Bitcoin Forum

Trading can be a wonderful venture, but it comes with its share of dangers.

One of the primary risks is financial loss.
The volatile nature of financial markets means that everyone suffers loss.

Irrational decision-making is another pitfall; fear and greed can lead to impulsive actions that erode capital.

Overtrading, where traders make excessive trades, often results in losses

Lack of knowledge is yet another issue;

trading without a solid understanding of markets and strategies can be disastrous.

To navigate these dangers, traders must educate themselves, practice sound risk management, and exercise discipline in their trading activities.

You have discussed some ways a trader should avoid losses in trading, but I am surprised that you did not mention the sentence that a trader should not use more than the amount of money that he is capable of losing to trade. If little amount of money is used, trading emotion can be overcome. You need to also mention the strategies of using low amount to trade and ways of having low risk trading experience. You did not mention anything like not to leverage. There is nothing like averaging mentioned.

Someone can make a life with their trading income alone cause that much potential earning market it is but the volatile nature of crypto won't allow it to happen consistently so one who is trading need to find the right balance between managing their trading capital while also managing other source of income. If I am not wrong every successful investor makes multiple income sources apart from trading which gives them the freedom of trading by making better decisions in tough situations.

In case if you are facing more loss while doing trading then just accept that you are not yet equipped for trading.

If a person is going to start any work anywhere, he must have some knowledge about it, this is not specific to trading, it should be in every field of life we want to work in. While in trading, a person should be more serious as compared to other fields because the risks in trading double at a time. Fear of loss increases in trading as compared to other fields. Also, if someone didn't keep back up support for his trading, he must have been suffering from all these pains.

If a person makes himself ready for losses, over-trading, for decision-making, chances are higher for getting a profit instead of going into loss. If a person is financially strong enough to invest and has the ability, if he might lose some, it doesn't matter for him because he has strong backup support for it. This might be a plus point for the traders who are strong in the financial aspect, they would be better traders at a time.

All of those are happening in real life with most traders. And the reality is that they're all inevitable and can happen in times that we're not expecting.

Even the best traders can have irrational decisions, overtrades and suffer losses. While the others that you've mentioned are normal for the beginners.

Risks are always there when we trade and that cannot be removed and it's true that someone has to practice risk management because when you do calculated risk with your trades, you get the upperhand and lowering the risk you take.

Volatility will not be a disadvantage if you will trade in long term and not through short term using futures trading that will incur you an instant loss by hitting your liquidation margin. Many traders in crypto keeps using the futures trading feature despite the known facts how volatile the market.

It’s true that there’s a huge profit margin once positioned correctly but crypto markets often have price swing that commonly hits both side(low and highs) that can trigger your liquidation price once near to the current price. Holding crypto specifically Bitcoin in long term will remove this volatility risk since Bitcoin price moves in consistent upward movement since the beginning.

Of a truth knowledge is very much important when it comes to trading. Learning the basics of trading is very much important because the knowledge gained would guide you through as a beginner. This would also allow you have ideas on other traders experience because it is good to learn from one's experience and expertise while applying the technicalities they used when trading to support themselves.

I think I have come across similar topic created by another user here in the past few days. I will update it here for you to see when I find it.

This type of topic has not been discussed once or twice, but for educational purposes, topics like this are important to continue to discuss.  Yes, trading is an activity that is both profitable and high risk, but there are many people out there who have proven themselves to be competent traders, that is, this all happened because they were able to educate themselves to be worthy of trading, the notion that trading is gambling is still in many people's minds, trading is not gambling and is not a Ponzi scheme, trading is a buying and selling activity with the aim of making a profit.

If you cannot educate yourself, then seek assistance to be educated. It is not easy to educate yourself sometimes and for some people, you can read through long paghes and watch videos and still not be educated enough. You have to know yourself and understand the kind of person you are whether you are the kind that can learn and educate yourself by yourself, or the kind that will need an educated person in the field they want to learn about to help them get educated. Know your kind.

That's an interesting advice. Nosce te ipsum. We are used here to fit-for-all answers but you are right that self-awareness is crucial. The bad part is that personalities of some kinds are not able to admit their weaknesses, so your piece of advice can be in vain.

I'd say that, in general, a good way to learn is by yourself: you can read about trading and it can be useful, but until you don't see what is it for yourself you'll lack real knowledge on what that practice implies. The best approach, for me, would be to test with very little money for a while, while you read about it or take classes, and most importantly, try to comprehend the reality underneath the TA, FA and whatever pseudoscientific analysis: that trading is, for the majority of users who don't have (illegal) inner knowledge, it is no more than a other way of gambling.

Knowledge alone is not enough to master trading, or at least to have a skill through which you can turn losses into profits. This skill only comes from practical experiences, which require that you trade and achieve losses, if that is true. Learning from loss is the basis of a successful trader. How? You deal with the loss and benefit from it so as not to repeat the same mistakes. You must remember that successful trading does not mean that you will not achieve losses, but that your profits will be less than your losses.

Dear, I do realize that this information must be new for you but not for the OGz of this forum, so please try to come up with something more unique that has not been shared here before. You may want to come up with solutions to all of the problems mentioned above. As you just wrote in the last paragraph, we should educate ourselves in the following domains to overcome those problems:

While you can also write down solutions or ways to adopt to solve those problems and not face losing,

As that would be more helpful to read for us and for newbies too. I consider myself a newbie too, but not to the newbies of this forum (who really are newbies in real life too), because not every person is totally a noob while having the title of the newbie.

Besides this, your post content is really refreshing and a good reminder for all traders.

Little knowledge can be dangerous when it comes to trading. Even with proper guidance and strategy, one cannot be a good trader. Experience is the main character in trading. An experienced trader knows when to trade and when not to. He understands the market, how it works, and how it behaves. He doesn't engage in trading with emotions.

