Topic: Why newbies lose huge money in trading - page 18. (Read 3376 times)
If all the lessons you need about trading is contained in books, I think everyone would have had a shot at trading and be more professional about it. A lot of persons read these days, some would comprehend properly on what is written there and know how to apply it while, others would not but still, you would still fund a good number of those that were able to comprehend still failing at trading. That's simply because, just the knowledge in books on trading isn't all that is to know of the market. The market is constantly evolving and it has tricks about it sometimes. Tricks that you see the right signs for a but or sell market but yet, it turns the other way. Your experience is what you would need to have a go and as such, you've got to be prepared to build them at the expense of some loses. Experience matters a lot in trading.
Most newbies lose huge amount of money because, after learning the basics of trading they feel they know it all, they think they can manipulate through the market. But they end up losing big.
No matter what you are thought, you must know this that to be a successful trader, it takes practice and consistency.
A very important thing that you said here was they think of manipulating the market. It's actually true, this is why a newbie never exits a losing trade, they think that they are right and the market is just being slightly wrong and would ultimately correct, while a pro trader would just flow where the market takes it, momentum trading is honestly the best type of trading, you don't try to enter at the bottom and exit at the top but just to make a good profit out of each trade and get sound sleep, if the trade fails to take a loss and still get a sound sleep. And yes consistency is the key in almost everything, People take 3-4 years of experience in their jobs to become an expert but except to become experts in trading in the very first year. No matter what you are thought, you must know this that to be a successful trader, it takes practice and consistency.
Beginners are corny are too confident in their abilities, and this can ruin them. For example, when I just started trading with a broker from Amarkets, I paid enough attention to the demo account of this broker to solve all such issues.
Beginners are corny are too confident in their abilities, and this can ruin them. For example, when I just started trading with a broker from Amarkets, I paid enough attention to the demo account of this broker to solve all such issues.
No broker or platform would solve that issue but having that demo would really be a considerable move for you to learn up at least on the basics but when you are already dealing with the live marketthen everything would change out and wont really be similar on what you had done in demo but this is really a helpful thing for newbies on at least to start out before testing out the fierce market.
Mistakes is normal as a newbie because this is where you do learn up and would progress out.
'Experience is the best teacher' is applicable in every facet of jobs whether trading or the normal convectional jobs, newbies in trading has to undergo a through learning process of trading and doing it for long period of time with small of money to learn the ropes, there are some newbies who by luck started trading on a good note earning profits consistently however in a long run ended up rekting their portfolio due to inexperience in money management, control of emotions, inpatient and trading with a high leverage, improper planning of trade etc these are some of the features that a good trader must put into consideration before embarking on trading journey unfortunately these many newbies lack.
Well, yeah experience can teach you a lot but you must be working towards the right path too. I mean a rickshaw puller might get tremendously experienced with his job but still doesn't get paid well enough with his experience because he worked in the wrong direction, I am not saying he had better choices or working hard is a bad idea, but just to put things into perspective I am sharing the example.Working hard and gaining experience is always good but make sure the experience you gain over time does help you reduce your burden and increase your wages or profits. There are traders who enter the market later than others and yet earn more than them just because they have better adaptability and understanding of the market.
It's because they're newbies, is probably the best expression. Yes, there are times where newbies win out in trades and the like, but let's be real, most of it is attributed to luck, they haven't experienced even an inch of what the market really has, and they think they're already bigshot traders for profiting off of their first few trades. It's nothing new really, overconfidence, greed, lack of experience, there are a LOT of factors involved, you name it. But it all comes down to newbies being well, "newbies" and there's literally nothing you can do about that except to gain more experience, and most possibly, lose more money.
Losi money in trade is not only issue because even old traders lose money when they do the wrong thing. Such wrong steps cuts across both beginners and older traders
These are the reason beginners lose money...
1. Greed : Any person who is greedy should not be a trader if they won't adjust out of being greed because as you making good profit, it may take all your if it goes against you.
2. No stop loss: Traders are suppose to apply stop loss in each trade the make and that will them to have balance to try again if the order fails.
3. No good money management strategy : This is important. You would have taken your losses by your self as you reduce it before making the trade order.
These are the reason beginners lose money...
1. Greed : Any person who is greedy should not be a trader if they won't adjust out of being greed because as you making good profit, it may take all your if it goes against you.
2. No stop loss: Traders are suppose to apply stop loss in each trade the make and that will them to have balance to try again if the order fails.
