Topic: Understanding how the market tricks you and how to prepare against such tricks. (Read 503 times)

To trade we have to allocate the capital which is not important to us in the next six months atleast or else we can't trade at all according to our analysis.

Better sell the gains instead of capital from time to time since there won't be mich issue for tax paying since we are talking about the people who use the capital for trade as well as their daily needs.

It's true that trading and getting results takes time and effort. we must be able to understand and analyze the market well. besides that we also have to be able to control emotions more in this ups and downs crypto market. It's true that we shouldn't be greedy and rush to get big profits if we don't really understand trading. Besides that, don't panic too easily when the market is down drastically because it's time for us to hold coins instead of selling them, selling them will make the market more chaotic and we can also experience big losses.

If this happens to you often then that most of the time means that you have too much money invested in bitcoin, I know that this is going to sound kind of blasphemous since we are always hearing in the forum to put all the money that you can in bitcoin, but you need and emergency fund in the case and emergency happen and you need money immediately, now sometimes even those funds are not going to be enough and you will still have to sell your bitcoin but it will be less than you would need otherwise, and the most important you can use that emergency fund immediately instead of having to wait to sell your bitcoin and then receive your fiat in your bank account, something that can take a few days to actually happen.

Are you running any business related to advising traders? I am not just clear about whom you are referring to. Who are all there to advice to traders? You mean this community and your topics kind of things? If so, I am sorry; this kind of advises may not serve all its purposes because traders will read these and will understand but will forget these while trading which means what they learn from their own mistakes might be alone helping them to avoid future mistakes.

Again? If anyone not knowing of these basics of trading then they are all not at all fit for entering into crypto trading. So, advises will not protect you from market tricks but you must need your own experiences to tackle all kind of market situations.

Every human being has greed, so many traders repeat the same mistakes over and over again. because he couldn't control his greed. To be able
to control our greed, it is not easy, discipline is needed in carrying out the plans that we have prepared. For traders who execute every plan well,
usually already able to control emotions when trading. So they can make the right decisions and usually will not miss taking profit, if the coins that
are hold have reached the desired target.

Dam, this is so true man. I have experienced such things all the time. Whenever I needed money for some emergencies I have withdrawn my bitcoin's literally at the rates higher than at what I bought them OR got paid from the signature campaigns. That's really funny one why that happens. It may be not a trick, but I think it's our emotional attachment with the bitcoin and how we hold it. There are many peeps who keep holding no matter what the price is. They don't care if the market is ATH or not. They just keep buying more and more so that they can average the profits and keep all the investments safe & separate from the money which they need.

For example, they would spend only money which is not needed by them in any emergencies. This means there is never a point where they need to sell their bitcoin or other investments. So they are safe all the time.

Yes, greed will lead you to be late to take your profit which you have already seen before, because you want more profit but that will not always work as you want. Once you become greedy, you can not see how long the price has already increased and need to adjust and make a correction. And when the price starts going down, sometimes the price goes down deeper, makes you panic and sell at a low price, lower than the profit you should take before. That will make you regret making a wrong decision.

Indeed. When you trade and your emotions control everything in you, then you might possibly lose a huge amount of your possible profit. The other problem was also trading without knowledge on it. It's a lot less the market tricking you, and a lot more of just the traders or investors being really ignorant or inexperienced. We can't see the future. But we can predict the market. We are not sure when the market dump or pump because there are so many whales that are controlling the market. I think there is no trick to watch in the future of upcoming market. We can only predict it through daily basis of fundamental analysis and technical analysis. But it is just a prediction, which means it is not sure.

That is what mastery over a subject looks like, it is known that whenever you are studying a difficult subject there is a difficulty curve that in some cases can be very steep, many people give up before attaining mastery because they are unable to see themselves overcoming the steep learning curve, but for those that persevere and are able to finally get over that learning curve they suddenly realize that those things that were so difficult before now are easy to do and it is now even difficult to imagine why it was so, and as you say this can happen out of nowhere but behind it there is a great deal of effort that it needs to be made to reach that step in your progression to become a profitable trader.

Most of the time greed is not working for the trader or even i can say all the time, because greed in  trading can lead you to loss. If you can get profit even it is small though, you should get it but even you are greedy and want more and more . As a result there will be more chances for losing that money.

those who think it's a hoax are just alibi because they lost with their own emotions. Every human being is equipped with emotions and that cannot be denied. Accepting the weaknesses in us can make us reconcile and can continue to grow and will not get stuck in that 1 problem. Trading psychology will continue to be trained when we face problems in trading. There are no market tricks, it's just that we have to be stronger and be able to adapt to the market.

