Based on personal experiences in trading, personal research and observations, ive on my own personal terms, come to the conclusion that, there is two types of trader, and how risky trading be for an individual, depends largely on the type of trader such an individual is..
So without wasting much time, lets dive in..
My Two Types Of Traders Are -- The Awakened trader
- The Blind trader
The awakened trader is one who took their time to study all that there is to trading, including the rudiments, intrics and mechanics, they can read charts, they can effectively do technical and fundamental analysis, they know how important news drives the market and they follow news bumper to bumper.
I personally will chose to see trading as an art rather than science, art can be mastered, and so is trading, those who master the art of trading, we call them professional traders, trading is their profession, this is how they carter for themselves and their family, they are the awakened type of traders, there are very few traders in this category.
The blind trader on the other hand, are traders who guess-trade, they buy Bitcoin, not because they are sure it will go up in the next minute, but because they are hoping/guessing it will, some times, they guess right, but other times, their guess is wrong, trading is like sports betting for them, it is
BUY vs
SELL playing the match, they watch out for which side other people are contributing more to, are more people buying?, they will buy(FOMO), are more people selling, they will sell(FUD), they lack the will power to make there own original decision and stand by it, this is because they are not even sure of what they are doing, they are just guessing the market, this type of traders are the blind traders, there are very many traders in this category...
To upcoming traders, which category do you want to belong? its your decision to make.
But most times the Blind traders ends up making profit too, I know of many guess -traders that makes profit , but the issues is since they don't know the rudiments of the trade they won't know when to end the trade and most time it leads to the total loss of the currency,
If I am guess-trading I will bear in mind that the risk of loosing that money is greater and bigger than the risk of making profit so how ever the trade goes it doesn't come as a surprise to me.
But experience as you said matters alot whether you are a blind trader or awaken trader experience will always guide you to an extent on what to do in different situations.
