reasons for bad trading

[Avantikakaur]

One of the main reasons for a bad trade is to trade out of emotion. If you open a trade without following any analysis trade will be considered a bad trade. There may be many other reasons such as opening a trade without a good idea about the market, most of the profits currently traded are with Bitcoin and other currencies.

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[GreatArkansas]

a. price went +20% up, we dont sell.

b. price went -25% down, we sell.
(....)

From what can I see here. It is just showing that a trader doesn't have a goal or plan before entering a trade. I already experienced this like in the scenario I am catching a dump and longing it without planning at all.
In that case, you entered on a trade without stop loss or a price target for that trade, which is really bad practice for a trader.

[desmodiAN]

Another interesting thing is, we enter crypto because we anticipate that other investments are worse.
Stocks/gold/bonds/etf, all okay, but none as independent and as future open as crypto.

So we enter because of greed 'need more' or fear 'loose my money elsewhere' or maybe just to 'try'. Seemingly endless psychological circle.
Until we reach a certain wealth level. But really, will we stop? Or will we search the next thing?

[Shasha80]

Another interesting thing is, we enter crypto because we anticipate that other investments are worse.
Stocks/gold/bonds/etf, all okay, but none as independent and as future open as crypto.

So we enter because of greed 'need more' or fear 'loose my money elsewhere' or maybe just to 'try'. Seemingly endless psychological circle.
Until we reach a certain wealth level. But really, will we stop? Or will we search the next thing?

I agree crypto is the most profitable right now compared to investing in other assets. But that doesn't mean other assets are bad, but when
compared to crypto I prefer crypto. Moreover, this year is the best year for investing in crypto, because almost all coins have managed to rise to ATH.
Then humans have a greedy nature and are never satisfied, I believe when we succeed in achieving the wealth we want. There must be a desire
to find new things that are much more profitable, the conclusion is that we all will not stop looking for ways to make money.

[geegaw]

a. price went +20% up, we dont sell.

b. price went -25% down, we sell.
(....)

From what can I see here. It is just showing that a trader doesn't have a goal or plan before entering a trade. I already experienced this like in the scenario I am catching a dump and longing it without planning at all.
In that case, you entered on a trade without stop loss or a price target for that trade, which is really bad practice for a trader.

You are right, just looking at the numbers above, it is enough for us to evaluate the potential of an investor and a trader, a newcomer will always be in such a situation, even some people are stubborn with old concepts, they also often don't know how to sell at the right time and persist with greedy thoughts. Objectives should always be available, from profit to stop loss, chasing a bigger profit and a wrong guess is something many traders do but they didn't know this would bring a bad result

[Kelvinid]

snipped...

I agree crypto is the most profitable right now compared to investing in other assets. But that doesn't mean other assets are bad, but when
compared to crypto I prefer crypto. Moreover, this year is the best year for investing in crypto, because almost all coins have managed to rise to ATH.
Then humans have a greedy nature and are never satisfied, I believe when we succeed in achieving the wealth we want. There must be a desire
to find new things that are much more profitable, the conclusion is that we all will not stop looking for ways to make money.

A good profit with higher risk. This is a thing that encourages people to come into crypto and make trades, and they'll think about there is an easy money in trading. But above all this profit, this will be the time to test their preparations and self-control which I believe that not all of them are having these things carried during their entry.

It is a common error I think? Or that somewhat we need to do the research first before joining trading to be aware of what we gonna do as this will be the reason why many traders failed and lose everything they have.

[Ultegra134]

The main reasons for unsatisfactory trades is being impatience and the fear of missing out. I've come across both of them, I often found myself being impatient and selling too quickly, which lead into losing a decent profit in the long run, while I've also sold when the market was facing a crash. Sometimes, we're also affected by what others are doing, if for instance the forum is going nuts about Ethereum's crash (just an example), we'll be tempted to also sell because that's what everyone is doing.

I guess, most of us are guilty of those actions at one point in our trading life. And even if we have had experience the same, it doesn't mean, we will not make the same mistakes again, especially if we need the money. This is when we usually make poor decisions, because we are in a rush to sell our coins.
But if you are not in a hurry, you can strategize how to at least minimize losses. If you know you are holding a valuable coin and it dropped in the market, don't sell. Because if it has solid grounds, it will go up again. This is when most holders are vulnerable to make wrong decisions. For the fear that it will not go up and continue to decline, they will sell at a loss.