A friend of mine is a trader. Sometimes he would share his thoughts with me. From his perspective, he thinks long-term trading is the best. Although it can be time-consuming, it is less risky than short term trading. Currently, he is holding a lot of BTC, hoping to profit big after the halving. Let's see if he is right or wrong.

But an experienced trader could also make a big lose because they are trading in huge amounts so when they lose by making some mistake from there end they lose big. And obviously, when they make a profit it is also big one. But as I was saying they could also make mistakes even after all of that expereince. I have seen many Youtubers doing live trading and they have some experience too but in the end, they make some simple mistakes and end up losing the profit and the capital both. 

Sentiments of the whole market changed due to the halving event. As you may be aware, the number of BTC holders is increasing this time and making new records. Do you really think those who are holding right instead of making trades will still hold their funds after the bull run? No. They will not hold anymore, their sentiment about the market will change, and they will start to make trades again.

It all depends on the market situation, and the traders and holders, collectively called investors, will become one of them at a time and will try to adapt to the changes in the market to make more profit. And right now the time is to become a holder to earn some good money out of the halving period.

Fear is the major danger people need to handle very well to be able to over come some challenges in crypto trading because if you can eliminate fear from your mind whenever you are about to trade in the market, I guess it will help you to improve in profit making. Never you trade when the price of coins are low in the market which is another danger that is causing people to feel bad about their investment because, there is no way you can trade in the bear market and have a good profits to make. Always try to exercise patience whenever you are expecting something big from the market because that is where many people use to make something that is giving them joy.

The fear of trading or the dangers involved in trading didn't stop the professional traders from making a profit or trading full time as a source of steady income.
I think only those who are afraid of losing will be faced with the challenges should they decide to try trading just to know if it is their thing.

Apart from the emotional dangers, monetary dangers and psychological dangers involved in trading, it should not be enough to stop anyone from trading because just like real world tasks, trading is also a task that requires concentration, financial input and technic or strategy of investment.

Trading is really a risky choice of investment if you play fool around since it could make you lose all your money if research is absent when you want to buy some altcoins in the market. Its important for us to know the latest updates or developments done by the project so that we can potentially see on what will be the possible outcome to them since without doing research then its like you are just waiting for some miracle to happen from the altcoins you bought.

Lack of knowledge is really a big issue here so don't get lazy to learn more about it everyday and always have critical thinking towards what you see on the devs actions so that we can do some action base on the research we conduct.

Trading can be a solid way for us to earn money and its just we need experience and skills before we can get into a earn some decent profit from trading.

It's about time you guys stopped seeing trading as an adventure. It should be seen as a profession or at its worse definition; a business. When we do this, our mindset towards trading will definitely change. Those who go through college or any form of tertiary institution will do all they can to obtain a certificate by attending classes and doing course work but will be quick to skip learning process to acquire a set skill that will guarantee them food on the table when it comes to trading. Why spend all that years struggling to acquire just a paper but can't burn the midnight candles to master the art of trading. That's the rhetorical question anyone who's serious about trading should adjust to.

I read all that you listed and I want to affirm that trading is a serious business, not just a haphazardly done stuff. But of course, there's nothing in life that doesn't come with risk. So, why should we expect trading to be an exception?

Everything has risks, not just trading. People who tend to stay in safe areas may not thrive. In fact they will tend to fail. Trading can be learned and mastered so that you will be trained to have ways to minimize risk. But some people simply can't fight because of the risk of destroying their mentality. Those who are serious will keep trying, because they learn from mistakes and don't give up.

TBH, I cant find this OP beneficial. First of all you should have highlighted the benefit of trading before talking bout the risk involved. Are you trying to tell traders to stop trading? Perhaps the title of your post should be Precaution measure to avoid danger on day to day trading or Things to put into consideration as a trader.. 

In respect to the theme of the topic, some danger may occur with volatility and time decay. There might be a loss even though the underlying price is breakeven to the price you bought the option at. Another one is lack of patience. Don't expect the trade to go exactly your way quickly and correctly when ever you place a trade.

In whatsoever thing we want to do in life, we should expect it risk coming along, if you're into business, there will be peak periods that you experience good sales and profits, there will also be season of dryness when things will seem to have paused, this is how the economy we are is being affected on both sides and we can't do without taking the risk.


If we loss on same market or business that have always been profitable to us, this shouldn't be a discouragement at all on us because we can still come back at it again doing well, market rises and falls, this is one of the beauty with cryptocurrency because they are volatile.

Trading can be a great venture for the unemployed in today's world, but it is very risky for beginners.  But it is not too much risk for those who have experience about trading.  One of the risks is financial loss.  Also many investors invest all their funds to get more profit which is not right at all.  I think those who are new to trading sector should invest small amount.Everyone should get good training and advice from someone experienced on how to reduce risk.

I don't think danger is the correct term, Risk is more suitable, danger is by nature, but risk is only for people who are not prepared. No one will be in any danger if they were prepared for trading, they know about the risk, they know about signal, the nature of the market, and how to manage their money.


And yeah I totally agree with this, to say that trading is an adventure seems like OP is underestimating trading, no one should do that, trading is full with analytic, it's not entertainment like gambling, and definitely not adventurouse, everything must be carefully calculated in trading.

Those that are mostly in danger of losing money and blowing their accounts are crypto newbies because they lack the proper knowledge of crypto trading and just jump into it and fund their account with some significant amount of money. While trading, they could also attach emotions that could just force them to keep chasing losses as if it were gambling. Some newbies at some point conclude that trading is just so much like gambling, while they were the ones who never paid any proper attention to acquiring the proper knowledge of trading. Some years ago, I tried to trade futures on a CEX, but regrettably, I can't even explain how my asset got liquidated. I just know that one thing that really caused it was that I did not have very good knowledge about futures trading then.

