Why newbies lose huge money in trading

[dunfida]

Beginners are corny are too confident in their abilities, and this can ruin them. For example, when I just started trading with a broker from Amarkets, I paid enough attention to the demo account of this broker to solve all such issues.

No broker or platform  would solve that issue but having that demo would really be a considerable move for you to learn up at least on the basics but when you are already dealing with the live market

then everything would change out and wont really be similar on what you had done in demo but this is really a helpful thing for newbies on at least to start out before testing out the fierce market.

Mistakes is normal as a newbie because this is where you do learn up and would progress out.

[teosanru]

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.

A very important thing that you said here was they think of manipulating the market. It's actually true, this is why a newbie never exits a losing trade, they think that they are right and the market is just being slightly wrong and would ultimately correct, while a pro trader would just flow where the market takes it, momentum trading is honestly the best type of trading, you don't try to enter at the bottom and exit at the top but just to make a good profit out of each trade and get sound sleep, if the trade fails to take a loss and still get a sound sleep. And yes consistency is the key in almost everything, People take 3-4 years of experience in their jobs to become an expert but except to become experts in trading in the very first year.

[Smartvirus]

If all the lessons you need about trading is contained in books, I think everyone would have had a shot at trading and be more professional about it. A lot of persons read these days, some would comprehend properly on what is written there and know how to apply it while, others would not but still, you would still fund a good number of those that were able to comprehend still failing at trading. That's simply because, just the knowledge in books on trading isn't all that is to know of the market. The market is constantly evolving and it has tricks about it sometimes. Tricks that you see the right signs for a but or sell market but yet, it turns the other way. Your experience is what you would need to have a go and as such, you've got to be prepared to build them at the expense of some loses. Experience matters a lot in trading.

[Mistafreeze]

Losing money in trading as a newbie is normal and its not a new thing to the market. This is a way if welcoming the newbies on how the market looks like, not just making high profits as a demo trader. Seeing the market from different angles because emotions is not attached to it.

When I started demo trading as a newbie then, I used to double my account on demo which made me to see the market as very simple to analyze. I could leave a trade for many days with being bordered about it because my money is not attached, making me see trading as a simple task that need no much analysis.

I was shocked when I went live, I almost lose everything I had saved for trading. That is when I knew that trading was never easy. I cried after blowing my account if $3k. This is the reality of trading when one goes live. I was able to learn from my mistakes and get my feet back onboard with much reading of Trading books and getting myself a mentor.

[famososMuertos]

...//...:

Define successful trader (!?) 

Nobody is exempt from falling into the pit of losses, it is a myth to think that only newbies lose because they have no preparation or experience, the fame of the crypto world is based on the fact that many arrive, invest and end up with large amounts of money without having a fucking idea from how they did it, they only know that they bought some coins and sold. If a newbie is able to pay his bills and to pay for his personal expenses, he is a successful trader. In fact, there are newbies who have made so much money that that same inexperience allows them to retire and dedicate themselves to something else.

Do not get me wrong but consistency is a term for losers, traders who have income come to crypto because they are winners and if they have a bad day they only know that tomorrow is the day to win what they lost, consistency can lead to losses, well, it is only an adjective and falls into interpretations, the point is that if you lose many times consistency will not save you from your losses no matter how hard you try or how much preparation you manage, in other words, the profession of a crypto trader is not for you.

[carlfebz2]

If all the lessons you need about trading is contained in books, I think everyone would have had a shot at trading and be more professional about it. A lot of persons read these days, some would comprehend properly on what is written there and know how to apply it while, others would not but still, you would still fund a good number of those that were able to comprehend still failing at trading. That's simply because, just the knowledge in books on trading isn't all that is to know of the market. The market is constantly evolving and it has tricks about it sometimes. Tricks that you see the right signs for a but or sell market but yet, it turns the other way. Your experience is what you would need to have a go and as such, you've got to be prepared to build them at the expense of some loses. Experience matters a lot in trading.