Mistakes are to be made, and we won't stop making them. I've seen the cliché being spread in the forum, that you've learned from experience and your mistakes, so you won't repeat them again. I only partly agree with that statement, trading is unpredictable, and also involves great risk. Thus, we're bound to make the same errors again at some point.

For instance, I regret selling Bitcoin in December, I could also say that two years from now, for selling a month ago, and so on. 

[pawanjain]

Those reasons are probably right for most of the traders in the current crypto market.

thats why many books advice to trade in smaller steps.  dont go with a gut feeling, set a goal and stick to it.

This is where many fail and the experts take their profits. Sticking to our strategy is an essential part of trading which many traders forget.
I have myself made some losses due to not to sticking to the target prices and have learned this the hard way.

[sumant]

There are many reasons for bad trading, so many traders think something different before purchasing a coin but they don't held their plan to execute as they think. I mean bad planning is the main reason for bad trading. Coin has been purchased with good points then how we can doing a bad trade afterward. Stick to your plan get great success.

[desmodiAN]

Mistakes are to be made, and we won't stop making them. I've seen the cliché being spread in the forum, that you've learned from experience and your mistakes, so you won't repeat them again. I only partly agree with that statement, trading is unpredictable...

True. You will learn many things while trading, but the market stays nearly unpredictable. You cant transfer your mistakes, because everything changes. Market conditions, players, price base levels, competitors, regulation. Its mass psychology. We can witness right now. Did anything new come up for bitcoin? Or did just persons offer their opinion about the proof of work energy usage?

The bad trading can still lead to yourself getting more calm or resistant to the waves. Even if you cannot predict anything, maybe after a while you are better at holding through.

[Obito]

For me, control emotion is something that people will need really long time to master it. Maybe with practice, technical analysis can be mastered. But control emotion to be not greed and panic is hard to do, even some traders who in years trading sometimes can't control their emotion and ended with lose their assets.

It's difficult because emotions are habits we formed when we are young and you know what they say, old habits die hard, yes it is hard to control emotion but I am sure that if you are smart enough, you can even disregard it and just move on and be patient, I think that being patient is easier than controlling your emotions.

[SacriFries11]

For me, control emotion is something that people will need really long time to master it. Maybe with practice, technical analysis can be mastered. But control emotion to be not greed and panic is hard to do, even some traders who in years trading sometimes can't control their emotion and ended with lose their assets.

All of us can be trade and make some good trades but many of us too didn't control our emotion well. Being greedy when the price goes up then didn't sell and sometimes people get lazy in analyzing the chart pattern and didn't research which token is good to buy and events that might trigger the price. I do trading but I admit that one of the reason that I lose my position in trading is that I'm not satisfied with my profit and being FOMO when the price goes rapidly up and didn't think that there might be a big crash ahead.

[gabbie2010]

a. price went +20% up, we dont sell.

b. price went -25% down, we sell.
(....)

From what can I see here. It is just showing that a trader doesn't have a goal or plan before entering a trade. I already experienced this like in the scenario I am catching a dump and longing it without planning at all.
In that case, you entered on a trade without stop loss or a price target for that trade, which is really bad practice for a trader.

You are right, just looking at the numbers above, it is enough for us to evaluate the potential of an investor and a trader, a newcomer will always be in such a situation, even some people are stubborn with old concepts, they also often don't know how to sell at the right time and persist with greedy thoughts. Objectives should always be available, from profit to stop loss, chasing a bigger profit and a wrong guess is something many traders do but they didn't know this would bring a bad result

This is one of the major area which has  been a setback to my trading, I closely watched a profitable trades which are already 15% to 20% in profits  hoping to earn more profits dropping down to -10% , I couldn't control my emotions and greediness, I need to be disciplined and stick to a fix profit no matter how small 'a bird in hand worth two in the bush'  there are instances when an already losing trade becomes profitable after I had close it with a loss, I hope to improved on these trading anomalies.

[Ziskinberg]

For me, control emotion is something that people will need really long time to master it. Maybe with practice, technical analysis can be mastered. But control emotion to be not greed and panic is hard to do, even some traders who in years trading sometimes can't control their emotion and ended with lose their assets.

It's difficult because emotions are habits we formed when we are young and you know what they say, old habits die hard, yes it is hard to control emotion but I am sure that if you are smart enough, you can even disregard it and just move on and be patient, I think that being patient is easier than controlling your emotions.

It is nature as a human being, may we could change some but not the entire YOU. Because when struggles and difficulties had come, the true YOU will come out and act like a human being.