Yeah the predictions aren't 100%  accurate most of the times but if it's well analyzed can be 80-90% accurate and some times we might even hit our target profit this is where decipline is required to take profit and look out for another profitable set - up to trade. This why a good trader will tell if the analysis is right stick to your trade it will always revert back to give you profit but always apply stop-loss to limit your loss in case you see otherwise

It is basically this "thing" that you get eventually, it is like you got water in your ear and no matter how hard you try you can't get it out, you try everything you can think of and it doesn't work, and then a few hours later when you totally gave up already, it suddenly pops and there is this amazing feeling.

Same with trading and being ready for everything, you do everything you should and it still doesn't work, I am not good with numbers neither so that makes things horrible as well, then suddenly I got it one day, I just got it, it worked so well and ever since that day I understand what I have to do, it was out of nowhere and unexpected but it totally worked. This is why I believe we should always work hard until it works for us, I mean if you do not want to you can give up, that is always an option, but if you want to yet can't then do not give up it will work one day.

We as humans are really versatile and its a must thing when you do deal into a thing which is totally unpredictable.You wouldnt know on what comes next because things in life doesnt really have a pattern or situations that do really happen along the way.

This market is way too unpredictable and cant really be known on what are the things that would happen in upcoming days and its just right that you would really be preparing yourself into something which is unknown.

For you to able to sustain into this market then it would be just normal that you should be finding ways on how to make yourself effective into this market.

Having a strategy from which you never deviate from is to me the most effective way to avoid this, losing money makes us emotional so I can understand people feeling really badly when they let their emotions get the best out of them and they lose a lot of money, but this can be easily avoided as long as you are willing to follow your strategy even when there is panic in the markets, now I know this is hard to do but it has to be done if we want to avoid losing money.

The market prices moving up and down are part of the volatility and it is on us the 'traders' to make sure that we do not mix in our feelings when it comes to trading.

I understand this is easier said than done but once awareness is there we can take action. Yes, prices will move this is inevitable and without a sound plan you can cash out when there's 1% drop (and then see it rise again) or go in bigger to get more profit only to marginalise profit overall. Without a clear goal all of this can happen, and it is all a matter of acting as soon as we realise we are better off leaving the market for a little while.

- Our brains and senses will react to unexpected conditions and adapt to life, besides, basic expressions also shape a person's attitude and appearance, so once we separate our emotions from the different situations in our lives, we are just an empty shell and no longer interact. Trading has a lot of advice to throw away the basics of emotions but in reality, those are just empty concepts and without proper proof, emotions are just something that needs to be minimized in trading, to form such a mindset, the game is long and the entry point should be as light as possible

Taking profit shoudn't be an issue if you already have a trading plan before entering a trade and we're all advice to have one to avoid scenario like what you just said above. You should know your entry points, profit taking point depending depending on how many times you want to take profit or just a one time profit taking. Knowing all this will help you have a successful trade free from emotions.

Sticking to your trading strategy is very important but you should also be flexible in the sense that if there's a change in market direction you should adject to adapt to it. You can't continue been in a trade that isn't profiting you just because you're told sticking to trading plan is important. If the market is heading towards a bearish one then you should adjust to that but wait for a confirmation to avoid been tricked by the market.

In regards to not looking back at your trades, I understand it's a cautious advice to avoid regrets but still each trade has a lesson to teach so maybe looking back to learn form a trade be it a successful or not can do no harm provided you can keep you our emotions in check to avoid it wrongly influencing your future calls.

Trading without emotions was impossible, we still have that as a human being because it won't happen if you don't use your mind to decide on things you wanted to do. If you're thinking we've been tricked by the market, I guess it was just an alibi for us because we have no proper knowledge. To avoid that idea, we should be facing reality and accept our weaknesses.

Due to market movements then you would really be having that kind of emotion which is something impulsive and really wary towards your decisions.I dont believe on tricks because everything is random.

With experience you could able to handle up yourself and able to sustain for long term even though trades arent perfect but at least you do already have the idea on how this market works.

You dont need tricks but rather perseverance and persistence towards your trades.Market is unpredictable and if you wont really be serious on it then expect more losses.

The market plays so much with our emotions, the more we learn to trade without our emotions the better for us, and also don't just trade without a strategy, it's very easy to place a trade Buh determining the take profit becomes the issue, I think it's better to set a target and once you hit your target close the trade and never look back because sometimes the market might be decietful.

