Important Things I Wish I Had Knew Before I Started Trading

[Mr. Magkaisa]

Greetings to everyone in my forum community. I just wanted to share something from my early days of cryptocurrency trading since I didn't think of it right away. Thus, this will be quite beneficial whether you are new to the crypto market or intend to enter it. Even though we are aware that there is no quick fix for trading, by being aware of all of this, you will be better equipped to understand the market, steer clear of frequent pitfalls, and get off to a positive start with your trading career.

1. Learn to trade with just one strategy

This is one of my common mistakes that I didn't make because I was moving from one trading strategy to another and looking for the holy grail. A magical trading strategy and indicator that will give me guaranteed profit. And the tendency is that we will try many trading strategies that we can find on the internet that are new indicators that are profitable, and if they are not profitable, we will look for something new.

And we don't know that it's not all about the strategy; rather, it's more about how we execute the strategy. And many beginners do not use trading strategies; they just trade randomly based on what they see on the internet or based on their emotions. And this only happens because of a lack of understanding and knowledge about trading.

So, how do we or you do that as beginners? Of course, we need to do a back-test to know if the strategy you are using has an edge, if it has a win rate, or if it has a drawdown. When we do a manual back-test, we are training our subconscious mind to see the pattern over and over again. And besides the data we get, we also see the behavior of the assets. If you can do 1000 trades using only one trading model or strategy, then I can say that you are already a master compared to those who use 100 trades just to flow a large number. There are also some benefits that we can get here, such as the consistency of the trading strategy in how it performs under different market conditions and the confidence that it also helps us to stay disciplined.

2.  Realistic expectation-setting in trading

When I started trading, I didn't know anything about this realistic expectation. I even thought that it was a getting rich quick scheme that, once I learn it right away, I can let go of my other sources of income, and this is the financial freedom or this is the one I will replace, but I was wrong.

A lot of newbie traders don't go far from my experience with this, actually. Where they think it's easy to make money on trading by just watching a 15-minute strategy in a video tutorial, that's fine right away, and we can do that. Of course, it's not like that. So what do you expect? We should not be surprised because many people still believe in the investment scheme that I can double your money, which is not realistic in reality. So the overnight success story in crypto is more widely believed by most of the crypto community. Therefore, this creates unrealistic expectations.

That's why it's important that we have realistic expectations in the first place because we can avoid disappointment and burnout. Those who try to meet these unrealistic expectations, when they experience a losing trade, quit immediately most of the time. However, if we have realistic expectations, we understand that it takes time and losing is part of the game, and we will not give up that easily. And we will also have better decision-making, and we will only focus on long-term success. And in order to generate realistic expectations, it is necessary that we already have them from the very beginning, and we must also spend significant time regarding the market, strategy, risk management, and psychology.

3. Trading part-time may yield greater results

A typical error we make is to assume that everyone must spend their entire day in front of a computer, anxiously monitoring their trade positions. Our profit margin increases as we spend more time using the monitor. Similar to relieving pressure, we fail to recognize the advantages of working part-time because most traders view trading as a side gig or their second source of income.

As a result, there is less financial strain and the expenses are not solely reliant on trading. Afterwards, it might lead to less emotionally charged trading decisions. Steer clear of overtrading as well. Because we occasionally overdo it when we trade full-time, and instead of making a profit, we end up losing money. He therefore has benefits and drawbacks. Therefore, it would be best if we got started. Let's work on it as a side gig to gain the necessary abilities, and if that's really what you want to do, let's go full-time.

[_act_]

Some traders will not understand. The traders that have little amount of money or even high amounts of money that want to trade daily and also use leverage will always lose more than making profit. That is why they will always continue to lose. The people that have high amounts of money or maybe low amount, not using leverage but patient will make profit from the money those former traders are using to trade.

