Why do traders lose money in trading?

rachael9385

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Quote from: Jaycoinz on October 12, 2024, 12:38:07 PM

When it comes to crypto trading it takes a lot of time to understand the dynamics of the market, it's not something you can rush into and hope to get rich overnight, this is a very wrong mindset that a lot of beginners traders have and it's one of the major reason why they lose money. Not having the adequate knowledge required would set you up for some losses. Understanding the technicalities of the market and how it moves can help you become a better trader, this brings me to a very important point, another reason why people lose money in trading is because they trade against the trend, this would definitely make you lose a lot of money.

A newbie trader should not think of making easy money through trading because it will bring more and more losses to his trading portfolio. So the as a newbie on trading you must pass through some learning process so that you can be able to understand how the market works before you can be able to make small capitals through your traders.
Why at a newbie trader does is that they do not know when to buy and when to sell, and that's the most stupid things because it will bring enough loss. When a beginner trader have known how to trader he will always be watchful of the market so that he can know when to sell and when to buy, and also he could use a better trading strategy, so that he could be able to make some capital.

Jaycoinz

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When it comes to crypto trading it takes a lot of time to understand the dynamics of the market, it's not something you can rush into and hope to get rich overnight, this is a very wrong mindset that a lot of beginners traders have and it's one of the major reason why they lose money. Not having the adequate knowledge required would set you up for some losses. Understanding the technicalities of the market and how it moves can help you become a better trader, this brings me to a very important point, another reason why people lose money in trading is because they trade against the trend, this would definitely make you lose a lot of money.

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Quote from: letteredhub on October 05, 2024, 05:14:33 PM

Quote from: Fredomago on October 05, 2024, 01:56:30 PM

Indeed, being confident with your knowledge can help you keeping your trust to the asset that you are supporting, you'll be able to hold and wait whatever the market is bringing you, as long as you trust your own understanding your confidence will give you that hint when to release your holdings.

while if you overdo things which most of the time a mistake that leads you to lose your investment, always find ways to observe and not to quickly decide if it's not needed to avoid making huge mistake when dealing with your investment.

You would also want to not be too confident but within some limits because no matter how much you might trust an asset it doesn't stop it from swaying from expectations at the slightest market news or something.

It's that confident that gets you to trust an asset that much that will make you wanna overdo things in terms of overlooking certain risks you would have avoided or limited if you were not so filled with confident about that asset.

Good point, if you have that certain limit and manage to execute in the right timing it lessen the chance that you might overtrade your investment, it's always good to pinpoint your target and allow the market to reached and close your position, if ever that there's missed opportunities, there's alway time for you to adjust learn from your past experienced and continue enhancing your strategy.

irhact

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Quote from: uswa56 on October 05, 2024, 08:54:38 AM

It is true that anyone will be able to experience losses when trading when they ignore things that they cannot do when trading, it is important when trading to be able to follow the rules and not let us do it with greed that causes us to lose the profits we have earned and if they want a big profit when trading it is of course a natural thing but they must also be able to Considering whether the decision they make is indeed natural and based on their knowledge or just because of their greed and there is nothing wrong with the small profit that we get if it is indeed something we can get consistently.

Traders not following the rule of trading is going to make them to lose and there isn't two ways about that. Trading with emotions isn't going to make us to win and trading with emergency money is also going to make us to lose. Not knowing what we're doing when trading is going to make us to lose. There are many things that we can do wrongly when trading and the outcome is going to be us losing therefore, we shouldn't just start trading without getting proper lessons from people that have been here doing it before us. This individual are going to guide us and help us not to make mistakes that will cause us to lose while trading.

letteredhub

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Quote from: Fredomago on October 05, 2024, 01:56:30 PM

Indeed, being confident with your knowledge can help you keeping your trust to the asset that you are supporting, you'll be able to hold and wait whatever the market is bringing you, as long as you trust your own understanding your confidence will give you that hint when to release your holdings.

while if you overdo things which most of the time a mistake that leads you to lose your investment, always find ways to observe and not to quickly decide if it's not needed to avoid making huge mistake when dealing with your investment.

You would also want to not be too confident but within some limits because no matter how much you might trust an asset it doesn't stop it from swaying from expectations at the slightest market news or something.

