Mistakes to watch out for

[Yamifoud]

If a person is new to trading, he should not try future trading. Most novice traders are tempted to follow other traders in future trading. They think future trading is the same as spot trading but it is different.

If they are not careful and do not have sufficient skills to analyze the market, they will have difficulty and will panic when the market changes too quickly. Another problem with trading is that someone can become greedy and want bigger profits. He will not want to close his trade because he thinks the market will still move in the direction he wants.

One more thing that @OP should add is only to use money you can afford to trade. Most traders still use all-in to trade because they hear the news circulating. They think that market conditions will change soon so they can enter and make huge profits by going all-in.

Perhaps, they should know first the consequences of trading without sufficient knowledge. Sadly, with the influence of social media influencers pretending experts in trading, most newbies fall into traps.

We all come from newbies but this time with so many tutorials and advice, it was easy for newcomers to learn which will make them not totally newbies when they start trading. But what it makes difficult for them is to adapt to the situation and understand the behavior of the market. And most of all, the struggle to handle their emotions when crisis comes.

[1714652781]

1714652781

[taufik123]

-snip-
One more thing that @OP should add is only to use money you can afford to trade. Most traders still use all-in to trade because they hear the news circulating. They think that market conditions will change soon so they can enter and make huge profits by going all-in.

Not most or the majority of traders, but only novice traders who do not understand how to do good management and do not fully understand about crypto trading.

They are only dominated by the desire to win and end up being too greedy.
They keep putting money in and always buy, but when the highest target is reached, they don't sell it and hold it because they hope to get more profit.
This would be a perfect trap because they would panic when the price kept falling and eventually sell at a price below the first purchase and only get a loss.

[GreenStox]

One of the mistakes I do is to trade when a coin has increased significantly in price. If it has increased, I go on short position. This is also what I do if the market price of a coin has decreased significantly, I go long. The mistake is that the market will continue in the direction and no reversal sometimes.  I later used averaging with it and I gain than before but it is very risky.

or you can try the multiples theory, if the prediction you choose is wrong, you open a position opposite to the entry 2 times the previous one.
Of course this has risks, but the chance is the same, 50:50.

[so98nn]

One of the mistakes I do is to trade when a coin has increased significantly in price. If it has increased, I go on short position. This is also what I do if the market price of a coin has decreased significantly, I go long. The mistake is that the market will continue in the direction and no reversal sometimes.  I later used averaging with it and I gain than before but it is very risky.

I think this is more or less FOMO type of trading. One does this when they think if price has gone up then it may go up more so I must go and invest now so that if price goes even up then we might profit. But that's not how it works. To be honest if prices has risen for coins then they are already in the risk zone. There is nothing logical in investing coins that are hot already.

Peeps shall start buying coins when they are already inbred zone. Somehow it's uncontrolled purchases that are done during such FOMO period.

[Casdinyard]

I couldn't agree more with your first point. There had been a few times where I cowered and got scared of the situation that I cashed out too early. I guess it's just something that's in my nature but holy hell does it suck to always be wrong in my predictions. This coming bull run, I'm making it a point to keep at my spot trading/futures position according to my analysis and predictions, would trust myself more this time cause I feel like I do have a knack for trading, it's just that even I don't trust my predictions and inferences even though they are pretty much based on factors that are real.

Thanks for this post, much of an eye opener even for the peeps here who've been in this industry for literal years now.

[wxa7115]

I couldn't agree more with your first point. There had been a few times where I cowered and got scared of the situation that I cashed out too early. I guess it's just something that's in my nature but holy hell does it suck to always be wrong in my predictions. This coming bull run, I'm making it a point to keep at my spot trading/futures position according to my analysis and predictions, would trust myself more this time cause I feel like I do have a knack for trading, it's just that even I don't trust my predictions and inferences even though they are pretty much based on factors that are real.

Thanks for this post, much of an eye opener even for the peeps here who've been in this industry for literal years now.

We need to admit that sometimes the volatility that exists in this market is simply too much, and even experimented traders will find themselves doubting themselves if the market crashed unexpectedly and they were losing money at a rate they did not expect.

So as way to reduce that anxiety you could reduce the size of the positions that you open, as in this way even if the volatility was high, your losses will not be as significant as before and it will be easier for you to hold your coins.

