Beginner mistakes and how to avoid them

[Kara3]

Most of the newbies in crypto space believe once they have a large capital they will definitely succeed in the crypto space, but they are wrong, not knowing that if you can't grow/manage a small account, you can't grow/manage a big account either, their are common mistakes they usually make an I will be giving out tips on how to avoid them,
* Over trading-- it's very important for a day trader to limit the number of trade he/she took in a day.
* Lack of trading plan-- develop a strategy an stick to it, do not ever enters a trade blindly, if not the market will remove you blindly.
* Failure to use stop-loss-- to me it's the most important thing I do while trading, an it's always close to my entry price, I do it that way so that if the trade didn't go as planned, I won't lose more than 10% of my margin.
I don't if anyone have more to add, so I can also learn?

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[seleme]

Overtrading is a big problem for newbie traders who think it is better to scalp on small volume pairs rather than chase a big trend. Sometimes it works but after paying so much commission to brokers they understand something is wrong and decide to change their trading style. If the trader has no trading plan, it becomes gambling which can lead to a burst account balance sooner or later, from my personal experience. Using trailer stops on profit zones and having pre-determined stop loss zone will save traders with experience in this field, IMO.

[Nwada001]

Another thing you need to add is self-control. There is one thing I have noticed regarding trading, whether futures trading, day trading, or even the forex market. 

One just needs to have his targets mapped out for the day, and once those targets are reached, you stop and close for the day regardless of whether your trade is on the positive or negative side. When most newbies are losing on trades, they get so emotional that they can't even control their anger. They just keep on trading without proper analysis of the market because they want to gain back all that they have lost, which ends up putting them at greater risk. 

My advice is that once you enter any trade and you happen to notice that your strategy is not working for you that very day, you stop for the day and take a rest, so as not to increase your chances of losing your entire fund. Which might even turn you to be looking like a gambling addict.

[sheenshane]

* Over trading
* Lack of trading plan
* Failure to use stop-loss

It seems all these components have one source and it's "knowledge".
This is very important in trading so that you can execute very well and have minimal losses.

Those traders who didn't use stop-loss orders may also be more likely to engage in emotional trading, as they may be more inclined to hold onto losing positions in the hope of a market reversal.  It should also monitor their stop-loss orders regularly and adjust them as needed based on market conditions.

Another is to develop your trading strategy, it can help you stay focused, avoid impulsive trading decisions, and increase your chances of success.
If you don't have all of these, it's hard to deal with the market movement.

[Stable090]

Most of the newbies in crypto space believe once they have a large capital they will definitely succeed in the crypto space, but they are wrong, not knowing that if you can't grow/manage a small account, you can't grow/manage a big account either, their are common mistakes they usually make an I will be giving out tips on how to avoid them,

I do encourage people to start small in cryptocurrency, everything is not just about money, you just have to understand the fundamental of trading before starting, if you are planning to trade with large capital and you don’t understand the fundamentals, don’t be surprise that you will lose all the money. It’s not about starting big, it’s all about you knowing what you are doing, you might start big and lose all your money and you might start small and grow your account, it’s about you investing big, it’s all about you knowing what you are doing.

* Over trading-- it's very important for a day trader to limit the number of trade he/she took in a day.

If you are a beginner and you open too much trade, then you get confused at the end you end up losing money in all the trades, you shouldn’t be too desperate to make profit, it’s not all about you opening multiple trade, you can open a trade and make Good profit and if you open multiple trade you will endup losing money. Just make sure your analysis is right and focus on just few trades you can manage.

* Lack of trading plan-- develop a strategy an stick to it, do not ever enters a trade blindly, if not the market will remove you blindly.

Newbies lack trading strategies, that’s why some of them are always ending up looking for trading signals, some of them don’t really know anything about trading before they start trading, their are lots of signal providers now, so they are being deceived by those people. Some traders don’t know anything about trading and they are not ready to learn, they just want to make money, if you don’t have strategy you will be losing money.

* Failure to use stop-loss-- to me it's the most important thing I do while trading, an it's always close to my entry price, I do it that way so that if the trade didn't go as planned, I won't lose more than 10% of my margin.
I don't if anyone have more to add, so I can also learn?

Stop-loss is good but not mandatory, if you believe in your analysis and you will be online to monitor your trade then it’s not mandatory to use stop loss, but if you are the busy type then stop loss is not really a bad idea, and also i do recommend newbies to use stop loss, it will help them cut their lost incase if their analysis is wrong and the trade goes against them.

[Dr.Bitcoin_Strange]

OP, I think the first mistake beginners make is not really having a defined knowledge of trading before they put in money to trade, and secondly, not knowing how to manage their losses before starting. Also, seeing trading as a major source of income to only rely on is a mistake newbies can make.

When they are pushing too hard to make profit every day, they encounter losses, which will lead them to over-trade like you made mention of over trading, and at some point they are not going to make the right decision for the trade as they will just be focused on making the profit and covering losses that have encountered. A newbie who has not yet developed their skills on how to handle losses can suffer countless losses.

