Newbie traders - Learn from my mistakes

[Bitum]

I believe that not all people are suitable for trading. You have to have a certain set of skills in order to trade successfully. First and foremost, this is patience and strong psychology, and also a fixed plan of what you will do if the market changes one way or another

[1714872182]

1714872182

[Hamphser]

I believe that not all people are suitable for trading. You have to have a certain set of skills in order to trade successfully. First and foremost, this is patience and strong psychology, and also a fixed plan of what you will do if the market changes one way or another

Doing trading can really be done by everybody but we cant really deny the fact that there are people which arent effective in terms of trading even though they
had been trading in the market for a while now.Just like my friend which is trader but eventually quit after 2 years of doing trades still end up on a loss.
Not all things would really goes well into an individual so this will really be varying on someones persistence on what he had been engaging.

[wxa7115]

Honestly, it is a long story to read OP. It is nice sharing about your past and worse experience in trading but to tell you that, it is a common thing to happen while you are still learning in trading. We often mistake but from that, we able to stand and getting better, and that is what happens to you now, right?

Trading is an art where you are the teacher as well as the student. One can teach you how trading is done or how to read signals, but eventually, the final outcome will be up to you.

experience is the best teacher, that is what we know. And that supposed we need to do in order to get what we want but some people never think about it, instead, they step back when suffering losses.

Experience is in fact the best teacher but the issue with that in the markets is that any mistake can be costly and sometimes the price you have to pay is so high that it is impossible to become profitable ever again.

Basically trading is incredibly unforgiving, think about almost any other activity you do and you will see that a mistake is for the most part not costly at all, so you can make several mistakes, learn from them and improve until you are good, but when it comes to trading if you make a big mistake it is impossible to fix it and for the most part that mistake causes you to make yet another series of mistakes which can end your career as a trader before it even begins.

[tbct_mt2]

Doing trading can really be done by everybody but we cant really deny the fact that there are people which arent effective in terms of trading even though they had been trading in the market for a while now.Just like my friend which is trader but eventually quit after 2 years of doing trades still end up on a loss.
Not all things would really goes well into an individual so this will really be varying on someones persistence on what he had been engaging.

Trading is difficult as you can not control your decisions, greediness and fear. You can win big in some days but can lose all in one day.

Experience is in fact the best teacher but the issue with that in the markets is that any mistake can be costly and sometimes the price you have to pay is so high that it is impossible to become profitable ever again.

Basically trading is incredibly unforgiving, think about almost any other activity you do and you will see that a mistake is for the most part not costly at all, so you can make several mistakes, learn from them and improve until you are good, but when it comes to trading if you make a big mistake it is impossible to fix it and for the most part that mistake causes you to make yet another series of mistakes which can end your career as a trader before it even begins.

Because of this, traders or investors who are totally new in crypto market have to be careful with every decisions. They need to have preventive plans for their capital and lives. Borrow to trade and go gamble with margin then high leverages will make them paranoid, weak and end with terrible decisions.

Cost of learning will be a mixture of time and capital. You have lot of time to spend but you won't have much capital to waste. If you use all capital to do trading or invest at the beginning, you will lose it after one or two big failures.

Let's get started to trade or invest with small part of your capital, and use a few other parts for later lessons.

[redsun114]

I believe that not all people are suitable for trading. You have to have a certain set of skills in order to trade successfully. First and foremost, this is patience and strong psychology, and also a fixed plan of what you will do if the market changes one way or another

Those are the very basics - Not panicking and not getting overjoyed!

But I think with time I have felt like even in crypto trading there is a need for tools and learning features like Stop-loss which can help you avoid emotion losses. Sometimes stop-loss might feel bad because the coin you sold at the stop-loss limit might pump later but overall as I read all these threads, it feels like stop-loss is way more worth and useful.

I think what turns an average trader into a professional trader is experience and capital management. I have seen some very discipline day traders who know their limit and that came with time and now they are trading with $100-200 difference and make easy profits, not very big but stable and sustained profits. There are times when they have to wait for weeks but there is enough patience and discipline which they have learned with time.

I am trying to learn leverage trading now days, I know about it already but just polishing my skills so I can also take benefit of the bullish market.