3. No good money management strategy : This is important. You would have taken your losses by your self as you reduce it before making the trade order.
Experience can not be 100% thought but have to be built over the time you spend trading and the best experience is the one you gain by your activities and mistakes, most newbies lose money because they are always in a rush to make profits and thinking they already understand the cryptocurrency market but not knowing there is more to trading that only time and practice can teach.
If they listen enough to the ones who advised them they will not put a lot of money at stake. It was also advised to me not to put trade more than I can afford. But I do invest to hold when there is a bullrun. Even the pro traders lose money at some point.
But then, of course, getting ready to profit more is inevitable. One day or the other a newbie will be confident enough and then fail. Its always okay to lose that's how we learn.
in addition to experience knowledge is equally important I think,
without knowledge maybe we won't understand anything and it's easier to lose money so if you want to succeed in trading of course you have to try hard and learn for sure
Most newbies lose huge amount of money because, after learning the basics of trading they feel they know it all, they think they can manipulate through the market. But they end up losing big.
No matter what you are thought, you must know this that to be a successful trader, it takes practice and consistency.
'Experience is the best teacher' is applicable in every facet of jobs whether trading or the normal convectional jobs, newbies in trading has to undergo a through learning process of trading and doing it for long period of time with small of money to learn the ropes, there are some newbies who by luck started trading on a good note earning profits consistently however in a long run ended up rekting their portfolio due to inexperience in money management, control of emotions, inpatient and trading with a high leverage, improper planning of trade etc these are some of the features that a good trader must put into consideration before embarking on trading journey unfortunately these many newbies lack. No matter what you are thought, you must know this that to be a successful trader, it takes practice and consistency.
Not only beginners lose money, according to some research, as much as 95% of all those who trade lose it - which only tells us that we have about 5% of those who are more intelligent and capable than most people. The problem is that everyone thinks they can profit from crypto trading, but it's a very risky business - even a much riskier one than, say, sports betting, where people mostly lose money.
I can only say that everyone should be aware of their capabilities, we are not all created to be traders, politicians or doctors - stick to what you are good at, otherwise be prepared to face your losses.
I can only say that everyone should be aware of their capabilities, we are not all created to be traders, politicians or doctors - stick to what you are good at, otherwise be prepared to face your losses.
Im not a newbie but I often lose huge money too on trading. What does it mean? Im not good on being a trader and investors? Maybe I am just unlucky isnt it? Sometimes even we already knew the concept and some basic of it. We cant avoid uncoventional losses. Who can predict a good move always right? Market is quite volatile and even we follow others idea or move they often got wrong one too. So its really fine to lose some money cause investment works like that. But consistently losing isnt healthy means you dont learn at all or grasp a thing about trading.
Experience can not be 100% thought but have to be built over the time you spend trading and the best experience is the one you gain by your activities and mistakes, most newbies lose money because they are always in a rush to make profits and thinking they already understand the cryptocurrency market but not knowing there is more to trading that only time and practice can teach.
If they listen enough to the ones who advised them they will not put a lot of money at stake. It was also advised to me not to put trade more than I can afford. But I do invest to hold when there is a bullrun. Even the pro traders lose money at some point.
But then, of course, getting ready to profit more is inevitable. One day or the other a newbie will be confident enough and then fail. Its always okay to lose that's how we learn.
Experience can not be 100% thought but have to be built over the time you spend trading and the best experience is the one you gain by your activities and mistakes, most newbies lose money because they are always in a rush to make profits and thinking they already understand the cryptocurrency market but not knowing there is more to trading that only time and practice can teach.
If they listen enough to the ones who advised them they will not put a lot of money at stake. It was also advised to me not to put trade more than I can afford. But I do invest to hold when there is a bullrun. Even the pro traders lose money at some point.
But then, of course, getting ready to profit more is inevitable. One day or the other a newbie will be confident enough and then fail. Its always okay to lose that's how we learn.
There are many incidents where people force themselves to seek capital for crypto trading. many of them use borrowed money, so that when they trade they have a heavier burden, on the other hand a lack of knowledge about trading makes people tend to gamble, so many are not able to last long in the market
Most newbies lose huge amount of money because, after learning the basics of trading they feel they know it all, they think they can manipulate through the market. But they end up losing big.
No matter what you are thought, you must know this that to be a successful trader, it takes practice and consistency.
Some advice for newbies: I always think that there are only two currencies in this market, one is Bitcoin and the other is altcoins (other currencies). When I first started participatingNo matter what you are thought, you must know this that to be a successful trader, it takes practice and consistency.
