Beginner mistakes and how to avoid them

[alik111]

The most important point is to learn the deep about crypto trading and using stop loss in every trade. I have been liquidated many times because I never used stop loss in the past. Now I am aware. Always know that every trade will not go on the right way and anytime market can be crashed. So using stop loss is a very important matter to trade crypto professionally.

[Nrcewker]

Basic beginner mistake is that lack of knowledge. When someone hears the term trading, they think of only making money. But the harsh reality is that, in order to make money you need to make profits and to make profits you have to keep knowledge about the market and the coins. But many beginners don’t have patience and they directly invest without proper researching and knowledge. And then after investing on the coin they research whether it will increase or not and later regrets on this decision. These are some of the big mistakes that all newbies and beginners need to avoid.

[Litzki1990]

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,

Success cannot be achieved by having a large amount of money. What is the use of more money without investment ideas. A person who has enough knowledge about investing even if his money is relatively small, still he knows about the market and he knows when to invest and when not to invest.  Because he has an understanding of these things, he is more likely to succeed in whatever amount of money he invests.  Since he is more likely to succeed, he will be able to convert his relatively small amount of money into more money. 

But even if a person has a large amount of money, if he has no idea about investing, he is likely to lose money instead of increasing it by investing. So in my opinion it is more important to have enough ideas than to have excess money.

[Findingnemo]

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?

First of all doing trade with $1000 and $1M is entirely different and ofcourse trading with huge capital has its edge but someone with small capital has to stick with their own strategy instead of following the popular traders who is dealing in millions.

I would like to suggest that avoid doing day trading with all of your crypto trading capital because as we know day trading is highly risky so we don't have to put all the capital into high risk.

Keel the things simple will actually help us to get better results than instead of applying strategies, analysis, indicators,etc.

[MFahad]

Yes having large sum of money does not implies to the fact that you will be able to earn more but instead of this you will loss more if the market is not well for you. Having large sum means great trouble and having low sum invested means low trouble and also enhance your knowledge prior to the trading. Setting stop loss can minimize your losses and you will not face any consecutive failure. Trading plan is necessary because if you don't have any plan then I don't think that you will perform well because if a person does not have think about destination then how he will try to achieve that successful destination.

[usekevin]

Mistake at the beginning of the trading is the common one,you should use it as the opportunity and learn more from it.The basic thing to the beginners is holding at the hard times and in the bear market.Many people with less experience in the trading will sell at the beginning of the bear market.They also sell when the small pump is happen and never ready for the big rise in the price of the invested coin.Learn about the trading in you tube or any social media and apply the trading principle with the minimum money as the capital.Directly inverse without investing in the crypto currency leads to the big loss.So you need to avoid such things.

[blockman]

Futures.
Newbies do think that futures are easy and everyone can do it. No, it can't be for everyone and it's not for everyone. Futures are high risk just like spot trading but the risk there is more than what you can expect and can trigger you once you start seeing those profits being done by the others.
That's why the encouragement is high when you get to see others doing well in futures but, don't be too inspired by them because they mostly show their wins and not losses.

[Stable090]

The most important point is to learn the deep about crypto trading and using stop loss in every trade. I have been liquidated many times because I never used stop loss in the past. Now I am aware. Always know that every trade will not go on the right way and anytime market can be crashed. So using stop loss is a very important matter to trade crypto professionally.

Some newbies are making mistake of starting how to trade with future trading, if you want to learn how to trade it’s better you start with spot trading, you shouldn’t be in rush to make money, it’s easier to lose money in future trading compare to spot trading. If you are in rush to make money in cryptocurrency, then you Will easily lose money.

Stop lose is important but I don’t think it’s mandatory, some people don’t really like using stop lose in their trade, some people believe immediately their stop lose have been triggered in a trade, the market always bounce back, so they don’t use stop lose. But as a newbie it’s a good idea if you make use of stop lose in your trade, but also newbies should avoid future trading.

[tjtonmoy]

if anyone have more to add, so I can also learn?

Emotions, first thing that comes to my mind is having control over emotions. If anyone asks me about learning trading, first I will ask them if they have the will to rely on data analysis and strategy rather than taking decision based on their emotions. This is a very important thing in trading, which many people ignores, thinking that it's not that important. This is the reason why they face those problems which you have mentioned.

Also when learning trading, you should always start with low amount. Try out your strategy and skills, and then go for the big round.

[GeorgeJohn]

What I want us to understand in trading is that no mistake is newbie mistake, maybe what you isolate in trading is what another person will come in contact and the person refused to be victim in trading,  so I believe that trading have to deal with different strategies if you really want to make your own profits,  so what I'm trying in nutshell, is that you have to understand the scope of Trading and master the system with your mistake,  because its obvious that if you are try avoid all the mistake that you may encounter during trading you might end up in making huge losse, its obvious that you have to derived your methods of trading.

[suzanne5223]

I don't if anyone have more to add, so I can also learn?

Yes, good management is needed to thrive in the crypto space and so is the security of holding from online theft. However, the only will make wrong in what you write is trading which is also what I want to add because crypto trading is not meant for everyone especially newbies until they have concrete knowledge about crypto trading it's better for newbies to start with strictly long-term investment in Bitcoin.

[martyns]

if anyone have more to add, so I can also learn?

Emotions, first thing that comes to my mind is having control over emotions. If anyone asks me about learning trading, first I will ask them if they have the will to rely on data analysis and strategy rather than taking decision based on their emotions. This is a very important thing in trading, which many people ignores, thinking that it's not that important. This is the reason why they face those problems which you have mentioned.

Also when learning trading, you should always start with low amount. Try out your strategy and skills, and then go for the big round.