[goldade]

Just like OP mentioned, trading cryptocurrencies isn't something one should just dabble in else you'll burn your fingers. Like I used to tell people, trading takes more than just the willpower to be a successful trader, you have to actually take time to invest in yourself. By investing in yourself, I mean taking time to gather all the necessary skills and knowledge required for trading
Another important thing that needs to be learnt is risk management. No matter how skilled you are, you'd only be setting yourself up for a failure if you don't practice risk management

[Oilacris]

Just like OP mentioned, trading cryptocurrencies isn't something one should just dabble in else you'll burn your fingers. Like I used to tell people, trading takes more than just the willpower to be a successful trader, you have to actually take time to invest in yourself. By investing in yourself, I mean taking time to gather all the necessary skills and knowledge required for trading
Another important thing that needs to be learnt is risk management. No matter how skilled you are, you'd only be setting yourself up for a failure if you don't practice risk management

When you do talk about being skilled then that would already be a package because you wont know on what you are doing if you dont know risk management. Being skilled does signify to be good in all angles from

emotion handling, risk taking, good decision making skills etc. and with this you would able to handle out situations according to your plans even though this market is unpredictable and cant really be known then

having these qualities and characteristic would really be good to have to sustain yourself to the market and making yourself profitable.Yes, its hard but not really impossible to attain.

[darewaller]

I think what turns an average trader into a professional trader is experience and capital management. I have seen some very discipline day traders who know their limit and that came with time and now they are trading with $100-200 difference and make easy profits, not very big but stable and sustained profits. There are times when they have to wait for weeks but there is enough patience and discipline which they have learned with time.

I like that you made the point that newbies shouldn’t be trying to learn everything all at once, because for sure it never works. Learning how to trade cryptocurrency is not what you’re going to learn all at once. I usually advise people that they should calm down and take everything one at a time.

You can learn a few things and start trading and then with your daily experience you’re going to be grabbing more knowledge and becoming better than you used to be. This is a normal thing with every kind of business that one is into, there will always be a time they will make mistake and with these mistakes they will learn to correct their steps and take the right steps.

[AicecreaME]

I agree to you.

Trading is like putting up your own business, you need more funds for the trial and error that's going to happen, since you're going to failed many times as a trader, and stopping won't take your anywhere. Also, before starting trading as your source of income, think many times as possible, because it needs dedication if you really want profits in the long run.

Remember always that losing a trade is normal, it's not Christmas every single day of Trading. The very saying for traders is "Fall seven times, stand up eight".

[crwth]

After reading your long message, what struck me is the Demo Account.

It depends on the person in order to really have the feeling of trading completely. Usually, demo accounts will always make you feel good because you are not risking anything and you are not going to lose anything. So it's an only positive way, so it's kind of okay to use it but it's still preferred to have that real feeling with real money. It's what I agree on.

Most of your message is kind of redundant with other posts but thanks for sharing your experience. I thought you would have an actual experience like how much you lost etc.

[Ziskinberg]

I agree to you.

Trading is like putting up your own business, you need more funds for the trial and error that's going to happen, since you're going to failed many times as a trader, and stopping won't take your anywhere. Also, before starting trading as your source of income, think many times as possible, because it needs dedication if you really want profits in the long run.

Remember always that losing a trade is normal, it's not Christmas every single day of Trading. The very saying for traders is "Fall seven times, stand up eight".

Despite all the losses and challenges, we are still able to stand strong and make a change. I think we all had to experience losses before we learn and that can't be avoided no matter how good you are. But, it is a big difference when we keep losing, because that simply tells us that we don't do anything to improve, we never learn from our mistakes and therefore, we are not meant for this.

That is why, before we decided to become a trader, we dare to accept the challenge and that prove that we are not wrong with our decision to become a trader. Otherwise, we better leave if we never see any improving results since from the start.

[chaser15]

All pointers and good suggestions are useless to a totally newbie in trades. They won't understand those suggestions as they don't experience the actual environment of being trade.

Let those mistakes came in and that will make a person a better trader in the long-run.

Even the most trading experts still lose. The important is, we learn from mistakes.

[sana54210]

You can learn a few things and start trading and then with your daily experience you’re going to be grabbing more knowledge and becoming better than you used to be. This is a normal thing with every kind of business that one is into, there will always be a time they will make mistake and with these mistakes they will learn to correct their steps and take the right steps.

Yeah, all traders make mistakes, there is nobody in the entire world that never made any mistake at all, everyone has made some mistakes either big or small but they did, there is no way you can learn to be a great trader without mistakes first.

Newbie traders will make mistakes, no matter how much they read, no matter how much they learn, there isn't a world where they make zero mistakes, which is why I believe we are going to end up seeing a lot of these new people that came in during the new bull period of 2020 to make huge mistakes along the way, however reality is that they will make a big amount of profit in the long run as well, next time there is a hype and a bull run most of them will make profit and the rest of them will make a profit on the next bull run, it may take few years but they will all make a profit over time because crypto is definite profitable in long run.