I only bought Bitcoin. I think it is very difficult to make money on the counterfeit if Bitcoin is not good enough. If you want to ask me how long I can try other currencies after learning Bitcoin? I don't think it depends on the time, but on the progress of your study, whether you have established a high-level and in-depth industry awareness. Let me speculate that it will take 2-3 years for those with fair talents, and 5-8 years for those with ordinary talents.
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Study and experience the fund base; the knowledge base; the mentality base.
It is best to learn the basics first about trading well and correctly and try to learn to read charts from experienced traders, and practicing on a demo account is also important because there you can do and learn with non-real coins.
and whatever you learn doesn't mean you will become a great trader, it all requires a process and experience that will help you become a very careful trader because you learn from mistakes and losses that will not repeat the same mistakes.
and whatever you learn doesn't mean you will become a great trader, it all requires a process and experience that will help you become a very careful trader because you learn from mistakes and losses that will not repeat the same mistakes.
It's a question of "HOW":
There are a lot of factors to consider, on how they lose that much money:
1. Brought by hype - Typical error or incorrect practice not only in crypto but in general. Wherein an individual got caught with the hype, or just being aggressively persuaded by the moment and/or by other people.
2. Lack of Knowledge - Common sense sometimes is nowhere to be found. Engaging without knowing what to do.
3. Inexperience - Well, these people have already the knowledge and the information but they can't initiate their strategies properly and some are not sure about their own data.
5. Buy now sell later attitude - Well newbies normally are fond of holding, even without security. In trading, holding is not quite an option and It's much better in line with investing. Trading is much more on a fast phase industry, in which the opening of opportunity closes even in a blink of an eye. So yeah, newbies tend to hold and believe that it will rise in time (though this may apply to some but not all).
And many more, My advice to all the aspirants or the newbies out there;
"Remember when trading, please leave your emotions behind"
"Spend only what you can afford"
There are a lot of factors to consider, on how they lose that much money:
1. Brought by hype - Typical error or incorrect practice not only in crypto but in general. Wherein an individual got caught with the hype, or just being aggressively persuaded by the moment and/or by other people.
2. Lack of Knowledge - Common sense sometimes is nowhere to be found. Engaging without knowing what to do.
3. Inexperience - Well, these people have already the knowledge and the information but they can't initiate their strategies properly and some are not sure about their own data.
5. Buy now sell later attitude - Well newbies normally are fond of holding, even without security. In trading, holding is not quite an option and It's much better in line with investing. Trading is much more on a fast phase industry, in which the opening of opportunity closes even in a blink of an eye. So yeah, newbies tend to hold and believe that it will rise in time (though this may apply to some but not all).
And many more, My advice to all the aspirants or the newbies out there;
"Remember when trading, please leave your emotions behind"
"Spend only what you can afford"
Most newbies lose huge amount of money because, after learning the basics of trading they feel they know it all, they think they can manipulate through the market. But they end up losing big.
No matter what you are thought, you must know this that to be a successful trader, it takes practice and consistency.
They still lack of experience and strategy.No matter what you are thought, you must know this that to be a successful trader, it takes practice and consistency.
A newbie that losses a huge amount of money, he never planned how he's going to trade and how he's going to finance his practice trading. The budgeting part is hard for the newbies.
They have the thinking that the higher the capital, the higher reward as if it's an instant logic and result.
Most newbies lose huge amount of money because, after learning the basics of trading they feel they know it all, they think they can manipulate through the market. But they end up losing big.
No matter what you are thought, you must know this that to be a successful trader, it takes practice and consistency.
can be concluded in your thread if the beginner is greedy and wants to get rich quick. because in trading there is a lot that needs to be learned and there are lots of techniques and strategies that must be understood before entering the world of trading. so maybe beginners can apply this so that in the future they don't get caught up in big money losses No matter what you are thought, you must know this that to be a successful trader, it takes practice and consistency.
Not only do the fundamentals and technical analysis play a role, but emotion also plays a role because it is at this point that you decide whether or not to enter the trade. I've been trading for a year and am still gaining knowledge. The most important thing to me is controlling my emotions so that I can stick to my strategy, because if I don't, I'll lose all of my money. I've also termed myself as a newbie to trading because I'm still not making a lot of money, but I will be soon. This is what I consider to be the most important aspects of trading: emotions, fundamentals, technical analysis, and learning every day.
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