[Aanuoluwatofunmi]

One of the mistakes I do is to trade when a coin has increased significantly in price. If it has increased, I go on short position. This is also what I do if the market price of a coin has decreased significantly, I go long. The mistake is that the market will continue in the direction and no reversal sometimes.  I later used averaging with it and I gain than before but it is very risky.

or you can try the multiples theory, if the prediction you choose is wrong, you open a position opposite to the entry 2 times the previous one.
Of course this has risks, but the chance is the same, 50:50.

That one chance is what many traders don't want to miss opportunity with, we are trying to by all means avoid any chances of making a mistake while this alone could resulted to one if what we planned did not work out as expected, we all try to trade and avoid the risk but sometimes this must be included because the more we wanted it right the more the risk in demand towards it, these are some of the challenges traders fall under.

[AicecreaME]

One of the mistakes I do is to trade when a coin has increased significantly in price. If it has increased, I go on short position. This is also what I do if the market price of a coin has decreased significantly, I go long. The mistake is that the market will continue in the direction and no reversal sometimes.  I later used averaging with it and I gain than before but it is very risky.

I definitely agree with this.

And when your prediction even with technical analysis went wrong because the market is not on your favor, irritation, and being frustrated will give you so much error in your next trades. This is where you're going to chase your losses, which is very dangerous, since you'll think that there's no need for technical analysis anymore because either way, you still going to lose your trade, therefore you just randomly make a trade and rely on your luck.

And the ending will always a big disaster for you funds.

[Sanitough]

-snip-
One more thing that @OP should add is only to use money you can afford to trade. Most traders still use all-in to trade because they hear the news circulating. They think that market conditions will change soon so they can enter and make huge profits by going all-in.

Not most or the majority of traders, but only novice traders who do not understand how to do good management and do not fully understand about crypto trading.

They are only dominated by the desire to win and end up being too greedy.
They keep putting money in and always buy, but when the highest target is reached, they don't sell it and hold it because they hope to get more profit.
This would be a perfect trap because they would panic when the price kept falling and eventually sell at a price below the first purchase and only get a loss.

Most likely, those who put all-in to trade are definitely those who have no or less experience in trading as they're not fully aware on its consequences, but only focus on the thought that the more capital they will risk, the higher the chances to make huge profits regardless of their limited exposure in the trading market. That is most common on the beginner's point of views, the reason why novice traders often lose than win.

However, as they consistently trade and end up losing, they slowly realized that trading all-in do not fit in trading, or if ever if it works, only those professional traders are able to succeed on it and not those newbies in the market.

[tygeade]

I couldn't agree more with your first point. There had been a few times where I cowered and got scared of the situation that I cashed out too early. I guess it's just something that's in my nature but holy hell does it suck to always be wrong in my predictions. This coming bull run, I'm making it a point to keep at my spot trading/futures position according to my analysis and predictions, would trust myself more this time cause I feel like I do have a knack for trading, it's just that even I don't trust my predictions and inferences even though they are pretty much based on factors that are real.

Thanks for this post, much of an eye opener even for the peeps here who've been in this industry for literal years now.

We need to admit that sometimes the volatility that exists in this market is simply too much, and even experimented traders will find themselves doubting themselves if the market crashed unexpectedly and they were losing money at a rate they did not expect.

So as way to reduce that anxiety you could reduce the size of the positions that you open, as in this way even if the volatility was high, your losses will not be as significant as before and it will be easier for you to hold your coins.

Excellent point. The size of your trades is significant because if you are trading with an amount too small, you might lose interest and not care about the result. If you are trading with an amount too big to risk for you, then you are going to be driven by emotions and not the analysis.

Finding what's the right amount to trade is extremely important.

Similarly, what capital you are trading with also matters because again, too big a capital will make your nervous for the smallest movements and you are likely not able to apply the strategies you planned.

[Peanutswar]

When people join the crypto world or in trading, they make things too much need to concern and overthink too much reason their trades get ruined, better to take a risk on the things you think base on your guts and knowledge if have a good chance of winning if you doubt don't take it sometimes emotions are the reason why get too much carried out with the decisions. Based on my experience trading in make a trade you watch and don't get too carried away with people's decisions sometimes its looks like a manipulation only. At first, you are the one who makes the trade, decision, TA and analyzes it you take a lot of effort right there if you don't keep trusting your self I guess your not too formed to be a trader.

