Newbie traders - Learn from my mistakes

[Armani123]

Newbie traders - Learn from my mistakes

I, myself have not been a Trader very long, but now, I have a gist about trading. In the beginning, when I first started trading, I was stupefied by enormous number of things I had to look out for, inorder to place a successful trade and knowing when to exit the market. So many signals to look out for while keeping an eye on the markets. These things left me in confusion and ultimately, I lost a good portion of my capital.

I am aiming this article mainly for newbies who has recently started trading. I faced a lot of hurdles myself not knowing which side is up and which is down. In my state of daze, I sought all the wrong help that a professional traders avoid themselves from, which only made me lose more money and sinking me lower. I seeked helps from proclaimed trading gurus (them telling me when to enter the market and which cryptos I should invest in). All their predictions came at a price and nothing was free. But hardly any of their expert opinions made me any profit. So I kept jumping from one professionals to another, hoping that I'd find my golden goose. I was totally wrong. I didn't find any treasures at the end of a rainbow. All it did was lighten my pocket. It was excessively discouraging and almost made me give up trading.

Feeling depressed, I stopped trading for few days and looked at my past trades from every perspective and in doing so, I learned few things one should accomplish beforehand. After rectifying my past mistakes, I am fairly doing fine now. So let me share these few gems with all traders-in-learning.

First and foremost, it is imperative for a newbie to learn the chart and various signals such as MA, EMA, WMA, KJD, MACD, RSI, DMI, MTM etc. When I say learn, I mean thoroughly. If you are averse to reading, there are hundreds of directive videos in YouTube. These videos have really helped me out in understanding various concepts to trading. So, I am assured that it would help you too.

Never try to learn all the signals in one or two sittings. As complicated as it is to master oneself to reading particular signal, you are liable to find yourself in confusion if you try to cramp all knowledge at once.

Most importantly, learning to read the chart should come foremost. I use candlestick myself. Charts plays the most important role in making decisions. So you should learn each and every shapes and forms there is since every pattern depicts what the future outcome might be like. It is not 100 percent assured, but to some extend, the chart is often predictable, as long as the market is not extremely volatile.

Coming back to art of learning, initially, I would suggest that you learn to read two to three signals and see if the signals are aligning with the chart. I recommend you to use candlestick for chart since it has numerous ways to tell you how the future market rating could be by the past market chart patterns.

Now, coming to practical world, I don't suggest a demo account to test your knowledge. Demo accounts dosen't enable you to test your emotions because there is no account for you to lose or gain anything. As a result, you fail to give your attention fully and leads you to learn almost nothing.

I'd suggest you invest the least amount of capital that cannot hurt you even if you lose. And as I said earlier, try out few signals and see if they are aligning with the chart. If they are, then its time for you to enter the market and wait for it to see if you read the signals right. In the same manner, try out the rest of the signals according to your liking and try out. Try to experiment using different signals with another till you find your niche.

Placing your trade is all about timing. So patience is a major factor. Look out for the market, right along, reading signals and chart. If you find that the market is very unstable, I suggest you take a break from it. Wait for it to come back to a normal trend where you can most likely predict the future by reading the adjoining signals and patterns. Then, make your play. Anyways, who is to say that the market trend is normal.

Don't be discouraged if you fail to predict the market but consider it as a stepping stone. You remember that even the top professional traders also fail more than one-third of times they trade.

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.

So, I wish you good luck.

Viketo Sumi (Armani123)

[crzy]

Trading is indeed not for the weak hands and we should not feel discourage every time we lose money because that’s the game here in the market.

We lose 5 times in a month but of course, we have to bounce back and win more than what you’ve loss. Trading is a profitable job if you take this serious, it will bring big money to you so keep learning, and keep doing good strategies every time you trade.

[konflikkastil]

I have often said this time without number, there is nothing a newbie want in trading. Take your time to learn about how it is been done. If you don't want to waste your Investment. Do not rush to start trading, and what caused this is greed. You want to make quick money, just because you heard if someone making it big time in trading. And yiu think you can start and start making the money on that same day. I pity you. Let me ask you a question, is it the day you enter into a university you will graduate? No, the answer is capital NO. To everything worth doing worth doing well. Learn this thing before going into it.

