Psychological Mistake of the Beginners Traders

[buwaytress]

I kinda have the same feeling that having mentor would just either give you bad practice for years or just literally do nothing with your skills because probably they're just gonna want you or at least expect you to imitate what they do.
My friend introduced me cryptos but that's the end of the line of our communication that is crypto-related.

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.

[Shasha80]

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.

[gabmen]

I kinda have the same feeling that having mentor would just either give you bad practice for years or just literally do nothing with your skills because probably they're just gonna want you or at least expect you to imitate what they do.
My friend introduced me cryptos but that's the end of the line of our communication that is crypto-related.

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.

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.

[avatar_kiyoshi]

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.

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

[wxa7115]

#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.

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.

I kinda have the same feeling that having mentor would just either give you bad practice for years or just literally do nothing with your skills because probably they're just gonna want you or at least expect you to imitate what they do.
My friend introduced me cryptos but that's the end of the line of our communication that is crypto-related.

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.

[Bitcoincc]

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?

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.

[adroitful_one]

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.

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

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.

[tungaqhd]

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?

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.

[semobo]

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.

[Webetcoins]

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.

[SoeNan89]

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.

[Assface16678]

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.

[drlukacs]

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.

[wajik-tempe]

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

[Asmonist]

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.

[Subbir]

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.

[JC btc]

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.

[wxa7115]

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.

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.

[Johnyz]

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.

[shield132]

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.