Topic: Why people run away from trading!!! - page 19. (Read 3114 times)

Trading is an easy task, it requires patience discipline and great determination. Well many persons get emotion and FOMO, and when they do they loss control of the market. Most persons are holding and waiting for a pump to take profit not necessarily trading that is like gambling only that your fund doesn't vanish forever like gambling.

Most people should not be trading. They don't have the knowledge, skill or fortitude to do it and they never, ever will. I have no idea why it's touted as the first thing people should dive into. I guess the people encouraging that are the real traders who'll take all their money off them.

This is an excerpt from a thread I made sometime back on tips for newbies to trading which is still relevant;
Having a strong foundation (knowledge wise mostly) is important for a trader which wants to last for a long time. They avoid some basic mistakes which could hinder their development.
Before you go into trading or any financial venture, read and research.

I myself made a mistake when I tried to place orders again, after my initial forecast turned out to be incorrect. And as a result, I got another losing trade. So controlling your emotions is also very important in trading. After a failed transaction, you need to evaluate the reasons why this transaction was unprofitable. Only then can you proceed to a new order.

There are many misconception in trading they think they could make passive money easily and get quick returns without doing the necessary precautions like educating themselves and learning the fundamentals like stop loss, key support and resistance and volume.
They invest blindly on anything without considering the consequences that's how most people view trading is.

That's exactly what I heard that had happened way back in 2017 where the price of BTC had reached an ATH of around $20000 and there are a couple of months prior to that just to sell their BTC even a portion of it and I remember my friend's regret when he just hold all of his BTC and came the price crashing down. Still hoping that it would rise and the price crash is temporary, he continues to hold and that's another mistake because it continue to crash for months and he never get his profit back. That is so sad because I knew that deep inside there is this rational thinking but with emotions and greed, a person would neglect the rationality of the situation.

I just started trading and so far so good. Been reading and learning a lot. Emotions can quiet be a challenge for you but you just need to look at the data that is in front of you and act accordingly unless you want to lose your money which is a simple mindset but effective.

I knew someone who has successful trades in Paper trading but failed in actual trading. It's either that trader was over confident or he has still problem reading technical and fundamental analysis. Remember that our enemy is the market's volatility and the whales out there.
 Those who are running away and giving up trading will not make them a successful one. There are a lot of traders out there who losses much but still not giving up.
 
 Someone said to me that focus on "how you lose" than "why you lose" to know which part of trading are we failing to achieved.

People run away from trading is because they are afraid to get the same experience that they got before. They get trauma from the last trade, which gives a loss to them so they think that they cannot trade with the right. Sometimes, it's not because they lack information or they cannot get the right information about the coin but sometimes the feeling of fear to get the loss will make them not to trade. They feel that it is hard to analyze the coin and when they can enter the market.

New people in trading comes to the market because they see how fast someone can make a profit, but they don't know how to make that profit. That makes them have a big imagination about how they can make a profit, but they don't learn more about trading. Some of them have greediness to always make a profit from the market, which they will not always make because the market is too volatile. They don't remember that anything can happen with the crypto market, so they don't sell as soon as the price increase, but they have a hope that the price will increase more then they will sell the coins.

To be honest, trading cryptocurrency is not as easy as it seems especially when the market is not bullish. I admit the fact that proper understanding of the market, proper risk management and patience are the fundamental basics to profitable trading however, they can take you just for far after that all you've is uptimism as the whole cryptocurrency is volatile and to certain extent unpredictable.

One of the main influencer for people to trade is the over exaggerated and over hyped ads. These people thinks trading is easy. After lossing enough from trading, that's the time they give up and start talking sh*t how bad trading in crypto was, when the reality is these people didn't even understand the fundamentals of crypto trading.
What most people needs to acquire and understand in trading is patience and experience.

One of the worst mistakes one can do while attempting to trade or learn how to trade is use the money they can not afford to lose. For example trying to trade using Life savings, borrowed money or Loans. If things go South. It can be catastrophic and can lead to Post traumatic Stress Disorder due to the heavy losses incurred.

4. Having that mindset that trading is an easy money generator.
5. They set up goals basing on others positive outcomes
6. Emotion

Lots of experience or things that you should face on first before for you to able to learn.
It will vary on each person because not all would have the same effort on learning things up.

I have been reading a lot of articles on the forum and i have to say a lot of people are already giving up on trading due to some minor/major setbacks.

I write this article today to explain some few reasons why i think people are not really comfortable with the trading environment.
1. Lack Of Proper Trading Education
A wise man once said " Lack of education causes lack of progress which in turn causes lack of motivation". Most new traders have a common believe that the trading market is a Fast Money Producing market which is very wrong. Instead of learning the basics of trading and develop a reliable trading skill they settle for Signal groups or end up investing in a scam so called (money multipler groups).

2. No Risk Management
I am a victim of "No Risk Mangement". In my earlier days of trading, i always try to maximize profits neglecting the probability of the loss if a trading day/week doesn't go my way. The market is becoming unpredictable day by day, therefore traders new or experienced need to have a proper risk management regardless of your analysis of the market. I personally enter a position with 3 -- 5% risk of my total equity.

3. Lack Of Patience
The trading market is not always green or red, it's unpredictable as i mentioned earlier so there will be good and bad days for a constant trader. The aim of all traders is to at least 10X their loss in profits but if this is not the same for you, you need to be really patient with the market and try and go through your analysis and strategies all over again. Sometimes it might even require you changing the pairs you trade.

Additional information and advices would be appreciated. Thank You, Stay Home, Stay Safe.