised and unrealised losses. Just because the price of our investment drops in a day doesn’t mean we should be selling immediately and realise our loss. Crypto markets are quite volatile at the moment with Bitcoins being up 30% in a month.

That is wise and the best choice for the beginners so that there will be no pressure on how you're going to start on this market.
When you buy and just hold for the moment, you'll get to see the picture of the entire market as you start.
By having that initiative, you'll get to have the encourage or discouragement whether you want to pursue trading or not.

I really agree with you. Using a demo account will never solve the problem on controlling emotion. Sure, we will be always aware that we are not in a real trading if we use the demo account. It is actually only a tool to introduce a beginner about the basic thing in trading. Controlling emotion is a more advanced thing in trading, it is a quite complex (complicated) problem. So, to solve this problem, someone needs to have a real experience in a real trading. By having many experience, we can solve the problem of controlling emotion gradually. It is because we probably understand more (know more) about trading and how to deal with the difficulties. In this condition, we can be easier to control our emotion.

But if we are still a beginner, we don't need to use a big amount of money. We are better to use a small amount of money. The most important thing is that we get experiences and we get some lessons from the real trading.

This strategy is basically investing and not proper trading. In trading you need to actively buy and sell the assets. But when it comes to investing, then you have to buy and hold the coin for long term until and unless you make the desired profit from it. So if anyone wants to sharpen their trading skill, then doing demo tradings with dummy balance can really help them. Yes if you don’t know how to trade properly, then definitely you will lose the money. So it’s always better to acquire theoretical knowledge and then do the actual task.

I understand the caution you're advising for traders, especially newcomers. Trading indeed involves risks, and it's essential to have a solid understanding of market dynamics, technical and fundamental analysis. Your emphasis on starting with buy-and-hold strategies for beginners is wise, as it allows them to learn without the intensity of active trading.

That's their motivation so they copy and think that the same results will happen to them, knowing that they lack background in trading.

It is always the case that we see from those traders that are also doing what they see, hear and watch from the motivational video contents on social medias.

These content creators always are glorifying their success and making a profit out of it but with their losses, they're quiet and never shares their journey there.

No one can solve his own emotion control problem by trading on demo account.  Because when one trades on demo account he knows that he is trading with a fake money there is no possibility of financial loss.  For this reason he does not attach much importance to that matter.  But when that person does real trading, he sees trading differently.  Because at that time the thought of financial loss comes to mind and he becomes very emotional.  So beginners should also start real trading by depositing small amount instead of using demo account, it will gain a good experience from the beginning.

But still demo is different compared to live account which we know that they do really differ considering that live accounts using real funds and the demo arent.Therefore, demos are really just that good for familiarizing
those things on how it works and making some back testing but the only issue or absent on which you cant really be able to learn up on demo trade is on that emotional aspect kind of learning. Why?
You would really be that too confident when using up demo on which means that there's no way that you would be able to enhance yourself on that part or portion on which on which on the time that you would really be going with live trading then everything would change and you would really get shocked on the time that you are really that making use of real money or you are aware  that you could really lose up real fund
which this is something that you havent been able to encounter on demo trade.

This is why i do really suggest that you should really be starting on real live account even on just on small amounts yet it wont really be that a short term kind of learning but rather a long one.
You shouldnt really be that making yourself on fast face method or manner because this is where errors do really usually happens when you are rushing up
Trading could really ruin you if you dont know on how to lessen up your risks on dealing with it.

Whether with a demo account or a real beginner trading account, it provides experience and I think even though it has a different adrenaline rush to using a demo account. it is good only for those who are complete beginners in trading.
Everyone's emotional control is different, and the decision to learn and start trading with a real account should be made when they really understand the risks and how to trade properly. Don't think too much about profit or loss at the start of trading. use only small capital to gain trading experience. So the pressure on trader psychology will not be too harsh.

demo account exists to serve purpose that is to give experience for the newbies, I think it does make sense to use demo account though the emotions that gonna comes out of ourselves isn't gonna be as intense as real trading because we are betting nothing therefore we can be cold headed, but its indeed good way to know the hang of the market and grasp whats truly going on.
but afterwards someone shouldn't just jump into the real market with betting all the capital they have, try with some small capital first and then we'll see.
because after all emotions does affect a lot in making decision.
the only implication is if the exchange giving off some faked data giving favour towards the trader that trying out demo account, i'm sure most of popular exchange didn't do that but maybe some shady ones does.

Whether you are technical or fundamental type of trader on which if you dont know on what you are doing then you would definitely be messing up and this is something that must be reduced or should really be lessen yet more mistakes would really be resulting into more errors or simply losing money. Trading isnt something a simple thing on which you could be able to deal off with. Always set into your mind that this do really involves money and every step you should make should really be researched out carefully or would really be applying analysis and not really just that basing up from your intuition.
We do know that it isnt something that could really be that so easily be making one.

Ruining you? Of course this is just like gambling on which on the time that losing money is already that severe or comes into a point that you are compromising your need and living
or simply with your financial situation then this is something that could make out such impact. We should really be that careful on what we are dealing with.
Risk management would really be always that crucial.

It's very unfortunate that a lot of traders jump into the market without having a clear understanding of the risks involved. Some traders are actually into trading because they see others who have been successful and think they can do the same without taking the time to learn the skills and knowledge needed to be successful.

