Beginner mistakes and how to avoid them

[touseefahmad1999]

Those are some great tips for avoiding common mistakes in crypto trading. Here are a few more:

Emotional trading - it's important to not let your emotions, such as fear or greed, dictate your trading decisions. Stick to your plan and avoid impulsive decisions.

FOMO (fear of missing out) - don't jump into trades just because you see others making profits. Do your own research and make informed decisions.

Ignoring market trends - it's important to keep up with market news and trends, and adjust your trading strategy accordingly.

Poor risk management - it's important to not risk more than you can afford to lose, and to diversify your portfolio to minimize risk.

Overall, the key to success in the crypto space is discipline, patience, and a well-thought-out trading strategy. Good luck with your trading!

[Aanuoluwatofunmi]

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

It's not all about limiting it alone, an experienced trader must know when to stop or continue in trading each day because there are times where it may look more difficult to realize something better from the signals seen but immediately after some minutes or lately in the day, things can suddenly change for good and better that may warrant taking another trade for the day which may be the most profitable one of it all.

* 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.

Before one cab begin a bitcoin trading, such person needs to make some findings about trading, learn the trading patterns a d research on many available materials to help your trading experience and give it the quality time it needed, you also need to speculate bitcoin price than you fo before.

[GiftedMAN]

First off, you need to understand your aim of trading before you begin to trade and in understanding what trading is all about you must have gotten a good knowledge on trading I believe without having a proper knowledge on trading the trader is doing nothing but gambling.
I disagree with the first point of the op as a mistake in trading,

* Over Trading: There is nothing like over trading when one is ok with what he's doing especially an experience trader that has no limit to the profit he's making during trading, the only time I think one needs to stop trading is when the market is not favourable to you or when your losing back the profits you made in a particular day else it is not a mistake if someone choses to trade for a whole day in as much as your making profit. The main function of stop-loss in trading is to limit (stop) a trader from losing above the limit he or she is willing to lose in a trade it is created to stop one from trading even when one is making profit.

[ethereumhunter]

Not having a trading plan should also be avoided because we won't be able to get much profit, especially if the market immediately reverses. This often happens when trading because the market never tells us when the time changes. Maybe there are specific signs that we must find, so this requires a better ability to analyze.

Don't think we can take a lot of profits because when we think so, the market can immediately drop and eliminate our opportunity to take profits. Most traders are so greedy in taking profits that they miss the opportunity and regret it.

[cydrix]

The most frequent error made by beginners is ignorance. People typically associate trading with generating money when they hear the term. But the hard truth is that in order to earn money, you must turn a profit, and in order to turn a profit, you must remain knowledgeable about the market and currency. However, many newcomers lack patience and invest right away without conducting any study or having sufficient understanding. After making an investment in the coin, people examine whether its value will rise or fall and afterwards second-guess their choice. These are some of the major blunders that all novices and beginners must steer clear of.

[freedomgo]

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.

These are really useful tips. I believe if you are a good and successful trader, it means that you are trading following on the positive tips and never entertain those who only bring out negativity. By having patience and no amount of greediness, which means you separate your emotions when trading, that will help you to focus on your target in trading without being bothered by any negative emotions. Since trading is never easy, so you should learn to be more patient on whatever your trading outcome and always trade on a minimal amount, those are some way to help you stay in a safe zone.

[Kelvinid]

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?

These are just some reasons but the mean reason why a newbie usually had fail is because of uncontrollable emotions.
Because even you have a concrete plan and use effective strategies but if you were still get affected easily by the FUDs and negative news, I was certain that you will get out of focus and in your plan. You will go in a different direction because what it dictates to you now is your mind, not the plan that you have set. Experience will teach everything and mistakes will then open our mind where we got wrong. So, don't get afraid of losing because this will lead us the way to improve ourselves

[AmoreJaz]

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.

