Topic: Why people mostly fail in trading - page 3. (Read 1542 times)

It's not good practice to use your investment for your personal needs, same thing will happen over and over if you did not prepare well, better to have extra or spare money for investment as trading is not as easy as many think it is, there's a lots of patience and sacrifices to encounter where the market trend will test you, if you don't have spare and in somehow emergency needs you to cash out your money, there's no choice but sell it in the market current value, and same with what you said most of the time the timing is not beneficial as you are in the red side and you need to sacrifice since emergency expenses is needed to address.

Trader needs to anticipate the possible expenses so it's a must that you have that spare to cover it and not to use your trading money as it will be dedicated for trade itself and nothing else.

People also fail in trading because besides «buy low sell high» they dont know anything. When the price goes lower than the original price they have bought for, their plans gets destroyed, because they dont know what to do, that is not what they expected. People like that sell at any price they can, quit and raise panic at the market, thereby creating new wave of unsuccessful traders.

Trading needs patience, truly it's not a rich quick scheme but it can be profitable once the strategies work. it requires dedication and time to learn how to trade. Being impatient in the financial market is why most people fail to be profitable. Micheal Huddelstone once said if you fail to see the liquidity you might just be the liquidity. Big finance institutions mostly determine where and how the market directions go. critical thinking and understanding of technical analysis with conjunction of fundamental analysis will help people.
The key issue is being patient.

Your not far from truth this your reason are reality, many venture into investment or business they have not carry out feasibility study , some never even see area of their specifications and Carrier if they are fit for trading or investing on what they go in which lead to some falling.

Just my story is also similar with you. I lost trading for my lack of financial condition, a lot of times i sold my coins at low price because i was badly need money, so when there are no way to sell with lower price. I was not enable to check timely about which coin update like good or bad news. I made mistake when i am going to make big profits.

Could be they got FOMO with the coin they have been waiting for a long time but they don't have the trust to enter of position or they make a mistake with their decisions throughout their process and are afraid to repeat the same mistake, people want to earn money but they don't want to risk their money. Experience and knowledge is the best ways to succeed in trading, of course still, there's a risk but you can lessen this with your experiences. I highly recommend having a trading plan so if you lose in your current position you can back track and also back to basic sometimes you learn a lot you exaggerate most of the things so you forget the proper executions of the basics.

I have set for myself two reasons why people fail at trading.

1) They have purchased wrong asset. Which means they havent done a research, bought it under influence of emotions, it was a spontaneous purchase.
2) They dont have a investing plan or dont know how to hold. That is simple, they dont understand that if the asset they have purchased is suitable for short or long term investment. And they dont know how to hold, they dont have guts and cant cope with stress when price goes down. They are easily influenced by panic.

Another misconceptions some individuals have is that they can start trading without leaning how to trade first and when they have such beliefs that trading is easy and they u can use guessing to wim, it affect their trading results because they won't be making profits. Alot of people trading currently didn't learn how to trade and this is why they're failing. There's no person that learnt trading and keeps to the disciplined of trading properly that he was taught by his mentor and will be losing. If the strategy that you're using are current ones, you should be making profits often but when you didn't learn how to trade and what to profits, you'll failed. Trading also requires the right mindset and not every individual can develop the right mindset and trade with caution and not a rush to make money.

One important thing is to analyze the market first, don't just assume that if BTC will rise like before, others coin/token will also follow and fly. but, look at the current reality only fundamentals can do that and everything else gets messed up. quite a lot of people lost.

and yes intelligence and knowledge number 1 is needed no matter what. Our dominance can still be defeated by emotional factors as you wrote in point 1. And another thing is that dominant traders can at least see cheap prices and are willing to cut losses on coins that they previously bought high to take these low coins. once, twice and in the end it became a boom time in terms of estimated asset values which further decreased as time went by.

Well, having deep knowledge and a positive mindset is not the assurance for a trader to succeed, still possibly fail for some reason.
 - emotional factor
 - ineffective strategies
 - attitude problem

That is why we won't be confident that we already have knowledge and know how it works.  We still need to keep improving and enhancing our skills and strategies to fit the changing conditions of the market as well. If we want to succeed, we also need not be afraid to lose and of course, have patience.

Most people come into trading with their misconceptions, most traders think crypto trading may be very easy and if they buy any coin they will sell that coin at a higher price without any need to have any idea or knowledge about trading. When traders come to trade with such misconceptions, it can be seen that the way they plan to trade is easy, but in reality, trading is not so easy and at that time they suffer a lot due to lack of trading ideas. First we need to know about what is trading and how trading works and we must have enough knowledge about business and market knowledge, when we have knowledge about these things we will be less likely to suffer.