[Strongkored]

On average, traders know a lot about the theory to be able to be successful as traders, but most of them fail to apply what they already know, so they end up losing, so sometimes what we know before trading cannot completely guarantee success because the most important thing is to apply the knowledge we know consistently to be able to become successful traders who make a profit.

[mirakal]

Some traders will not understand. The traders that have little amount of money or even high amounts of money that want to trade daily and also use leverage will always lose more than making profit. That is why they will always continue to lose. The people that have high amounts of money or maybe low amount, not using leverage but patient will make profit from the money those former traders are using to trade.

Trading using leverage will push you to losses instead of making huge profits. That’s what beginner traders often experienced from trading with leverage. With greed, they usually end their trades in failure while some who patiently trade with small capital, they end their trades with some significant profits. This is good to say that trading outcome does not rely on how small or big the capital is, but it’s how the trader itself carries his mindset and perform his trades with a lot of patience and clear understanding on the market. Discipline is also a key factor to the success of one’s trade.

[Silberman]

Some traders will not understand. The traders that have little amount of money or even high amounts of money that want to trade daily and also use leverage will always lose more than making profit. That is why they will always continue to lose. The people that have high amounts of money or maybe low amount, not using leverage but patient will make profit from the money those former traders are using to trade.

Those that have a small starting capital try to compensate this fact by using leverage, but this is just a bad idea, since exchanges often promote leverage by showing the incredible profits a person can get if things go their way, however they are very obtuse about the risks that entails the use of such a high leverage, so those that use it are completely surprised when their accounts get absolutely destroyed when the market moves unfavorably to them, with the most recent drop being a perfect example of what I am talking about.

[Dzwaafu11]

~~snip~~

Trading using leverage will push you to losses instead of making huge profits. That’s what beginner traders often experienced from trading with leverage. With greed, they usually end their trades in failure while some who patiently trade with small capital, they end their trades with some significant profits. This is good to say that trading outcome does not rely on how small or big the capital is, but it’s how the trader itself carries his mindset and perform his trades with a lot of patience and clear understanding on the market. Discipline is also a key factor to the success of one’s trade.

Exactly. Patience always comes to an end with positive results. Some traders think entering the market with a large amount is what will give them a huge profit. Yes, it is true, but at the same time, patience is the key to the success of the market. These are the things that many traders do not understand in trading. Sometimes big capital is not what will fetch you a huge return, but how far you have gone in the trade. 
 
I have a friend who does not have enough money to trade, but because he always takes his time and trades, and because he has the patience to watch the market until the right time to sell, most of his trades are positive. He loses, but not that much because of the discipline he has, so everything is patience. But some traders do not understand these key things in trading; they think it is all about the money, but sometimes patience must be exercised. 

[Natalim]

On average, traders know a lot about the theory to be able to be successful as traders, but most of them fail to apply what they already know, so they end up losing, so sometimes what we know before trading cannot completely guarantee success because the most important thing is to apply the knowledge we know consistently to be able to become successful traders who make a profit.

Trading is not just merely learning all its theories but it’s more about experience. There are those plenty of traders who are really knowledgeable about trading, but when they start trading using their real money, they end up struggling and fail on their decision making.

And I think that’s normal for beginner traders, they trade and lose, but as they continue to gain their experience and learn the realities in trading, they come to master it and develop expertise in trading, until they end up trading professionals. They may still lose but rest assured, their gains will outnumbered their losses.

[EL MOHA]

Trading using leverage will push you to losses instead of making huge profits. That’s what beginner traders often experienced from trading with leverage. With greed, they usually end their trades in failure while some who patiently trade with small capital, they end their trades with some significant profits. This is good to say that trading outcome does not rely on how small or big the capital is, but it’s how the trader itself carries his mindset and perform his trades with a lot of patience and clear understanding on the market. Discipline is also a key factor to the success of one’s trade.

The one thing about this trading is that with or without using leverage you have the risk of losing as same just that the amount involve is much when you use leverage. Now That’s where things like risk management comes, there are leverage traders that do not lose lots of money like some non leverage traders lose. They calculate their position size well and usually use the stop loss to determine how much they wish to risk and lose in the market, if this is applied you will hardly see the trader losing amounts that they cannot afford.