These are really useful tips. I believe if you are a good and successful trader, it means that you are trading following on the positive tips and never entertain those who only bring out negativity. By having patience and no amount of greediness, which means you separate your emotions when trading, that will help you to focus on your target in trading without being bothered by any negative emotions. Since trading is never easy, so you should learn to be more patient on whatever your trading outcome and always trade on a minimal amount, those are some way to help you stay in a safe zone.

scalping indeed is for experienced traders. because one mistake and your profits will be gone. so trade using your extra money and start small as much as possible.
greed is the common cause of trading failure, but i guess, we are guilty of this at one point. but we learn our mistakes, and sometimes an expensive mistake.

[Finestream]

Not having a trading plan should also be avoided because we won't be able to get much profit, especially if the market immediately reverses. This often happens when trading because the market never tells us when the time changes. Maybe there are specific signs that we must find, so this requires a better ability to analyze.

Don't think we can take a lot of profits because when we think so, the market can immediately drop and eliminate our opportunity to take profits. Most traders are so greedy in taking profits that they miss the opportunity and regret it.

Just stick to your trading plan, and learned to be more flexible when sudden market factors affect its behavior. Otherwise, if you trade without analyzing the market well, you might get caught losing because you were driven by your greed in trading. And always have self-control no matter what. Learn to address your emotions well, and if possible, never trade when your emotions are not stable because surely you will only be affected by it.

[GreatArkansas]

(....)
* 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?

I can relate to this during my early days in trading. I already realized it very late before. The feeling is really different when you start trading especially you're new to it.
So, it must be always for beginners to have knowledge first or learn every basic first before opening their first trade because there is already money involved here.

[irhact]

scalping indeed is for experienced traders. because one mistake and your profits will be gone. so trade using your extra money and start small as much as possible.
greed is the common cause of trading failure, but i guess, we are guilty of this at one point. but we learn our mistakes, and sometimes an expensive mistake.

Why should scalping be mentioned to beginners when professionals also fail due to one mistakes trade and loss all or majority of their profits. Scalping should only be done by those that have mastered it from their years of trading. There are so many mistakes a newbie can make but he shouldn't get himself trading through scalping, the volatility of the market can cause big losses.

Beginners have to understand one important point, mistakes are okay as they can teach you more valuable lesson more than anybody else or your wins. But we shouldn't make mistakes that are too expensive which is why we have to keep our capital on a low risk amount so it doesn't bother us much if lost.

[Rupok]

The reason beginners make mistakes is that they get too excited about anything.Their motivation to earn money is very high.  But they don't know that there are many strategies to be adopted in trading.Newbies actually treat trading like gambling, they think they can make more profit with less investment.  They don't focus on trading portfolios. Everything is just for money, not for experience.However, it is very common for beginners to make mistakes in cryptocurrency.  At first we also made many mistakes, but later we learned and gained experience.

[justdimin]

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.

That is true, just spending the money you have to cover the losses is not a good way of neither starting or the rest. It is better to make sure that you make as little mistakes as you can and you could spend a lot less per trade if you are unsure about it as well.

I personally do not put that much into crypto at this moment when trading, my trades are less than 100 bucks which is fine for me, and I aim at making 3-5% profit each time as well. That may look like a very little amount, but when you are trading dozens of pairs and you can make that per day, suddenly it becomes a lot more bigger. Imagine being able to make 5% profit per day, that would be insane return right? I am not doing that of course, but I aim at that, because 5% profit per bet is more likely than 100% at least.

[xSkylarx]

The reason beginners make mistakes is that they get too excited about anything.Their motivation to earn money is very high.  But they don't know that there are many strategies to be adopted in trading.Newbies actually treat trading like gambling, they think they can make more profit with less investment.  They don't focus on trading portfolios. Everything is just for money, not for experience.However, it is very common for beginners to make mistakes in cryptocurrency.  At first we also made many mistakes, but later we learned and gained experience.

