Why newbies lose huge money in trading

[Kittygalore]

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maybe I can add.. on the other hand they could also be following in the footsteps of people who spread misinformation. They are consumed by signals that maybe they should be able to explore more knowledge with friends on the forum. However, their fault, they are only looking for information only one point. and when those who follow lack knowledge so they can lose a lot of money in trading.

Well, that's a rookie mistake that could've been avoided if there's people that are helping you along the way. I agree with you on regards to finding only information on a one way street, without cross reference in your information it tends to end up with you getting only a small part of the whole information which could be bad for your trading and most of the time results in losses.

[boyptc]

Even those with trading experience still make some mistakes, especially those who are just beginners/newbies. Mistakes are inevitable but we can limit them so that it won't always happen especially in trading to avoid loses. As a newbie, no need to start in a big capital, learn first to gain knowledge about this kind of work before putting your huge capital on it

Everyone does because there's no one exempted to bear losses. But good thing with the experienced one, it's easier to minimize loss because of the experience that they've taken before.

While for the newbies, they lack it and as well as understanding in trading. Emotionally trading is the cause of the newbie's big accumulation in the loss.

[Sweetbtc]

Newbies often trade on pump coin and we know that whale comes in crypto for own benefit so when they start selling newbies loss big money.
Please Newbies Keep an eye out and wait for a dip and people start freaking out thinking is going to 0 that's when you buy. Don't buy when is pumping. As simple as it sounds people can't follow. Good luck

[AnoniX1]

Trading is like poker - You need to lern that loosing money is normal even as the best one.
I think most newbies can't handle normal things that happen and often change something again and again. But u need to understand that if your'e good, you will loose 100$ and win 105$.

[geegaw]

Because lack of experience lead them to loss. Long term trading bring experience and they don't have much patience for holding that's why they lose money and after that they realized at which point they made mistakes. For trading analyzing the coins is needed.

Very attractive dishes were brought out, they were attracted by such colors and heat, it was difficult for them to patiently learn how to eat correctly because everything has come to them so close, eating in any style is also eating, only when they taste different and unappealing spices like many people have said, will they realize they are eating the wrong way and don't know how to add spices. Money is a very hot dish but don't let its charm blind a trader's eyes and mind.

[Woodie]

Most newbies lose huge amount of money because, after learning the basics of trading they feel they know it all, they think they can manipulate through the market. But they end up losing big.

According to some numbers on successful traders, stats say there is less than 30% of profitable traders out there.

So newbie or not trading is not something easy that you can claim you are consistently profitable, but fail is the road to success so don't lose hope.

No matter what you are thought, you must know this that to be a successful trader, it takes practice and consistency.

On top of practice and consistency adopt a trading strategy you will stick too, don't jump from one strategy to the other that will make you loss,and also manage your risk.

[South Park]

Most newbies lose huge amount of money because, after learning the basics of trading they feel they know it all, they think they can manipulate through the market. But they end up losing big.

No matter what you are thought, you must know this that to be a successful trader, it takes practice and consistency.

You bring an interesting point, once a newbie learns a little bit about the market they think they can influence the market to move in the way they want, it seems they do not understand that they are the ones that need to adapt to the market otherwise they're going to be crushed by it, and yet a great deal of the newbies never learn this lesson and when they make a trade and begin to lose money they think the market is wrong and they keep holding their trade hoping that the market is going to change direction, when the reality is the market is never wrong and it destroys anyone that thinks otherwise.

[Guljan78666]

As my experience newbies can make these mistakes ;
They can take entry in top and invest all amount in one time didn't take entry in parts. And second mistake is that they lose money because they didn't learn TA.And other one mistake is that they have no patience when market take small correction they feel fear and start selling in panic and loss their money.

[killerman2]

The only thing is that their lack of experience because in trading experience matters a lot. If a person is analyzing the coin really well and he is good at trading, then definitely he will have profit but it is even not 100% sure . So, think about it if a person don't have much experience how can he manage it?

[fullhdpixel]

Most newbies lose huge amount of money because, after learning the basics of trading they feel they know it all, they think they can manipulate through the market. But they end up losing big.

No matter what you are thought, you must know this that to be a successful trader, it takes practice and consistency.

Most of the newbies you’re going to find in the market doesn’t have the knowledge that is required to be making successful trades, they just see it and they feel it is easy because they see success stories of other traders that has been trading for long. And one thing with trading is that you will hardly see anyone talk about their failure, when most people fail they just quit without talking about it.

But when they win, they start talking about it and some noobs will feel that it is an easy thing to do, when it’s clearly not.

[dotcoin.info]

I believe that beginners lose a lot of money in trading only because they make large deposits in the expectation that this will reduce their risks.
You need to start with a small deposit that you are not afraid to lose, and trade in percentage terms based on your deposit as 100%, regardless of the amount deposited.

[cryptolord2077]

Lack of knowledge. Most newbies act too recklessly. Given the lack of their own knowledge, they often rely on other people's advice and external information field, which is often false or erroneous.
In fact, most of the information field conveys the theory said by someone in a circle, noobs listen to it and lose everything in the end.

They are riding the hype on a bad way and that’s why they lose most of the time. That lack of knowledge is normal for a newbie and if they act recklessly, that’s the time they’ll lose because learning is a process and they should not take any shortcuts for trading.

There’a a lot of good resources available online, its easy to learn how the things works here, I don’t know why they can’t still afford to spend time with it.

Hype isn't always bad. You can make a lot of money on HYIP, but people without experience, as a rule, lose, because they do not know when to leave on time.
Such things come with experience, after several unsuccessful attempts and loss of money, the mechanisms of work of such projects become clear

[seleme]

Trading is like poker - You need to lern that loosing money is normal even as the best one.
I think most newbies can't handle normal things that happen and often change something again and again. But u need to understand that if your'e good, you will loose 100$ and win 105$.

