Some trading mistakes beginners make

[TheGreatPython]

OP, another mistake newbies always make is, over-estimating their intelligence, and capabilities. Trading is a zero-sum game. To get money from the market, another participant must lose it. We are mere plebs, and the game is always won by professional traders.

This is definitely a big problem. I have seen a lot of people who come into crypto with "if there are so many people who made money in crypto, then I will be able to do the same as well" logic. First of all, not everyone makes a profit in crypto but since it went up so much, people who did literally nothing but watching the price go up managed to make money, so it was easy, doesn't mean it will be easy for you as well.

At the end of the day, it is something not as entertaining as you would hope, it is a big dangerous to keep doing this for a long time. What we need to explain to newbies is that trading is a risky business and it takes time to master it. If they jump in without much knowledge, and high confidence then they will keep on losing money.

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[Shenzou]

Some of the newbies' mistake is probably going off track really easy, i see a lot of them dump their money and trading some shitty altcoins that are not that developed and they are just a pump and dump scams thinking that they will be able to hit the jackpot with, where they should be focusing on trading the more known ones, and one other thing as soon as they win a trade or two using a certain strategy they just stick to it even though it might not be working for that time.

[isaac_clarke22]

~

Another one. Overcomplicating things especially in losses. There are people thinking that there might be ways to "revert" those losses immediately, almost like panicking which is quite common here in crypto especially in dips, and yes I might be like talking about those panic sellers.

Use indicators by the way.

[ScamViruS]

I think a better post to talk about because every trader can learn from its mistakes and the traders who are newbies didn't made a mistake since now then they didn't know about trading really well. But the most important thing for newbie i would suggest is that they should not lose their patience and that is it.

The trader must have patience when he wants to trade. But it is not always possible to get the right trade with patience. This requires gaining knowledge about trading, and developing your own skills. In most cases traders face losses only because they have little knowledge about the market. When a trader has no knowledge of the market he trades based on emotions which are later considered as wrong decisions. So it is very important to develop trading skills.

[el kaka22]

Also do not sell now that bitcoin is under 50k, buy right now.
I know that may confuse some people, the price is dropping so why should you buy right? You would lose since it is dropping right?

Well, the reality is that when it is going down, that usually means the only way left is going up, it could go down only so much and eventually it will start going up.

Buy as much bitcoin as you can without hurting your finances, and if it falls more then buy some more, keep buying more when the price is dropping. It is obvious that when the drop stops, it will not continue to go down and the only direction is higher to our profit and that's how I made my profit. So, if you see bitcoin price crashing, do not be sad, be happy, most newbies are sad to see it go down.

[BruceLee98]

Beginner always forget to do their own research on a particular coin. They try to trade their emotions first which is very risky and with time they get frustrated. Beginners also think that the crypto space is a get rich quick scheme and this leads to impatience and this always attracts a very big trading error and in turn money is lost .

[Vaculin]

Beginner always forget to do their own research on a particular coin. They try to trade their emotions first which is very risky and with time they get frustrated. Beginners also think that the crypto space is a get rich quick scheme and this leads to impatience and this always attracts a very big trading error and in turn money is lost .

Most newbies think that was really it happen as many people had said about it. In fact, that is what we heard in promotional ads and that is the reason why they come into trading. However, it was not literally we should have to trust people talking like that but instead to have our own research to further know if that is real or not.

Well, committing mistakes is not new, no one has been exempted from this as we all did some. But if we don't find a way to correct it, I don't see any success but failure.

[Oceat]

Beginner always forget to do their own research on a particular coin. They try to trade their emotions first which is very risky and with time they get frustrated. Beginners also think that the crypto space is a get rich quick scheme and this leads to impatience and this always attracts a very big trading error and in turn money is lost .

That's a total waste of money for an investment if they would just act like that. I'm sure most of newbies did their own research first but the fact that they don't have a trading experience is still a big risk factor that they would lose a certain amount of money. Trading is not that easy as you may think, even the best best trader losses sometimes, there are no exceptions.

And what the OP said is all true.

Newbies are desperate when it comes to earning a quick money and a result that would lead them to losing their investment in the future.

[Hypnosis00]

Beginner always forget to do their own research on a particular coin. They try to trade their emotions first which is very risky and with time they get frustrated. Beginners also think that the crypto space is a get rich quick scheme and this leads to impatience and this always attracts a very big trading error and in turn money is lost .

The reason why is that, they can’t control their emotions yet and they listed to FUD and HYPE that’s why many are losing money, and I see this one as a normal scenario for every beginners. More importantly, they learned from these mistakes and hopefully they work hard to learn things about trading, it takes a lot of practice and hard work because trading is not easy at all and you money at stake here.

Maybe they will but for sure, many of them just give up.
Trading needs courage and motivation if we wanted to reach our goal, no matter how many times we lose but still, we are able to stand and face the consequences for our mistakes. Being new in trading doesn't mean we can all make it right, as all had to experience losses. It becomes usual but if we don't accept and understand this thing, then I think there is no reason to stay in trading.

[Wind_FURY]

Another mistake that should be added in the OP is, there are short term/medium term cycles in the market that a pleb-trader should do NOTHING. This was my problem before my HODLing days. I always wanted to have a trade opened.

[Ararbermas]

There's a lot of mistakes when it comes beginners, wherein making mistakes decisions because of emotions and because of being greedy reason sometimes they missed the big opportunity. Actually these was base on my experience and i know all of the beginners experienced such mistakes as well.. For me the best way to avoid mistakes, is to educate more our self because on that way we can really tell that everything will gonna be alright, unlike being lack of knowledge while trading because it can cause losses always.. Being smart is a big advantage.. So don't rely what you have right now wherein keep searching for new information that can help you to solve the problem in trading if you really care in your money..