1. Learn to trade with just one strategy

This is one of my common mistakes that I didn't make because I was moving from one trading strategy to another and looking for the holy grail. A magical trading strategy and indicator that will give me guaranteed profit. And the tendency is that we will try many trading strategies that we can find on the internet that are new indicators that are profitable, and if they are not profitable, we will look for something new.

And we don't know that it's not all about the strategy; rather, it's more about how we execute the strategy. And many beginners do not use trading strategies; they just trade randomly based on what they see on the internet or based on their emotions. And this only happens because of a lack of understanding and knowledge about trading.

This is the most underrated advice that some traders do not know, there are different strategies in trading each brings about profits so no strategy bad but to perfect one way of trading it is through using one single strategy. There are even traders that not only use a single strategy but also trade one or two pairs and definitely not just any pairs. This pairs they choose might heave underwent numerous back testing so that they know if the strategy works with it .

[GreatArkansas]

1. Learn to trade with just one strategy

This is one of my common mistakes that I didn't make because I was moving from one trading strategy to another and looking for the holy grail. A magical trading strategy and indicator that will give me guaranteed profit. And the tendency is that we will try many trading strategies that we can find on the internet that are new indicators that are profitable, and if they are not profitable, we will look for something new.
(....)

I agree with this because, even if you have a lot of strategies that do not make you profitable, they are useless. Better to have 1 that you master and you really know how it works, because I believe in quality over quantity.
Another thing is I am not a fan of multiple trading indicators in your chart that sometimes it is already redundant you are not really using or maximizing it, it just a mess on your chart.

[BlackBoss_]

1. Learn to trade with just one strategy

This is one of my common mistakes that I didn't make because I was moving from one trading strategy to another and looking for the holy grail. A magical trading strategy and indicator that will give me guaranteed profit.

You can spend time for learning but it's not enough, even it is good. Because you need to have practice too as practice makes perfect and practice helps you to filter many strategies from your learning, to choose a strategy that fit you most individually.

When you already learned about strategies, practiced with them enough, you will have more ability to choose good strategy, maybe only one strategy and stick with it for your investment or trading. This takes time to come to this very ending step and you can not get it at beginning. I believe none investors or traders can know and choose what is best when they are newbies in this market.

[Azizcdra]

1. Learn to trade with just one strategy

This is one of my common mistakes that I didn't make because I was moving from one trading strategy to another and looking for the holy grail. A magical trading strategy and indicator that will give me guaranteed profit. And the tendency is that we will try many trading strategies that we can find on the internet that are new indicators that are profitable, and if they are not profitable, we will look for something new.

It's actually good to try several indicators and technical analysis to get a suitable trading method rather than being stuck with one method that ultimately doesn't suit your abilities. By trying several methods, you can find out which method has a high and suitable win ratio

[Pandu Geddon]

As a result, there is less financial strain and the expenses are not solely reliant on trading. Afterwards, it might lead to less emotionally charged trading decisions. Steer clear of overtrading as well. Because we occasionally overdo it when we trade full-time, and instead of making a profit, we end up losing money. He therefore has benefits and drawbacks. Therefore, it would be best if we got started. Let's work on it as a side gig to gain the necessary abilities, and if that's really what you want to do, let's go full-time.

even if a trader makes his trading activity full-time, the trader will still make a certain time limit for them to start trading every day.
when traders try to force their bodies to continue trading it causes stress on their bodies and minds. that's not good.
moreover, when traders make their trading activities a full-time job, it will put pressure to always get a profit every time they trade, there should be no mistakes. I don't know how there are traders who are so obsessed with trading that they always focus in front of the monitor. just do a few needed hours and that's enough to find profit.

