Mistakes newbie makes in trading resulting to losses

[artdisrupt]

Trading is not a quick get rich scheme. But having quality knowledge about price movement of crypto asset is essential before taking crypto trading as a full time job.

There are several mistake newbies often make during the course of trading which are listed below:

1- Buying of a crypto asset that is already high without stop loss and  selling low because of uncertainty of indecision candle  in chart.

2- over reacting to sudden change of prices which leads to Panic selling.

3- Trading without any strategy  in mind before placing an order.
 
4- the fear of missing of out is another major strategy whales use in manipulating prices thats attract newbies to buy at all time high.

5- Trading with 100% of the portfolio in only a single trade instead of spreading hard earn money in different trade.

6-not taking proper rest and allow the brain to relax in taking proper decision in entry or existing orders.

7- Greed is never be satisfied with the little profit,is an emotions that create an hunger for more profit.this hunger for more profit without setting take profit or stop loss result to losses due to over excitement of trend movement that favors the trader

These are mistake that newbie make that result to loss of their hard earn money in crypto exchange trading.

Hence to avoid all these mistakes you need to to learn different trading strategy and different chart pattern and historical data analysis of crypto asset.

We have seniors in the forum , their contribution will be vital and help everyone to avoid mistakes ,these are just my experience and observation.
Have a cool crypto trading .

[harizen]

Trading is not a quick get rich scheme.

It's also not easy to understand.

Some of the things you have pointed out are usual to happen by newbies. In other words, normal and kind of human nature.

I believed it's good for newbies to experienced those at their first phase of doing trades. In that way, they will feel the actual environment in the world of trading. If they will be used to that, soon they will be more improved and now be able to control those things above. Even how they read the basic and must things to do when doing trade, they can't avoid mistakes.

[leowonderful]

FOMOing's something that I still do on a few occasions and I've been trading crypto for several years. It's truly difficult to not FOMO sometimes, especially when a coin has already pumped and seems to have more space to go upwards, but you'll only get better at this by removing your emotions from the picture (easier said than done) and trading more.

High leverage is available on several exchanges, but it's a good idea to not use massive leverage as a whole. Extremely high leverage can be like gambling, though lower leverage is just fine to use.

[logfiles]

Another important thing you forgot to point out is Greed.
Greed can affect one's decisions on when to exit. You find someone wants to get 100% profit before exiting and eventually the coin price corrects before hitting the 100% profit target, and they end up loosing out. Sometimes they can even go to losses trying to wait for the coin to rise again to high 100% 

[StephenJH]

Another important thing you forgot to point out is Greed.
Greed can affect one's decisions on when to exit. You find someone wants to get 100% profit before exiting and eventually the coin price corrects before hitting the 100% profit target, and they end up loosing out. Sometimes they can even go to losses trying to wait for the coin to rise again to high 100% 

Catching and releasing game starts with such small activities and trader usually loses balance at the end of the trading session. If there is a loss that you can afford closing this trading position is a better idea than holding with recovery hope.

[Zadicar]

Trading is not a quick get rich scheme.

It's also not easy to understand.

Some of the things you have pointed out are usual to happen by newbies. In other words, normal and kind of human nature.

I believed it's good for newbies to experienced those at their first phase of doing trades. In that way, they will feel the actual environment in the world of trading. If they will be used to that, soon they will be more improved and now be able to control those things above. Even how they read the basic and must things to do when doing trade, they can't avoid mistakes.

I would much prefer on experiencing these losses for us to learn and would realize that our expectations or hopes isnt really fit out with the reality we are facing.
Mistakes do really happen and cant be avoided but by such experience you do gain along the way you can somehow lessen those losses if you do know how to learn up with it.

[rysea2]

Both beginners and experienced people will never succeed if they trade in panic when they see market movements and greed when they will profit, trade normally and not take too much risk is the key to success and do some research before going into the market.

[nydiacaskey01]

Trading is not a quick get rich scheme.

The problem is it is being introduced to the newbies like its a "quick get rich scheme". They say its easy, just buy low, sell high. Its not that easy.

1- Buying of a crypto asset that is already high without stop loss and  selling low because of uncertainty of indecision candle  in chart.

2- over reacting to sudden change of prices which leads to Panic selling.

3- Trading without any strategy  in mind before placing an order.
 
4- the fear of missing of out is another major strategy whales use in manipulating prices thats attract newbies to buy at all time high.

5- Trading with 100% of the portfolio in only a single trade instead of spreading hard earn money in different trade.

6-not taking proper rest and allow the brain to relax in taking proper decision in entry or existing orders.

I agree with all you mentioned above but I guess newbies need to go through all of those so they will learn from their mistakes. No matter how many times we remind them if this,they will continue to commit mistakes until they learned from it. I learned from my previous mistakes.

[CryptopreneurBrainboss]

Another important thing you forgot to point out is Greed.

I think so too, greed to me is the major factor to newbie trade resulting to losses and also lack of experience play a major part in contributing to their trade losses. Some newbies don't know when to quit and move on to other potential profitable coins/tokens. They have this mindset of trying to recover their losses with that same coin/token that gave them the loss not knowing you lose some you profit from others and this is cause by lack of experience.