[irsykes]

`snip

To be a note, newbie or not always make sure we are ready for trading, in physic or mental. Don't let our emotion take control in trading and we do something reckless. Because any strategy or maybe analysis wouldn't help if our emotion already get break down, we can take wrong decision and it can cause us to more suffer than losses.

[death69]

OP, another mistake newbies always make is, over-estimating their intelligence, and capabilities. Trading is a zero-sum game. To get money from the market, another participant must lose it. We are mere plebs, and the game is always won by professional traders.

I agree. Most of newbies believe they can easily be rich when start to trade, either in cryptocurrency or Forex or any type of asset. And even the wisest person can misjudge his current position. There are a lot of newbie trader but there are only a few professional traders (more than 3 years of experience) because they cant stand seeing themselves throwing money out of a window lol

[ipanks]

`snip

To be a note, newbie or not always make sure we are ready for trading, in physic or mental. Don't let our emotion take control in trading and we do something reckless. Because any strategy or maybe analysis wouldn't help if our emotion already get break down, we can take wrong decision and it can cause us to more suffer than losses.

At the first time, the new trader can have control their emotion. But after they trade for some time, they lose their money in trading and make them sad. That can make them curious and want to chase their losses by analysing the other coins but some of them decide to leave the market.

Fear and greed will be part of this, especially for traders who do not control themselves. They should quit as soon as possible if this happens to them and not trying to continue trading if they can not calm down.

[MIner1448]

- Trading futures too early: Beginners make this mistake frequently, and I made it myself. When trading futures, the risk is always high, and the reward is also high, so most newbies focus on the high reward and ignore the high risk and some might not even about the risk because they don't really know much about future trading. I feel that before you begin future trading, you should have mastered spot trading, else you risk losing money without earning any profit, or your loss could be more than your profit.

On this I just lost at the beginning of my journey, initially I traded on the spot, but this was not enough for me, I watched enough videos of people raising money on futures, after that I started watching videos on the mechanics of trading and I thought that this was for me it will be enough, I entered the first trade with x5 leverage and raised it immediately, entered in chickens, increased the leverage to x10 and futures ate my entire deposit in an instant. After that, I do not go to futures until now ... I generally wanted to leave the crypt, but still found the strength to go further.

[bittraffic]

Even after years of trading actually I have not done any diary for all the trades I have been doing. If I have to look back I guess I can just check my trading history in the pairs I have been trading.

No target prce too for me because I constantly watch the price and chart that I execute whenever I see in real time. When the price is oversold or have botttomed, this is the only time I do trade. I dont see it as mistake.

[haidil]

Since we've been beginners for a long time, it's not necessarily true that we can't escape trading mistakes. Nowadays we make more mistakes by not engaging in day trading anymore. It is for this reason that many things we find and prefer to be long term holders. So that you don't have to be mentally stressed every day.

[Mpamaegbu]

From my experience and from the research have done I believe some of this reasons might be among why newbies always lose in Cryptocurrency.

- Not having a target when trading: ...

- Entering many trades at once: ...

- Not using stop lose: ...

Those ones aren't even beginners specifics to tell you the truth. Veteran traders who are greedy and have that mindset of, "I can't lose trades" also have that mindset. A lot of traders believe that since the market is an UP and DOWN movement type of thing, whenever it goes against them that it would revert. By doing so they tend to incur more losses. Stop Loss (SL) is the best technique to guard against irreparable loss and save one the headache of constantly checking and rechecking charts.

Talking about keeping trading diaries, I don't like doing it. It's cumbersome and a waste time for me. I can note tokens to buy but once I'm done buying I don't take record of what price I bought or sold. But that isn't to say I don't make a mental note of what level I bought. In all this, I make sure not to sell below cost price even without keeping any diary on my trades.

[AakZaki]

~snip~

Buy as much bitcoin as you can without hurting your finances, and if it falls more then buy some more, keep buying more when the price is dropping. It is obvious that when the drop stops, it will not continue to go down and the only direction is higher to our profit and that's how I made my profit. So, if you see bitcoin price crashing, do not be sad, be happy, most newbies are sad to see it go down.

Maybe your money is unlimited so you can afford to make purchases when it goes down and down again. But not all traders are like you, let alone a beginner.

It is natural for a beginner to make mistakes, because they are still in the learning stage. I've been trading for almost 7 years but sometimes I also have mistakes. I just continue to minimize mistakes by continuing to learn to do analysis. In addition, psychology determines that you will become a great trader if you are able to have fundamental technical analysis followed by good emotional management.

[SquallLeonhart]

There's a lot of mistakes when it comes beginners, wherein making mistakes decisions because of emotions and because of being greedy reason sometimes they missed the big opportunity. Actually these was base on my experience and i know all of the beginners experienced such mistakes as well.. For me the best way to avoid mistakes, is to educate more our self because on that way we can really tell that everything will gonna be alright, unlike being lack of knowledge while trading because it can cause losses always.. Being smart is a big advantage.. So don't rely what you have right now wherein keep searching for new information that can help you to solve the problem in trading if you really care in your money..

None of those things are because someone is a newbie, that happens with veterans as well. Depends on the level, I have seen newbies who know more about finance then many year veterans, and seen veterans who are still not good at trading compared to newbies, it is a bit about someone's understanding of finance world as well. I have been here for so many years and I still do make mistakes you named time to time.

Greed is in human nature and ignoring that is not something some people can do for example. However, great thing about crypto is that if you are greedy in crypto, you are still playing the same game and you will not be given any special help, unlike in fiat world where greedy bankers can either make money or get bailed so no loss for them.