I think a simpler solution I can provide for this problem is trading with a plan! Always have a good plan for you! Trade only according to the plan, When you'll trade as per plan you won't face situations where you need money that's stuck in a trade because you will automatically anticipate any future upcoming needs, Keep a plan on when to exit and make sure you exit at that point or at least keep your trailing stop loss below that point. We are living in an ultra-modern age where we are competing against computers in trading, these algos have a total idea about our trading styles, they know when we sell, at what points we buy and how we react to different market situations, if we repeat the same mistakes, they'll definitely eat up all our money slowly and steadily.

the main thing is to use free money so that the money will not be disturbed by the necessities of life that must be met. there are many advantages to using free money, including more stable emotions so as to avoid the panic sell that many investors experience. many traders have suggested this, but sometimes our emotions often forget it

Hmmm it’s just the thing with life, whenever you’re losing the money there will be a need for it. The advice to always invest what you can risk is an important advice to follow to save yourself from a situation like this. You can’t be pushed in any situation to sell your coins if the amount you have put in there is an amount that you wouldn’t need for anything, one you can afford to risk at any moment.

And rightfully we are meant to have emergency funds, these are the funds that are meant to save us in a situation where there is an emergency need to be solved. You can just withdraw the money from your emergency funds and solve the problem and leave the ones you have invested.

By the way, it’s also important to take profit when the price is high, if not all, at least some profit to know that you’re making progress. And we shouldn’t be relying only on crypto investment, we should have other things that we are doing to generate steady income.

indeed it's up to us if we really want to predict the market to avoid making decisions.. And yes if you use to trade perhaps its impossible doing mistakes.. I mean using indicators to obtain information what will be the potential of your investment.. Somehow market is very unpredictable but there's always a solution for that if you know how to handle the situation.

@op that's why it's very important to keep some money for your needs.. Wherein it's not really recommended to put all in. And always remember this before making decisions "invest what amount you can afford to lose"..  In order to avoid panicking when something happens in the market .

I used to find myself in that exact situation when I started trading cryptos, right in my presence, my earned profits got wiped off, I agreed this is an attribute of greediness on my part, I want to earn more profits without taking the cognisance of high volatility of the prices of cryptos, However I had tried to take profits at a target zones especially at resistance or support areas irrespective of how small or big the profit is, I will just take profit and quit while waiting for another signal, above all to minimize this anomaly this has to do individual trader dealing with their emotions and greediness, personally I had learnt to leave my trade rather than close it when price moved against me provided that Iam convinced that the overall market sentiment is bullish or bearish.

Not really the market doing its thing against you really. A lack of funds that you need to use for something else means either A) The person had some issues recently and didn't really have enough saved up funds to address it or B)The person is pretty new to trading and went all in, not leaving a single fund for himself in case of emergencies. It isn't only in trading really, you could imagine someone who bought a nice car (even including ones that pay in installments) and would need to sell them after they basically bought it off due to something happening. They basically spend their money in an investment that is currently senseless in their case, ignoring the ones that are probably more important.

I have no doubt that this happens however that is not the market tricking you but your own mind, we must understand something very simple about the market, the market doesn't care, the market doesn't need us and it doesn't care if you're in profit or if you are in a loss, the market is just going to do its own thing and it is up to you to try to decipher it and to try to make the best decisions for yourself, if something as simple as this cannot be understood then the chances that you are going to become successful are very low.

This is a daily thing that do happens in the market tricking traders who are no discipline to end up losing there entire portfolio. To trade futuristic market is never easy and it's needs proper planing and studying of the market to get familiar with trading and market manipulation.  Market manipulation is what had been affecting us that are traders from getting a good and stable profits from the market.

I could remember the join that a trader used to have when the market is positive and consistent profits are being made, but immediately the market starts going the other round, emotion will start working which could affect the result of the trade after a while if care is not taken. The whales always look for means to manipulate the market before going to a particular direction.

"ONLY invest the money that can afford to lose" this is what I have kept since before and I live that way.

As for we are in trading is a need know who much we are about to spend that can no longer we are going to regrets if losses will come to us. I know that many people suffering huge losses because of such a positive market view and wrongly invested in crypto projects. A sort of disappointment but we can't deny how tricky the market was and if we can manage our emotions, that leads us to unproductive investment.

securing your profit needs to come in handy. Crypto market moves in both corrective and retracement moves and to avoid been trapped by either of the moves its always necessary to lock up some profit you can still classify it as paying yourself from the profit made which will help you when a need arises so you don't sell your coin during the dip out of fear of further decline or due to urgent needs. "ALWAYS TAKE PROFIT" this should be a watch word for all crypto investor

I won't call this the market tricking you instead it has alot to do with yourself as a trader. Are you discipline enough, are you focused, do you let your mind/emotions distract you?. A trader sticks to his plans before entry a trade, he should already know his entry and exit point. The only time he should rethink those points are if the market isn't following his prediction, then he has to look for alternative.