For example, a friend invested $500 into trading, at some point he was only left with $200 due to losses, so he just came up with the decision to trade with all the remaining $200, saying "he doesn't care if that remaining fund is gone as well." Trading is not gambling, so it should not be treated as gambling, just as some newbies do.

[SquirrelJulietGarden]

* Over trading-- it's very important for a day trader to limit the number of trade he/she took in a day.

Over trading including over doing this when you are in a win streak or revenge trading when you are in a lost streak. Both over trading types are bad as it will cause you future losses.

* Lack of trading plan-- develop a strategy an stick to it, do not ever enters a trade blindly, if not the market will remove you blindly.

Making your trading plan is good but not all plans are good. So you must be flexible to change your plans when you see they are bad, close your plans instantly and take a break to think of what are wrong before you can learn  more, make better plans.

Don't over making plans too.

* Failure to use stop-loss-- to me it's the most important thing I do while trading, an it's always close to my entry price, I do it that way so that if the trade didn't go as planned, I won't lose more than 10% of my margin.

It should be Ignore to use stop-loss, not Failure to use stop-loss.

If you reject the idea to use stop loss, you accept risk to lose capital.

Failure of stop-loss barely occurs but it can appear if the market has very big change with Cascade effects make stop loss fails to fulfill its function. You can use Stop limit order to reduce Cascade effects.

What is a stop-limit order?
One of best weapons in trading (Stop loss order).

[yhiaali3]

For me, my advice to beginners is to trade in the long term and stay away from scalping until they have a good experience in trading.

Patience and not being greedy are also important tips. These negative traits are the main reason why many novice traders lose.

In any case, beginners should not enter into large deals at the beginning, and it is always better to enter with what they can afford to lose.

[adaseb]

With crypto there are many mistakes a new person can make. The largest is not keeping your funds safe in cold storage. Many people get their funds stolen because they keep it in a hot wallet and on Windows 10 which is full of bugs. They get it stolen even without downloading anything fishy. Hence why you need a hardware wallet to protect yourself.

Another issue is that they invest in way too many scams. Nobody wants to invest in bitcoin because the gains won't be 100x. So they invest in alt coins like Pepe and they are surprised that they end up getting rugged. And lastly the worse is leverage. Many people shouldn't be trading on 100x or 50x leverage. The markets are way too volatile and its easy to get wicked out in minutes with that leverage.

[michellee]

Having large capital does not guarantee that they will succeed in crypto because it depends on how good their skills and expertise are in trading. Apart from capital, one must also be able to control himself in trading so that when the market changes direction, he will not panic and can adapt to the market.

And our concern is only to use the money we can afford in trading so that if we experience a loss, the loss will not be too much. Don't trade if you have doubts about entering the market because it usually won't go well, so you better take a look at the situation first.

It is important to learn to trade more than anyone else so you can analyze the market before entering it.

[monineklutak]

For me, my advice to beginners is to trade in the long term and stay away from scalping until they have a good experience in trading.

Patience and not being greedy are also important tips. These negative traits are the main reason why many novice traders lose.

In any case, beginners should not enter into large deals at the beginning, and it is always better to enter with what they can afford to lose.

It's really important for beginners to gain experience because sometimes they don't realize how important it is,
trading or investing long term is indeed the best option and Bitcoin is the right coin for that,
the most important thing is always learning both in knowledge and skills.

[John Abraham]

You pointed out some good points. But it always amazes me when I see Newbies show up with the details of what mistakes newbies should avoid. Well, your forum rank doesn't define your trading experience. But, I would like to see such advice from more veteran traders. I am sorry if you are an experienced trader. The points you mentioned are good but can you explain the solutions as well?

If you are a professional trader, you must have a limit and target for each day unless there are some special events in the crypto market. You shouldn't go beyond the limit. About stop loss, sometimes it depends on greediness. Sometimes people want to see if market bunch back from the downtrend. They want to recover it in the same session. Which is why they end up getting liquidated.

[Kara3]

You pointed out some good points. But it always amazes me when I see Newbies show up with the details of what mistakes newbies should avoid. Well, your forum rank doesn't define your trading experience. But, I would like to see such advice from more veteran traders. I am sorry if you are an experienced trader. The points you mentioned are good but can you explain the solutions as well?

If you are a professional trader, you must have a limit and target for each day unless there are some special events in the crypto market. You shouldn't go beyond the limit. About stop loss, sometimes it depends on greediness. Sometimes people want to see if market bunch back from the downtrend. They want to recover it in the same session. Which is why they end up getting liquidated.

You made a good point here, my rank in this forum shows as a newbie because just got into the forum last month, when a friend of mine told me about this forum an how I can learn more things here, but I really do have a bit of experience in trading, because I trade daily in my binance account.
This forum is really worth the hype because I find it so educative for the past month I have engage in it.

[Vaculin]

For me, my advice to beginners is to trade in the long term and stay away from scalping until they have a good experience in trading.