Your own contribution is really nice too,the little I want to add is that so many beginners don't like making research before engaging into trading.Research gives you the opportunity to know the type of coin you will invest in,it also gives you the opportunity to know whether the coin will grow or not,it also make you to know the different seasons that the market is favourable and when it is not,it also gives you the ample opportunity to know projects that will do well in the nearest future and the one that will be a waste of resources.These and many more are what research does.Most of the beginners who end up losing multiple times normally fall victims of this mistakes.

[kingvirtus09]

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.

The use of scalping methods is not advisable for newbies, if those are long-term traders who have difficulty with this method, especially those who do not have enough knowledge of crypto trading.  The money used here will quickly disappear if this is their way of trading. It is really necessary to have a well-informed idea and knowledge so that the capital that will be used here is not wasted.

[goaldigger]

There’s always a beginners mistakes, and you can’t avoid that even if you know what to do.
There are cases where emotions are stronger than you, what you can do is to learn from it and adjust your strategy accordingly. I also don’t like over trading, because I have my target profit everyday and if I hit it already, I stop trading and focus more on other things, by doing this you are discipling yourself to be a more responsible trader.

[Rengga Jati]

... 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..

Managing funds is exactly very important in trading. We may not deny that higher capital may let us earn higher gains or profits. But this also requires higher risks of losing higher money. This will definetely depend on our skill and ability of trading, not only based on trading strategy but also controls of our emotions and funds. But generally, in facy, most newbies are lack of these. So, they may not be able to control and manage their capital money and head to lose much.

I do agree that mistakes made by newbies are actualy quite similar from time to times. Althiugh there are many lessons shared here about trading strategy for beginner, not all newbies are willing to read and learn. They focus more on trial to earn much more money without thinking about money management and trading strategy very well.

[Unbunplease]

In order to avoid mistakes as much as possible, you should start by simply observing how experienced traders operate. Then you need to analyze various strategies and choose the most appropriate one for your trading style. Of course, it is necessary to understand that it is impossible to avoid mistakes completely

[Woodie]

Lack of trading plan, Over trading, trading without a stop loss are some of the problems not only newbies face today even Experienced traders suffer from these mistakes!

But I think the main reason that causes all this is inexperience, traders want to dive right into the deep end without having to experience what the waters feel like by going into the baby pool which can be mimicked by using a demo account, which can allow you to get a real life experience and allow you to feel the emotion of trading and the alike, and once you put your strategy together you will definitely trade with the confidence and edge without having to worry about previous mistakes or having heavy loses.

[Mahanton]

In order to avoid mistakes as much as possible, you should start by simply observing how experienced traders operate. Then you need to analyze various strategies and choose the most appropriate one for your trading style. Of course, it is necessary to understand that it is impossible to avoid mistakes completely

Doesnt really need to observe out experienced traders but if you do find that you do have some hard time on making on your own, then getting or snipping out some ideas from older traders or experienced
ones is considerable or something that viable to do so as long it does benefit you out positive then go ahead and improve and getting some ideas as much as you can but on the time that you could
see that you do able to stand your own then its a must thing to consider. Strategy making does involved lots of trial and error which is something
that you would really be needing to mold up.

Lack of trading plan, Over trading, trading without a stop loss are some of the problems not only newbies face today even Experienced traders suffer from these mistakes!

But I think the main reason that causes all this is inexperience, traders want to dive right into the deep end without having to experience what the waters feel like by going into the baby pool which can be mimicked by using a demo account, which can allow you to get a real life experience and allow you to feel the emotion of trading and the alike, and once you put your strategy together you will definitely trade with the confidence and edge without having to worry about previous mistakes or having heavy loses.

Everything would be needing a plan or target which it does really need up to be thinking up on how its been done or on how it would be executed on whatever analysis that you had mold up.
Most beginner mistake is on making use of higher leverage or simply doing futures without having any experience on spot because they are really that hurrying up themselves
on making some profits without even trying out to consider on whats the risks involved. SL's is suggestable but if you are really that making
some short trades then its not bad to not use at least.

[Faisal2202]

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

Agreed, these three were the main flaws in my trading back in time. Like at first i spent around 40$ dollars on gala token and booked only 1$ to 2$ maybe. after that i bought a token based on ETH, i think it was, DYDX which i bought when it was on it's ATH this was my first mistake-->Lack of trading plan. Second i started to do future even i have no knowledge of trading i just saw a friend making money in future and i got excited and started only with $10 and lost $5 at first trade then i make again $10 with my $5. And then i lost all of it again. why -->Failure to use stop-loss.

So after learning i should use stop loss i started with $30 dollars and started to make like $1 or $2 dollars almost for 2 to 4 days, actually my leverage was low, so i thought with such low leverage i cannot make more money then $1 or $2 so i started to make more trades,-->Over trading and i made $9 in the first day and then $15 on the other day. On the second day, i thought i should trade again so i invested 50% of my money in and saved 50% to increase liquidation price and this was my biggest mistake, and lost all of my money in that trade even the 50% (to increase liquidity). After that i never do Future trade. You points are so generic and as a newbie we should keep them in mind.

[death69]

That rookie blunder: assuming mondo bucks guarantee mondo success. It's like equating a massive noggin to Einstein-level smarts. Newsflash: nope.

Back in my greenhorn days, I thought I was the bee's knees 'cause my account had some extra goose eggs. But when I got serious about my game plan and self-control, that's when the magic happened.

And on the topic of game plans, you're nailing it, bro. Over trading's like scarfing an entire pizza solo: seems rad in the moment, but you'll be hating life later. Flying blind with no plan is like driving a car