[Periodik]

Serious day trading is only for those who are serious enough to face the tough trading training and studying. If you cannot survive the learning process, you should just trade occasionally and with smaller funds. But if you are determined enough to understand the likes of MA, EMA, WMA, KJD, MACD, and many other patterns and technical analysis tools as mentioned, then you can get on to it more often and with a larger fund. But you will still start small and slow.

[maxreish]

Not only you who have a rocky road experience in trading. I have been not doing good lately. But that doesn't stop me from believing that my mistakes are part of growing up, part of improving the way I trade. There are enormous reasons not to give up.
 
 Reading indicators are also not that easy, even an expert reading technical analysis may experience failures and lose. When times that we tend to lose more than we take profits, reimprove and find the mistakes where you will gonna change and improve.
 
 Believe me, if we believe we are confident enough because we trade longer than the others. The more we should continue to learn more because crypto market is really hard to predict. One's mistakes is one's inspiration to grow.

[Sled]

Newbie traders - Learn from my mistakes

A mistake is a gift, not a threat. Instead of being disappointed because we once fail but use this as a tool to improve and develop our skills.

Actually, we can't be perfect no matter how good we are, even though some called as an expert. It is a common thing to happen and we don't need to worried about it. Having them corrected and will be fine. It is just a need of time to figure out where we are wrong, where we are less effective, and what strategy is not helping. And by taking an action, we solve the problem and that leads us to a better trading result.

[Renampun]

For beginner traders, of course, it is still difficult to know market movements because there is not enough knowledge or analysis for it. One of the things a novice trader must do is study market signals. There are many videos and books that discuss this. Learning from my personal experience, I have also been following the development of stocks, crypto and BTC for a long time. it is not easy for a beginner trader but try it with a little capital and keep learning.

*continuous learning is the key to success in trading...
Weak hands are very normal for a newbie, without continuous practice, it will be very difficult to control emotions when trading. *keep learning and don't be complacent so you can feel the profit of trading

[XZERO1]

I'm really not sure that's how it works, most people have a hard time learning new things from other people's experience and improving themselves accordingly, and that means they have to experience what you had experienced themselves, specially on trading which there could be a lot of emotions involved in it that could make it hard to make rational trading decisions.

The best thing beginners can do to minimize losses when they're just in the start of their way is to start trading with a small amount of money and instead of looking at how much they profited/lost in Fiat, they should look at +/- percentage on the trades, and that's because if you are trading with a small amount of money and you keep looking at your profit/loss as Fiat it wouldn't be anything significant and you will be bored soon and you would want to increase your capital which is not a very good idea when you have no experience, instead learn to look at the profits/losses in percentage.

[MIner1448]

I agree with you, trade can, of course, psychologically put pressure on a person, which you can go into yourself. When you constantly trade in the red, this happened to me, the most important thing is to believe in yourself and in your strength, everything will work out inappropriately.

[tbct_mt2]

As a newbie, you would prioritize your capital for investment, not for trading.

- Use 80% of your capital for investment
- Use 20% or even only 10% of your capital for trading.
- Don't try to use leverage trading if you are not in the market more than 1 year.

80% of your investment in bull market will bring money to you, and in bad practice and if you lose your 10% or 20% for trading, you can use some of profit from investment to practice your trading again.

Always try to not use more than 20% of your capital for trading.

[MrMcKinney]

It's good that you're sharing the mistakes you've made as a first time trader, not a lot of would do the same and I think that a lot of newbie traders today still need guidance from the experienced traders like you.

Trading is not for everyone and shouldn't be taken lightly, It takes time and energy to really grasp how the trading works and to work it perfectly. But the thing is, a lot of people still don't know the difference of Trading from Investing and I actually understand that especially with the way market works these days. For example, a lot of has been buying BTC nowadays because of the news that institutions are investing on BTC on KuCoin but they can actually do some trade to earn more.

[wxa7115]

Not only you who have a rocky road experience in trading. I have been not doing good lately. But that doesn't stop me from believing that my mistakes are part of growing up, part of improving the way I trade. There are enormous reasons not to give up.
 