Before you think of venturing into trading, there's need for you to understand the psychology of trading which involves emotions like greed and fear because these two can finish your trading career if you don't know how to handle them. Once you have a solid foundation of knowledge, you can start practicing with a demo account and when you're fully ready, you can slowly do transition to trading with real money and as you are gaining experience, you need to develop a trading plan.

Trading is a way of making money for ourselves and when trading the contrary can still happens to us. It is very important for us to trade with consciousness and never to be too greedy. If we are good in trading and at the same time we are greedy, we can end up keep making losing for ourselves which we might not understand the reasons behind it. Any financial decisions we are taking need scrupulous attention so that we can make good decisions that would aid us to succeed and make more in the market that what we are supposed to. The risk in trading isbthe fear of losing what we have.

That's the importance of understanding and experience even if it's just a basic understanding of trading but it's good enough especially for beginners who are just getting involved. Failure is normal, but I wouldn't exactly say it's normal if you come in unprepared with what should be prepared in general like some basic things when someone wants to get involved in trading. I think before you go in you should have done some research and found out about what you should be prepared for, but that's not always possible, because obviously like you said and it's not uncommon that lately a lot of beginners come in just because they're too focused or tempted by the profits that other people have made and with that they don't think about other things like some of the preparations that a beginner trader should have, one of which is good planning, management and some risk management.

Honestly with that alone I can already confirm what impact they will feel later, failure with a considerable level of loss is very likely to occur when you come without bringing any fishing gear, yes I understand there is a great profit opportunity there but you must understand that it is only an opportunity and it is not easy to get the benefits that others get. Therefore, that is why we must have the right understanding along with some qualified preparations, because none other than all that will be able to lead us to a profit, and to minimize the risk of loss then you must have very good risk management in order to avoid the amount of unexpected losses. There is no certain profit but by making everything run in balance then you will be able to make the profit come for sure and consistently.

And yes that's right, honestly I also started like that, when I first entered the world of trading I always used a demo account as one of the stages of learning and understanding, I did not immediately start on a live account because I clearly understood all the risks that could occur in the midst of my limited understanding, the account was one of the best alternatives for anyone, as long as they could learn and utilize it properly, and over time if you feel you understand enough then you can start with a live account.

Most people who experience failure in trading do not have good knowledge of the trading they do and they do it not with the skills and knowledge they have and they do it based on how they feel when they see people who have been successful in trading. There's nothing wrong with using a demo account to try with the knowledge we already have, but trading with the capital we have will certainly not be the same as using a demo account. It's important for those of us who want to trade to have good knowledge in the field of trading we do.

I think the most fundamental reason a trader fails is the lack of knowledge and experience about trading practices and the market. They don't know how trading is done, they don't have any knowledge about trading strategies, indicators, or anything else that might be important for a trader to know before they get financially involved, and even if someone has done some research and gained some knowledge, they haven't practiced what they've learned.

So, a trader must first gain knowledge, enough knowledge so that they don't get confused at any point in their journey, and once they do that, they should practice that knowledge using demo accounts applying all the indicators and strategies that they want to use in their trading when they start with real money.

I don't preach weakness in trading but rather a strength, and yes, traders shouldn't rush, it's not allowed but not slack as well. There are times that you would slack and you will miss the opportunity. Ony that traders should not be emotional and believe they can make easy or fast money, and if that is what you meant by the "rush" then you are on point. Still in trading, one should rather hit it at the right places and at the right time. How should it be done? Simply by learning and training to gather trading knowledge and experience and never to leave any stone unturned until the true certified trading experience is impacted and this should be such that is foolproof and will always stand the test of time.

Above all, traders who are even experienced could still lose repeatedly, however, what makes traders unique is how they are fearless, patient and disciplined after they have successfully acquired the right trading systems that are reliable. Such traders often manage their money and risks effectively and are trading with the right psychology that is void of emotion or deviation from their trading plans.

even that is not guarantee you'd be successfull in trading, trade is combination of having good intuition and luck, basically you can have all the knowledge about trading in the world and you'd still lose, why? because sometime market goes out of their way, who knows some random meme coin could pump, also who knows that solana after ftx rumoured sell out of their assets gonna instead make it increase, doesn't make sense right? but thats just how market works, there's always some strange thing happening with the market that indeed make many people scratch their head, the market seem to always coming out of the expectation.
thats why trading is intuition and luck because with these two combination you can be profitable trader other wise you can just only waste your money and time.

When you are just new then it would be normal that you should really be needing to do the things which a must thing to be done on which you cant really just that make yourself that dive in and thinking that you could really be able to make money out of trading without putting much effort or without having that proper analysis on which we know that it isnt something that  you could really be able to handle it out immediately.
It would really be requiring tons of time and effort for you to be able to have a good grasps to it on which means that on the time that you would really be tending to have that engagement then it isnt something that
you could really be able to done it without having problems or trouble. It would really be that tough and challenging i should say on which it would really be just that common that you should be needing
that serious approach.

Dont make yourself in a rush because this is where things turns out to be that completely a mess if you do have this kind of method on which you are really that basically be that
rushing on things to earn which it would really be ending up on mistakes and errors and this is something that we dont really like.