It's that confident that gets you to trust an asset that much that will make you wanna overdo things in terms of overlooking certain risks you would have avoided or limited if you were not so filled with confident about that asset.

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Quote from: uswa56 on October 05, 2024, 08:54:38 AM

It is true that anyone will be able to experience losses when trading when they ignore things that they cannot do when trading, it is important when trading to be able to follow the rules and not let us do it with greed that causes us to lose the profits we have earned and if they want a big profit when trading it is of course a natural thing but they must also be able to Considering whether the decision they make is indeed natural and based on their knowledge or just because of their greed and there is nothing wrong with the small profit that we get if it is indeed something we can get consistently.

What rules? Does trading has specific rules?
I think the main rule in trading is "to buy at cheaper price and sell at higher price". Wink

Anyway, we can consider anything properly if we have good knowledge. So, it is important to make sure that we have proper knowledge before we start trading. We don't be lazy to learn, and we don't stop for further learning. This is also very important for each trader besides they also need to be patient and not greedy in trading.

Just suggestion: Please use a more effective sentence. It's a bit difficult to understand the point of your post.

aylabadia05

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Quote from: Fredomago on October 05, 2024, 01:56:30 PM

Quote from: liasbaa on October 04, 2024, 08:05:15 AM

Indeed, being confident with your knowledge can help you keeping your trust to the asset that you are supporting, you'll be able to hold and wait whatever the market is bringing you, as long as you trust your own understanding your confidence will give you that hint when to release your holdings.

while if you overdo things which most of the time a mistake that leads you to lose your investment, always find ways to observe and not to quickly decide if it's not needed to avoid making huge mistake when dealing with your investment.

I think if bitcoin is the investment asset, then the average investor is very likely to see returns in the long term. They can certainly increase their investment budget and accumulate bitcoin over time, it will increase their chances of generating more returns. The problem may be different for altcoins, some investors will lose a lot of money because of the altcoin's poor performance in the market. Even after bitcoin printed a new ATH, several well-known altcoins still failed to touch their past ATH.

Fredomago

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Quote from: liasbaa on October 04, 2024, 08:05:15 AM

Quote from: Fredomago on October 03, 2024, 06:06:47 AM

Quote from: letteredhub on September 26, 2024, 04:48:57 PM

The number 4 reasons op talked about which is over-trading it's something that all traders are found wanting of both new and old traders. And it's hard to boycott from taking place especially when you're in profit after one or two trade's. You just want to make more profits and this cancels the initial plan of not wanting to execute more than just two trade's. It takes a whole lot of strictness to stick to plans avoiding over-trading under a winning situation.

Something that relates to greediness, when you think you already got that knowledge and you can simply beats the market you'll keep pushing for more, but most of the time, being over confident also drives traders to lose a lot, when they experienced loses then they will keep on trying to recover as quick as possible leading them to make more mistakes and keep repeating that same strategy that brings them to lose more.

Being confident is good but being overconfident in trading is risky which can cost a trader heavily financially. One should have maximum effort for recovery and develop consistent buying habits accordingly to maximize profit potential.

Indeed, being confident with your knowledge can help you keeping your trust to the asset that you are supporting, you'll be able to hold and wait whatever the market is bringing you, as long as you trust your own understanding your confidence will give you that hint when to release your holdings.

while if you overdo things which most of the time a mistake that leads you to lose your investment, always find ways to observe and not to quickly decide if it's not needed to avoid making huge mistake when dealing with your investment.

stomachgrowls

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Quote from: Rabata on October 04, 2024, 12:12:22 PM

Quote from: laubeaud on June 23, 2024, 06:58:23 AM

If there are other reasons why traders lose money, share them with me.

Every trader experience or inexperience can face losses but there are some who try to trade carefully with following the rules they can avoid more losses and there are many who do not care about any trading advices they loss more. However, there are some basic points that a trader can easily face losses if ignored. In addition to the points mentioned above, if a trader can limit his demand, control his greed and be satisfied with small amounts, there is generally less risk of losing. Those who are interested in getting more profit in trading will lose more. If you can be satisfied with a small amount of profit, then you will be able to increase your profit.