Yes, trading has high risk when a beginner still doesn’t understand how the market behaves, which is one of the most important tools for a beginner to have basic knowledge and technical analysis of trading. However, even professionals sometimes lose a huge amount of money compared to beginners. My opinion is that some professional traders today think they have knowledge of any aspect of trading, and this kind of professional trader spends huge amounts of money thinking that they will be able to handle the market when it’s low and when it's high to sell. They think they are smarter, forgetting that the market is not by their side.

 
I don’t normally apply this to only beginners in trading because we cannot say that someone who is already professional in trading should put a huge amount of money seriously. For me, it’s wrong, and some people will lose some certain amount of money in their trading journey that will affect their work. However, professionals think they already know how the function works, which is not a save to me. They also need to invest the amount they can afford so that they won’t say because they already know everything, which will result in a big loss. And their trading journey may come to an end.

Trading has the risk of financial loss which should means it's not something everybody should be doing unless you have the experience to defeat the market. Trading are for those that want to make short term profits and not investors. The volatile nature of the market makes trading not the ideal way to invest in the market, we should become hodlers instead of traders. Holding has proven to be the most reliable way to invest in Bitcoin as those would hodl gets the biggest profits from the market. We have more traders that are losing than those that are having a successful trading career. People are just joining the trading trend without getting any results. They think trading gives the most profits because the so called social media experts say so. You're at the risk of losing your coins each time you trade and it shouldn't be an activity newbies should be engaging with.


Or better still, to avoid all those danger, we should be Hodling instead of trading. When you're not in the market trading, you won't put yourself in those dangers Hodling has more Pros than cons but the same thing can't be said about trading because trading comes with so many side effects. Financial loss are just one of the side effects as we have other effects like mental health and other things. As a newbie if you don't have the knowledge on trading, don't bother going into trading because it mightn't be worth it instead accumulate Bitcoin and HODL.

Trading without having analytical skills will be detrimental to the trader. The current market is still volatile and has no signs of recovering, so if someone trades randomly, he or she will make the wrong decision. Maybe he didn't enter at the right time or couldn't determine when he should exit the market.

If you want to trade, you should first learn what is required. You have to know how to use existing indicators in the market and analyze market conditions to know what you have to do. You also have to know how to reduce risk in trading so that you don't experience big losses.

And don't rely too much on other people in deciding which coins to trade with. That's because each person has different analysis techniques, so entry and exit positions from the market will also be different.

Not all unemployed can able to take a risk on trading since not everyone has a long patience. That's why trading is called not for everyone since to many people got easily discourage when they lose their money on first try and they never bother to try for second time since they get afraid to earn the same result.

But if they could just able to be more careful on decision making and learning some strategies that might work for them maybe we can see the taking full risk trading crypto in any form.

New investors should need to invest small amount so that they sill not get hurt if market fall down and their bought coins or tokens got affected on situation. Also they should learn from their mistakes since this could help them analyze on what possible actions we need to do if we see some movements that need to take care on.

That is why Before you begin trading you should educate yourself on it because trading is not an easy task and is very risky which is why you should educate yourself on it before you can profited, Another thing about trading is that even if you know how to trade, you will lose because the market will not always be favorable to you, which is why you should trade with money you can afford to lose because even professionals lose money sometimes when they trade But they are used to it because they feel they will recover their losses, because they have gained enough knowledge and understand how the market works, and they will recover the money they have lost If you have dread in your head, you will never succeed in trading because you cannot risk.

I mean that is why it is not actually recommended to do daily trading because it is just way too risky especially if you dont really have the knowledge and experience on it to actually make an analysis or speculate the market price daily, There are still a lot of traders that actually do day trading but most of them are losing money and only a small percentage of them is actually making a good buck because you actually need to be updated to what is happening in the market making a lot of research about the possible things that are going to affect the market price or just analyzing the charts, etc. With that it could cause a lot of stress, in my experience losing money daily is not a good feeling.

I wouldn't recommend it for sure for beginners, because it was way too risky for them, the best strategy, in my opinion, is always DCA since you could easily minimize the risk of cryptocurrency, also you could probably gamle most of the time trading a small number of your funds just for fun if you really want to do daily trading, but you really need a financial foundation first before even starting to have any kind of investment because it is basically your savings or some kind of emergency funds in case you lose all of your investment you have a money that is going to help you easily recover from a big loss.

Danger or not with trading depend with your decision make trading as an adventure or trading is your profession, all business are trading or not always danger with potential getting loss but when making trading as profession I think you will make maximize of loss in trading. Don't be afraid when hearing about how danger with trading if you have more knowledge and make research before investing in some coins. Many people make trading as their profession and know more how to manage and consistent to earn profit, not always trading is danger exactly is bad words make beginner will not try with trading in cryptocurrency.

Important thing if want trade should learn what most required from analyze about coins want to trade until how to manage risk when getting position with coins trading have lower price. For analyze method depend which one easily for understanding because all trader have difference their method with research and analyze coins will trade.

Op,  you have listed very important factors that every trader should be aware of if they are looking to become the successful trader they dream of, However, As I advance my knowledge of trading, I came to realize that trading has a lot more to do with your experience in the market, some profitable traders we know of are not profitable because they know it all but due their years of experience with the market, and thus far taught them numerous ways of dealing with the market and avoiding those mistake they know will result into losses.

If one wishes to succeed in any type of business, knowledge is the first step. I will argue that there are no other ways that someone will be a successful trader without no proper understanding about trading because when someone does not have the right information of the kind of business they are entering into, they are likely to lose. Even though we are aware that trading is challenging, some individuals lose money in trading quite quickly because they lack the necessary trading skills. A person needs to be well-versed in trading before they start trading. Trading differs from investing in Bitcoin in that anyone with some basic understanding may get started.