Theories are good but wont be that sufficient for you to make yourself to be sustainable in the market.You would need to experience things for you to enhance and make you even more good.

Newbie mistakes is something that cant be avoided due to lack of knowledge and of course we are really hunger for making quick bucks and when reality do face them up then thats the only the time they will realize.

We would face up lots of troubles and mistakes in trading because this cant be learned on one day and would take up years and lots of hours to be spend for you to get the idea or on how the market works.

[crzy]

Trading is too risky for a newbie with a huge capital, I remember starting my trading journey with just a little money and I already feel the stress on losing it so what more if you have more capital.

Trading for newbies should be more on making their own strategy, start at the very basic and don’t be greedy. This market will continue to up and down, traders should know how to ride with it and win consistently.

[AmoreJaz]

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.

Losing is normal but that kind of mindset is not, because newbies have to learn more things first to have confidence in the market and i agree that being consistent is not easy.

Learn trading by not just the numbers learn also the fundamental things like controlling your emotion, this will play a big role on every decisions that you’ll make. Don’t put huge money at your first year in trading, I’m sure that timeframe is for a lose and learn process.

a lot of newbies definitely have a lot to experience before they will learn their lesson here. once they experienced huge loss, that will be their turning point in this market. sometimes you need to feel the impact of your actions before you realise what you did wrong.
and the common scenario here in crypto trading - many of these noobs came here because of the idea that getting here will be an easy access to get rich and earn good money. that's where they are usually wrong. so some of them will really spend a good amount of money because they wanted to get their returns fast.

[kawetsriyanto]

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.

The basic mistake is using a huge amount of money in the first journey of your crypto investment. As a newbie, it will be wise to use a small amount of money firstly. The focus should be on learning and take experience, not gaining profits as big as possible. If you set the right purpose at the beginning phase of being a crypto investor/trader, there will no huge losses.

Be too confident and think already smart enough is a stupid attitude. Moreover, just focusing on the profits greedily. For the newbies who have these attitudes, losing huge seems to deserve it. It will give them a big lesson.

*Be a wise newbie!

[LUCKMCFLY]

I think the main reason newbies lose a lot in trading is because they get desperate and because they don't have the patience to trade. While some come in gambling, many who have studied rush to make a quick profit and that's where failures begin.

When we take into account a person who has read books on the stock market, with authors such as Warren Buffet, Livermore, Wyckoff, Burton, among others, their brain has an idea of how the market can move, since there is a lot of talk about how the market volume can be read, how the whales can act against fundamentals, this is the first thing to be clear about, since technical analysis is also important but when you have an idea of how the market's direction can go.

Another mistake is to follow groups of signals and groups of Pump and Dump, because everything arises as if it were a raffle that in the end it is not clear how he won or how he lost money.

[mrjoy15]

As you said trading takes practice and consistency but also luck that is a really big factors that affect your trading result.
Remember that even the best technical analyst could get their prediction that are based from their experience and knowledge wrong just because there's other unpredictable factor that could affect the market, like doge as an example, no one could predict that Elon suddenly jump in to the doge hype and change the condition of the market really drastically that the effect still felt until today.

right, after we analyze and make transactions, by setting targets and possible stop losses, of course we just have to wait for the market to react and from there whatever happens, let God's hand decide. but on the other hand trading is not gambling, even though luck contributes to success. so don't forget to pray

Actually there are  random factors work out, and worth analysis give you complete benefits. Try to get the opportunity in every market movement you can utilize it and make cool profits from future trading regardless only go through general trading option. You can't play with the market, but once you get the things you're OK to go.

[GreatArkansas]

As you said trading takes practice and consistency but also luck that is a really big factors that affect your trading result.
Remember that even the best technical analyst could get their prediction that are based from their experience and knowledge wrong just because there's other unpredictable factor that could affect the market, like doge as an example, no one could predict that Elon suddenly jump in to the doge hype and change the condition of the market really drastically that the effect still felt until today.

right, after we analyze and make transactions, by setting targets and possible stop losses, of course we just have to wait for the market to react and from there whatever happens, let God's hand decide. but on the other hand trading is not gambling, even though luck contributes to success. so don't forget to pray

Actually there are  random factors work out, and worth analysis give you complete benefits. Try to get the opportunity in every market movement you can utilize it and make cool profits from future trading regardless only go through general trading option. You can't play with the market, but once you get the things you're OK to go.