[wxa7115]

Experience is in fact the best teacher but the issue with that in the markets is that any mistake can be costly and sometimes the price you have to pay is so high that it is impossible to become profitable ever again.

Basically trading is incredibly unforgiving, think about almost any other activity you do and you will see that a mistake is for the most part not costly at all, so you can make several mistakes, learn from them and improve until you are good, but when it comes to trading if you make a big mistake it is impossible to fix it and for the most part that mistake causes you to make yet another series of mistakes which can end your career as a trader before it even begins.

Because of this, traders or investors who are totally new in crypto market have to be careful with every decisions. They need to have preventive plans for their capital and lives. Borrow to trade and go gamble with margin then high leverages will make them paranoid, weak and end with terrible decisions.

Cost of learning will be a mixture of time and capital. You have lot of time to spend but you won't have much capital to waste. If you use all capital to do trading or invest at the beginning, you will lose it after one or two big failures.

Let's get started to trade or invest with small part of your capital, and use a few other parts for later lessons.

Which is why money management skills should be a top priority for traders, a trader that spends a year in this market and does not lose a lot of money has a way bigger chance to make it long term than someone that took huge risks and won with it, the reason is that the one that takes huge risks just got lucky and just needs a few bad moves to lose so much money that it will be impossible for him to recover.

While the one that lost a small amount probably learned to make safe trades in the process and has a very good idea of where to set his stop loss to avoid catastrophic losses, which means that he only needs to improve his timing to the markets and he will go from having small losses to small profits which will become bigger as he accumulates more experience and knowledge.

[konflikkastil]

Newbie traders, that sounds a bit somehow to me anyway, and I still don't know what a newbie doing with trading. At that level he or she should be learning one or two things on how the market is been run. Why do you want to start trading anyways? Hope it is not because of the money in it? If that's your primary purpose you have to put a stop to it first and go and learn what you are supposed to know first. Else, you are heading for a biggest mistake that is going to cost you so much. After you have learnt one or two things, then you can start to trade bit by bit. And learn from your mistake per time.

[fahmimajannat]

Actually people become expert when they learn from their mistakes. So it is better to analyse the mistake that you have made. And try to figure out why it hasn’t gone to Your assumptions.
So its better to learn from reading at first and than by investing small amount of money and gaining Knowledge

[jostorres]

I guess I immersed myself when you mentioned that we shouldn't use demo account to practice trade because emotions aren't really going to kick in.
Or maybe such platforms would make limitations on making demo accounts so that learners would get the feel of actual loss.

Problem with demo accounts is that the decisions and trades you do in the demo account are not the same which you might do when you know that real money is involved. We are humans and subconsciously we know that the money we are using right now is demo and free money so sometimes we take more ballistic approach and take bigger risks. While when you are trading with real money you panic and the pressure is completely different.

I believe that not all people are suitable for trading. You have to have a certain set of skills in order to trade successfully. First and foremost, this is patience and strong psychology, and also a fixed plan of what you will do if the market changes one way or another

Not everyone is a trader but also not every successful trader was a "born trader" so if one is determined and has the right mentality to learn as he trades, they can develop into a decent trader. Yes some skills are god gifted and not everyone can acquire them but trading is a very technical thing so if you want to learn, you can learn.

It is like learning Java and C++, some will learn faster who are good at coding naturally while some might be slower but everyone can learn, if they want to.

[CryptopreneurBrainboss]

Another important thing that needs to be learnt is risk management. No matter how skilled you are, you'd only be setting yourself up for a failure if you don't practice risk management

I believe this is the major reason most new traders don't succeed or record profit then quit. While the market is bullish, all the sentiment are bullish as well which might mislead traders into thinking putting in any stoploss now could deprived them the opportunity of future gains incase the market flash crashes and recovers almost instantly.

Risk management is one of the most important skills traders hoping to succeed in the space should have. Many traders do know about managing their risk but are yet to understand the right way to go. Many are yet to understand how stoploss are to be the set and the best strategy to use to avoid losses and potentially take you out of the market in profits instead of minimum losses.

[Swopon]

Newbie traders - Learn from my mistakes

Most of us don't know how to trade or how to understand the market and when is the best time to invest or quit with profit. Basically, it is happening that if you are not enough knowledge holder, you may face many problems in trading even your funds can be lost. Knowledge is power in trading. Invest that amount which will not affect if you loss your funds. Affordable amount should be invested in trading and there is always a risky thing in trading. So, you have minimum knowledge about risk management which will help you a lot.

[tvplus006]

For Newbie traders, the best option is to use long-term trading. And under no circumstances do not use margin trading, which will necessarily lead to the loss of the deposit. This rule does not need to be tested on yourself, it is easier to use it as a postulate.