Top reasons that leads to fail in trading

[Requim]

Top reasons that leads to fail in trading

Being emotional. It's hard to control your emotions especially once prices go down and you see all your money go down the drain. The panic seller's attempts to cut losses has only hurt them more in the process and makes them end up losing even more. Unfortunately, FOMO takes over and this is what kills the newbie traders. Using your emotions will probaly lead you to lose everything..

Drifting through the wind. chasing the ones that are already pumping, which is very risky. You bought when the price is still high then price dropped and you are holding a bag of expensive coin.

Don't put all your eggs in one basket. Diversity. Diversify your investments so if one falls, other investment may help you to recover.


For best in the trading field you need these 5 things to be added in your check list, as all these five things are pillars of success here in the trading.
1) Solid Trading Strategy
2) Trade Plan
3) Money Management Skills
4) Reasons for Entries and exits.
5) Journal, News

P.s
I have quote some people words from my last topic

Good analysis. I think you have applied all you experiences on the lists that you have made. I  have committed a lot of mistake in trading too. I can still remember the first time I tried trading, I had FOMO and bought coins during the peak and lost almost .05 BTC(it was a big amount for me since I was just a newbie that time.)

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[Mahanton]

Top reasons that leads to fail in trading

Being emotional. It's hard to control your emotions especially once prices go down and you see all your money go down the drain. The panic seller's attempts to cut losses has only hurt them more in the process and makes them end up losing even more. Unfortunately, FOMO takes over and this is what kills the newbie traders. Using your emotions will probaly lead you to lose everything..

Drifting through the wind. chasing the ones that are already pumping, which is very risky. You bought when the price is still high then price dropped and you are holding a bag of expensive coin.

Don't put all your eggs in one basket. Diversity. Diversify your investments so if one falls, other investment may help you to recover.


For best in the trading field you need these 5 things to be added in your check list, as all these five things are pillars of success here in the trading.
1) Solid Trading Strategy
2) Trade Plan
3) Money Management Skills
4) Reasons for Entries and exits.
5) Journal, News

P.s
I have quote some people words from my last topic

Always have a trading plan not just on choosing a coin directly without any basis or analysis why you did bought such coin and talking about entries on orders this would be the most important to consider not just carelessly on buying or even selling out because one false move would really cost you money. Common failures being listed above which most trader do fail to follow.

[Sir Cross]

Don't put all your eggs in one basket. Diversity. Diversify your investments so if one falls, other investment may help you to recover.

I love this formula / proverb, all traders are sometimes greedy. so they forget the risk of trading without leaving capital to keep prices deeper.
Trading does look cruel to anyone who does not have a strategy.
thank you for sharing, this post is very useful.

Along with this principle, I guess that one should keep in mind that they shouldn't invest/use as capital what they can't afford to lose. This is a part of being greedy. Some get too greedy that they compromise their savings just so that they could engage in trading.

I would also like to add that you should set your goals. It's always important to set goals so that you may not be blinded nor get lost in the process.

These are simple principles however some traders have forgotten to abide by them and has led them to their failure. Emotions are hard enough to control, it's discipline that one must practice.

[icons6]

Being unrealistic is the top reason why trader fail in trading.There are traders that when making their goal like setting the target profit,too huge and impossible to achieve because of unrealistic expectation.

[ralph_0608]

Top reasons that leads to fail in trading for me are:
1. lack of research when purchasing in coin
2. easily persuade to buy coins that being hype to go to the moon
3. greed
4. panic whens market is down
those are most common reasons why people fail in trading for me. In order to be a successful trader you should have patience and had good analytical skills to read the market.

[Maveth13]

Drifting through the wind. chasing the ones that are already pumping, which is very risky. You bought when the price is still high then price dropped and you are holding a bag of expensive coin.

Unrealistic expectations - Reason No. 1

Unrealistic expectations are the common reasons that are influencing the traders in many aspects.

Tracking the false pumps with the goal of the fast profit gain has become a habit amongst the mass percent of the investors. Their unrealistic strange trading habits are usually leading them to a wrong path which is equal to the long-term loss.

On psychological aspect, unrealist goals are only amplifying the trader's anger which is also usually leading to a greater loss.

Unrealistic goals are not supported in the market world!

Yeah people just look at the good things produced by other traders, they don't care about the risk inside of it, the struggle and the process to reach a successful trading. As for the results it's make people put high expectation wants to have the same success stories without having a real struggle in other words it's unrealistic.

