Mistakes to watch out for

[GreatArkansas]

- Always calculate your loss before profit: when you trade with what you can afford to lose, it is near impossible for your emotions not to be in check.

Among the list, this is the most common for me and the worst problem. Because this involves capital, which the risk management will come.
For me, having your capital always available is a must, it will make you profitable. So protect your capital at all costs, risk management is a must.

[tbct_mt2]

I have had a very bad experience with the stop loss. It is a nice tool to mitigate losses and it is also a good tool to prevent wins. At times I feel that someone watches to see where you place your stop loss and trigger it and after which the market will reverse to profit immediately.

You can avoid liquidations from exchange by stop loss or stop limit order. Stop limit order is better than stop loss order because it is like double layer of cut loss for your position. Stop loss order can fail to be fill but risk of failed order will be less with stop limit order.

About exchange liquidation, it comes from peaks and bottoms or a price channel and exchange formula for liquidation. They don't care about your order and your positions when liquidated will be only one of many liquidated positions.

I'll rather trade with 1k without leverage than $100 on X10 leverage

Hold, trade with spot or just hold, don't trade is better. I agree that leverage is risky and x3 or x5 leverage is already risky enough to avoid.

[Sebas.tian]

- Always calculate your loss before profit: when you trade with what you can afford to lose, it is near impossible for your emotions not to be in check.

I believe, I need to take a good step in this aspect so that I will be able to invest what am capable to lose in crypto trading because trading with fear has brought a lot of losses into the activities of traders, and they are finding it difficult to eliminate those tools that is causing them losses in the market. Before you trade with any kind of huge amount of money be rest and sure that you are expecting two things in your trading either loss or profit which are two things in the market you must embrace one in your crypto trading. Now that many traders are waiting for the bullish market to appear before they can trade with what they have be storing for some months, and it will be possible for them to achieve a good income if they can trade when the bullish become mature in the market.

[yhiaali3]

One of my biggest mistakes is that I trade against the trend of the market, meaning when a coin rises significantly, I buy from a point that I think is appropriate to enter and hope that the coin will continue to rise, but what happens is that the coin begins to fall after it reaches the peak.

This is a big mistake that I always repeat despite my knowledge of it because of greed, so my personal advice to traders is not to buy if you see a large rise in the price of the coin, because the rise cannot continue forever. The coin will reach a certain point and begin to decline after that.

[Doan9269]

You can agree with me that some mistakes are inevitable, especially when you're not aware of something related to occur, they comes in as a result of what we do, we can try out our best in making sure that we deal with this by taking it to the minimal level, because some may actually cost us than we expect, but when we know what we are doing, we will always ensure we avoid having any kinds due to our own carelessness in what we do.

[Assface16678]

You can agree with me that some mistakes are inevitable, especially when you're not aware of something related to occur, they comes in as a result of what we do, we can try out our best in making sure that we deal with this by taking it to the minimal level, because some may actually cost us than we expect, but when we know what we are doing, we will always ensure we avoid having any kinds due to our own carelessness in what we do.

I totally agree with this. For example, there are trades that do not go to your analysis and chart mapping. Why? As we know, the market is unpredictable. Even if we make a good trade, there's still a margin to lose. So what I mean is the sudden movement of the price, or, as we can say, movement that is caused by an unknown occurrence or, most commonly, market manipulation. As we know, big asset holders have the power to manipulate the market price as they hold a lot of coins. Their movement or engagement in the market could have an impact. I'm talking about what we called "whales." That's why don't be too well assured that you will always take a profit. Sometimes,  even if it's not your fault, losing money in trading is inevitable, so better be prepared in an industry that involves too much risk. It only matters how you cope with the shortcoming of trading.

[Uruhara]

Indeed, there are many things that we have even mastered in theory but it turns out that we still cannot master them when trading directly. One of them is going against the trend. And lately I see many traders who trade in the Future market are liquidated. Because they buck the trend. Well, they placed Short when the market was experiencing a fairly rapid increase. And finally their position was liquidated. And the liquidated amount is not a small amount but is very large by my standards. I took lessons from reading the market. And makes me always avoid trying to trade against the direction of the market trend. Because when we go against the direction, we are just speculating and hoping that the market will reverse direction according to our imagination. Even though we need references or reasons or fundamentals or technical matters to determine when the market will likely reverse direction. Impulsiveness and such are actually the problem in this case. Or many traders experience losses because they cannot eliminate their impulsive nature.

[Dimitri94]

Every trader make mistakes in trading. However, even if some mistakes do not have much effect, many investors are exposed to big losses due to some others mistakes. I myself made some mistakes in the beginning of my trading life due to which I lost a lot. I think newbies usually make those kinds of mistakes. One of those mistakes is that when the market is bullish, we get impatient to invest without doing any research. After investing, when the market starts to correct, I sell again despite the loss so that i can reduce the loss. It is difficult for new traders who have such knowledge to take profit from the market. Trading market is risky so before investing one must observe deeply and always be patient without taking any decision by getting excited.