[TheUltraElite]

This is one of my common mistakes that I didn't make because I was moving from one trading strategy to another and looking for the holy grail. A magical trading strategy and indicator that will give me guaranteed profit. And the tendency is that we will try many trading strategies that we can find on the internet that are new indicators that are profitable, and if they are not profitable, we will look for something new.

Such an indicator does not exist. Indicators only indicate the movement possibility but does not confirm it. 50% cases it goes as the indicator goes but in 50% cases it might not. So this is not an exact science but a way or predicting the future.

Strategies dont need to change often. From what I have seen, stick to buying low selling high and setting stop losses. These three things if timed and executed properly will save a lot of money and allow you to make profit in between.

Along with this if you focus only on the big names preferably bitcoin you are more likely to profit.

[SquirrelJulietGarden]

Such an indicator does not exist. Indicators only indicate the movement possibility but does not confirm it. 50% cases it goes as the indicator goes but in 50% cases it might not. So this is not an exact science but a way or predicting the future.

50:50 is like gambling but I understand your example. Even if rate of success is more than 50%, like 70% or 80%, if a person has bad risk and capital management, 20% or 30% of failure can take all initial capital after some rounds of failure.

Management on capital and risk is most important to keep initial capital safely and from secure initial capital successfully, it's foundation of something better.

Strategies dont need to change often. From what I have seen, stick to buying low selling high and setting stop losses. These three things if timed and executed properly will save a lot of money and allow you to make profit in between.

One strategy can work well most of times but if a person have poor capital management, bad risk management, one or two failures can take all money in liquidations.

Senior investors and traders will advice, "Always prioritize protection on your capital, it's most important thing to do, rather than try to find profit". If you exit the market, keep your capital safely, you can miss an opportunity but you will have many other chances in the market in future. Don't be fearful of missing opportunities and ignore risk, then fail to protect your capital. Without capital, you can not do anything even opportunities appear.

[KingsDen]

1. Learn to trade with just one strategy

This is one of my common mistakes that I didn't make because I was moving from one trading strategy to another and looking for the holy grail. A magical trading strategy and indicator that will give me guaranteed profit. And the tendency is that we will try many trading strategies that we can find on the internet that are new indicators that are profitable, and if they are not profitable, we will look for something new.
(....)

I agree with this because, even if you have a lot of strategies that do not make you profitable, they are useless. Better to have 1 that you master and you really know how it works, because I believe in quality over quantity.
Another thing is I am not a fan of multiple trading indicators in your chart that sometimes it is already redundant you are not really using or maximizing it, it just a mess on your chart.

In as much as I will agree with you that it is good to trade with one strategy, it is not totally bad to learn more than one strategy. It doesn't mean that you will apply all the strategies you know at the same time in the market. As me and you know, the market is too dynamic. We could be taking unaware and within a twinkle of an eye our strategy is rendered useless. If this happens, where will you run to. So, it is needed that we should have a backup strategy to keep going. Master one strategy as the main, but then, have plan B strategy.

[serjent05]

Greetings to everyone in my forum community. I just wanted to share something from my early days of cryptocurrency trading since I didn't think of it right away. Thus, this will be quite beneficial whether you are new to the crypto market or intend to enter it. Even though we are aware that there is no quick fix for trading, by being aware of all of this, you will be better equipped to understand the market, steer clear of frequent pitfalls, and get off to a positive start with your trading career.

1. Learn to trade with just one strategy


2.  Realistic expectation-setting in trading

3. Trading part-time may yield greater results

This list is a good suggestion for newbie traders.  This somehow give some guidance and lights, who ever beginner that read this lists will have some insight on how to approach their initial trading ventures.

Many of newbie traders often have an unrealistic goal for their trading career.  They often think that trading is so easy that they end up as a miserable failure in this venture.

snipped
(....)

snipped

In as much as I will agree with you that it is good to trade with one strategy, it is not totally bad to learn more than one strategy. It doesn't mean that you will apply all the strategies you know at the same time in the market. As me and you know, the market is too dynamic. We could be taking unaware and within a twinkle of an eye our strategy is rendered useless. If this happens, where will you run to. So, it is needed that we should have a backup strategy to keep going. Master one strategy as the main, but then, have plan B strategy.

