As newbies we should know the significant risk in trading

[Skfox]

As newbies there are lots of things we need to know and work along with. As a newbie, it is expected that one must realize that trading comes with significant risk which can lead to loss of income or finance. Therefore in order not to loss money, it is important to know the risk in trading and how to avoid being prey to losing funds.
We can be on a safe side if we observe and follow these tips when trading:

- As a newbie, it is needed for one to have sufficient information, not just sufficient information but accurate information because insufficient or inaccurate information may land us to loss of finance. Having accurate information is very important so as not to loss money.

- Another important thing to know is the volatility of the market because not being able to predict price fluctuation may lead to unexpected loss of income. It is vital for a beginner to know this.

- Knowing when to buy and also when to sell Is also important because the aim of trading is to make profit, so it is advisable to know when to buy and also when to sell so as to make profit.

- Being greedy is not good when it comes to trade because greed can lead to over trading i.e excessive buying and selling of assets which can lead to loss of income but sometimes you may gain due to luck

- As newbies, we should avoid using borrowed capital in trading thou it is vice versa, we can either gain or loss. So extreme caution is needed.

- Making decisions out of emotion can cause great loss in trading. For one to gain profit in trade, he must make wise decisions without fear or greed.

It is very important to understand and know how to manage the risk involved in trading, so with proper risk management, well trading plans and proper education we can trade and make good profits.
Am open to learn, if there is any point am missing please your opinion is needed.

[Upgrade00]

How about not trading at all as a newbie.

Trading has been marketed as a way to make income remotely with a few success stories used as motivation for others, but those who lose from it far exceed those who make a net profit. If you've never had an interest in trading markets and trading currencies do not jump into it simply cause you have a laptop and can consume information about how to analyze charts.

Look for less risky means of earning that are available and follow proper investment guidelines

[Hatchy]

Am open to learn, if there is any point am missing please your opinion is needed.

You aren't missing any point, but just as @ Upgrade00 has said, newbies should avoid trading totally. Trading as we know is risky and without proper knowledge or someone like an expert to guide you through your early journey, you might end up making so much loss that will make you hate trading totally. It's not that newbies can't trade or something, but as a newbie you must know about all the risk that follows. Don't rush into trading because of how much you Heard from other that they profited from trading. They won't tell you about their losses, it just a way to make things look better to you until you get your hands into it.

[DarkState]

- Making decisions out of emotion can cause great loss in trading. For one to gain profit in trade, he must make wise decisions without fear or greed.

Can you elaborate on this? Do you have any personal experience of this? I mean I want to know how emotions can impact trading? And how do you control your emotions when trading?

[Ojima-ojo]

One approach I adopted as a newbie is to stay away from trading at all means because i already know that the risk in trading is equivalent to the risk in gambling, and most of those that ever make profits from trading also recorded alot of loses that could possibly outweigh the profits amount.


Although the only thing they Consol themselves with is that, they have gained trading experience and skills, which could help them make better trading decisions, since they have afford to pay the sacrifice to build such skills.

[Spaceman1000$]

As newbies there are lots of things we need to know and work along with. As a newbie, it is expected that one must realize that trading comes with significant risk which can lead to loss of income or finance. Therefore in order not to loss money, it is important to know the risk in trading and how to avoid being prey to losing funds.
We can be on a safe side if we observe and follow these tips when trading:

- As a newbie, it is needed for one to have sufficient information, not just sufficient information but accurate information because insufficient or inaccurate information may land us to loss of finance. Having accurate information is very important so as not to loss money.

- Another important thing to know is the volatility of the market because not being able to predict price fluctuation may lead to unexpected loss of income. It is vital for a beginner to know this.

- Knowing when to buy and also when to sell Is also important because the aim of trading is to make profit, so it is advisable to know when to buy and also when to sell so as to make profit.

- Being greedy is not good when it comes to trade because greed can lead to over trading i.e excessive buying and selling of assets which can lead to loss of income but sometimes you may gain due to luck

- As newbies, we should avoid using borrowed capital in trading thou it is vice versa, we can either gain or loss. So extreme caution is needed.

- Making decisions out of emotion can cause great loss in trading. For one to gain profit in trade, he must make wise decisions without fear or greed.

It is very important to understand and know how to manage the risk involved in trading, so with proper risk management, well trading plans and proper education we can trade and make good profits.
Am open to learn, if there is any point am missing please your opinion is needed.