Trading will become danger to people who don't know and understand how trading works, but if you know how to deal with it you can now benefit a lot on it, make an earning through sleeping because you make a good position and make a stop loss and take profit once the market price hits the designated amount, those are just the example how you deal with trading. Now before committing a trade always make a plan so if you lose with the current situation you have the chance to get back and not just hope to get back your losses.


Seems like you experience a lot of redundancy topics created here or in the trading discussion.

Crypto trading is generally risky, not only for beginners; even experts in trading are losing money on trading regularly.
 
What I understand about trading is that if you have the knowledge, basic foundation, skills, and experience with huge capital, you will make a profit in trading. You will actually lose money, but you will make it up in some trades because, since you have the knowledge and experience, you cannot keep losing anytime.
 
Some people, mostly beginners, always have the mindset of learning everything at once or in a short period of time just because they are eager to start making money, and this usually results in losses in trading because everything is a gradual process and requires some time and experience to reach perfection.

OP you’ve made a good write up here, actually I feel beginners should not rush when it comes to trading. Though I understand the fact that everyone wants to make profit so fast, but they need to understand the consequences. They shouldn’t be all about the money, when you seek knowledge first money will definitely come with it. But if beginners feel they want the money at all cost they can rather go for Copy trading though it still depends on the exchange they’re using, it’s only few exchange that have copy trading feature, exchanges like Bitget and Bybit has copy trading, but then beginners need to check the track records of the trader they’re selecting so as to make a productive trade.

As OP mentioned greed shouldn’t be a trait a good trader should carry, little profit is okay than running into loss. Both on your personal trade or even when you’re copying trade. 

Trading in the “crypto” market or in other markets like in business. Of course this is not free from risks. Because this is a worldly system that cannot be separated. In essence, if something can bring profit, then indirectly it can also bring loss. Likewise with trading in the crypto realm, it is clear that risks will always exist. But even so, all these risks can be minimized properly. Namely by learning everything about trading in the crypto realm well. Because the key word or medicine for minimizing risk in crypto trading in particular is learning all the knowledge in it.

Of course, the main risk in (crypto) trading is financial. Because even a small mistake can have fatal consequences for the trader's life. It could be that the trading capital used simply runs out, and the financial situation becomes very bad. Especially if you use very hot capital, the negative impact will definitely be even more pronounced. Therefore, everything must be prepared carefully. So, start with knowledge first, then after that look for capital or really cold money, and after that can start trading. Even so, don't immediately use too much capital. But use small capital first. So basically, don't rush, but start slowly first. Because if trading is like in the crypto market, if you cannot control your emotions/passions, there will definitely be a greater chance of experiencing losses.

Now, many features are present in the world of trading and some features will also help improve a person's trading experience to invest and pursue profits from crypto trading. But, if there is no one to guide it, I think the result will be zero, in fact the result is always negative, where the estimated asset figure decreases every day.

A new investor should practice with a demo account. There are platforms that offer demo accounts and fake balances to trade in various market even bitcoin. So it will be wise to use those platforms to get a better understanding of market behavior and take notes about every trade. This note can be used to plan a strategy that will be suitable for your trading behavior.

Overthinking which is in other words regarded as emotions is one thing that has lead to greater downfall of a lot of traders in the trading industry and people need to learn how to control their emotions as far as trading is concern if they truly want to succeed in trading, I learnt this the hard way while still trading wit demo account and later switched to real account then I understood that emotion was really real and over think came into place and with all of that, chasing after losses comes in which leads to blowing of account.

Op you did a really brew job with your post and I just comment it but I think this post should be moved to the trading discussion board to get better attention and discussion on this thread.
Good luck

There's risk involved in all of man's endeavors, not just related to trading.
But I quite agree with you that you need knowledge before getting involved in trading. Moreso, you also need to trade with what you can afford to lose, because the market can turn south.

All the recommendations you mentioned are banal for an experienced trader, but useful for a newbie. Where did you get this information from to make such recommendations? Perhaps you are an experienced trader yourself, or did you just share here the information you learned during the training process?

This is a must always, trading already involves money, it's not just a game where you can just test something or do some plays.
For me, before we start trading, we must say and think first. Make sure you know what are you doing because whenever you made some mistake in trading, you can't get your money back anymore.

That's obviously because each trader has a different way of analyzing their coins and determining when to trade. But even so, many traders still don't want to learn analysis and anything related to trading.

They prefer to seek trading signal information from people in the group so they can buy and sell according to predetermined targets. This often makes traders, especially new traders, experience losses because they only follow advice from other people and don't want to learn to analyze.

We can only suggest what is needed by those who are just starting to trade. The rest is up to them to decide.

This sounds like how you would have it on the wildlife adventures where you can really have problems when it comes to having to survive dangerous situations lol. It's all about the "risk" I think and that's what you are talking about when it's about danger.

I believe that it's more dangerous when you gamble compared to trading but it has the same components at it.

Of the several ways you discussed for a trader to avoid losses in crypto trading, the first and most basic is a lack of knowledge. Knowledge is really needed when you do anything, including trading in crypto assets, without knowledge you will be very vulnerable to the risk of loss.
Arm yourself with knowledge about crypto, then you can trade according to the amount of money you can afford to lose. Avoid greed in trading, especially if you have just started trading with limited knowledge in the crypto field, choose crypto assets that have strong fundamentals in the market to prevent greater risks.

When you do all these without emotional discipline, your trading will be bitter cos you'll be subject to unnecessary panic and desperation especially in the face of loss. When you're panicking and desperate, the risk of losing all  your money becomes  relatively high as you're hell bent on recovery and thus might pay less attention to details and reality. In essence, don't bring emotions to trading, you need only principles to decipher when the markets are moving in your favor and when its not, when its time to quit for the moment until things get back under control and the maximum amount that you'll trade with.