The same can be said for new users trying to trade in cryptocurrencies. They always relate crypto=quick money. There's a lot of cases of people becoming millionaires in a short time and they want in, fast.

[DanielRR1997]

I agree and I would also add this...

1-COMPULSIVE TRADING : As strange as it may sound for a market where profits and losses can be made in mere seconds, there is such a thing as “compulsive trading”. Trading too often during the day can be a big problem for novice traders, as they will make wrong decisions and let panic guide their actions. Monitoring the markets is an absolute must, but one should necessarily jump on every single opportunity when it presents itself. It is difficult to learn a trading style from day one, though, as errors will need to be made along the way until one finds a rhythm that suits his or her needs.

2-A FINGER IN TOO MANY PIES: Given the vast plethora of different altcoins one can buy and trade across popular exchanges, diversification is a good idea. At the same time, there is a risk of trading too many altcoins at once, which will take a toll on one’s portfolio rather quickly. The best advice is to start with small amounts of one or two coins that seem legit, ate and potentially profitable. As one gains more experience, it is still possible to further diversify the portfolio and trade more currencies.

[shezu007]

Top reason which give you to face loss is
1: Being emotional, in trading you always need patience.
2: lack of knowledge while doing investing, you should have enough knowledge before investing anywhere.
3: losing confidence in panic condition, you should keep your confidence level high.

[miyaka26]

Being emotional. It's hard to control your emotions especially once prices go down and you see all your money go down the drain. The panic seller's attempts to cut losses has only hurt them more in the process and makes them end up losing even more. Unfortunately, FOMO takes over and this is what kills the newbie traders. Using your emotions will probaly lead you to lose everything..

Good job on putting this on the number one list, even a good or an expert trader tend to fail to manage and control their emotions if there is an unexpected situation or result from their trade, due to emotional stress impulsive behavior manifest so they can commit some mistakes without thinking clearly, number one enemy for trading. Remember, the battle always starts in the mind.

Drifting through the wind. chasing the ones that are already pumping, which is very risky. You bought when the price is still high then price dropped and you are holding a bag of expensive coin.

In short it is FOMO.

[BlackPanda]

Top reason which give you to face loss is
1: Being emotional, in trading you always need patience.
2: lack of knowledge while doing investing, you should have enough knowledge before investing anywhere.
3: losing confidence in panic condition, you should keep your confidence level high.

I agree with what you say. One of the causes of failure in trading is poor emotional control. Trading requires good emotional strength, because then we can practice patience. Patience is one way to lead to success in trading. Without a sense of patience then we will only get the loss and also the failure in our lives.

[yanto@1977]

Top reasons that leads to fail in trading

Being emotional. It's hard to control your emotions especially once prices go down and you see all your money go down the drain. The panic seller's attempts to cut losses has only hurt them more in the process and makes them end up losing even more. Unfortunately, FOMO takes over and this is what kills the newbie traders. Using your emotions will probaly lead you to lose everything..

Drifting through the wind. chasing the ones that are already pumping, which is very risky. You bought when the price is still high then price dropped and you are holding a bag of expensive coin.

Don't put all your eggs in one basket. Diversity. Diversify your investments so if one falls, other investment may help you to recover.


For best in the trading field you need these 5 things to be added in your check list, as all these five things are pillars of success here in the trading.
1) Solid Trading Strategy
2) Trade Plan
3) Money Management Skills
4) Reasons for Entries and exits.
5) Journal, News

P.s
I have quote some people words from my last topic

Your post completed my knowledge and it's very helping me to get better result in the next trade. Until now, I don't have journal to save my trade activity. Maybe because of that i still repeat my mistake again and again because I don't have any record to remind me. Thank you for sharing this valuable information and good luck with you.

[Flexystar]

Top reasons that leads to fail in trading

Being emotional. It's hard to control your emotions especially once prices go down and you see all your money go down the drain. The panic seller's attempts to cut losses has only hurt them more in the process and makes them end up losing even more. Unfortunately, FOMO takes over and this is what kills the newbie traders. Using your emotions will probaly lead you to lose everything..

Drifting through the wind. chasing the ones that are already pumping, which is very risky. You bought when the price is still high then price dropped and you are holding a bag of expensive coin.

Don't put all your eggs in one basket. Diversity. Diversify your investments so if one falls, other investment may help you to recover.


