Bitcoin Forum

In order to be a successful trader in the cryptocurrency market, traders should equip themselves by studying the existing methods of analysis, both fundamental and technical analysis. Learning and applying these methods will greatly help traders to predict the direction of movement of a token. Even so, there are still many traders in the global market who may already have good knowledge about analytical methods but still not easy to get profits in the cryptocurrency market. There are still many who are affected by news, rumors and fluctuations in the movement of the price of tokens or coins which are sometimes full of traps. As a result, they become distrustful of the analysis that they have built themselves or also they become impatient waiting for the momentum (either selling or buying) which is best to appear, if such is the loss that is unavoidable.

Traders good ability about fundamental and technical analysis will be in vain if the traders are not able to manage their psychological emotions as well. So this time let me write about some psychological mistake of traders that might be useful for you in this forum.

1. Being Stubborn To Keep Using the Loser Method
The loser method is a method that may be true but this method is not in suitable with the psychological character conditions that cause traders to experience losses. And strangely, many traders find it difficult to change their habits in trading, they are often trapped in the same and repetitive patterns of thinking. It could be because they do not know how to use the method especially because of laziness to read and add insight about trading.

2. Trade based on feeling
Still related to the first mistake, this second mistake was caused also by the unwillingness of traders to study analytical methods, especially technical analysis is the main cause of traders of the type like that to continue to trade only by using feeling. In fact, trading without using scientific analysis is the same as gambling.

3. Trading only because of the influence of friends.
Get used to receiving advice from friends, the losses that will be experienced not only financially but also the most detrimental is not getting the knowledge of how to make the right investment. This is experienced by many beginners who usually do not yet have a solid knowledge and understanding, therefore, this is typically used by scammers to make a profit. Only enough with sweet promises of the luxury that can be gained if they enter the investment and finally blop, loss all the asset. Incidentally, traders like this are still dominant in the cryptocurrency market, considering crypto itself is a new thing in this trading world.

4. Buying when prices move up (Buy High To Sell Higher)
When the Token price moves up, many traders think that the price will continue to moving up, even though there is a greater risk for the price to fall. Psychologically, this happens because there are excessive expectations from traders that prices will continue to rise, especially supported by a general theory known as "buy high sell higher". This theory is not entirely wrong, but it is good to be used by those who are experienced and have a good foundation of technical knowledge, not the other way around. The psychological tendency from the basic thinking of the traders is because of fear of being left behind by the "train". When the price of coins rises, traders like this think as if prices will continue to move up, not realizing that they are late to enter. This buy high sell higher theory can be used safely if it is supported by adequate knowledge of technical support and resistance theories. A simple understanding of this theory is that if the price of the token rises through the resistance level, then the token is still worth buying, and vice versa, if the price drops through the support level, immediately sell the token.

5. Mistakes in Predicting Trends
Mistakes in predicting trends include mistakes that traders do when they want to make long-term investments. One predicts the trend of movement of a commodity is also a fundamental mistake of individual investors in investing. Mistakes in predicting this trend are aimed more at investors' mistakes when they want to invest in the long term. This usually occurs because of the excessive reactive attitude of investors towards the movement / fluctuations in the price of tokens in the short term. Often when a token is moved quickly, both moved up and down in the short term, investors immediately draw the conclusion that the short-term movement will represent its long-term trend. In some cases, the consequences of this error do not infrequently cause traders to experience substantial losses because the token price drops drastically and continues to stagnate at a low value and in a relatively long period. Even if there is a change in trend, the price of the token only rises slightly and does not return to the position when it was purchased.

6. Selling Too Fast
Actions that can be said to be true in buying tokens are buying tokens that are fundamentally good when the token price is decreasing. But again because of a lack of understanding of fundamental and technical analysis, many traders who sell and sell are just a fear of losing, so when they have a little profit they rush to sell the token. The hasty conditions of selling these tokens usually occur in the type of short-term investor who is impatient to make a profit in a longer period of time.

