Why Newbie Traders Lose money? | Risk Management Basics

[zeze18]

•Risk Reward Ratio
•Compounding
•Dont go all in on a certain day.

3 important factors that should be considered first but these things can be acquired through experience.
Trial and error for short.These things might be very basic but these are the crucial ones that needed to be learned.

Yes exactly, most important thing too is learning to control the emotion, not just taking risk every day as you wanted to earn everyday as not every time the market condition is good, not everyday is perfect to trade at, so let's not be too greedy for that, that we are aiming for everyday income as it might lead to us to higher loss for being too aggressive in trading.

Actually daytrading is applicable but we have to spend our time to analyze the whole market and see the chart of each coin and which coin that potential to rise today. Because each day must be there are several coins that experienced a rise. We just have to aim for less than 3% target to do daily earning for daytrading. And make sure we are selling and buying with limit order because it won't have fee for the trades.

[BuxCoin]

Are you one of that "Trade Gurus" and decided to reveal the secret?
Well, I appreciate what you wrote, don't take it wrongly but please can you answer me on one question? When you profit, it means someone loses yeah? So in any way someone has to lose, doesn't matter how experienced these traders are, one can't profit without another ones' lose.
And what about to forget targets? I think you can't plan economy because your plan of daily 3% may ruin chance of getting 10% profit or you even won't reach your target so this means your plans failed? And some may start digging to get that planned profit next day combined with tomorrow's plan and it will ruin everything, especially when we talk about newbies.

basically if we set 1;3 rr ,we can set limit for losses but , but we cant expect 3 times target every time , price may reverse or never reach targets this means in simple we can only manage loss and reward is left to market

[Basorexia]

Probably the main reason - beginners want to get everything at once.
Even when I had good deals, I did not close them in the hope of getting even more, and in the end I lost my money.

[jazmuzika217]

I think the main reason why so many newbie are losing their money is they are not knowledgable to what they are doing or investing. Then they are rushing to become rich and have a very good income here in crypto industry. So they are not thinking well and decide to action that they are doing because they are rushing. So thank you for this post and advice it may help lot to all newbie.

[teosanru]

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I would say everyone to stay away from any trading scripts, bots or signal groups. These are nothing just waste of money. Even if you don't get scammed u definitely won't get any profit.

Are you one of that "Trade Gurus" and decided to reveal the secret?
Well, I appreciate what you wrote, don't take it wrongly but please can you answer me on one question? When you profit, it means someone loses yeah? So in any way someone has to lose, doesn't matter how experienced these traders are, one can't profit without another ones' lose.
And what about to forget targets? I think you can't plan economy because your plan of daily 3% may ruin chance of getting 10% profit or you even won't reach your target so this means your plans failed? And some may start digging to get that planned profit next day combined with tomorrow's plan and it will ruin everything, especially when we talk about newbies.

basically if we set 1;3 rr ,we can set limit for losses but , but we cant expect 3 times target every time , price may reverse or never reach targets this means in simple we can only manage loss and reward is left to market

Actually R/R is set from situation to situation market looks pretty strong sometimes while it looks miserable the others. You would want to take profit quick if market is miserable or you would try to stay in a trade if market is strong. But yes what shield said is completely weird I repeat no one has a magic ball to tell them how far is market going.

[Triffin]

Are you one of that "Trade Gurus" and decided to reveal the secret?
Well, I appreciate what you wrote, don't take it wrongly but please can you answer me on one question? When you profit, it means someone loses yeah? So in any way someone has to lose, doesn't matter how experienced these traders are, one can't profit without another ones' lose.
And what about to forget targets? I think you can't plan economy because your plan of daily 3% may ruin chance of getting 10% profit or you even won't reach your target so this means your plans failed? And some may start digging to get that planned profit next day combined with tomorrow's plan and it will ruin everything, especially when we talk about newbies.

Thanks for calling me a trade Guru By the way. And yes atleast read the whole post before writing anything merely for money, don't take it wrongly yes I can answer your questions if they really are questions.

Lol, I think he's really confused.. The only thing that matters to me is myself when it comes to trading. Whether someone is losing or not is none of my business. I don't see why I should be worrying about what others are making and what they are losing, when my main concern should be on my own trade and whether I'm earning or not. If someone is losing then it's best for them to quit.