I also recommend you've your trading account separate from your main account. Fund it with the worth of coins your can afford to lose before even starting the trade and be disciplined not to go beyond that in case of loses.

Also you can remove your gains as  soon as they come to maintain a steady trading margin and not lose your profit if the markets finally turns against you.

It's probably a risk, not danger.

Trading is similar to gambling. You trade with other traders, but you have different predictions based on short-term price movements, so either party can be right or wrong, but there's only one winner every time, and that is the exchanges. As long as you are trading a legitimate and highly liquid assets(coins/tokens), there should be no danger of losing money easily. The risk is still there, but with a careful evaluation of your technique, you're likely to end up winning.

It's a game, my friend. You need to win most of the time to be profitable. So, I can say that trading is not for everyone. Those who are afraid of taking high-risk ventures should stay away.

Exactly! Once you are liquidated, you're liquidated, there's absolutely nothing you can do about it. That's why, like you rightly said, make sure you know exactly what you are doing.

Moreso, trading isn't for everybody. It's very demanding and not everyone can afford to pay that price.

It's fine if they lose money in trading, at least they will gain something after losing money, it only sucks if you lose money and you learn nothing in return, we have discussed this a few times a year only, and many still won't care about your advice, all your points are going to be forever inevitable, emotions can't be beaten for many people so how will they control themselves?

Prices like this are what you pay when you decide to take steps into something you don't know much about, you should have seen it coming but people don't listen to advice until they make mistakes, I have stopped advising people about trading specifically because they think you some want them to be prosperous.

Trading is better for those who can control their emotions and also for those who want to learn everything about trading and still be able to spend much cash on a few trading tools, you can make trading a better experience for yourself if you get the right setup and tools, find the best gurus and learn from them.

Aside from doing some actions that we think a good option to do we should better check out the latest happening or condition of the market so that we can determine if its good to trade or when should we enter and secure our profit since its will be bad for us if we only think about such possible strategy that we can use on our current trades. To many incident happen while we are away so we should know the latest before taking some decisions since it can help us a lot especially if we are engaging on daily trading or short trades. The risk is so high that's why we need to be more resourceful before starting up so we can maximize the risk and can potentially gain from current coins that we wish to acquire.

Although its hard to execute all of it but if we are eager to learn new things on trading for sure we will get use to it and proper researching will be part on our trades then it can make our decision making more better. To many technicalities needed to learn that's why many lost because they want to have a shortcut learnings and they failed to know how to do some good counter measure if some events didn't meet on their expectations.

Trading is complicated and it is not like turn on a computer, login your exchange account, click on a trading pair, glance at the chart and open a position. In trading, a trader must have ability to control activities like when to trade, when to stay away from trading.

By chasing to open trading positions, a trader will take higher risk when chance to get profit is small but risk to have loss is big. It's time to stay away from trading because if you don't trade, you don't lose money. If you trade wrongly, you lose money and might reacts as revenge the market and get more losses.

Whether you self-educate or you learned from an educated trader, what is most important is that you learn to apply all what you have learned into your own trade. By doing so, you become more capable to trade on your own which will eventually result into a positive and successful trading outcome. That way, you are not only an educated trader but also a skilled and capable trader that can easily overcome the dangers in trading.

And real thing that happens is that most traders just focus on the wonderful venture and sure profit while neglecting to see the dangers that await them. More traders suffer losses because they underestimate the volatile nature of the market and regret it. We could say that we usually just learn when we already commit a mistake and it is acceptable in a fact that this will also teach us where to get wrong and guide us on what we have to do in order to avoid it. The more we experience actual trading, the more we understand how it really works.

Acquiring knowledge is only our stepping stone towards entering into trading as its not actually a guarantee that you will easily overcome the risks and be a successful one. However, it's an edge over the others if you decide to trade with prior knowledge and just continue to educate yourself everyday until you get to hone some skills and strategies that will work perfectly on your trading career. With that, you can already say to yourself that even if there are inevitable losses in trading, at least you learn to minimize them while trying to maximize your profits.

Trading is really a profitable endeavor for those who have build knowledge and experiences with trading. However, for newbies, while trading can be more productive than investing, but it can be more dangerous if you jump into trading without prior knowledge and experience on the trading market. You can lose all your hard-earned money in just a blink of an eye if you trade with closed eyes. But if you invest in yourself with knowledge acquisition and develop your skills and strategies at first, I guess trading will be a lot more successful in the future.

This two above is a wrong step any body must go through, trading requires good knowledge and it is impossible for anyone to trade without any knowledge. Their is no shortcuts to gain profit in trading , every profit happens as result of having knowledge which is the principal tool everyone must possess in trading.

Understanding makes trading easy and interesting,  their must be an understanding how the market works and their must be understanding of strategies on how to make profits from trade.  Getting knowledge and understanding is very important abd something everyone needs to go after in trading.

Apart from being able to bear losses, someone who has started trading must also be able to be patient so as not to panic sell when he is in a loss condition. Because when he doesn't sell at a loss or in conditions that make him lose after selling, he is a person who is quite tough in being patient because he can still survive and will get more returns when he encounters better conditions for what he is trading. Because apart from knowledge and strategy, every trader also needs patience so that they don't easily experience losses when market conditions experience bigger changes.

no one in this world can escape from risk, so risk when trading is a very natural thing that can be experienced by everyone who tries to become a trader, currently there are many videos or tutorials that explain the best steps to reduce risk when trading.  trading, and knowledge like that is something that every trader must have, especially beginner traders, remember that trading is an activity that requires intelligence, a lot of capital is not that important, if you have good skills then you can make profits quickly.