We can't the truth that trading is difficult, you will lose, you will win, and all of these things matter on our behavior as it basically affects our decision making. Because we all can control this (emotion), it for sure we all succeed and get rich but unfortunately, it is really impossible. And I think we don't need to stop it but just to be comfortable with what we doing.

[Yatsan]

There are lots of reasons why trading turns out to be bad and that includes the decision being driven by emotions that combines with greed for wanting more even the goal you have set have already been achieved. People are having a hard time doing decision making when it comes to trading making them to be successful or the other way around. The result of your trading will depend upon how you deal with the situation on hand and make it assured that you will gain profit or have loss in the end. The sake of your trading relies not just on the strategy but also the way you make up things into your mind to decide the next move you will make.

[RealMalatesta]

many books advice to trade in smaller steps.  dont go with a gut feeling, set a goal and stick to it.

There are lots of measurements are available to stop bad trading but when a trader is not able to follow them then finding out the reasons for bad trade or solutions for avoiding bad trade, nothing will make any impact. I mean advises on bad trading is most common but when a trader is not sticking to their plan, then no one could help them in any means.

the problem are the reason behind, mostly psychological reasons.

Yeah, bad trades is mostly caused by psychological things. I believe only through experiences, we can fix psychological reasons. This is why naive traders are more frequently facing losses and experienced traders also not able to control their emotions all the times hence they also face losses time to time.

[CryptocurencyKing]

Greed and Fear are by far 2 main reasons why most traders especially start ups or beginner traders fail at there trades. They some how make you to stay or live too early on a trade.

Greed is simply a feeling if not being satisfied with what your getting out of a trade, not knowing when you've made the most benefits and as such, you want to have it all. Eventually, it lingers until you lose it all.

Fear circulates around your perceptions or feeling about the market. Not being sure of any decision of the market and as such, you don't know whne to get in or get out.

Greed and Fear are 2 emotions that needs mastering and not mastering these emotions could mean an unsteady trader and that is all it takes to lose at your trades.

[rhodelmabanal]

Greed and Fear are by far 2 main reasons why most traders especially start ups or beginner traders fail at there trades. They some how make you to stay or live too early on a trade.

Greed is simply a feeling if not being satisfied with what your getting out of a trade, not knowing when you've made the most benefits and as such, you want to have it all. Eventually, it lingers until you lose it all.

Fear circulates around your perceptions or feeling about the market. Not being sure of any decision of the market and as such, you don't know whne to get in or get out.

Greed and Fear are 2 emotions that needs mastering and not mastering these emotions could mean an unsteady trader and that is all it takes to lose at your trades.

I agree that fear is one of the biggest problem as a trader, because i experience trading with fear specialy when the token or coin you trade slowly dropping fear is always there in trading beause trading involves money. Greed also is a big problem because it is hard to control.

[Obito]

~snip

It is nature as a human being, may we could change some but not the entire YOU. Because when struggles and difficulties had come, the true YOU will come out and act like a human being.

We can't the truth that trading is difficult, you will lose, you will win, and all of these things matter on our behavior as it basically affects our decision making. Because we all can control this (emotion), it for sure we all succeed and get rich but unfortunately, it is really impossible. And I think we don't need to stop it but just to be comfortable with what we doing.

Well, you can change someone and remove what their former habits were when they are young, yes sometimes the repressed self can rear its ugly head but sometimes it won't matter and easily manageable if you know how to control your emotions. If you let losing or winning in trading affect you in your trading then you are probably doing something wrong.

[elisabetheva]

It is nature as a human being, may we could change some but not the entire YOU. Because when struggles and difficulties had come, the true YOU will come out and act like a human being.

We can't the truth that trading is difficult, you will lose, you will win, and all of these things matter on our behavior as it basically affects our decision making. Because we all can control this (emotion), it for sure we all succeed and get rich but unfortunately, it is really impossible. And I think we don't need to stop it but just to be comfortable with what we doing.

agree, nothing that can be done  should affect what you will do in your daily work. because the pressure in trading makes you unable to regulate the emotions that can change the behavior that occurs. but that it is true that sometimes emotions can affect us mentally not to be patient in taking what steps we might take.

But in a long journey, of course everyone can make improvements and manage everything well, because if everything is done emotionally, then whatever we are going to do can obviously have an effect and the possibility of not being successful is greater than success itself. need a process and that process will run with developments as long as we continue to do this.