I appreciate that you took time out to write and teach all these because it's not everyone that has this kind of time, I can't even write this much. And to be honest, this is the first time I'm seeing anyone break down risk management to this level where it's easy to understand. There are many people who don't know this, and they will find this helpful. There are lots of things to learn in trading and here is one of them.

So sticking just to your own business is the key to succeed earlier than others. I am also not in favor of keeping an eye at other people’s activity but if someone comes to you looking for guidance and help, then turning your back wont be very gentle. There is nothing great about living for just yourself, you become hero by helping others only. Be helpful to society as much as you can.

[teosanru]

Are you one of that "Trade Gurus" and decided to reveal the secret?
Well, I appreciate what you wrote, don't take it wrongly but please can you answer me on one question? When you profit, it means someone loses yeah? So in any way someone has to lose, doesn't matter how experienced these traders are, one can't profit without another ones' lose.
And what about to forget targets? I think you can't plan economy because your plan of daily 3% may ruin chance of getting 10% profit or you even won't reach your target so this means your plans failed? And some may start digging to get that planned profit next day combined with tomorrow's plan and it will ruin everything, especially when we talk about newbies.

Thanks for calling me a trade Guru By the way. And yes atleast read the whole post before writing anything merely for money, don't take it wrongly yes I can answer your questions if they really are questions.

Lol, I think he's really confused.. The only thing that matters to me is myself when it comes to trading. Whether someone is losing or not is none of my business. I don't see why I should be worrying about what others are making and what they are losing, when my main concern should be on my own trade and whether I'm earning or not. If someone is losing then it's best for them to quit.

I appreciate that you took time out to write and teach all these because it's not everyone that has this kind of time, I can't even write this much. And to be honest, this is the first time I'm seeing anyone break down risk management to this level where it's easy to understand. There are many people who don't know this, and they will find this helpful. There are lots of things to learn in trading and here is one of them.

So sticking just to your own business is the key to succeed earlier than others. I am also not in favor of keeping an eye at other people’s activity but if someone comes to you looking for guidance and help, then turning your back wont be very gentle. There is nothing great about living for just yourself, you become hero by helping others only. Be helpful to society as much as you can.

I appreciate that Triffin and you are absolutely right. I never posted this to look a hero or arrogant but I think batting an eye in other people's activity and guiding someone is absolutely two different things just like you said. I think if everyone would have such a thinking of minding their own business then there would be no business left at all. All those noobs who try to call them traders merely by watching two or more videos or reading one or two articles should understand that even these videos and articles were from people who didn't mind their own business. Nevertheless I think there are more admirers and people who need this than people who would say to mind my own business.

[Kambal2000]

I think the main reason why so many newbie are losing their money is they are not knowledgable to what they are doing or investing. Then they are rushing to become rich and have a very good income here in crypto industry. So they are not thinking well and decide to action that they are doing because they are rushing. So thank you for this post and advice it may help lot to all newbie.

Lack of knowledge should not be the reason at all, as we do have the option and a lot of opportunity to learn, so there should be no excuse that they cannot learn even starting from basic trading, they should not risk their money for having no knowledge at all, it's okay and it is given that once you are just starting you will lose some but on your part you should make sure that at least your fund will not lose. Learning while earning should be work in progress all the time.

[Colt81]

I think the main reason why so many newbie are losing their money is they are not knowledgable to what they are doing or investing. Then they are rushing to become rich and have a very good income here in crypto industry. So they are not thinking well and decide to action that they are doing because they are rushing. So thank you for this post and advice it may help lot to all newbie.

Lack of knowledge should not be the reason at all, as we do have the option and a lot of opportunity to learn, so there should be no excuse that they cannot learn even starting from basic trading, they should not risk their money for having no knowledge at all, it's okay and it is given that once you are just starting you will lose some but on your part you should make sure that at least your fund will not lose. Learning while earning should be work in progress all the time.

It's true that lack of knowledge is not a problem when you are a newbie in trading. The reason why newbie traders are experiencing losses because they are lack of experiences and they are taking too much risk that they don't know how to make a right decision, that is why if newbie traders can't make their decision they should ask for help to their friends who also trades or you can ask questions in online like in this forum.