OP you outlined a lot of methods to follow as a trader, which if followed religiously, it will reduce loses for traders. But for a newbie, it is advisable you build your knowledge around how the market works before you even start live trading, you can demo trade or practice trade for a while till you master a certain trading pattern, because trading is not for newbies. A new should basically be learning, because a newbie can actually blow his account if his not familiar with the volatility of the market.
I've heard a lot of stories of people not succeeding with their trading activities and they stop. The truth is that, trading has to do with training and restraining of various approach on how to navigate the market. So it needs time, and that is what a newbie needs most.

[NurseHub]

As a newbie, it's advisable to have adequate knowledge of trading and to master your strategies before thinking about trading. With this process, you are no longer a newbie before you start. Yes, because before you can finish preparing your analysis, you have grown above Newbie. 

Trading's a market; henceforth, there's lots to buy and lots to sell. Even in our daily market, it's an advantage to ask questions or make special requests about the business just before you can start. The base knowledge is necessary as to the business itself to avoid prime losses.
As a newbie, I believe you should have no business with jumping today trading unless you have a good mentor in it.

Don't be greedy in the pursuit of acquiring income; it's a process, and when you skip these steps, you're already falling. The success of trading is not equal to the losses, but most traders have backups, which you, as a newbie, might not have.
 

[Skfox]

- Making decisions out of emotion can cause great loss in trading. For one to gain profit in trade, he must make wise decisions without fear or greed.

Can you elaborate on this? Do you have any personal experience of this? I mean I want to know how emotions can impact trading? And how do you control your emotions when trading?

The word emotion can be seen as an internal state of being, an unintentional (involuntary) reaction of a human towards something or a situation.
In course of trading emotions like fear, greed, overconfidence, etc can affect you either in losing or making profit. The fear of losing your assets or something else can lead you to make bad decisions in trade, also the desire of wanting more than deserved (being greedy) can also result badly at the same time being overconfident (being extremely certain) may also turn out bad but sometimes good due to luck.

Controlling your emotions when trading starts from you, that is why you need to be ready first before going into trading. Even when trained at a point you make fall prey because emotions are unintentional, they are done even before we know it but it can be minimize if worked on.

[Zaguru12]

You have highlighted key points but there is one thing you need to know, there is no trading without loss. So I agree with other members that you should stay away from trading as a newbie.

One thing I will emphasize on is the borrowing of funds to trade. A newbie shouldn’t even have a second thought about this because even experienced traders are advised to stay away from borrowing funds because it affects once emotion.

Avoiding leverage trading is another point that newbies new to know. Almost all future traders today use leverage but I will tell you that without proper risk management study the easiest way to loss and also get liquidated is through leverage

Can you elaborate on this? Do you have any personal experience of this? I mean I want to know how emotions can impact trading? And how do you control your emotions when trading?

I think emotion can best be controlled by using the amount of funds you can afford to lose, this will make you comfortable to make decisions better. Another way of controlling emotions is not to do revenge trading. Revenge trading is when you enter a new trade immediately after a loss just to get your funds back. This easily affects your emotions not to get a better set up for the trade

[hatshepsut93]

Statistical research shows that most retail traders lose their money when they trade, this research was done in markets like stocks and comoodities. I would safely assume that it's even worse in crypto because there's no regulations and lots and lots of scams. But this also means that "investing" in crypto is not safe either. Some people think that if they put they money in a coin that seems like it has good potential and wait a few years, they will be in profit. But what most likely happens is that the coin will be abandoned in a few years and its value will be close to zero. So stick with Bitcoin and don't be greedy.

[GeorgeJohn]

For now I don't think that we equally have a beginners who venture into cryptocurrency investment and they also threading of Bitcoin without making a proper research to know more of Bitcoin before the venture into it because many persons is into cryptocurrency and they know quite well the risk that is involved into cryptocurrency investment also trading investment so the risk is online and many people can take adequate precaution so that they will be involved in downfall of cryptocurrency investment or neither trading.

[Natalim]

Newbie in rank or newbie in trading?
There are differences between the two because some newbies in rank have been in the market for quite some time, they are just reading but not registered in the forum. Newbies in trading, even if they have high rank but are not yet engaged in trading still called newbies.

However, in general, learning about trading first required rather than trading first before learning. The most common mistake that traders make is that they jump into trading without the capabilities to do it which is why they end up disappointed and losing their money.

[LogitechMouse]

Re: As newbies we should know the significant risk in trading

And the only thing for a newbie to know the risks in trading is by experiencing it themselves.
Sure, you can learn from the experience from other traders out there but experiencing it yourself is simply better because you can make adjustments off of it - that if you really want to become a trader.