If there are really random factors in trading, stop losses is your friend too, it will help you to reduce the loss if ever your analysis will be invalidated.
Most newbies who starting trading are not using stop loss or no risk management at all, I experienced that during my newbie days, so I can relate to it.

[Boov]

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.

Because of their aggressiveness and bigger expectations from trading, they failed and went to that kind of situation. Unfortunately these fresh traders, always look upon successful individuals who earned greater but they don't consider their struggles. I recommend that taking good advice from expert is the first step prior doing hands on trading. Don't ever have a serious attachment if you can't master what you're doing, losing much money is such a waste of resources.

[logfiles]

I don't remember what blog it was, but I read and learned from somewhere that the huge losses you make from trading as a newbie is the tuition fee you pay to learn how to trade  
It's now up to the newbie on what he/she has to do with the lessons
1. Give up?
2. Never learn anything and continue doing the same mistakes?
3. Learn from the mistakes and keep improving for a better trading strategy?

[ethereumhunter]

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.

If you feel know it all about trading while you are still learning, you will feel difficult to make a profit because that will be overconfident, which is not good for yourself. It is better you keep learning and practice because that is the key you can become a pro trader. It would help if you learned about controlling yourself in trading because you will see that the market can fluctuate anytime, making you panic. If you know how to manage, you will not lose the money instead you will have a chance to make a profit.

[Ararbermas]

It's because they always jump to any crypto currency in the market wherein despite they don't have specific information such if it's has the potential or a genuine project that can guarantee profits in trading.. that's why they all lose huge money always. For me they are lazy people who don't have time to speculate the status of the crypto currency that they want to trade,  what i mean if they saw a hupe pump in the chart they will dive in without knowing it's the end of the progress and has tend to make correction.. Lol definitely it's because of greediness in my personal opinion.

[Porfirii]

Unpopular opinion: They lose because they are not lucky enough.

Most people in this thread believes that TA knowledge and experience are the ingredients to success and the lack of any of them leads newbies to loss. I'm not a big fan of technical analysis as many (most?) of the movements in the markets seem to be aleatory without insider info, what is the case for the average Joe, with or without trading knowledge and experience.

So, newbies, and not so newbies, lose huge money in trading because they are overconfident in their abilities and lack to understand that they don't have much control but luck is a key factor. And, of course, the high risk/high benefit truism doesn't help neither: the people and companies who make the most money in the markets don't take high risks at all; they don't gamble like you do, they make money out of your gambling.

[awik p]

It's because they always jump to any crypto currency in the market wherein despite they don't have specific information such if it's has the potential or a genuine project that can guarantee profits in trading.. that's why they all lose huge money always. For me they are lazy people who don't have time to speculate the status of the crypto currency that they want to trade,  what i mean if they saw a hupe pump in the chart they will dive in without knowing it's the end of the progress and has tend to make correction.. Lol definitely it's because of greediness in my personal opinion.

it's ironic, when they look at them like that, without any knowledge and the price was still bullrun at that time, it made them think that the price would always be a bullrun, even though at that time the price had formed a new ath. therefore they don't consider the moment of correction, because of course there will be an anti-climax

[Anamika1000]

Because they learn at the first very little and they think that trading is very easy and they got all the knowledge about trading and they spend much in trading at the first, but in reality, they know only less about trading.

[kotajikikox]

Because they learn at the first very little and they think that trading is very easy and they got all the knowledge about trading and they spend much in trading at the first, but in reality, they know only less about trading.

That is what we called Greediness , entering investing without proper knowledge ? this is not far from what we called Suicide mate.

Everytime we invest make sure that we understand First the market second the currency we will be investing .

because if those will be missing in action then consider yourself always a loser.