[Baby Dragon]

I think the main reason why so many newbie are losing their money is they are not knowledgable to what they are doing or investing. Then they are rushing to become rich and have a very good income here in crypto industry. So they are not thinking well and decide to action that they are doing because they are rushing. So thank you for this post and advice it may help lot to all newbie.

Lack of knowledge should not be the reason at all, as we do have the option and a lot of opportunity to learn, so there should be no excuse that they cannot learn even starting from basic trading, they should not risk their money for having no knowledge at all, it's okay and it is given that once you are just starting you will lose some but on your part you should make sure that at least your fund will not lose. Learning while earning should be work in progress all the time.

Indeed, because it depends on the person itself if he/she wanted to be successful in trading. It shouldn't be a hindrance because if you truly wanted to earn hug profit from trading then you will make some effort and give some of your time, maybe for some of you it is a bit laborious but it will help you along the way particularly when you are having some problems. It can help you how to cope up with any challenges and as long as you wanted to learn then there will always be a room for learning. Don't let yourself lose some of your funds and assets by doing stupid actions because if you have enough understanding, you will analyze every single thing before making some decisions and you will also think about the possible result of it.

[Yatsan]

I think the main reason why so many newbie are losing their money is they are not knowledgable to what they are doing or investing. Then they are rushing to become rich and have a very good income here in crypto industry. So they are not thinking well and decide to action that they are doing because they are rushing. So thank you for this post and advice it may help lot to all newbie.

It's okay to lose when they are just starting, its part of the trading. When I was just beginning to trade, I lose a lot of time, but I don't really think of it as of now, because of those loses I make more money now. I learned a lot of things about those loses. For me, to be a great trader, you need to experience it because the experience is the best teacher (for me). And besides, when you are losing just think of it as a payment for the lesson 

[wajik-tempe]

I think the main reason why so many newbie are losing their money is they are not knowledgable to what they are doing or investing. Then they are rushing to become rich and have a very good income here in crypto industry. So they are not thinking well and decide to action that they are doing because they are rushing. So thank you for this post and advice it may help lot to all newbie.

It's okay to lose when they are just starting, its part of the trading. When I was just beginning to trade, I lose a lot of time, but I don't really think of it as of now, because of those loses I make more money now. I learned a lot of things about those loses. For me, to be a great trader, you need to experience it because the experience is the best teacher (for me). And besides, when you are losing just think of it as a payment for the lesson 

Yeah but it's better to us to know the basic of trading first before we started to trade. Even someone with a great knowledge of trading could experienced a big loss in trading. We know experienced is needed before we could trade with stable earning. But beside the experienced we have to integrate our experienced and knowledge together to reach the best practice of trading methods

[Asmonist]

Sometimes it really needs a good timing and experience. Newbie traders maybe are very aggressive and motivated that sometimes they might be overwhelmed based on my first experience. I was really so excited to it and I'm so optimistic. Doing some research and thorough review will also help. Most likely its really about luck or good timing. That's why we must invest or trade amounts we can afford to loose the basic risk management in trading.

[pawanjain]

Whatever you said looks good to read and will surely inspire new readers but I must say that earning 2% daily profit consistently is next to impossible and at some point the consistency will break and you will end up eating losses. Obviously it's not a big deal if you miss the 2% daily profit on some days but what if the number of days increases then it will eat a significant amount of your profit.

[Mumbeeptind1963]

Sometimes it really needs a good timing and experience. Newbie traders maybe are very aggressive and motivated that sometimes they might be overwhelmed based on my first experience. I was really so excited to it and I'm so optimistic. Doing some research and thorough review will also help. Most likely its really about luck or good timing. That's why we must invest or trade amounts we can afford to loose the basic risk management in trading.

That is the trait of a newbie trader , I think we all know that attitude since we started like that, we become aggressive in everything that we want, we rush things, our patience level is too low and that is the reasons why we lose money, even professional traders have a history of it too, but then experiences will help us to overcome this attitude it will help us to risk and to not gain too much in every trade that we are doing.

[bitbunnny]

We've all gone through newbie phase and made mistakes. Important thing is to learn from that and not repeat it. But losses are inevitable and sooner or later we all face it, even in experienced phase.
However, it's important to know how to deal with that and to know where are your limits.
Combined with lack of experience and knowledge plus strong desire to get rich over night makes newbie traders vulnerable. So, important lesson to learn is how to deal with risk and to be aware of it all the time.