7. Belief that Low-priced Token will provide greater profit margins.
The first reason why many traders do this is their fear of analyzing high-priced tokens because according to them the price is not affordable anymore, therefore they only play in tokens that are low in value. But what needs to be known, cheap tokens are not necessarily cheap. It could be that after being analyzed fundamentally it turned out that the token was already expensive. From this kind of thinking, traders will have a narrow perspective, losing momentum when large capitalized tokens are moving up.

8. Believe in the Rumors
There is a profound difference between Rumors and News. News is information that is officially issued by the relevant company or issuer. While the rumors essentially are information that is not clearly announced by whom, the truth of this information needs to be analyzed more deeply. One of the popular cases that the world will always remembers on how terrible the rumors are detrimental to a country was when Nathan de Rothschild immediately sold his shares in the British stock market in an attempt to spread rumors that Britain lost to France in the War of the Waterloo. But thanks to his agent who was able to provide information one day faster than the British government itself, Nathan made a scenario so that everyone in Britain was hit by panic and sold all of his shares at the time, and bought all the shares by Rothschild.

Well, that’s all from me, maybe some of you can add the other mistakes or maybe correct my opinions abovementioned?

So most of the mistake's root cause will be lack of knowledge and self confidence about crypto trading.If they are not sure about something then they should try to learn the things more as possible before doing it in the real life.Get more experience by trying simulators by applying all the learning strategies lot of them offer free for certain amount of level which is more good enough to learn the things.

It depends on each person individually, but treating trading as a job isn't the right thing to do if you're sitting at home. It's great if you're a seasoned trader working for a firm where you have a fixed income with additional bonuses.

If you are trading from home it should be an additional income stream rather than your main income stream, especially with how you aren't guaranteed to make profit to begin with.

No way that pressure isn't going to affect your trades negatively. It also increases the probability of taking unnecessary risks to gain back what you lost, which is a common mistake traders make.

Expected for most people to do such thing yet it cant really be removed on someone on not to rush into things specially on making money and the initial mindset of most noobs when it comes to trading they do mind on making easy money with it thats why they do just simply jump into things or hurrying up to trade without even having that research or preparation which in result of a loss and learning will vary if a certain noob trader would make it as a stepping stone or just simply ignore those mistakes and continue on doing things.These kind of mindsets should really be removed on someone if they do like to succeed on trading field.

An extension of trading based on your emotions is trying to chase losses which a lot of traders end up doing, even more experienced traders sometimes. It's sometimes hard to accept losses, especially if you've risked and lost more than you initially planned through something like a fault in calculations, but cutting losses is an extremely important part of trading and something you should learn quickly. Things could always be worse, but be glad they aren't.

Before you even enter a trade, determine where you're closing a trade and where your stop is located and only change things when market conditions significantly change or when your initial technical analysis is invalidated (you should close in this case). This should help with closing too early or too late; I highly suggest using stops if they're offered on the exchange of your choosing.

One of the biggest physiological mistakes beginners traders make is that of buying when the price is already high,  most are deceived by the pump they see and to their thought they think it will continue to have an upward trend forgetting the possibility of retrace in price and correction,  they jump into an already pumped coin for the fear of missing out (FOMO) and at the end it does not always end well, because the coin will dump due to price retracement.  Every beginner trader to try to avoid this physiological mistakes if they want to start up their trading activity on a good start

Discipline is the best way to control our emotions. Beginners traders doesn't have plan when they are trading and it is the reason why they are keep losing. They do not know when they will enter or exit in the market, there are also doing FOMO and it is a factor why their portfolio is red. If they have plan where they have discipline to follow it, they can improve their trading skills and strategies.

Yes, these are the things that often lead to the failure of a new trader. I like a ratio like this about the success of traders, which is 25% of knowledge, 25% of risk management, 25% of psychology, the remaining 25% is flexibility. When we are good at knowledge, our win rate is only 25%. That means that to become a true and successful trader, that trader must have a combination of the four elements on smoothly, at least more than 3-5 years.
The average figure showed that Americans in the first 3 years of trading in the foreign exchange market lost over 15 thousand dollars. Therefore, we need to persevere in practice and maintain our position to learn more. and nobody else then Mr. The new market is your best teacher.