Or simply there's no exemption into this one on which there would really be those individuals or people who would really having that kind of anticipating into something that they havent been able to know that dealing up with this market isnt something that will pertain on how majority is really be having this kind of intent. Why people do lose money or to those who do make out trading?

Losing is something which is really that inevitable on where there's no way that you could be able to tell out on how you would really be make constant profits on which this is something that cant be possible too.
Get yourself that being prepared for whatever things that you will really be able to encounter which do includes trading. Losing money is part of the learning process on which the important thing
on here is that you do really be able to learn up on whatever you do need to be able to achieve on.

The key on here is that despite of the loses you do have then it do still be able to sustain because this isnt really that a race that you would be trying out to win up on something
but in overall it do matters on how you do able to survive or sustain.

uswa56

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Quote from: Rabata on October 04, 2024, 12:12:22 PM

Quote from: laubeaud on June 23, 2024, 06:58:23 AM

If there are other reasons why traders lose money, share them with me.

Every trader experience or inexperience can face losses but there are some who try to trade carefully with following the rules they can avoid more losses and there are many who do not care about any trading advices they loss more. However, there are some basic points that a trader can easily face losses if ignored. In addition to the points mentioned above, if a trader can limit his demand, control his greed and be satisfied with small amounts, there is generally less risk of losing. Those who are interested in getting more profit in trading will lose more. If you can be satisfied with a small amount of profit, then you will be able to increase your profit.

It is true that anyone will be able to experience losses when trading when they ignore things that they cannot do when trading, it is important when trading to be able to follow the rules and not let us do it with greed that causes us to lose the profits we have earned and if they want a big profit when trading it is of course a natural thing but they must also be able to Considering whether the decision they make is indeed natural and based on their knowledge or just because of their greed and there is nothing wrong with the small profit that we get if it is indeed something we can get consistently.

Rabata

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Quote from: laubeaud on June 23, 2024, 06:58:23 AM

If there are other reasons why traders lose money, share them with me.

Every trader experience or inexperience can face losses but there are some who try to trade carefully with following the rules they can avoid more losses and there are many who do not care about any trading advices they loss more. However, there are some basic points that a trader can easily face losses if ignored. In addition to the points mentioned above, if a trader can limit his demand, control his greed and be satisfied with small amounts, there is generally less risk of losing. Those who are interested in getting more profit in trading will lose more. If you can be satisfied with a small amount of profit, then you will be able to increase your profit.

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Quote from: Jody.Drummer

Quote from: Rampagoe004

Quote from: Nrcewker

Trading is all about taking the right decision at the right time. Now how can one make the right decisions? It comes from experience only. Hence, the more you trade, the more you get acquainted with trading. Also, it’s important to gain theoretical knowledge. I have seen many new traders directly jump into trading without knowing the basics. Give time to yourself to learn about the market. Watch YouTube videos of other traders and see their trading styles. It’s better to learn from their mistakes than from your “own” mistakes.

Trading is not just an attitude in making the right decisions here or in crypto trading, of course there are many things that must be learned before trading. A decision that will be taken by a trader must have strong analysis. Not only that, a trader must learn a lot from other seniors so as not to losing money in trading.

It's true that currently many beginner traders are losing their money because without wanting to learn the trading system that is taking place, they only see the profits that other people get, even though the key to making a profit in crypto trading is being disciplined, not rushing in buying and selling coins and most importantly being willing to learn. from other people's experiences.

There are still many people who think that trading is easy, that's what causes them to finally fall into a hole they shouldn't have entered. Yes, they will be in a hurry and will even dare to trade without having any knowledge about trading itself. This is something wrong. Knowledge in trading is not only focused on trading or on the coins that we will trade, but is broader than that. We must understand how to manage time, money and risk, we must be disciplined in adhering to the limits that we should not do and so on. This cannot be learned or understood in a short time, because it takes time for us to really understand all of that.

I thought something like that when I newly joined trading, but I discovered that BTC trading is different from our Fiat trading when I began to experience losses whenever I thought the market is good to trade. Never you allow anybody to deceive you, that you can earn steady profits from BTC trading without having the knowledge of the trading because that is what make people to loss their money in trading, because if other traders that have the knowledge of BTC trading are going right to trade to make good profits, those traders that lack knowledge of BTC trading will be going left to trade to loss what will make them to feel bad.