[SquallLeonhart]

I think it will be too hard for newbies to understand and apply this strategy. However, it will be helpful as well. Every beginner could make their own strategy by simply applying the basics. Dealing with the market's vootality is another advantage. Trading is like a trial and error thing so we have to keep on learning.

The safest way to trade is doing the long-term trading and by doing this you can easily spot the movement of the market in a wide view unlike those who do short-term trading which has a very limited view of the movement of the market specially the day traders. That's why it is recommended for newbies to start the basic first before jumping to the complicated strategy.

I also prefer to be a long term trader too because it is still the easiest way to invest in cryptocurrency and the only risk that I see in a long term trade is the risk of investing in a wrong coin, but if our investment choice is right, even though we may not see the benefit immediately, but we will see it in the long run, unlike short term trade that you have to deal with so many coin before you can be getting profit on a daily basis since it is not all coins that have the same time that they usually witness a surge, so a trader has to be watching out for trades from time to time and it also involves monitoring the market often while in a long term trade, it is not every time that you monitor the market and deciding the right time to pull out of your investment us very easy as it could be read on news alone.

[teosanru]

I think it will be too hard for newbies to understand and apply this strategy. However, it will be helpful as well. Every beginner could make their own strategy by simply applying the basics. Dealing with the market's vootality is another advantage. Trading is like a trial and error thing so we have to keep on learning.

The safest way to trade is doing the long-term trading and by doing this you can easily spot the movement of the market in a wide view unlike those who do short-term trading which has a very limited view of the movement of the market specially the day traders. That's why it is recommended for newbies to start the basic first before jumping to the complicated strategy.

I also prefer to be a long term trader too because it is still the easiest way to invest in cryptocurrency and the only risk that I see in a long term trade is the risk of investing in a wrong coin, but if our investment choice is right, even though we may not see the benefit immediately, but we will see it in the long run, unlike short term trade that you have to deal with so many coin before you can be getting profit on a daily basis since it is not all coins that have the same time that they usually witness a surge, so a trader has to be watching out for trades from time to time and it also involves monitoring the market often while in a long term trade, it is not every time that you monitor the market and deciding the right time to pull out of your investment us very easy as it could be read on news alone.

Can you please clarify the definition of long term trading and what are the parameters you use to monitor and choose the coins for long term trade. I am fundamental analyst in stock market but I find it almost impossible to do any fundamental analysis of Cryptocurrencies because most of them are just useless. If you really do so what are the tools you use and what signals you rely on?

[CryptopreneurBrainboss]

Are you one of that "Trade Gurus" and decided to reveal the secret?
Well, I appreciate what you wrote, don't take it wrongly but please can you answer me on one question? When you profit, it means someone loses yeah? So in any way someone has to lose, doesn't matter how experienced these traders are, one can't profit without another ones' lose.

Quite strange I didn't come across this reply with my previous review of this board. Don't get why people relate trade or success in general to the two parties involves to receive different result, where one wins while the other losses. Success isn't gambling, trading, Investing aren't gambling. For you to profit in trading, someone else doesn't have to loss. Let me explain with an example.

Trader A comes into the market at price xyz and leaves the market at price xyz² thereby selling to trader B that's just coming into the market. That doesn't mean trader B is at loss instead both traders predicted the market at different moment and can make profit from the different price movement of the market. Trader B can cashout at price xyz⁴ or even higher so tell me, what was the trader's lost if you have the mentality of one losing for another to profit when it come to trading?.

[KnightElite]

We've all gone through newbie phase and made mistakes. Important thing is to learn from that and not repeat it. But losses are inevitable and sooner or later we all face it, even in experienced phase.
However, it's important to know how to deal with that and to know where are your limits.
Combined with lack of experience and knowledge plus strong desire to get rich over night makes newbie traders vulnerable. So, important lesson to learn is how to deal with risk and to be aware of it all the time.

Failure is good as long as we find the lesson from it, we can not improve out self if we will not learn frok out past mistakes. Newbies are vulnerable to losses, we became newbie too so we should be aware of that. When I was newbie, I have doubts and uncertainties because I'm not yet familiar to market. The first lesson that I learned is J should not gey hyped, I lose in a trade because I follow the opinion of other people. It is my first loss and I told myself that I will only follow myself in terms of making decision. Learning from the failures that we experience is the best way to become successful.