What do you expect from the beginners? They aren't experienced as us professional traders. Let's help them and give them strategies or tips for them to enhance their trading skills. Maybe they are too young for trading but let's give and contribute in what we can share to them.

Simulators aren't enough when you don't perform it practically. You should also try to trade at a minimum amount upto maximum amount that you can if you able to adapt on what js happening inside the market.

It's easy to say to other users that the best way to control our emotions is discipline but it's not east when we in actual situation. Well, base on my own experience when I was a beginner I have a lot of mistakes even I try to ask by those have a lot of experience than me but in the end my decision should be grant in which just the same by those users that needs experience rather than by asking others.

I guess it really shows that crypto is not for everyone. Because if you have that mentality that you will always win here, then you are wrong.

There are a lot of psychological mistakes like what the OP has posted. And it's really hard to overcome it specially if you're a beginner here and if you have that mindset that you can get rich quick here. Just look any other 'job', you really need to have a strong mentality and should always gets up and think of it as a journey and not a marathon.

Exactly, when we're all beginners back in the days it's really hard to control our emotions and I admit that made this mistakes. But as I grow and gain so much experience, I've learn to really think logically before pushing the sell button.

So for newbies out there, it will be really hard at times, but if you persevere and throw your emotions out of the window, sooner or later you won't be trading based on emotions and you don't know, maybe you could be one of the most successful traders here in cryptosphere.

I know that when I began trading Bitcoin, I made lots of mistakes.  I would fomo buy at a high price and the panic sell when it dropped. It’s easy to fall into that mindset.

There is one simple method available to eliminate all your mistake from your crypto trading; that must be holding. Yes, you never need to worry about all the problems associated with beginners and professional traders as well. You may simply buy and hold and sell after years to make considerably big profits out of zero efforts.

If you notice, all the hassles of trading are applicable only for short-term traders. When you decide to hold you are ignoring all those hassles but without compromising your profit levels yet in long duration.

Psychological mistakes are happening for all level of traders and getting rid of those mistake is not easier because it is happening even with professional traders so even after years of trading you get all the chances to commit those mistakes. But, simply adopting method of holding way of trading, you can solve all those mistakes.

Agree with you beginner trader losses using rumor you are right that  "Fundamental and Technical" analysis are strongly working on trading but few time work money management and others news  i thing new trader follow pumping group and signal. so nothing have idea Crypt trading so beginner are loses trading.

pumping signal group useless for us. It give late signal and we have to understand this group setted for owner advantages, he buy coins and give signal to buy it. So ofcourse he will get profit when sell order fullfilled by his member. Its better to spend our time for usefull thing. And learning technical or fundamental anslisys will help us to survive in market without depend to signal from some one else.

Well to sum this up losing in your trade without external factors won't happen if you just follow on your own and basically have your own trading plan which of course is being backed up by what you know in analyzing a chart. That's basically the newbies mistake right there they don't what to do so they just look up someone else's analysis for the crypto and follow it blindly without even doing a background research of their own.

Even as a newbie I never made the mistake you mentioned in number seven. I never for once though that tokens that are priced lower would bring more profit than those with higher price. Price is never what I consider, even if I don't have enough money to buy the coin in bulk (for example - buy one Bitcoin) I decide to to be buying it bit by bit until I have gotten what I need. And since I started investing in cryptocurrency, Bitcoin has always been my main focus and the profit gotten from it is okay for me.

I have never been a person that is afraid of losing, since I already know that Bitcoin is legit and I can never wake up and hear stories like - Bitcoin disappeared. The only thing is that I have to invest an amount that I can afford to risk and that's it. So my advice to newbies (since I know that anyone who is starting is likely to experience these things that have been mentioned), is that they should always trade or invest what they can afford to risk.

Exactly saying to same think problem when we are fulfill depend on signals or pumping all group are all prediction are not correct so we said that using pumping group and signal are not every time to not safe for trading. i think need learning first and use signals.