When you have the knowledge of BTC trading, you must be focuse on somethings that make traders to miss their rewards from BTC trading, because you are trading to earn profits which you must use all the tools that make traders to follow the rules and regulations till they begin to make profits.

CageMabok

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Quote from: liasbaa on October 04, 2024, 08:05:15 AM

Being confident is good but being overconfident in trading is risky which can cost a trader heavily financially. One should have maximum effort for recovery and develop consistent buying habits accordingly to maximize profit potential.

What's worse is if a trader can lose their confidence in trading on any exchange because being overconfident is actually still included in the good category even though it looks excessive. Because every trader must have confidence in doing everything so that they will be braver in acting and will also be more active in finding something they don't know yet. Because people who don't believe in themselves will be very lazy to learn and also always afraid to try because they remember the wrong actions, even though everyone needs to try to see the results.

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Quote from: Fredomago on October 03, 2024, 06:06:47 AM

Quote from: letteredhub on September 26, 2024, 04:48:57 PM

The number 4 reasons op talked about which is over-trading it's something that all traders are found wanting of both new and old traders. And it's hard to boycott from taking place especially when you're in profit after one or two trade's. You just want to make more profits and this cancels the initial plan of not wanting to execute more than just two trade's. It takes a whole lot of strictness to stick to plans avoiding over-trading under a winning situation.

Something that relates to greediness, when you think you already got that knowledge and you can simply beats the market you'll keep pushing for more, but most of the time, being over confident also drives traders to lose a lot, when they experienced loses then they will keep on trying to recover as quick as possible leading them to make more mistakes and keep repeating that same strategy that brings them to lose more.

Being confident is good but being overconfident in trading is risky which can cost a trader heavily financially. One should have maximum effort for recovery and develop consistent buying habits accordingly to maximize profit potential.

Fredomago

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Quote from: letteredhub on September 26, 2024, 04:48:57 PM

The number 4 reasons op talked about which is over-trading it's something that all traders are found wanting of both new and old traders. And it's hard to boycott from taking place especially when you're in profit after one or two trade's. You just want to make more profits and this cancels the initial plan of not wanting to execute more than just two trade's. It takes a whole lot of strictness to stick to plans avoiding over-trading under a winning situation.

Something that relates to greediness, when you think you already got that knowledge and you can simply beats the market you'll keep pushing for more, but most of the time, being over confident also drives traders to lose a lot, when they experienced loses then they will keep on trying to recover as quick as possible leading them to make more mistakes and keep repeating that same strategy that brings them to lose more.

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Quote from: Rampagoe004 on September 26, 2024, 12:26:33 PM

Quote from: Nrcewker on September 26, 2024, 11:57:10 AM

Trading is all about taking the right decision at the right time. Now how can one make the right decisions? It comes from experience only. Hence, the more you trade, the more you get acquainted with trading. Also, it’s important to gain theoretical knowledge. I have seen many new traders directly jump into trading without knowing the basics. Give time to yourself to learn about the market. Watch YouTube videos of other traders and see their trading styles. It’s better to learn from their mistakes than from your “own” mistakes.

Trading is not just an attitude in making the right decisions here or in crypto trading, of course there are many things that must be learned before trading. A decision that will be taken by a trader must have strong analysis. Not only that, a trader must learn a lot from other seniors so as not to losing money in trading.

It's true that currently many beginner traders are losing their money because without wanting to learn the trading system that is taking place, they only see the profits that other people get, even though the key to making a profit in crypto trading is being disciplined, not rushing in buying and selling coins and most importantly being willing to learn. from other people's experiences.