One also of the common mistake was they are hastily learn trading like in just one night and will jump to trading immediately without any strategy. They are very greedy to gain profit immediately and not knowing the fundamentals of it that is why others a losing a lot and will then quit as they cant take it that they are losing. That is why patience and be knowledgeable on something so that you'll be successful

[lixer]

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.

Experience is important in so many things not only in trading so I think each newbie know it already. Other than experience, studying or learning is also important and it must be the first thing that a newbie must do before engaging in trades but we all know that it wasn't the case that happens but newbie usually start trading before learning although they can still learn and gain experience from their mistakes and there is still a chance for them to correct it.

There are many ways to earn a crypto but no doubt that trading and investing is currently at the top. Trading is only a little difficult than investing but it have an advantage and that is you can make profit quickly.

[Hypnosis00]

The reason beginners make mistakes is that they get too excited about anything.Their motivation to earn money is very high.  But they don't know that there are many strategies to be adopted in trading.Newbies actually treat trading like gambling, they think they can make more profit with less investment.  They don't focus on trading portfolios. Everything is just for money, not for experience.However, it is very common for beginners to make mistakes in cryptocurrency.  At first we also made many mistakes, but later we learned and gained experience.

One also of the common mistake was they are hastily learn trading like in just one night and will jump to trading immediately without any strategy. They are very greedy to gain profit immediately and not knowing the fundamentals of it that is why others a losing a lot and will then quit as they cant take it that they are losing. That is why patience and be knowledgeable on something so that you'll be successful

Because they think that trading is easy and profitable in the first place. They also think that even without a good knowledge of trading is still good enough. They assumed that everything is okay until such time comes that they discover how hard to adjust the market and make a profitable trade while at this time they just suffer losses.
That is why it should be encouraged that we don't underestimate the market. And being a beginner must not gain too much confidence instead, help ourselves learn more and accept advices from experienced traders.

[KingsDen]

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?

No matter the severity and length of advice that is given to a newbie, they must surely make the newbie mistake. That is why these days I give newbie advice without much expectations from them.
Yet, it is still  advisable to give these advices because they will still fall back to them when they make their newbie mistakes finish.
Op, include revenge trade. This is a powerful means through which newbies can blow their portfolio.

[Rockstarguy]

* 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.

Some people believe if they overtrade that is when they will make more profits but it is unfortunate that trading is not like that, if one really wants to make profit in trading greed(overtrade) should never be considered.  This is mistake taken by some traders has really lose good amount of money in trading,  it is important to have limits in trading,  and not to force profit from trading by overtrading . This is one of the common risk in trading that needs to be avoided.

[ethereumhunter]

Not having a trading plan should also be avoided because we won't be able to get much profit, especially if the market immediately reverses. This often happens when trading because the market never tells us when the time changes. Maybe there are specific signs that we must find, so this requires a better ability to analyze.

Don't think we can take a lot of profits because when we think so, the market can immediately drop and eliminate our opportunity to take profits. Most traders are so greedy in taking profits that they miss the opportunity and regret it.

Just stick to your trading plan, and learned to be more flexible when sudden market factors affect its behavior. Otherwise, if you trade without analyzing the market well, you might get caught losing because you were driven by your greed in trading. And always have self-control no matter what. Learn to address your emotions well, and if possible, never trade when your emotions are not stable because surely you will only be affected by it.

And don't forget to use the money you can't afford because many people will use the all-in method when trading, especially when they feel confident about the analysis results. Having confidence in the analysis results is okay but we also have to be aware that the market can change direction instantly and if we don't have a backup plan, we will lose. And when we lose, our emotions will increase; if we lose control, we will lose more. Trading is not easy because we have a lot to prepare.

[yudi09]

* 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,

Risk management must be well mastered by a trader. Likewise with other technical mastery that has to do with trading.

For me, overtrading, trading plans and stop losses will be mastered when someone who wants to do trading work is willing to explore knowledge by learning about basic tips and so on which are the main capital, whether the activity is carried out individually or working under the control of a company.