The main reason behind this behavior is lack of knowledge. A bitcoin trader needs to hold understanding of two subjects; his asset which is bitcoin and his profession which is trading. Listening to others can be informative but following them in order to make decisions is not a wise act. After knowledge, perseverance and courage are essential traits to gain. In the beginning, a demo account must be used too.

Persistence and accepting trial and errors on which things i do like to add up.it wont really be a simple career to take but if you do have these traits you can still have the possibility to last or survive with this volatile market.

Mistakes are inevitable but you should learn from it instead on thinking to quit directly because of experiencing hardship.Following others wont really be that ideal on which if you lost up a certain trade
you would really have that kind of regret in the end.

Before trading, it is necessary to have knowledge and always use a demo account to know exactly your potential when participating in this market. I think one way or another, we have to know how to manage the capital in investment and if you feel not good, it is best to leave this market. In my opinion, the crypto market is not an easy place to make a profit and requires you to have a lot of knowledge to survive in the bear market.

Personally, I have been trading here for many years and always try to find more new ways to make money because this is the only place that gives me financial freedom that no one can control.

Hmm yeah that's right, those traits will provide strong experience and consistency when trading. It is undeniable that everyone has experienced mistakes in trading, but at the same time we experience an increase in the level of knowledge, that's what people do not realize and sometimes they even choose to leave.

Today the traders are just too much greed to earn more profit immediately, but they cannot handle too much pressure when is the right time to trade their coins. In trading, there is too much to earn one is the short trading this is when you want to gain profit every time this is good for altcoins because this may not cause too much lose. But if you're going to have a massive amount of income better to use the long term trading but it takes a few months before to earn. You must have enough self-confidence too you can not doubt any trade because you are afraid to lose your money, trading is all about risking your self to earn money.

This is the main reason why many investors lose money in crypto market. They dont start with demo account rather with a heavy capital. There buying and selling is mostly on news, WhatsApp group etc. Many dont realize that crypto trading is an art and one has to learn that prior to starting crypto trading.

In fact, plenty of high tier traders do make mistakes quite often. What matters here is that when a trade doesn't work out, they take on the other side of the trade if there is enough up/down side left. It will force them to take a hit on their initial trade, but that will be turned into a profit by going with the flow of the market, and thus not stick to the initial trade hoping it will still work out.

Some traders hedge against faulty trades through options, but that's something most people aren't familiar with. I have to admit that I'm not comfortable trading options myself. My motto is to not overcomplicate trading so I'm not planning to use options. Basic trading is already super time consuming on its own.

That's the point I forgot to mention. When you notice you just made mistake you ideally will learn and look for the right decision to take while you will keep the mistake for yourself so you won't make same mistake in the future.

Indeed, knowledge is the powerful thing that can help and guide us to overcome the possible challenges that we can encounter along the way. Some traders doesn't take it too seriously because they think that they can easily handle it but little did they know that trading is speculative? it takes a lot of effort and time to earn profit and it depends on how you manage your trade. They tend to make decision without even thinking about the result of it because it making decision you have to consider a lot of things which they usually don't that's why they end up feeling remorse about it.  Also, you should always remember to learn from your mistake because it can help you to avoid doing the same mistake and it will guide you too.

I think from all you listed in your write-up, the worst of them all is them all is 'trading because of your influencer friends do so'. I have seen alot of people do this, and where it all get frustrating is when they just jump into trading without learning the behind concept. At the end, they come back to whine on how bad it is.

It's okay for someone influence you onto trading but at least, if they do, you should try to learn it before jumping into it

At least to me one of the greatest mistakes that newbies make all the time is that they adopt a strategy which they do not know if it is profitable, they simply believe whatever they read on the Internet and think that they have a way to earn money in the markets without testing that strategy.

And that is a huge mistake after all they are risking their money doing something which they do not know if it has the potential of give them profits, I know that I will never do something like that and yet the majority of the newbies that I see in the market do not really know for sure if what they're doing is the right thing to do to obtain money from the markets.

#3 is the reason why I started to trade, its because I was influenced by a friend but so far this friend of mine is still active in trading and remains approachable for any question that I have about trading. However, there are those who are not lucky enough to find a mentor to help them out when they trade, their “should have been” mentor left them as soon they signed up on a link and hot the referral bonus.