As a starter, one should not aim for multiple strategies, he should focus only on one strategy then widen his knowledge as he fully understands and grasps the strengths and weaknesses of such strategy.  Learning too many at once while the foundation of knowledge about trading is yet to be fully developed will only confuse the beginner.

[milewilda]

Realistic expectation-setting in trading

On the moment that you've been decided to deal up with trading then it would really be just that something suggested or recommended to have that realistic expectation or approach.
Never ever make yourself that being that too delusional that you could really be able to make sure profits on the moment that you do make up some trades because dealing up with this market
is never been that easy and its never been that simple considering that extreme volatility on which you could really be able to expect that not all people would really be having that
kind of perceptions towards it but rather the opposite. You wish you do knew before starting trading? There's no wrong if you have committed up some wrong things at first since
it would really be just that normal with those newbie mistakes.

We are all passing up into a stage on where we are really that trying out to apply those things that we do have in mind specially in our first time. On the moment that you are already that
making up some gaining experience then you would really be that eventually making up some adjustments on the time that you would really be able to encounter it again.
You would really be naturally be able to adjust basing up on the past experience  that you had been able to met up.

[nelson4lov]

This thread came just in time. I recently started learning some trading psychology and in hindsight, I would've made some good money in the past month but  I successfully roundtripped all the gains. After reflecting on it, couple with the recent global markets crash that hammered crypto markets as well, I discovered that I wasn't setting a realistic target prior to taking the trades. I might take a trade at a zone I think may never fall below and somehow think I would make generational wealth from it  . What happened with those trades? Lost all gains and often, with bigger losses in capital as well. Its insanely. What I've been learning recently about some trading psychology is that I need to have a plan to get in and out since my grandfather doesn't own the markets and it can do what it wants.

So in OP, there's a lesson in there.

[junder]

~snip~

I read on this page financemagnates, although it's been a long time but I think the points on the page can be a consideration for us before trading. besides that I am interested in the second point where Consistency and calmness are the most important things in this case. because in my opinion if we can't be consistent it might be difficult to run it or maybe we can run it but it tends to be more towards not focusing.

besides that in this case we must be able to pay attention to finances too, I myself will trade if my finances are stable in other words I will not force myself to trade if my finances are not stable.
and indeed we should have a plan but that doesn't mean when we are going to trade this can make us get profits that can make us stable in the long term of course that is not true like the second point you conveyed. therefore we need time to approach to find out which strategy is good and suitable for us and in my opinion this can involve our own circumstances.
and I agree with what you said, we must be able to avoid or control our own emotions. Of course, if that happens, it can make us experience overtrading which should not happen or excessive trading which instead of wanting to make a profit actually makes us lose money because self-control is also lost.

[Odusko]

On average, traders know a lot about the theory to be able to be successful as traders, but most of them fail to apply what they already know, so they end up losing, so sometimes what we know before trading cannot completely guarantee success because the most important thing is to apply the knowledge we know consistently to be able to become successful traders who make a profit.

That is the missary in trading because is somewhat weird for someone to have all the skills and techniques to make the right trading decision but still yet take the wrong approach and losing it at the end of the day, this is so much pain compared to the fact that if you are patients enough to follow your own strategy and using of low leverage in your trading, this is where most of those traders in that category lose it, because instead using the lowest leverage so that they can keep their position open for a long time, they fiald and try to look for bulk profits within a short period of time and at the end the lose the money in the process.
So when it come to cryptocurrency trading, there is a need to build a technical knowledge about the market and at the same time make sure you never allow greed to control your decision making process because by so doing, you are giving up on what you already know to Gambling on what you are not sure of which ultimately will lead to loses for you as a gambler