It is all a zero-sum game, while someone winning on another side of the world you are paying the price of making the wrong decision.  The newbies wanna make hundreds of $ in a week so they keep increasing the trade size with help of huge leverage by greedy brokers, one day the truth will catch them on the wrong side of the trend. The more trader makes wrong decisions, the more experience he will have and having an experience is the first step towards the successful trading journey.  BTW, having a decent trading experience does not guarantee the higher ROI but the experience increases the chance of making steady profit over the long term.

[nelson4lov]

I believe that beginners lose a lot of money in trading only because they make large deposits in the expectation that this will reduce their risks.
You need to start with a small deposit that you are not afraid to lose, and trade in percentage terms based on your deposit as 100%, regardless of the amount deposited.

It's not really about the amount deposited. With the right skill and knowledge, it doesn't matter if you're trading with an $100 account or $10,000 account that's why deposit isn't a major cause of losses to new and beginning traders. Most of them just lack the much needed skill to make it in the trading industry.  Because I've seen people trade their way from a small sized account to a huge size account but that's only possible if you know your way around the market. However, knowing the markets and having a huge capital to back it up is a big plus.

[iged_war]

Trading is like poker - You need to lern that loosing money is normal even as the best one.
I think most newbies can't handle normal things that happen and often change something again and again. But u need to understand that if your'e good, you will loose 100$ and win 105$.

i think its totally different with poker, we need our skill trading skills here not only luck on what card we will get. But we have to totally analize market , make research to several projects and how to arrange good money management . we should not habitual with loss but we have to make profits as an habbit.

[Slow death]

Man, I don't even remember how much money I lost in the first year and I still lose money, it's not like trading was easy and that every day a person leaves with a profit, there are days that are very frustrating because the person leaves with a loss, imagine anyone new in this market. probably the biggest secret is in practice, in bitcoin trading things are different from trading altcoins, and even in altcoins the trade of each altcoin is also different, by that I mean that it is very important to know the market that the person will be trading do day trade

The only thing is that their lack of experience because in trading experience matters a lot.

the most important thing is to have knowledge and then practice

[boyptc]

I believe that beginners lose a lot of money in trading only because they make large deposits in the expectation that this will reduce their risks.
You need to start with a small deposit that you are not afraid to lose, and trade in percentage terms based on your deposit as 100%, regardless of the amount deposited.

And that won't lessen the risk, whether big or small deposits, risk won't change. But their potential lose is just going to be lessened if they tighten their budgets.

It's the best start, to only deposit with small amount and their run from there so they will get the experience and as well as strategy.

[romero121]

I believe that beginners lose a lot of money in trading only because they make large deposits in the expectation that this will reduce their risks.
You need to start with a small deposit that you are not afraid to lose, and trade in percentage terms based on your deposit as 100%, regardless of the amount deposited.

And that won't lessen the risk, whether big or small deposits, risk won't change. But their potential lose is just going to be lessened if they tighten their budgets.

It's the best start, to only deposit with small amount and their run from there so they will get the experience and as well as strategy.

Depending on the capital is the risk as well as the profiting. The potential loss being lessened based on the capital. This means the risk is also lowered based on the market volatility causing loss. Anyhow it varies on users view, it is always good to gain experience and know about the market with small investment.

The misunderstanding happens when someone who is known to them making good return with huge capital. We can't expect the same to happen with us, because they might be watching the market for months. Just with the capital getting into the market won't assure profit. There are lucky ones which is exceptional.

[cabron]

I believe that beginners lose a lot of money in trading only because they make large deposits in the expectation that this will reduce their risks.
You need to start with a small deposit that you are not afraid to lose, and trade in percentage terms based on your deposit as 100%, regardless of the amount deposited.

And that won't lessen the risk, whether big or small deposits, risk won't change. But their potential lose is just going to be lessened if they tighten their budgets.

It's the best start, to only deposit with small amount and their run from there so they will get the experience and as well as strategy.

Depending on the capital is the risk as well as the profiting. The potential loss being lessened based on the capital. This means the risk is also lowered based on the market volatility causing loss. Anyhow it varies on users view, it is always good to gain experience and know about the market with small investment.

The misunderstanding happens when someone who is known to them making good return with huge capital. We can't expect the same to happen with us, because they might be watching the market for months. Just with the capital getting into the market won't assure profit. There are lucky ones which is exceptional.

Those who are from other markets like Forex or stock market have learned well there before going to crypto can become successful.

I was one of those who thought I could also try manipulating the market with just a few XRP during the time when I just got into cryptocurrency. I bought about 8,000XRP while its price was just $0.02. I have few successes with it when the market dumps, I also dump and waits for the price to go below the selling price and buy again. Realized later that there are bigger fish than me.

[Cherylstar86]

I believe that beginners lose a lot of money in trading only because they make large deposits in the expectation that this will reduce their risks.
You need to start with a small deposit that you are not afraid to lose, and trade in percentage terms based on your deposit as 100%, regardless of the amount deposited.

And that won't lessen the risk, whether big or small deposits, risk won't change. But their potential lose is just going to be lessened if they tighten their budgets.

It's the best start, to only deposit with small amount and their run from there so they will get the experience and as well as strategy.

Indeed. Risk is always been there not just here in cryptocurrency world but also in our daily things we did. We can't avoid risking but we can manage it through learning. Some of those newbies are impatient, doesn't have trade plan, trading without knowledge on it, and trading too much. Other reason is they don't know stop loss tool or they are not using the stop loss tool correctly. If a trader uses stop loss they are actually able to control the risk. The best way is to start again if you lose huge money and try to make those experiences as an inspiration.