[Oasisman]

Yeah this is all a mistake, but for newbies they will inevitably encounter all of these along their way. I mean no matter how many times you'll throw a lot pre cautions and techniques to them they would never ever understand it fully until they will experience everything.
But there is one thing on your list that even regular traders are doing it, and Im no exemption, Fomo, because it doesnt always give you a lossing trade, somtimes it'll take advantage of the continuos pump of that specific alt, you just need to learn when to sell.

[playboy654]

First of all trading is not like any other job and it is not easy also we need to put some attention on ditto investment especially when trading we need to be more careful because if your mistake was made by us it will definitely lead to loss only.

[steveabrahams]

Agreed with all the points, beginner trader usually panic when the price suddenly crash and they make an action without thinking twice because of the panic. It's all about experience, beginner/newbie trader takes time to learn about it and i'm sure they will learn from their mistake.

[whirlcoin]

Trading is not a quick get rich scheme. But having quality knowledge about price movement of crypto asset is essential before taking crypto trading as a full time job.

There are several mistake newbies often make during the course of trading which are listed below:

1- Buying of a crypto asset that is already high without stop loss and  selling low because of uncertainty of indecision candle  in chart.

2- over reacting to sudden change of prices which leads to Panic selling.

3- Trading without any strategy  in mind before placing an order.
 
4- the fear of missing of out is another major strategy whales use in manipulating prices thats attract newbies to buy at all time high.

5- Trading with 100% of the portfolio in only a single trade instead of spreading hard earn money in different trade.

6-not taking proper rest and allow the brain to relax in taking proper decision in entry or existing orders.

These are mistake that newbie make that result to loss of their hard earn money in crypto exchange trading.

Hence to avoid all these mistakes you need to to learn different trading strategy and different chart pattern and historical data analysis of crypto asset.

We have seniors in the forum , their contribution will be vital and help everyone to avoid mistakes ,these are just my experience and observation.
Have a cool crypto trading .

everyone making mistake the experiences and most talented traders are also been mistaken in sometimes because it is nature we cannot do anything against it but the new we should definitely need to take it as a lesson for not doing the same mistake again in your life when you are trading so if you learn this you will be ready to trade.

[Bitinity]

Agreed with all the points, beginner trader usually panic when the price suddenly crash and they make an action without thinking twice because of the panic. It's all about experience, beginner/newbie trader takes time to learn about it and i'm sure they will learn from their mistake.

Mistake happens to all trader no matter they are beginners, intermediate or even pro.
Regarding to panic, probably the pro who can manage this situation. Most beginners and intermediate trader will be still affected by their emotion once there is a price drop.
Yeah, learning from the mistakes is a must to make a better decision in the next trading activities. Overall, this is about money management and emotion management.

[stfN2128]

Trading is easy, finding a strategy is easy. The hardest part in trading is to accept losses early. if a trade doesnt work - stop it. take your losses and go on. but the most think: "yup... i will wait a bit longer, the turning point will come and i make money with this trade. sometimes it happens, you accept a 10x loss and go out of this trade with a 0.1x profit. the day will come and the 10x loss turns into a loss of your money.

Accepting losses is one of the most important things in trading business. the next important is accept wins - dont be to greedy

[blockchaincroatia23]

I agree with many points here, usually what I have had in the past was overreacting or sometimes I just made a wrong decision, cause candles didn't change.
another mistake was robot trading, wish nobody would be that naive as I was

[emmybd]

Actually, newbies don't know much about the price movement of various coins, so they don't know when to buy. Timing is very important in crypto-trading. If you can buy assets in right time then you can make good profits.

[maydna]

Actually, newbies don't know much about the price movement of various coins, so they don't know when to buy. Timing is very important in crypto-trading. If you can buy assets in right time then you can make good profits.

That's right, and they don't buy when prices go down, and they start buying when the line starts moving up. Then they are still waiting for the next high price, but suddenly, the price returns to a lower price. Not only beginners who make mistakes but I think other traders also make mistakes too.

Trading is not as simple as we think and without learning to trade, we cannot make good profits. All traders must start learning, and the learning process does not stop when we can make profits, but the process will always continue because the market will continue to change.

One more thing that we must always remember is not to panic when the market is down because once you panic, you cannot think of ways to deal with the situation and you will lose the opportunity to buy a good price.

[jrrsparkles]

Actually, newbies don't know much about the price movement of various coins, so they don't know when to buy. Timing is very important in crypto-trading. If you can buy assets in right time then you can make good profits.

So how about the old members? They even don't know when to buy just they are doing it based on their prediction with the hope of they are doing right.

Trading like gambling is the mistake done by the newbies which causes them to loss huge without knowing much about the trading initially.

[akamit]

Everything you have written is correct imo and indeed newbies need to consider every point before they get themselves involved into trading.
Your points should not only be for newbies but for all experience level traders. I have even seen experienced traders sometimes slips even they all the points you have mentioned.