There are still many people who think that trading is easy, that's what causes them to finally fall into a hole they shouldn't have entered. Yes, they will be in a hurry and will even dare to trade without having any knowledge about trading itself. This is something wrong. Knowledge in trading is not only focused on trading or on the coins that we will trade, but is broader than that. We must understand how to manage time, money and risk, we must be disciplined in adhering to the limits that we should not do and so on. This cannot be learned or understood in a short time, because it takes time for us to really understand all of that.

letteredhub

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The number 4 reasons op talked about which is over-trading it's something that all traders are found wanting of both new and old traders. And it's hard to boycott from taking place especially when you're in profit after one or two trade's. You just want to make more profits and this cancels the initial plan of not wanting to execute more than just two trade's. It takes a whole lot of strictness to stick to plans avoiding over-trading under a winning situation.

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Quote from: Rampagoe004 on September 26, 2024, 12:26:33 PM

Quote from: Nrcewker on September 26, 2024, 11:57:10 AM

Trading is all about taking the right decision at the right time. Now how can one make the right decisions? It comes from experience only. Hence, the more you trade, the more you get acquainted with trading. Also, it’s important to gain theoretical knowledge. I have seen many new traders directly jump into trading without knowing the basics. Give time to yourself to learn about the market. Watch YouTube videos of other traders and see their trading styles. It’s better to learn from their mistakes than from your “own” mistakes.

Trading is not just an attitude in making the right decisions here or in crypto trading, of course there are many things that must be learned before trading. A decision that will be taken by a trader must have strong analysis. Not only that, a trader must learn a lot from other seniors so as not to losing money in trading.

It's true that currently many beginner traders are losing their money because without wanting to learn the trading system that is taking place, they only see the profits that other people get, even though the key to making a profit in crypto trading is being disciplined, not rushing in buying and selling coins and most importantly being willing to learn. from other people's experiences.

When we are that still starting on doing trading then we do really have that first impression that it might really be just that a simple thing that we would really be able to deal on with. Not until on the moment or time
that we would really be able to realize that it wasnt really that easy specially into the time or moment that we are already that struggling on which its normal that you will really be having those loses.
Making profits with trading is possible but its never been that something ideal or would be that recommended that you should really be that too optimistic when it comes into results on which we know that his is something
that cant give out some guarantees because we do know that the market is really that volatile and not something that you will be able to handle it out. Just make it sure that on the time or moment that you do deal up
with crypto trading then there's always that consideration that you should really be knowing at least on the things that you've been dealing into. Never ever make yourself that being too confident because
this would really be causing up that having those kind of careless actions which might be leading up into tons of mistakes afterwards.

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Quote from: Nrcewker on September 26, 2024, 11:57:10 AM

Trading is all about taking the right decision at the right time. Now how can one make the right decisions? It comes from experience only. Hence, the more you trade, the more you get acquainted with trading. Also, it’s important to gain theoretical knowledge. I have seen many new traders directly jump into trading without knowing the basics. Give time to yourself to learn about the market. Watch YouTube videos of other traders and see their trading styles. It’s better to learn from their mistakes than from your “own” mistakes.

Trading is not just an attitude in making the right decisions here or in crypto trading, of course there are many things that must be learned before trading. A decision that will be taken by a trader must have strong analysis. Not only that, a trader must learn a lot from other seniors so as not to losing money in trading.

It's true that currently many beginner traders are losing their money because without wanting to learn the trading system that is taking place, they only see the profits that other people get, even though the key to making a profit in crypto trading is being disciplined, not rushing in buying and selling coins and most importantly being willing to learn. from other people's experiences.

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Quote from: Nrcewker on September 26, 2024, 11:57:10 AM

Quote from: superman22 on September 22, 2024, 01:46:42 PM

From my experience, traders make decisions based on emotions, ignorance, and poor strategies to manage risks resulting to losers. Some always let their emotions dictate the course of trading for them and rarely employ a stop loss order. Daily learning and a rational approach are essential to achieve a goal. In addition, other benefits of investment diversification include managing risks or reducing on them.

Trading is all about taking the right decision at the right time. Now how can one make the right decisions? It comes from experience only. Hence, the more you trade, the more you get acquainted with trading. Also, it’s important to gain theoretical knowledge. I have seen many new traders directly jump into trading without knowing the basics. Give time to yourself to learn about the market. Watch YouTube videos of other traders and see their trading styles. It’s better to learn from their mistakes than from your “own” mistakes.

You thrive on bad mouthing people.

Topic: Why do traders lose money in trading? (Read 2762 times)