Everyone intention is to  make money with a big or small so we don’t have to blame anyone going into Trading because they want to make money, that is why it is always advisable for someone to understand the meaning of of trading before going into it because if you don’t understand the meaning, then you have to endure the process of losing because it won’t be easy. You will feel so bad, but one thing about reading is you are getting more experience as you lose, but is not advisable for you to lose, but you lose your game more experience and knowledge strategy the process I want everything that should be in mind that they will definitely lose. Sometimes you will lose everything in your portfolio. It dependent on higher you enter the market and what happened, but never have intention. Because you are learning, OK let me also add this. It is always good, though set a spending limit of what you can get at the time or putting into trades. The truth is that we are learning every day the more you treat the more you learn more strategy you learn more process of trading. It is always good to continue trading if you want to be a professional never be scared of feeling because you definitely fail and trade again

One of the greatest things that new traders can do is focus to create a strong trading plan and sticking to it. This means establishing clear entry and exit methods, setting stop-loss orders, and managing risk successfully. It's also important to be controlled and not let feelings affect decisions. It can be helpful to keep a journal of your trading activities to monitor achievement as well as recognize any aspects that need improvement.

Most of the people think that by doing this set tat they will make their profit. Many fathers will get a lot of profit and they think it is very easy.  But you will notice one thing well.  Losing your entire money is the only risk if it is trading, so if you come to the platform or invest, you need to have a basic idea or a good idea.  You will come and start making profit it is never possible bro money is not so cheap if you want to earn money you have to feed something in the beginning you eat loss or.  There are many people who eat 70% loss in case you can trade profit again in future if your idea increases or if you can work professionally.
 There are many who depend on their luck to give their father two or more profits but later most people.

Being impatient is one of the most common mistakes that a trader will do, as I trader I notice that this is the one that causing me to commit mistakes in trading and as a result I lose money from those trades, I mostly want to monitor my trade every single time even I set it long term or the goal of the trade is for long term, but because I'm being impatient I often didn't follow my trade and if I see a slight dip or a good profit even my trade is not touching the TP, I exit the market, that being impatient sometimes cause me because if for example I exit the market because I see downtrade and because I got scared I will exit the market but suddenly later on you will see the price being pumped, meaning if I have just patience to wait longer then there should not be a problem. So remember, if you will do trade and you come up with the technical analysis and chart pattern or graph, then follow it and see it through to the end.

There are too many factors that cause why people always fail in trading. Well, everything mentioned is true, and it all depends on the person doing the trading. I'm not very good at trading, and one of the reasons why I often fail is because I'm too greedy. well, I think that almost everyone has this trait. Because of this, I always choose to hold the coins I own and sometimes force sell when I make a profit. Well, it's better than continuing to endure the pain of taking a loss.

I guess there's no mastery of skill in trading in my opinion its all experiences accumulated, using demo account will never sufficient and can hardly simulate the real adrenaline and anxiousness when you are trading with real money where it might heavily influences what you are going to do.
but I guess its an alright way to know how the market work, but whats matter is I think emotion management and how to make wise decision financially where the decision is truly made with logic.
that can only be done when we are experienced enough as a trader and I think it requires some kind of extensive knowledge about the cryptocurrency.

knowing current news about project better then anyone else could also put us on the advantage than the other people.
but personally I never ever agree with having a mentor or a coach to direct the way we trades unless you can be 100% sure that you are having the right person to teach you.
there are many self proclaimed gurus out there about trading that actually earns from other people loss, like those that earns from refferal and so on, always be careful when picking someone to teach you as the may come out as someone that only taking advantage.

You have good points, after all, you've said it all to motivate traders, but at times, it's beyond this and it could be nice if some traders just give up instead of wasting money. If it's about motivation and encouragement, I've done that so many times with so many people in years, but at a point, I realised that I was the wicked one motivating people and keeping them losing their money. That's how I realised that trading is not meant for everybody, and no matter how most people try, the more they fail in it. This is not to discourage anyone but to be frank and real due to my vast experience with it and my relationship with different people.

It's worth saying that it is not even the lack of learning that makes people fail, you have said it all that one should learn and change style when one fails, but it is beyond that. You may be well-equipped for trading and still fail, but you may also use the best management and still fail, which makes me know that psychology plays a huge role in the success of a trader. But unfortunately, traders do not always get this right, they might get it right for a little while, but before they know it, they are getting it wrong again, so they will continue to lose in this regard. It is until they get the psychological part of it right, they will learn and learn but will continue to fail.

Newbies should master the art using Demo account and also before using real money for trading have a mentor or coach to direct you so as to reduce Lost, and enable mastery

No. You have to dream to make something happen, but you need to move and learn to achieve that success. Trading is not easy to do, but that doesn't mean it can't be learned and the problem is precisely because you think about getting rich quickly from trading activities, so it can affect your psychology when trading ends in a loss. Wealth will be proportional to the capital we spend and wealth will also be proportional to the trading knowledge we learn because if we don't have trading experience it can actually give us losses.

Experience will teach us how we can improve everything and with experience we can minimize the risks posed by trading. As long as we know what we have to do, we will be much better prepared to face risks. There is no wealth that can be achieved in the near future because everything requires a long process for me to go through.