Patience and not being greedy are also important tips. These negative traits are the main reason why many novice traders lose.

In any case, beginners should not enter into large deals at the beginning, and it is always better to enter with what they can afford to lose.

Not only for beginners, but definitely for all traders out there, we should always trade only on the amount that is still manageable to lose. Otherwise, if you let your greed motivate you and think that huge capital will also create huge profits, you will see yourself losing consistently. And for beginners, never believe that trading will make you rich instantly, of course you have to work hard for it and obtain significant knowledge and experiences so that you will achieve that certain phase in life.

[DevilSlayer]

Trading plan is very crucial, those traders who are entering without any sort of trading plan cannot be considered as traders because what they are doing is for gambling. They are hoping to win without any organized planning and for me it is the reason why they are consistently losing. Trading is not about luck, it is about probabilities and you can have your edge if you have organized plan that you can use in order to react when the opportunity comes. What is this organize planning that I'm talking about? For me an organized plan consist of knowing when you will enter, knowing how to spot a trend, knowing how to plot support and resistance, knowing when you will cut your losses, knowing how much money you will spend and lastly knowing what kind of strategy that you will use.

If you have these in your plan, then it is considered that you have organized planning. If you enter in a trade without a plan, it is considered as FOMO and FOMO is one of the factors why traders are keep losing in trading. In order to avoid it, you should have a organized plan that will guide you and help you to have wins in your trading career.

[palle11]

I don't think I need to add more to the points you made because the topic has been a public notice to trade with stop loss and not to over trade. I want to add something in the area of clearification of my understanding on the points you listed already.

* Over trading-- it's very important for a day trader to limit the number of trade he/she took in a day.

I think over trading is not only about how many trades that a trader enter in a day. I believe when a trader is doing high risk trading then he or she is over trading because at a little change in direction, the account of the trader can wipe off. So having a moderate number of trading and good money management, is right psychology for trading.

* Failure to use stop-loss-- to me it's the most important thing I do while trading, an it's always close to my entry price, I do it that way so that if the trade didn't go as planned, I won't lose more than 10% of my margin.

Keeping your stop loss close to entry price is good like you do because it doesn't eat up much of your balance when goes wrong but at the same time, that will also not give your trade space to "breath" and you will find your trade always logging you out in stop loss at little shift in your entry price. My suggestion is to have a certain measurement of percentage in risk for a trade you are taking.

[danherbias07]

Combining them all means we need deep research before jumping the gun. IMO, planning is one of the most important parts when you are trading, you cannot be arrogant just because you have enough money in your pockets and you can cover all the losses by using it. Planning everything will have an important role especially if you are following it in a disciplined way.
I am not a big trader and I only do manual trades by reading the historic movements of the coin I prefer but it had never gone to me to be greedy and not follow the road that I had already written. Once I see profit at the aimed timeline, I take it, with no doubts, and no regrets in the end. Get over it and find a new one.

[jeraldskie11]

* Over trading-- it's very important for a day trader to limit the number of trade he/she took in a day.

This is one of the reasons I was never profitable in trading. You will also get the impression that trading is simple as long as the setup entry is working. So, instead of being profitable, because you overtrade, the market recoups your earnings, and you may even lose money.

Most people can't monitor themselves when they trade, which is why they have many winning transactions but a negative port at the end of the month.

[ultrloa]

* Over trading-- it's very important for a day trader to limit the number of trade he/she took in a day.

This is one of the reasons I was never profitable in trading. You will also get the impression that trading is simple as long as the setup entry is working. So, instead of being profitable, because you overtrade, the market recoups your earnings, and you may even lose money.

Most people can't monitor themselves when they trade, which is why they have many winning transactions but a negative port at the end of the month.

Many people hype up trading as it is so simple way to earn money that's why some people creates wrong impression about it.  But when you start to trade you realize how hard to gain profit with this especially when you are new and doesn't know what to do on certain movements happen in the market. To win on trades we shouldn't follow other doing that over trading since if we settle up for profits we already seeing for sure we may became a profitable trader in the long run.

[gabbie2010]

* Over trading-- it's very important for a day trader to limit the number of trade he/she took in a day.

An experience or a very skillful trader always have a trading strategy that give few signals weekly obviously that will take care of over-trading of course the few A++ trades will yield reasonable profits if multiple entries and multiple exit is executed with a proper money management.

* Lack of trading plan-- develop a strategy an stick to it, do not ever enters a trade blindly, if not the market will remove you blindly.

It's a pity that some newbies dump trading strategies after one or two losses and jump into another strategy, there is no any Holy Grail or any perfect trading strategy, it's advisable to pick a strategy work on it.
[/quote]

* Failure to use stop-loss-- to me it's the most important

It's the most critical or complex part of trading stop - loss is a vital tool that is used to reduce risk thus a trader is expected to place the stop loss above resistance zone when selling and below a support zone when buying this also needed some experience in placing it.
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