One who influence the market is really bad IMHO, because they want the price to be manipulated so they call themselves as price prediction experts,etc and convince the crypto related audience to trust their predictions and act accordingly.

But one who want to trade without much manipulation from others should learn their TA skills and also they have to analyse the news related crypto so they can get an idea how the price trend will be but again it may happen or may not be still you control your decisions which is important in decentralized market.

lol you can't just be influenced in a way that you'll start doing it without even knowing it first. When we say influenced that is a process of being interested on a particular matter, like on trading if you are influenced by one of your friends then you'll be interested in trading and you'll try to learn it. I also have friends whom I influenced with trading and crytocurrency, what I did is I tell them a news or a story that could touch their mind some kind of catching attention so they'll be get interested, but I did not taught them how trade, they learned it themselves.

Remember the proverb about teaching a man to fish?
; Teach a man to fish and you feed him for a lifetime

Mentors are not easily available these days and they are not willing to guide you even if they know about trading skills and great knowledge about trading strategies. I am going to never join trading or anything just because my friend is suggesting it. All friends are never ever sincere with you. I am seriously feeling angry at your friend who is not guiding you. You shall not call him friend at all.

about selling to fast , oh come on baby , we dunno when the exact time to sell , i also have a problem with that , when i selling , then somehow i just quite dissapointment to market condition , they changes .
although i still get some profit from selling too fast, its still dissapointment for me.

I think the biggest problem is not closing losing positions quick enough. We tend to wait and wait and wait to see if it bounces back and capitulate very late with huge loses. On the other hand closing winners too early goes in pair and they are both super costly mistakes.

No matter what mistakes you do, nothing will be ever as wrong as "not knowing the exact reason for purchasing" for a coin. I have seen sooooo many people who bought some altcoins just because it was going up, or buying it because there was a hype and everyone was talking about it and it was trending topic for a day.

Those are not enough reasons to buy a coin and it could never represent the real value of those coins since those coins have a real value by looking at what makes it so high or low in price and not the feeling you have about the coin that decides on the price of it. If you can overcome that there is still a long way to go to become a good trader but if you can't move beyond that, all other warnings are useless since you will fail anyway.

New traders and rather old ones shall also pay maximum attention to this thing i.e. when exactly they need to quit. As you said most of the times trader keep hoping that may be some miracle happen and the prices of coins will start moving upwards. This does not happen in maximum cases and the more they wait, the more they lose. If the things are not going well, then simply don’t sell of your coins.

I used to trade a lot before using the Binance android application but recently I don't do it much.
There is just not much profit from altcoins anymore and I don't really want to risk my bitcoins out there. It is like a jungle over there and you will get eaten if you are weak.

One thing I learned from that experience though.
Never trust your feelings. It had always been wrong.
I do regret my early sells. NEM and Lisk. I have bought a lot of that before and used in trading but at early stage it doesn't move much but it is cheap. I got like hundreds of thousands of those two just sold at a bad time because of panic.

In my own opinion the more doubts you have about your edge and strategy, the more heavily psychology comes into play. If you know with fully confidence your signals, your take profit and stop loss, your risk and your expected draw down, then it's easier to have the correct psychology to execute your trades as planned. That's why I have a problem with over emphasizing psychology, because even a perfect psychology won't help you at all if you don't have an edge and a super reliable strategy.

I don't think trading is sustainable at all. BUT I will say that the mentorship sector isn't as bad as it's made out to be. Sure, there are charlatans out there, but these are guys selling signals and strategies. But genuine trading schools, I think they're all right. I actually think if more traders actually picked up some of these lessons, and learnt basic fundamentals and took a bit of coaching from experienced traders, they'd learn how to trade a little bit better without emotion -- the timeless killer of amateur traders.