[Yamane_Keto]

Almost all the failures of my attempts at trading were the exit point, as I calculate the profit according to the selling price and not the buying price. This is a problem that every trader faces, which is that profit is achieved when you buy at a low price and not when selling.

I can tell you that this method of trading is bad and you may understand my words, but the implementation may be completely different when you fall into this problem yourself. To reduce your losses, trading using a demo account will solve this gap.

[el kaka22]

Trading against the trend is such a silly move, trends in crypto goes very long, and it doesn't turn that quickly after just a month, when we are in bear run, it took us 2 years to get out of the bear run and start going up, and just as we started bull run right now, I am sure that it will keep on being higher and higher for at least another year, maybe two years. That's the important thing, investing right now, and going against the trend means you will sell, and that makes no sense.

I can understand the others, like checking the charts all the time is bad too, but if you do nothing about it then you should be fine and all, or failing to find entry point, as long as you get in, that's what matters. But the one thing that is very very dangerous is trend chasing, if you do not chase the trend and go against the waves, you are going to end up losing a lot of money and you should be careful about what you are doing and could be taking a useless risk.

[lixer]

You can agree with me that some mistakes are inevitable, especially when you're not aware of something related to occur, they comes in as a result of what we do, we can try out our best in making sure that we deal with this by taking it to the minimal level, because some may actually cost us than we expect, but when we know what we are doing, we will always ensure we avoid having any kinds due to our own carelessness in what we do.

I agree. This is why we are advised to prepare and continue doing the known things that can help combat or at least lessen the effects of those mistakes. These types of mistakes are not related on what we are doing. Can't you see that we already did the right thing earlier? If some mistakes can cost us more, there are also positive results which are more than what we expect.

So, we shouldn't feel bad because we can still recover it all. When we know what we are doing, I wouldn't say that we are care less. Yet, like we said earlier, there are still mistakes that can come to us. I think they are naturally created for a reason so we should learn to get used to it.

[taufik123]

-snip-
I can tell you that this method of trading is bad and you may understand my words, but the implementation may be completely different when you fall into this problem yourself. To reduce your losses, trading using a demo account will solve this gap.

Whether a trading method is bad or not depends on how you utilize every opportunity given.
When you say it's bad then you can't master it well.

The application of strategies to trading will indeed look different when you just do a theory,
but it will not be much different if you understand the concept and understand how the market works.

To reduce losses, you should study harder, use a strategy that suits you, and make sure to follow the market trend well.

The solution of using a demo account as a suggestion to overcome the gap, will not work.
A demo account will only take away the emotionality of trading and will not be the same as real trading.
I have tried it and in the end, real-time trading will teach us more about how to manage emotions properly.

[tbct_mt2]

Whether a trading method is bad or not depends on how you utilize every opportunity given.
When you say it's bad then you can't master it well.

With a trader, protecting initial capital is most important then a little bit less important is profit. If you don't get profit from a trade, it's fine, the market will give you many opportunities to gain profit. If you can not protect your initial capital, you are done, your trading career is over when you lose all capital.

Hence it is good if any strategy works for a trader to protect capital or best gain trading profit.

To reduce losses, you should study harder, use a strategy that suits you, and make sure to follow the market trend well.

Learning about technical indicators, trading strategies are good but a trader must learn about psychology of the market too. Control emotion and psychology are more important than mastering technical indicators, trading strategies. You can not use them well if you can not control yourself.

[taufik123]

With a trader, protecting initial capital is most important then a little bit less important is profit. If you don't get profit from a trade, it's fine, the market will give you many opportunities to gain profit. If you can not protect your initial capital, you are done, your trading career is over when you lose all capital.

Hence it is good if any strategy works for a trader to protect capital or best gain trading profit.

Not less importantly, but profit is the ultimate goal that can be earned or delayed to be earned due to losses.
People trade to make profits and minimize losses and the main focus is of course protecting the initial capital.

Arranging some strategies to protect the initial capital and the goal of making a profit is important.
The use of stop loss and trade management can help secure initial capital.

[barisbilgili]

Whether a trading method is bad or not depends on how you utilize every opportunity given.
When you say it's bad then you can't master it well.

With a trader, protecting initial capital is most important then a little bit less important is profit. If you don't get profit from a trade, it's fine, the market will give you many opportunities to gain profit. If you can not protect your initial capital, you are done, your trading career is over when you lose all capital.

Hence it is good if any strategy works for a trader to protect capital or best gain trading profit.

To reduce losses, you should study harder, use a strategy that suits you, and make sure to follow the market trend well.