If your trade has given you your initial targeted profit the. You have to close the trade or better still have the take profit order in action so it does the automatic taking of profit for you to prevent diverting from your plans. Ones you let emotions take over your decision making, you're in a wrong path and most likely will end up losing more instead of profiting from your trade.

With securing profit, that you should always do as the market volatility can take away your profit in the shortest time possible. Only trade with capitals that you'll be comfortable losing and you would careless about the market movement and care more on hitting your target no matter how long it takes.

Traders move the price of the market, and we are not being trick by the marker itself its just that, every traders want to win against the other trader and those who are more experienced enough have the chance to gain more. You only invest or trade the extra money that you have, this is the first rule in trading and if you have a limited knowledge about the market, you’ll just lose money if you continue to act like this, better to come prepared.

Indeed, I very often encounter similar situations, but in my case, cryptocurrencies are the main source of income for me, which means that when I need money for life, and I need it all the time, I have to sell my crypto assets. I already thought about how to avoid such a situation, because when I sell my crypto asset, its price starts to rise afterwards and I understand that I missed out on a better profit. So in my situation, I need to have one more additional source of profit in order to keep my cryptocurrency and sell it only when I am satisfied with its price.

You have probably been doing a wrong trading pattern. To my opinion almost everything that you said looking like baby trading and unserious.
Greed is the reason you will see your profit based on your analysis and because you don't need money, you leave it, is wrong.
Experience will give you a good direction to trading and the best kind of it is do your analysis, put your stop loss and take your profit, otherwise market will beat you to it. Don't trade sheepishly, is a serious business and not joke.

We cannot see the future. But we predict the market. And it is not sure that the market will dump or not. Because there are so many whales that are controlling the market. And i think their is no trick to watch the future of upcoming market. We can only predict it on the basis of fundamental analysis and technical analysis. But it is just an predict it is not 100% sure that our prediction is correct.

I honestly see it differently. If you follow a strategy, the strategy should be able to deal with situations where things just don't go well. Switching back and forth between different strategies in bad trading phases will only cause you to lose your nerve and make short-circuit decisions.

I like to stick to the rule "stick to your plan". 

Securing profits is one of the best moves ever. I don't think so if not taking profits makes you a trader. This is one of the most mistakes by traders, especially newbies, they don't have a plan, where to take profits or stop loss.
Cryptocurrency markets are extremely volatile, we all know. So, if we manage to adopt it, it will make us more comfortable, and will have fewer panic moments.

It's a lot less of "the market tricking you" and a lot more of just the trader/investor being really ignorant and/or inexperienced.

Also, the "not selling because you're greedy" could also easily work the other way. You could say that you're greedy because instead of waiting for the asset to appreciate more, you immediately closed the position because of greed.

Easy to say but would really be hard when you are on the actual situation.Market is always been tricky since its totally unpredictable and no matter how aware you are on how it moves but you cant completely
able to avoid on what are the losses you could possibly experience but due to knowledge and skills and somewhat experience you do have on this market you could already make out some presumptions.

As a trader you should really be that versatile on whatever situations you might faced on because if you do only stick with a single strategy then most likely you wont really that sustain into this place.
Prepare yourself to face up the risk and act accordingly on various situations even though its not an assurance to make profits or preventing further loss but at least
you do know on what you are doing.

For everyone who has spent something in the market, you'll realize this situation I'm about to describe below to be 100% accurate. The market always has some tricks to throw at you, that's why we're advice to understand the market very well before wanting to earn from it or you'll lose. Have you notice whenever you're in profit, there isn't always a need of money that very moment which then make you think of exciding your initial target, in other words you become greedy and want to make more profit.

Now the story is different when you're in loss as that's the very moment you'll be in need of urgent cash, which will make you likely want to sell your coins off in panic to avoid further loss or use the cash for something else. This is usually the market tricking you. Assuming there was no active trade, there's every possiblity you'll find that money to solve that problem from somewhere else but no the market will mess with your mind to make you think selling is the only solution to this problem.

You can avoid been in such situations by simply listening to the advice giving of not investing money that might be needed urgently and secondly always securing profit to help in situations like this incase they araise when you're in that tight spot (having a bad trade). Take notes of this advice and you'll be one step ahead of the market.