I strongly agree with the psychological mistakes that have been mentioned in the opening post. Indeed, many beginners traders suffer losses.
In my experience trading based on feeling and trading by following a friend's prediction is the most common happened. From that I always
give advice to beginners do not believe in the predictions of others, do your own analysis and research to make decisions in trading. That way
it will prevent us from loss. Because usually the analysis we make ourselves is more effective and accurate. So from that It's important that
beginners have the knowledge and abilities about the world of trading, before deciding to trade.

Right. Finding the right people to guide you is a bery good way to be efficient. If you're only trying to imitate what your mentor is doing, then obviously you're not learning from them and you're just basically wasting your time. I've had one or two people whom i consider to be my mentors when it comes to trading and i can say i do things differently from them. Though i learned a lot during the times that i'm just trying to feel the market.

Exactly true, panic buy or panic sell is really worse scenario, it's happen to Bitcoin market when the price at peak. I saw much people drowning in hype and hope the price will be higher than the peak, most of them do not see the history of price chart properly or maybe they are too lazy to learn before taking the risk. I have never seen so many complaints about the Bitcoin market at that time, most of them blame the exchange, how funny isn't :D

It is natural that your mentor is going to try to make you to follow the same principles that he follows, but your job as a student is to question everything that he does even if at the beginning it may seem like a pointless exercise because your mentor knows more about the subject than you, but as you learn more about trading and investing you are going to find out that many of the things that he does are completely ineffective.

But this is a great opportunity for you because that means that if his system was able to give him profits this is going to become even more true for you which will use an improved version of that system.

Some newbies in trading thought they could doubled their money easily, some think they can be favored by having luck but later lose.

Some panic, some fear and some are greedy. Emotion is very wrong in trading. Some, do not study about coin but just trade one because they like it.

Some trade crypto on weekends and some always overtrade and lose.

Some will put the amount they can not afford to lose, although, some could be luck but if the market is not in their favour could have detrimental effect on them.

Panic selling is the worst of all offenses when it comes to trading. Not only are you losing money by trading when the price is below what you're looking for, but it also tends to have a snowball effect on the market. It seems like once one person panics and sells whatever coin he was holding on to, there is about 100 other people behind him doing the same thing and it ends up destroying the trading price. I usually don't mind people who fomo buy into something as that actually raises the price. It's these people that panic sell and cause the market to snowball downward that I can't stand to watch.

missing experiences is very dangerous for newbie, that is the reason why new trader should start trading with small amount in a few months before trading with large amount.

Try to over trade due to their greediness which could become risk to their inital capital so have to stick with their strategies and make trading time period less often to decrease the risk of losing capital unexpectedly.

Trading can also end up in addiction if the person is unable to control his or her trading time and money. As far as new traders are concerned, indeed they often make these silly mistakes of investing too much into coins for great and immediate returns without keeping in mind that market can go against them. They do lose good amount of money when the coin starts falling down because the team is not updating it. They shall invest small in the beginning.

That's because they only spend their money to buy only one type of coin, don't put eggs in one basket,
we know the term but many beginners don't practice it. So that when a price drops, the value of his assets will also plummet.

One of the rising earnings today is the use of cryptocurrency this kind of exchange gives a lot of profit to the users that provide a lot of investments. In cryptocurrency, there are three methods of earnings, first is the stake, where you buy any amount of the coin that you want in the low price and sell it when the price becomes profitable. the second one is the gambling, this is the best to the people who love play card games and dice they can wage all the money they want, but this time it is more risk because it depends on your knowledge and skills in playing if you will win or not. Lastly is the trading, it is the same as the investment, but the more problem is when you will sell or buy your coins. Not all the time the cryptocurrency gives a volatile price and also it is hard to predict many people trusting their guts to sell if it is the right time to buy or to sell. This kind of strategy is perilous because we are talking about money, if you make one mistake, it can cause of loss of your income.

Yes, it is one of the common mistakes of anyone who is new to trading. I also learned a lot about these things but when I practice I still make the same mistakes. and the important thing that makes new traders lose all their money is that they carry the psychology of a gambler. they have no plans when trading for 1 day or no capital management skills, which has cost a lot of newbies a lot of money. Statistics in the US show that new traders often lose more than $ 15k in just the first year of trading and the reason comes from the lack of knowledge in capital management. Therefore, I strongly recommend that new traders learn to manage their capital carefully before starting a trade.