Learning about technical indicators, trading strategies are good but a trader must learn about psychology of the market too. Control emotion and psychology are more important than mastering technical indicators, trading strategies. You can not use them well if you can not control yourself.

If we cannot maintain the initial capital that we have of course we will not be able to make a profit from the trades that we make, because it is very important to be able to know the market conditions to be able to make a profit from the trades that are made, so it would be better before making a trade that we need to use strategies in trading that we carry out in order to gain profits from these trades.
Everyone uses different strategies in the trades they make and for those who have a lot of experience it will certainly be easier for them to gain profits from the trades they make.

I agree with you, it is important for everyone who trades to be able to control themselves, lest they be greedy in the trades they make so that they miss out on the profits they have made and cannot get them back.

[Dickiy]

With a trader, protecting initial capital is most important then a little bit less important is profit. If you don't get profit from a trade, it's fine, the market will give you many opportunities to gain profit. If you can not protect your initial capital, you are done, your trading career is over when you lose all capital.

Hence it is good if any strategy works for a trader to protect capital or best gain trading profit.

Not less importantly, but profit is the ultimate goal that can be earned or delayed to be earned due to losses.
People trade to make profits and minimize losses and the main focus is of course protecting the initial capital.

Arranging some strategies to protect the initial capital and the goal of making a profit is important.
The use of stop loss and trade management can help secure initial capital.

Yes profit is something that has always been the goal and the reason why people come in this field, but we cannot if we only focus on one thing like this profit, because obviously in terms of something that can be profitable then there will always be the possibility of equal or even greater risk.

Therefore we as traders are required to have or prepare many things before finally engaging in this activity, such as perhaps planning, management, strategy and risk management, all of which are very important and will always run when you have your trading, nothing but it will all be useful because all traders do not want if they experience losses and that is why you must have a lot of preparation especially risk management in order to minimize any chance of loss that will occur.

[Bananington]

-  Trading against the trend: when trading against a trend their is a higher possibilities of you losing that trade, if you spot an uptrend, you should only be looking for a buy opportunities and if you spot a down trend you should only be looking for a sell opportunities simple, you get more winning trade by doing that.

Trends are usually successful because many traders are able to identify them and then follow it, but if you a new trader decide to want to go against a trend, you will regret it because the people who believe in a trend are usually more than the people who believe that that trend will not work and decide to trade against it.

- Too much monitoring of the chart:

It is a common challenge to every new trader, that is they always want to check the charts even in uncomfortable places. Curbing the urge to check the charts is another challenge entirely on its own.

[Kelvinid]

The only reason that makes me lose in trading is letting my emotions control my mind and then, out of my strategy.
I tried to work it out and so I took my break, and I know this is very common to everyone.

Trading needs focus and a high level of market understanding while skills can be learned through experience but what happens the most is that they underestimate the market volatility believing that learning the basics is good enough which is very wrong. We'd thought that we could dictate the market movement but too unfortunate that we can't, so we never have to assume that we can it okay, instead we need to work hard and spend more time learning about trading.

[Japinat]

Mistakes are actually normal. Even a skillful and professional trader still creates mistakes in trading. But the important thing here is that once you have committed a mistake that made you lose your trades, then make sure that you learned from that mistake and that you are not going to repeat the same mistake again. Mistakes should be an eye opener for us, and from there, we should learn to be more motivated to improve our craft so as to avoid some inevitable mistakes that could lead up into losses.

I'd say controlling our emotions in trading could be the hardest part when trading. But with practice and consistent trading, we learn to overcome our strong emotions until the time comes that we can easily set aside our emotions when we are trading. That way, success becomes more visible as long as you also know how to timing your trades with the market's condition.

[jeraldskie11]

-  Trading against the trend: when trading against a trend their is a higher possibilities of you losing that trade, if you spot an uptrend, you should only be looking for a buy opportunities and if you spot a down trend you should only be looking for a sell opportunities simple, you get more winning trade by doing that.

There are some traders who have a high winning rate with counter-trending, although you can't maximize your profit since you are trading against the trend but the probability of winning the trade is so high,1:3r is enough. Let us say the trend is uptrend, we expect that weak high will be broken, in other group of traders call it a buyside liquidity which is the idea is when the liquidity is taken you can execute a trade if you see a good setup in the market. And you shouldn't hold your trades for a long time because it's very risky since you are counter-trending. This idea is not advisable to beginners, they should always follow the trend.

- Avoid trading consolidation: traders that fall victim to this one are people that takes many trades, trading consolidation is very dangerous because it can go anyway, at such point, the market have no clear direction.

In my opinion, it depends on how good is the consolidation because there traders because honestly the price will go up after the consolidation, so personally this is one of my confirmation that there are lack of volume of supply/demand and the reversal of the trend is happening soon.