[taufik123]

-snip-
However, as they consistently trade and end up losing, they slowly realized that trading all-in do not fit in trading, or if ever if it works, only those professional traders are able to succeed on it and not those newbies in the market.

Continuously trading until in the end they experience a lot of losses because they do not have good management.
It should be that when there is a win when trading, there is a division of trading funds, so that not all funds are used, there are backups that will help repurchase.

Trading with the all-in method is a risky trade, let alone not having any strategy.
If they are lucky, of course they can benefit, but most who do the practice are beginners and in the end have to experience losses.
This is not just a matter of capital, but a matter of trading psychology as well.

Professional traders will also experience losses and will not always succeed in trading.
They also calculate the ratio of winning and losing percentages.
No perfect trader is always profitable.

[fauzan Ichsan]

Monitoring must be done in trading, but there are many types of traders who have their own methods, there are traders who are successful by placing pending orders after analyzing, and don't forget to place targets and stop losses, the rest they just need to monitor market movements once in a while and can carry out other activities. Of course, this will happen between making a profit or hitting the stop loss, and we can use the final result as material for correction

[Franctoshi]

One of the mistakes I do is to trade when a coin has increased significantly in price. If it has increased, I go on short position. This is also what I do if the market price of a coin has decreased significantly, I go long. The mistake is that the market will continue in the direction and no reversal sometimes.  I later used averaging with it and I gain than before but it is very risky.

I think this is more or less FOMO type of trading. One does this when they think if price has gone up then it may go up more so I must go and invest now so that if price goes even up then we might profit. But that's not how it works. To be honest if prices has risen for coins then they are already in the risk zone. There is nothing logical in investing coins that are hot already.

Peeps shall start buying coins when they are already inbred zone. Somehow it's uncontrolled purchases that are done during such FOMO period.

I blew several accounts during my early beginning in trading because of this,  FOMO in when the markets has already gone up without waiting and the worst of it is that the market usually pulls back to that point I initially set my entry. This is an issue most traders face and not basically that they are novice traders even some experience traders do this and this is because of emotion and high uncertainty in the market that at some point we don't want to miss out on some trades.

[Queentoshi]

if you can get a good entry point by letting the market come too you, even though you loss 60% of your trades, you will still be profitable because 1-3 risk reward ratio will be the least you will get from such entry.

I noticed something from looking at some of the signals sent by experienced traders, they were usually pending orders to execute a trade at a particular point. Is this what you mean by letting the market come to you? and entry point proficiency, because I can agree that pending orders can actually help a trader against loss when an unsure analysis is depended on.

Another mistake that traders should watch out for is setting their range for support & resistance too far away from the current trading price.

[wxa7115]

One of the mistakes I do is to trade when a coin has increased significantly in price. If it has increased, I go on short position. This is also what I do if the market price of a coin has decreased significantly, I go long. The mistake is that the market will continue in the direction and no reversal sometimes.  I later used averaging with it and I gain than before but it is very risky.

I think this is more or less FOMO type of trading. One does this when they think if price has gone up then it may go up more so I must go and invest now so that if price goes even up then we might profit. But that's not how it works. To be honest if prices has risen for coins then they are already in the risk zone. There is nothing logical in investing coins that are hot already.

Peeps shall start buying coins when they are already inbred zone. Somehow it's uncontrolled purchases that are done during such FOMO period.

I blew several accounts during my early beginning in trading because of this,  FOMO in when the markets has already gone up without waiting and the worst of it is that the market usually pulls back to that point I initially set my entry. This is an issue most traders face and not basically that they are novice traders even some experience traders do this and this is because of emotion and high uncertainty in the market that at some point we don't want to miss out on some trades.

This is a mistake that can happen to anyone, since even if experimented traders see that the coin in which they want to invest is moving upwards just because of the hype surrounding it and FOMO, they believe they can exit their position early and obtain some small profits with ease.

But if the market moves immediately in the opposite direction you will encounter a very difficult situation, which is to sell immediately for a loss or to hold hoping for a reversal, and in those circumstances it is very easy to think that a reversal is coming, but the best move is simply to admit we made a mistake and close our position for a small loss, because if we keep holding and the coin crashes then the losses will be too much for us to bear.

