Mindset vs. reality

[stadus]

That's not how I see it. Traders who fall from the successful stories of other traders felt that they are not safe in trading. Most traders do not really feel safe in the sense that trading involves uncontrollable financial risk. They know that anytime they will lose their money from trading.

However, with experienced and successful traders, they can easily managed and achieve risk management and emotional control because of their experience level, good strategies and proper risk management.

In conclusion, trading is not generally safe. Even professional traders cannot get rid of it and eliminate the risk, but they can manage it with high discipline and deal the market with less stress and higher chances of success.

[Cgrexp]

Traders who thinks it's all easy to make profit have not started trading yet because through the learning process alone they will be made to understand that real trading is different from using a demo account and when they have graduated from learning to becoming real traders the idea of profit making always will be reduced because huge profits are not easy to get but if you are a long term investor with time you could land yourself a very good profit compared to the one you make in trading.

A lot of new traders and many people who ain’t into trading always feels trading is less risky and in trading one can make profits at any given time. To them it just opening positions and making profits that how they see it, they misunderstood the concepts of trading and think of it  as place to make quick money without no risk at all just free money flying around the air with no owners.
 Trading is much more complicated than all this their thinkings. Using demo account is just a minor trading and with demo account emotions don’t fall in or triggers at all that why we can open so many positions with bigger lot size but as soon as we shift to real money account then the emotions fall in place and cautions begins to occur.

In fact, as easy as trading seems from the outside, once you get inside, you realize how difficult it is.   However, later, even a small loss seems big, and even if you make a profit, you want to get out quickly. I think that trading is actually a game of skill and mindset. If discipline, patience, and emotion control are not in place, it is difficult to survive in the end, no matter how good the strategy is. And those who think it is easy, most of the time they get out of the market with hard lessons. You make another good point that long-term investment. Everyone runs after quick profits, but if you can use your time, you can get much better returns in the long run with less risk. In my opinion, in both trading and investing, the real thing is to understand your own risk-taking ability and mental preparation.

[Emitdama]

Traders who thinks it's all easy to make profit have not started trading yet because through the learning process alone they will be made to understand that real trading is different from using a demo account and when they have graduated from learning to becoming real traders the idea of profit making always will be reduced because huge profits are not easy to get but if you are a long term investor with time you could land yourself a very good profit compared to the one you make in trading.

Demo accounts can still be useful, but they will never help you remember the mistakes you made while using them.
There is no emotion involved in a demo account, whether you win or lose any trades.
In my experience the demo accounts are just used to familiarize yourself with how to trade, but it won't help you improve.
That's why after I got into live trading I have a mix of eagerness and fear when executing a trade.
What I learn is when I trade in a live market, all mistakes are unforgettable compared to when you trade demo.
Even a small capital still will give you a bit of impact when you lose or win a trade.

So, before you invest large sums of money, I recommend that you start with a small amount to train your brain in live trading. Practice with real money can help you perform better. Just like what happened to me, I lost all of my capital in a single trade. My mistake was holding a position with no SL and thinking that it might reverse, which is a bad mindset.

However, I start with demo and paper money; it helps only to familiarize and to test some strategies, but it will never teach you how to handle your emotions when trading.

And the reason why we do not remember the mistakes made there is because real money is not involved. If real money is not involved, we or any human would treat it as a way to play which keeps emotions a bit away. Once real money is involved, people start losing as they panic and start selling. I have faced this myself in the past. I spent a good month in demo trading thinking I can learn and implement this in real trading. I made massive profits in demo trading which hiked my expectations. It was when I entered real trading, I started winding up in loss and then more loss to try and cover the original loss.

One can use demo trading to practice technical analysis to find and analyse patterns but completely relying on demo account before entering real trading can be a harm. After demo account, we might start with a very small account just to understand and learn more about our emotions.

[FanEagle]

Not a lot of people can calculate the risks involved for the trading they are doing, and that is the main reason for their loss. They think that there is a small chance of loss when there is a big chance and then they are shocked that the small chance ended up happening. That's not how it works and we should be considering how this is not the way it should be moving forward.

I understand why this would be a very different and difficult thing to focus on but at the end of the day we are talking about something that would be a lot more different in the end.