Well, we all started as newbies in everything and that includes trading. If you really want to become a trader, you need to understand everything including the risks involved. From there, you will decide if you really want to pursue it or not. The risk tolerance of people differs. There might be some that see trading as a very risky one therefore, they will not try to do it but there are some who are willing to sacrifice a portion of their funds just to have an experience on trading.

Overall, I don't recommend trading especially if you're a newbie, but if you are ready to lose some of your money for a little bit of experience then you can try it. I mean you will not learn if you will not try, right?

[Rockstarguy]

How about not trading at all as a newbie.

Not trading at all as Newbie, that means we may likely not have traders at all.
The mistake most newbies makes, they always think trading is easy and they can start trading immediately and starts earning from it. If newbies takes learning as a priority  and not having the mentality of making money so quick from it their won't be so much loss in trading. Trading is very risky and it is very easy for newbies to loss especially when they have no knowledge about it. Irrespective of how trading may be difficult  if the right step is taking, their will be better result compare to Newbie that have no knowledge about trading. The first step of a newbie is to learn and not to go into trading first to earn money if not their will much loss.

[Odohu]

- Making decisions out of emotion can cause great loss in trading. For one to gain profit in trade, he must make wise decisions without fear or greed.

Can you elaborate on this? Do you have any personal experience of this? I mean I want to know how emotions can impact trading? And how do you control your emotions when trading?

There is an unwritten rule that trading is 20% skill and 80% psychology. What this means is that irrespective of how much technical skill you have as a trader, if you don't have a proper psychology, you will not succeed. Let me give you a simple example, most traders make money in paper trading by this I mean demo trading but the moment they go live which is trade with real money, they begin to experience losses as if the market is against them. This is purely a psychology thing.  With the paper trading, there is no fear of losing the money, trades are executed freely and the judgement is not impeded by greed, this is how real money is made unlike the real account that is traded with fear and greed.

My response does not in any way mean that I encourage newbies to go into trading rather they can focus more in buying and holding Bitcoin. This is more peaceful and reliable. Most of us still regret why we never held the amount of Bitcoin that passed through our wallets, which were traded and wasted in ways we cannot account for; we learnt the hard way but then, it is the process.

[Finestream]

How about not trading at all as a newbie.

Trading has been marketed as a way to make income remotely with a few success stories used as motivation for others, but those who lose from it far exceed those who make a net profit. If you've never had an interest in trading markets and trading currencies do not jump into it simply cause you have a laptop and can consume information about how to analyze charts.

Look for less risky means of earning that are available and follow proper investment guidelines

Couldn’t agree more. As a newbie, learn not to take risk in trading because obviously that will only turn into a loss. But rather, invest and hold, aside that it’s less risky, the experience and skills are not actually a big deal as long as you know the basics in buying and hodling safely your coins. However, continue to study trading and learn from the experiences from those successful traders. You will make use of it when you decide to trade in the future.

[Nothingtodo]

A new trader needs to be very careful while trading because if he has no experience in trading he may face various losses in the beginning and if he does not select the right coin he may face maximum losses while trading. That's why a trader has to take care of various ancillary issues of trading, he has to trade in the right market, trade on the right coin, can't be overly greedy, must have the ability to control emotions. Moreover, there are many other things that a newbie should not go into trading without mastering.

[lovesmayfamilis]

Trading will never have only positive results; more often, it will be the other way around. And until you calmly respond to your mistakes and formulate your own strategy, you may be impulsive, making stupid moves. Prepare yourself for some losses; without them, there is no experience and no work on mistakes. However, even your developed strategies often work in vain, so the importance of self-control often works for a trader’s success.

[Sakanwa]

Knowing about what trading is,is not just for Newbies,it is for Everybody, because I believe as long we still fall victim of lose,we should still go back to try to learn more about trading.And as for Newbies who literally know nothing about it,they have to be frequent in the trading board and be very active in the discussions there,by so doing,they will know the different strategise which one can use in trading and it will work.They say experience is the best teacher,he who is informed,and knows what to do as in regards to trading,will always be on the winning side.

[Porfirii]

- Knowing when to buy and also when to sell Is also important because the aim of trading is to make profit, so it is advisable to know when to buy and also when to sell so as to make profit.

That's right: buy low and sell high you can't lose that way.

If you find an infallible way to time the market be so gentle to tell us, because predicting short-term fluctuations is like gambling IMO. Better advice would've been hodling long-term, but even that doesn't guarantee you success as the future is uncertain.