[fullhdpixel]

One of the mistakes I do is to trade when a coin has increased significantly in price. If it has increased, I go on short position. This is also what I do if the market price of a coin has decreased significantly, I go long. The mistake is that the market will continue in the direction and no reversal sometimes.  I later used averaging with it and I gain than before but it is very risky.

Yeah, entry and exit points are crucial for trading. I usually short when the market has sunk and long when the price is just continuously pumping because at some point, it will get corrected at least by a small margin.

I am still working on a few things:

1- Trying not to buy memecoins because as lucrative as they are, I haven't had any great experience yet.

2- Smaller profits are better than an emotional loss. Like if I miss out on a $100 profit and it moves down, I am likely to hold for too long and might end up in a loss. So I am building the mentality to accept $50 profit and move on.

3- Not every time I have to trade and this has been an issue for a long time.

[Natalim]

One of the mistakes I do is to trade when a coin has increased significantly in price. If it has increased, I go on short position. This is also what I do if the market price of a coin has decreased significantly, I go long. The mistake is that the market will continue in the direction and no reversal sometimes.  I later used averaging with it and I gain than before but it is very risky.

Yeah, entry and exit points are crucial for trading. I usually short when the market has sunk and long when the price is just continuously pumping because at some point, it will get corrected at least by a small margin.

I am still working on a few things:

1- Trying not to buy memecoins because as lucrative as they are, I haven't had any great experience yet.

2- Smaller profits are better than an emotional loss. Like if I miss out on a $100 profit and it moves down, I am likely to hold for too long and might end up in a loss. So I am building the mentality to accept $50 profit and move on.

3- Not every time I have to trade and this has been an issue for a long time.

We will be better and better as we continue trading and correct all the mistakes that we made. This is the reason why experience is the best teacher and we believe that committing mistakes is normal yet this will provide us with more ideas on how to manage our emotions in crucial situations and can solve them on time. We also find out that greediness is a huge factor in why many traders fail. Indeed, earning a small profit every day is more preferred than just earning one time weekly.

[benalexis12]

If a person is new to trading, he should not try future trading. Most novice traders are tempted to follow other traders in future trading. They think future trading is the same as spot trading but it is different.

If they are not careful and do not have sufficient skills to analyze the market, they will have difficulty and will panic when the market changes too quickly. Another problem with trading is that someone can become greedy and want bigger profits. He will not want to close his trade because he thinks the market will still move in the direction he wants.

One more thing that @OP should add is only to use money you can afford to trade. Most traders still use all-in to trade because they hear the news circulating. They think that market conditions will change soon so they can enter and make huge profits by going all-in.

Perhaps, they should know first the consequences of trading without sufficient knowledge. Sadly, with the influence of social media influencers pretending experts in trading, most newbies fall into traps.

We all come from newbies but this time with so many tutorials and advice, it was easy for newcomers to learn which will make them not totally newbies when they start trading. But what it makes difficult for them is to adapt to the situation and understand the behavior of the market. And most of all, the struggle to handle their emotions when crisis comes.

That's also what's sad because, often, since the social media platform is a trend, most crypto influencers are also deceivers. Sometimes I don't understand them all, but most of them are really just for the views.

The others also pretend to be experts who know a lot about cryptocurrency, but if you know something and you listen, there are also many mistakes in what is said in the video content that they also do, so the result is that the newbies who know nothing about cryptocurrency are misled or deceived. So it's still a good idea to do your own cryptocurrency studies. This is exactly what those planning to enter the crypto space should do.

[lixer]

Monitoring must be done in trading, but there are many types of traders who have their own methods, there are traders who are successful by placing pending orders after analyzing, and don't forget to place targets and stop losses, the rest they just need to monitor market movements once in a while and can carry out other activities. Of course, this will happen between making a profit or hitting the stop loss, and we can use the final result as material for correction

Indeed. Some of my friends have no prior knowledge about trading let alone crypto-trading but they are making good money just based on their instinctive decisions. One of my friends actually bought Solana when it was less than $3 and it was neither technical analysis nor fundamental but he just went through with his instincts and bought a chunk!

It really varies for everyone and you have to find out what works best for you because doing something because it works for someone else won't necessarily wok for you always.