The decision to trade can be good, but there are many risks in it, so firstly caution should be taken. When a person goes into trading he has to consider various things, if the person is not well versed in trading then he will never be able to profit. If he is not knowledgeable first, then he needs to know the market first, so it can hurt his money the most. Unreasonable decisions often lead to losses, so good decisions must be made before making decisions. And avoid being emotional when starting trading, if you can't control yourself, you will never be able to make a profit in the market. When you are trading, it is normal to lose your capital if you suffer losses due to market volatility and don't get emotional and break down. Many times due to lack of knowledge one has to take risk, that is why different strategies have to be adopted in order to have a good experience about the market. Practicing all the things then taking the advice of good traders and trading according to proper management is possible, only then it is possible to profit.

It is a mere fact that a trader must understand how trading works. We can earn profit from trading but we also suffer losses if we get wrong especially if we have no knowledge about this. A reason why we did not rush to enter trading nor we would think about earning fast but instead, make it a priority to learn it first. Many people got a huge mistake from thinking that trading will be a way to becoming rich because it was not that easy, you may be earning today but can't be sure of the next day.

When we talk about trading is not as easy as it seems to be, there are so many dynamics and factors involves that is very essential for you to understand before going into, merely looking at the market chart it seem a bit easy but venturing into it you will understand the need to acquire knowledge before trading.

Especially a beginner who has no knowledge about trading, your target shouldn't be on getting rich overnight because that's one of the things that propels most people on venturing into trading when there are more important things to consider, which is the risk involved and how you can manage your capital from getting blown.

So after considering those things the only way to navigate well through your trading is through knowledge perhaps you could look for trading schools or online research about trading and preferably watch some trading YouTube video because it enhances you to understand the fundamental and technical analysis of the market as such giving you the insight on market direction.

If we can control our fear and reduce our greed, then we can practice a good and healthy trading experience, as we can reduce and minimise the rate at which we lose on trading.
 
Greed is one thing that always makes someone see a point where they could have called it a take-profit point. After calculating their buying time, the fee spent, and any expenses that they have incurred during their buying period, whatever price one has set as their selling price, if that price is being reached or close to that price, the person should call it a take-profit time and don't wait for it to get bigger than that, as that can lead to losing even the profit that was realised.
 
In the aspect of fear, as traders, we should learn how to control ourselves when we hear some news that is unverified, from an unwanted source, and out of fear that the price is going to sink to the ground. If one can control all this, know what's good news and what's bad news, and also know that no matter the drop, the bitcoin price is going to survive and go back up to where it was,

It makes that everyone suffers loss and it is also the bedrock of profits. Without volatility, no profits

Fear and feed is part of the cryptocurrency market and we cannot successfully deal without them. But a good trader will have to a way to deal with them.

Too much of everything is bad. There should be a clear duration for trading. Whether you are winning or losing, have a time to close the tab.

This is a suicidal mission. If you don't know how to trade, pls don't gamble it.

Of course, the worst risk is losing money. That's why we always state that we must invest/trade with the amount of money that we afford to lose. It is a very common advice that we often saw/read in many discussions about Bitcoin investment/trading in this forum. Because investing or trading crypto is high risk, we are always expected to use safe money only.

Volatility is a risk, it can make people to suffer losses. But we must know that the volatility is also the reason why people can earn huge profits in crypto. The volatility enables the prices of crypto to increase very significantly. If crypto has no big volatility, we can't expect to see the prices skyrocket during the bullrun season.

Whatever is done excessively, there is always the potential to end badly. We must know when the right time to trade, we shouldn't force to trade if it is not in the ideal condition for trading. If we force ourselves to trade in a bad time, surely we potentially get losses. Anyway, having sufficient knowledge is a must for every trader. Trading isn't something easy, it can be very complicated sometimes. It is totally a bad idea to trader with lack of knowledge. Trading with lack of knowledge rises a bigger risk and chance for a loss. That's because he may not know what to do when he experiences the difficulty in trading. For me, trading with lack of knowledge is the same as gambling. It means we only try our luck in trading crypto.  :D

I highly agree, volatility is the reason behind the loss and gain in profit but it is not the reason why trader suffer losses, the reason behind why traders suffer losses is the lack of knowledge and preparation and planning on trading.


I disagree that we cannot successfully deal with fear and greed, we might experience feer and greed but with self-control and the right knowledge, we can deal with these two.


True! But if the trading system we are doing is effective, we can just rinse and repeat until the strategy become ineffective.



In everything we do, knowledge and understanding the core of it is required.  Without them we might end up messing things up.

Theory is not always useful when you put it into practice, but it supports your knowledge. I have traded in the past, but something has made me realize that day trading is not better than long term investing. I could use 10% of my budget for trading, but I tend to avoid trading for long-term investments.

I'm sure most of your points are credible, but things are always risky regardless of whether you invest or trade. Trade carefully and always use the best strategy to avoid serious financial losses.

Trading is very dangerous of course for certain people, such as lack of knowledge and insight, and not being able to analyze the market, but in my opinion trading and long-term investment also certainly contain risks, so in this case knowledge and insight are really needed because without knowledge everything it will be useless unless there is a miracle. and op I also want to add that in trading you still have to use quality crypto with the aim that the risk is not too big, for example like btc or ethereum
because BTC or top 10 altcoins on CMC have good trading volume.

However, usually the higher the risk of loss, the more opportunities there will be for big profits. However, the most important thing in trading is to use money that is ready to be lost because market movements and crypto prices are very difficult to predict.

I heard that like 80% or even more of the traders loose money and that the rest doesn't make so much money that it's worth investing the time instead of a normal job :D Except you belong to the top 1% of the traders or so

These two things are very important, as they are all the same. However, it is very important that we study what we are doing. We should try and study whether it’s investments or trading. We should at least study them all to avoid losses. It will also protect us from emotional conditions that will affect our journey during the trading process because, as traders, we should need to overcome our emotions before deciding to trade. Also, knowledge is something we need before entering the market. Without knowledge, the risk will be higher than that of other people.