 Reading indicators are also not that easy, even an expert reading technical analysis may experience failures and lose. When times that we tend to lose more than we take profits, reimprove and find the mistakes where you will gonna change and improve.
 
 Believe me, if we believe we are confident enough because we trade longer than the others. The more we should continue to learn more because crypto market is really hard to predict. One's mistakes is one's inspiration to grow.

I think we can all agree and say that trading especially day trading is hard, however while we are all bound to make mistakes and that is inevitable the magnitude of those mistakes is probably the biggest difference between expert traders and newbies, when a newbie makes a mistake the mistake is so big and so devastating that for the most part is impossible for him to ever recover from such loss and that is what ends up discouraging them to the point they give up on the market, and with good reason since they have suffered massive losses.

An expert trader could even make the same mistake as a newbie, that happens all the time, the difference is that he is able to realize very soon that he made a mistake and cut his losses, so even if the expert trader still loses money the amount he loses is very low and as such he can continue to improve his abilities and still make money if given enough time.

[kolbalish]

Mistakes happen more or less in everyone's life. But he doesn't have to be wrong. We have to assume that the mistake is instruction for us and we have to legislate our trading from that instruction. Those who are big successful traders in life also made mistakes in the beginning and it cannot be said that mistakes are not made even now. My suggestion to the Newbies would be to go down patiently with appropriate knowledge. It would be right to be wrong.

[gideonpadang]

Using crypto trading often and it works quite well. Pain points: Only Bitcoin and Ethereum withdrawals, taking hours to days! Inconsistent UI (APP, Web). Happy to see more frequent improvements e.g XRP withrawals, direct trades between cryptos (XRP-BTC..), UI Enhancements

[palle11]

It is for traders to understand that there are price we pay in life to better in what we do. Just as people want to acquire some level of education,this is also the same with trading. But the using of plenty of indicator at a particular time is capable to confusing the trader to make big mistake and indecision.

[Kasabus]

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.

[SquallLeonhart]

I do agree that trading is not something someone with a weak mind could handle. I am sorry OP, I do not want to call you weak minded and I know that you are doing whatever you can to make it work as well. However one thing I am 100% certain in crypto trading is that you need to be very careful and very patient, if you pick the right coin (not like silly ones but the top good ones that have a solid tech and decentralization) and can wait for years, you are going to make a lot of profit, there is no doubt about that.

This is why I am in crypto as well, I do not really care about the money I have invested in bitcoin, and I had very very tiny amount in investment but thanks to this bull run I have managed to make it go higher and higher. This wasn't because I am a great trader, all because I was capable of waiting for things to go up, and that allowed me to get richer.

[DarkIT]

In trading we should learn from our mistake and not from other mistake. Because the mistake done by us and other won't be the same one. Secondly if you find the mistake, it mean you are learning. Once you completely learn of trading, you can avoid of panic selling. Patience is essential tool of trading.

[justdimin]

I have often said this time without number, there is nothing a newbie want in trading. Take your time to learn about how it is been done. If you don't want to waste your Investment. Do not rush to start trading, and what caused this is greed. You want to make quick money, just because you heard if someone making it big time in trading. And yiu think you can start and start making the money on that same day. I pity you. Let me ask you a question, is it the day you enter into a university you will graduate? No, the answer is capital NO. To everything worth doing worth doing well. Learn this thing before going into it.

Completely agreed with you here and one reason why guys are rushing trading is because they feel like the bitcoin market is the best option right now, which indeed it is I would agree but that does not mean anyone can just jump into the market, buy any shit coins and get rich overnight. It takes time and skills to actually cope with the market because just think about it .. what actually makes the crypto market or any market? It is the like minded people like us and every time someone earns money in the market there is someone who is losing money on the other hand so its not that easy.

These things mentioned in OP are basics and although important I think the best way to learn trading is by actually experiencing it and making mistakes but with either a demo account or with minimal capital.

[isaac_clarke22]

I am indeed averse to reading when it comes to too much technicalities, so I also watched Youtube videos for tutorials. We kinda share the same story, OP but then I truly quit, because I didn't really have the moment to trade.
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.