For best in the trading field you need these 5 things to be added in your check list, as all these five things are pillars of success here in the trading.
1) Solid Trading Strategy
2) Trade Plan
3) Money Management Skills
4) Reasons for Entries and exits.
5) Journal, News

P.s
I have quote some people words from my last topic

Thank you for sharing the valuable information here. I have also came across another third like this but you have additional point here that I lied most. Quoting here:

Don't put all your eggs in one basket. Diversity. Diversify your investments so if one falls, other investment may help you to recover.

Honestly speaking it does have lot of importance because putting everything in the same basket is like risking the whole life's saving and efforts to it. If anything goes wrong with this basket then we are as bad as screwed. I also follow this strategy where there is portfolio of at least five coins and that way we differentiate our odds of loosing money in single shot. Good one.

[1NV3ST0NM3]

Drifting through the wind. chasing the ones that are already pumping, which is very risky. You bought when the price is still high then price dropped and you are holding a bag of expensive coin.

Unrealistic expectations - Reason No. 1

Unrealistic expectations are the common reasons that are influencing the traders in many aspects.

Tracking the false pumps with the goal of the fast profit gain has become a habit amongst the mass percent of the investors. Their unrealistic strange trading habits are usually leading them to a wrong path which is equal to the long-term loss.

On psychological aspect, unrealist goals are only amplifying the trader's anger which is also usually leading to a greater loss.

Unrealistic goals are not supported in the market world!

I think this reason is only limited in stock market not in crypto market. You can really have some imminent goals here. Just take instance of coin Revain. Its quite solid in the top 100 cryptocurrencies while it has increased by 95% in just a week. This in itself gives you many unrealistic goals when it comes to crypto. Diversification is okay but expectations can surely be kept high in order to get best out of your money.

[crypt0heaven]

Being unrealistic is the top reason why trader fail in trading.There are traders that when making their goal like setting the target profit,too huge and impossible to achieve because of unrealistic expectation.

Agreed. Unrealistic targets expecting huge returns in a matter of days.

[anitaraymonds]

Top reasons that leads to fail in trading

Being emotional. It's hard to control your emotions especially once prices go down and you see all your money go down the drain. The panic seller's attempts to cut losses has only hurt them more in the process and makes them end up losing even more. Unfortunately, FOMO takes over and this is what kills the newbie traders. Using your emotions will probaly lead you to lose everything..

[/quote

Emotion is a very bad enemy to traders both veterans and newbie. If you can control your emotion I can comfortably say you are 40% ready to succeed in your trading career. It is emotion that prompts revenge trading, It is also responsible for leaving the market too early and staying in the market too late. Emotion is not good to any trader.   

[Rodeo02]

Being unrealistic is the top reason why trader fail in trading.There are traders that when making their goal like setting the target profit,too huge and impossible to achieve because of unrealistic expectation.

Agreed. Unrealistic targets expecting huge returns in a matter of days.

so be ready always and just set your mind what will be the best time and what are the best thing that you must gonna do when it comes of trading this is may result for unexpected so better to be ready.

[nikjain422]

There are many reason and many have have been already provided but one think is atmost important and it is the selection of the correct trading platform and than knowing your limitation.Ability to judge the situation and to react according to that is also prime reason why many people fails in trading during their initial stage.

[MiiDoViic]

Falling for the trap of FUD and Fake sell walls. I think the majority of day trader now are following and refreshing their news feed about the coins they invested in every sec . One fake post about how their coin is bad or will dump ,could easily make them sell everything and exit even at loss . I've seen it happen so many times and seen coins dump massively because of the fake rumors spread around by people who want to buy the coin at a lower price . Also what makes it worst is the huge sell walls put by whales to fool people watching the depth of the coin . Those are mostly fake and as soon as the price reach them they will pull that order off.

[Godbas]

I've been trading for about 3 years now and always up and down. Emotional is the main driver. Having good strategy will make you more confident on your trading. Besides that patience also has big part, when you see your position in profit you want to close it in hurry even tho the price is actually moving to the price that you projected. Its all because lack of patience and confidence in your trading. Make sure always use stop loss and take profit

[Asoss.io]

Thanks for everyone who replied to my topic.
As I see there's alot of extra reasons and opinio. As I see most of them are true and I didn't forgot to mention them but they all talks in the same 3 reasons. Also Thanks for the Merit