I don’t think higher risk if trading will create opportunity for profit makes there some risk we take. We ourselves know that we won’t get any positive outcomes, but due to negligence, we risk it, so for me, there is nothing important like knowledge, technical analysis, and other things that are needed, but saying the higher risk, the more opportunity to get profit. Nah, all we can say is that we should try and invest the amount we can afford to lose.

However, there's no money to lose, mate. As you said, even a little loss won’t make us happy, but we don’t bother because we know that's how it works naturally, so there’s nothing bad if we lose, but we should invest the amount we can afford to lose.

Trading can cause you financial loss so it is advised to first study enough about trading and then engage in trading. Trading is never for inexperienced people, those who have enough knowledge about trading and risk takers can join trading but for those people who are interested in trading only to see the profit of others, trading is very dangerous. If trading in a coin is taken impulsively without understanding the market in new conditions, then that person is undoubtedly putting his money at risk. If there is an illusion of money then we must try to gain enough knowledge about trading, besides gaining enough knowledge about trading, when we try to do practical trading, we will have enough practical knowledge about trading and use that knowledge to trade with money risk later on. Which can be a very positive aspect for a trader.

For those that have good understanding of trading may tell you that no matter how bad the market may be, there are still people making profits. Whether bear or bull, there are people still being favored, it's just for you to know the Dynamics of the market

Trading can indeed be very dangerous if entered into by someone who does not have sufficient insight at the start of entering the trade. And it is even more dangerous if someone enters a trade based on feelings or because they are exposed to hype.

And it is much more dangerous if you don't learn Money Management. Well they trade with all their money without arranging for their living needs first.

The point is that everything requires preparation and a long learning process. And actually the OP has mentioned these important points.

But this topic seems more appropriate on a trading discussion board.

I am not here to discourage anyone about trading but I will say it still not suitable for beginners unless they pass through all the normal skills required for trading, it's risky that's why they are been warned almost every time on the forum, beginners are better off investing in Bitcoin rather than trading, and while they are holding Bitcoin they should devote time to start learning trading too.

I could remember when I was new to trading, I use some money to even copy trade and I lost over five hundred dollars just from copy trading, until I decide to start learning trading over time, that's when I know how important stochastic RSI is and still there are times I made the wrong trades and lose money.

There is no way you can get better at trading without losing money, because you can't always be right even with all the analysis and tools, it's even more risky to engage in day trading because of the way the market moves.

The moment you decide to trade, be ready for a financial loss. That is very certain as no one gets their desired profits without passing through certain amount of losses. And from there, learn from your mistakes that resulted into losses so you won’t be susceptible to creating the same mistakes again. And while trading needs knowledge and proven skills, a trader should also have long stretch of patience so he can timing the market when to make the best and profitable trades.

To do any work, the knowledge is very important part also necessary for trading beacause we are using money, where the profit is made and the losses are tolerated, we can understand it only if we study the rules and regulation for trading and we can bear the losses.

We should take the help of a teacher who is knowledgeable about trading or he has a lot of experience in this field so that we can save ourselves from losses by learning the real way of trading. teacher he can teach you all the rules of trading we can search it in different ways.

The world of identical trading could explode tomorrow, or the best case scenario.

You're right, it's all about knowledge. Therefore, from any fundamental analysis point of view we need to understand where the market is going meaning that At some point, balance must be achieved. Well, that's where guidance is needed from someone who is skilled and established and if not, we know the way to go and don't know the way to go home, the intention is to make a profit, but instead we end up at a loss.

Everything that involves money comes with its risks, trading is no exception, of course.

It's not the volatility that creates that risk, it's the unpredictability in my opinion. When a market is unpredictable, volatility can either become positive or negative for the traders.

Patience is a very important thing when you are dealing with a market where market sentiment can change the game in no time.

A lot of people tend to believe that more trade means more profit which can be true sometimes but it isn't necessary all the time. Your overall profitability will depend on your strategy and the window in which you buy and sell.

I consider that to be one of the biggest mistakes that people make, they don't gain enough knowledge and venture into the market to earn money which is basically not possible if you are not knowledgeable enough.

Bitcoin trading carries many risks, especially if trading short term. Apart from that, if you only have a little capital, trading will not provide big profits. One way to use small capital but can provide big profits is by trading futures, but the risk is very high and I do not recommend doing this.

But as you said that trading has huge potential, yes I agree but it applies to those who hold bitcoin for a long time. The short-term trading that I do often ends in losses, maybe I'm still inexperienced and have poor analysis. But I continue to learn so that I can trade correctly and can make a profit from trading

This is the only loss in trading. Sometimes, you may damage your mental health due to your financial loss. But, financial loss is the only thing I see as a loss or gain. Many of us know about trading but how many know variations of trading? Some people learn about the future trading of cryptocurrencies, and they start trading binary after a few days.

I see binary trading as gambling. Sometimes I feel like it's worst then gambling because things get changed in 1 seconds and the return is too low compared to gambling.

it's all good insight and warning for beginners looking to start trading. but it can also make novice traders afraid to start their trading. maybe you would be more careful. but it can also give fear to beginners who actually get doubts due to their lack of experience to start with.
because not all novice traders will understand the risk management of the trades they make. Indeed, it would be better for novice traders to have a mentor who directs their initial trading with strategies that they can understand.

I agree with you. And also he should also know when to stop loss, so he doesn't continue losing too much. And all of these require knowledge, time and maturity which can't happen over night.

Let me start by asking you. Are you a trader? If yes, how many of these videos and tutorial you see online have you watched and applied In your trading?

