Psychological Mistake of the Beginners Traders

[wxa7115]

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.

While I agree newbies are never told how to do that, they are only told they should not let their emotions to take over but they are given no alternative, when newbies and many other traders enter a trade they do it because of their emotions, they let FOMO take control of them and also their greed takes a huge role as well, so as you can see they do not really know how to trade without using their emotions in every single decision.

And for what I have seen the ones that are able to successfully manage their emotions are those that have created a way to trade in which their emotions take no part at all in any of the moment in which the market forces you to take a decision.

[giltc148]

I may agree with others that every aspect of trading is questionable. And depends on each personality. But I think most mistakes come from lack of knowledge, experience, and self-confidence. And to my mind, to avoid or minimize such unpleasant factors you need to choose beginner-friendly and easy-navigate exchange. Like those of CEX.IO, Coinbase or Kraken.

[IHF]

But, simply adopting method of holding way of trading, you can solve all those mistakes.

I would say it depends on your goals. If you like trading you should do it but when efficiency in investing is your Nr1 goal, the buy & hold approach comes into play.

Also you should keep in mind: With cryptos you dont have any underlying upward current like in the stock market over the last 100 years yet. Stocks reflect at some point more than on another the steady grow in the economy and for good reason, stocks are company share. This is proven and logical. Crypto is a lot more speculative at this time and therefore my standpoint is, cryptos are especially good for Trading short term. High Volatility delivers lot of potential.

Bu you absolutely need to know, what you do as a trader. If not, then Buy & Hold is way better.

Of course it's a valid option to buy and hold some Bitcoins for long term investment anyway. Dont get me wrong!

Cheers...

[wxa7115]

But, simply adopting method of holding way of trading, you can solve all those mistakes.

I would say it depends on your goals. If you like trading you should do it but when efficiency in investing is your Nr1 goal, the buy & hold approach comes into play.

Also you should keep in mind: With cryptos you dont have any underlying upward current like in the stock market over the last 100 years yet. Stocks reflect at some point more than on another the steady grow in the economy and for good reason, stocks are company share. This is proven and logical. Crypto is a lot more speculative at this time and therefore my standpoint is, cryptos are especially good for Trading short term. High Volatility delivers lot of potential.

Bu you absolutely need to know, what you do as a trader. If not, then Buy & Hold is way better.

Of course it's a valid option to buy and hold some Bitcoins for long term investment anyway. Dont get me wrong!

Cheers...

This market is very attractive precisely because of that reason to traders, the volatility of the market can make you a lot of money if you know what you are doing, just yesterday the price of bitcoin moved 300 dollars in 15 minutes, and any trader that captured most of that movement made very good profits and depending where you live that could be the salary you receive in a week and in some cases in a month.

However as you say that volatility attracts a lot of traders but it also attracts many newbies which dream with leaving their jobs and making a lot of money when with their level of knowledge they should at best just buy bitcoin to hold it for the long term.