Some of them are also people who already have much experienced in trading cryptocurrency but don't have patient. Patient is really important in crypto trading because the market will waving your assets and if we're not patient enough we'll lost all of our investment due to the price movement which so fast

There are really lots of guidelines in trading. Many advisers and predictions to affect our decision making. In the end the decision lies on ourselves. Its really hard when to decide to sell and the risks will always there. There are no perfect trading and mostly we must be ready for every gains and most especially the losses we encountered.

In my opinion, if an individual isn't mentally healthy then any decision he makes can fail there So first of all you would like to possess peace of mind but only then you'll get seven peace by doing any mining trade or anything. This is definitely important for beginners.

And actually there's a lot of new traders who were just excited to trade at first month, but once there are distractions, they were easily distracted until they lose their fund and that they begun to feel unfulfilled in their trading journey. So I think that once starting trading, we should list our target goal and let's focus on it.

Overtrading is one of the most common mistakes that I see in beginner traders, they do not understand they do not control the markets, just because you are trading it does not mean that you will see plenty of opportunities to trade, some time ago when I tried to day trade it surprised me how long I had to be looking at the charts and do nothing, there were even days in which I did not made a single trade since there was not a single signal for me to react to.

And it is entirely possible a newbie trader experiencing those situations decides to make a few trades just to get some action and try to make some money when it is obvious he will not make any given the circumstances.

If you let your emotion in trading to decide for you, then don’t expect to earn profit. Trading is not about luck and emotion, its about how you work for it and its about your analysis in the market. Newbies need to learn to forget their emotion, learn this process and have a meaningful and successful trades.

People here talk about beginners mistakes like they are the only one who make mistakes and they are our profit sources. We don't have to forget that trading depends on luck at some point.
But to return the topic, personally I think the most common psychological mistake is that they have very high confidence when entering in trading and this caused ehole problems: 1. The more he/she get - the higher it gets for newbie and finally it leads lose and 2nd - when they have high confidence but lose, it makes them more nervous and often leads them to go on va bank.

While I agree newbies are never told how to do that, they are only told they should not let their emotions to take over but they are given no alternative, when newbies and many other traders enter a trade they do it because of their emotions, they let FOMO take control of them and also their greed takes a huge role as well, so as you can see they do not really know how to trade without using their emotions in every single decision.

And for what I have seen the ones that are able to successfully manage their emotions are those that have created a way to trade in which their emotions take no part at all in any of the moment in which the market forces you to take a decision.

I may agree with others that every aspect of trading is questionable. And depends on each personality. But I think most mistakes come from lack of knowledge, experience, and self-confidence. And to my mind, to avoid or minimize such unpleasant factors you need to choose beginner-friendly and easy-navigate exchange. Like those of CEX.IO (https://cex.io/), Coinbase or Kraken.

I would say it depends on your goals. If you like trading you should do it but when efficiency in investing is your Nr1 goal, the buy & hold approach comes into play.

Also you should keep in mind: With cryptos you dont have any underlying upward current like in the stock market over the last 100 years yet. Stocks reflect at some point more than on another the steady grow in the economy and for good reason, stocks are company share. This is proven and logical. Crypto is a lot more speculative at this time and therefore my standpoint is, cryptos are especially good for Trading short term. High Volatility delivers lot of potential.

Bu you absolutely need to know, what you do as a trader. If not, then Buy & Hold is way better.

Of course it's a valid option to buy and hold some Bitcoins for long term investment anyway. Dont get me wrong!

Cheers...

This market is very attractive precisely because of that reason to traders, the volatility of the market can make you a lot of money if you know what you are doing, just yesterday the price of bitcoin moved 300 dollars in 15 minutes, and any trader that captured most of that movement made very good profits and depending where you live that could be the salary you receive in a week and in some cases in a month.

However as you say that volatility attracts a lot of traders but it also attracts many newbies which dream with leaving their jobs and making a lot of money when with their level of knowledge they should at best just buy bitcoin to hold it for the long term.