Some of these so called tutorial online are half-baked and relying on them could be harmful

There are different aspects of trading; one that is common is spot trading, and you might not need too experience trading this, but when it comes to futures, I often tell people to ensure that they absolutely know what they are doing before venturing into that.

I see how many people complain about trading, despite the fact that holding and stocking for rainy days is more advantageous, so to be on the safe side, I will just carefully buy and keep when I eventually have money to buy, and if I have some to teach me trading better, I will consider it if I have money to buy. but from how I see the market bitcoin is not for kids.

Trading on the spot market does not guarantee you a profit, since in the end it will depend on you when to buy a coin and, accordingly, sell it. And this is the most difficult, since most traders do the opposite in practice: where they need to sell, they buy and, accordingly, where they need to buy, they sell.

I Never said spot trading guarantees profit. But I think all forms of trading requires experience and expertise to be able to sure of limited loss.
Trading generally is not for novices

Not only in trade but in all things including investment or even in business. All of this can be very dangerous and can cause financial losses if we do not have insight and expertise in this field. So, to be more precise, what is dangerous is ourselves or the actors who enter a field (in this case trade) without having any preparation. Both in terms of insight, mentality and capital. Well, before entering into trading, the first thing we have to get is sufficient insight, then a strong mentality (readiness to take risks after long consideration) and also good capital preparation (the capital used is capital that is prepared specifically for trading and must be ready if you have to experience a loss, because that's how trading is, namely between profit or loss). But actually far more people experience losses after investing in the wrong field. Usually they are beginners who become victims of fraudsters who promise big profits in a short time. And once again what is dangerous is a lack of insight/knowledge. Therefore, before entering any field, prepare yourself with at least basic insight. So that we can also avoid every fraudster who is currently increasing in number.

Trading will be dangerous if we master real trading knowledge starting from analysis, controlling emotions and so on. Because trading without understanding trading is the same as playing gambling only relying on instinct.

I liken trading to the retail world, where there are harvest periods and lean periods, for example selling clothes, market crowds will increase during weekends and big celebrations, that's the time to make transactions/sell as many goods as possible for more profit but still prioritize the risks. and reasonable margin limits. Just like trading, where there is important news that can move the market in a big way, that's where you can carry out as many transactions as possible by prioritizing risk and a reasonable margin threshold. So the point is, treat trading the same as selling retail.

Firstly our approach towards trading could be the reason we see more of the worse than the best from trading. If we change our approach and see trading from a professional side I think more often we will be able to get it right trading. Just like a skill it take time and dedication to get the full knowledge of it and start getting the benefits that comes with trading and not rushing into it without proper knowledge.

Risk can be seen with almost every business and profession but you put your self so much at risk when you fail to  get and apply quality knowledge of that Skill to work. There's this great pit fall common amongst amateur traders, risk management it's one of the greatest fall of most amateur traders, they have poor risk management strategy and some don't even have at all and when they loose money they blame it on trading. Second managing your emotions   this has to be another aspect that needs more attention but most persons give less attention to it and for sure if you can conquer your emotions you have gone halfway your trading experience. Lastly  Quality education and discipline as stated by OP. Trading is a profession and not a hobby treat it as such and you become better at it.

Agree. Even we trade on the spot market, there is no guarantee for profits. It purely depends on the strategy we apply for the spot trading. How we do research or analysis to choose the coins, also has a big role for the success of the trading spot. This is all about our knowledge and experience, it is something that can determine the chance for profits.

Yep, there are traders who only know the theories. But when they practice it, they do the opposite thing. If this happens, it will be difficult to gain proper profits.

Of course, to trade properly we need to have sufficient knowledge and experience. It is not only about to minimize the chance for a loss, but it is also the way to understand how to optimize the chance for gaining profits.

Everyone started trading from a beginner status. No one suddenly becomes an expert or experienced trader. But make sure to know how to trade in the right way when we are still a beginner. We must use the small capital first, we focus to learn and get the experience.

Trading is very risky and one of the things they should first consider is that trading and holding are two different things because in trading we stand a chance to lose out completely if the person has no trading knowledge while holding is a risk free investment and no matter how the price movement could be your investment is intact.

For me I don't like trading but however if someone must trade especially the person that has no knowledge about trading should first understand the concept behind what he is trading and should be able to no the fundamentals and the risk management to guide you on the trading journey.

The only way to do well in trading is when you have someone that could guide and tutor you on how the market behaves, at least with that it could reduce you some risk, and also no matter how experiences a trader is he will always lose trades.

Trading without experience can never be successful.So those who want to do trading or want to be experienced in this matter must have a lot of patience and time to take advice from experienced so that trading can be learned.There are many people who jump into trading and start trading without understanding anything, due to which they end up with losses.There are different types of trading such as futures trading, spot trading, binary trading and many more.

When you talk or think about trading you can run away from loss, it is something that will surely take place. It is impossible for people to trade and not to experience loss, since losing is something that exist in trading,  traders just need to learn trading well first to minimise the lose that can take place in a giving trade. Lose becomes dangerous when people go into trading without acquiring a ny knowledge about trading, in this case such person is taking big risk that can end up Losing all the money to trading.

Trading is highly risky, trading without acquiring enough knowledge about trading will only lead you to losses. Not only trading, market research is also very important. Because if you trade at the wrong time you lose your money, if you research the market you can trade at the right time. One should never trade without being highly educated about trading.

Firstly, if you invest with a certain amount of knowledge, if you suffer losses, if you invest as much as you can survive, you will definitely not suffer the losses that will happen. And if you go beyond your capacity and think about additional money and move towards becoming a rich man quickly then if you fail then you will not be able to stand up that is why my one word is as much as you can Invest as much as you can afford but keep some distance and get out of the get-gigantic-rich mindset and invest slowly to achieve success then trading is never for you do not curse thanks.