[Bitcoin_people]

~~

 Interestingly, this mindset of the brain also occurs in trading. Many people, tempted by the stories of some people's trading profits, consider trading safe. But logically and statistically, trading is much riskier than long-term investment. But many people consider trading to be more safe, which in most cases can lead to losses.

Trading is never a safe and profitable management, it is risky. Some people think that by trading they will make a profit, but this is not a reliable source at all because trading is always risky and even experienced people often face losses here. Long-term investment is never risky. There is a high probability of profit here and there is no possibility of losing the world, but when you make a trade, if it is stuck for a long time, it will definitely be risky. Trading will definitely cause losses because it is never possible to make a lot of profit by trading, it is possible to make some profit when the market is in a good position.

[OsaiEmma]

Imagine that you are on a plane and the plane is taking off or landing. Suddenly the plane shakes a lot, your heart starts beating fast and you feel like you are going to die. But then you get off the plane safely and get into your car. Finally, you reach your home through the crowd and traffic. During the time you were in the car, you never once thought that an accident could happen. Statistically, your chances of dying in a car accident were much higher than your chances of dying in a plane. But we are afraid of planes, but we are not afraid of cars. It is quite interesting that our brain is afraid of things that are logically safe, but at the same time it is not afraid of things that are logically risky.

 Interestingly, this mindset of the brain also occurs in trading. Many people, tempted by the stories of some people's trading profits, consider trading safe. But logically and statistically, trading is much riskier than long-term investment. But many people consider trading to be more safe, which in most cases can lead to losses.

Honestly, I really do love ur analogy, to me, it hits the nail on the head, most people are afraid of things that are less threatening than things that are more threatening sometimes, not all the time though, cause if it appears unsafe, or have a crazy rumor around it, it may appear scary to some people, just like the analogy u gave, the sense of danger a shaking plane provide, and the high mortality rate in plane accidents can cause such fear, whereas, in cars, the sense of security and the probability that we can survive a car accident even though the chances of having 1 is high, makes it less scary.

But I don't think more people are afraid to invest than to trade, I feel it's the opposite, but it's just that, we feel there is much gain in trading than in investing, which is the main misconception, you make losses and profit daily in trading, and that can reduce ur overall profit over time.

[savetheFORUM]

Imagine that you are on a plane and the plane is taking off or landing. Suddenly the plane shakes a lot, your heart starts beating fast and you feel like you are going to die. But then you get off the plane safely and get into your car. Finally, you reach your home through the crowd and traffic. During the time you were in the car, you never once thought that an accident could happen. Statistically, your chances of dying in a car accident were much higher than your chances of dying in a plane. But we are afraid of planes, but we are not afraid of cars. It is quite interesting that our brain is afraid of things that are logically safe, but at the same time it is not afraid of things that are logically risky.

 Interestingly, this mindset of the brain also occurs in trading. Many people, tempted by the stories of some people's trading profits, consider trading safe. But logically and statistically, trading is much riskier than long-term investment. But many people consider trading to be more safe, which in most cases can lead to losses.

Flying on a plane is actually like trading futures. Because if there’s an accident, the chances of survival are very low. Just like in futures trading, where if we make a mistake, having our position liquidated is quite common. Whereas with a car, even if we might lose, no position gets liquidated unless it’s due to a rug pull.

But yeah, regarding long-term investments, they’re much safer, so the answer is indeed correct. But remember, this only applies to Bitcoin.

So I hope what you mean is holding Bitcoin, right? Because aside from Bitcoin, I think it’s not safe at all. In fact, I’d rather trade it if it’s anything other than Bitcoin.

That seems like a right comparison. Even though the plane accidents will be much lower as compared to futures liquidations so it might not balance out. Futures are riskier as more than half of the time, we wind up in risk where either our entire account is blown or left in pieces. In plane, the chances of accidents might be less than 1% which makes it way safer than futures trading. The excitement level might be more when it comes to futures trading so I would give them a point there.

I won't say other than bitcoins nothing is safe. There are a number of safer options out there which can give staking benefits as well while we keep holding them. I guess OP can explore options but can keep majority of his shares in bitcoins itself.

[masulum]

Trading is never a safe and profitable management, it is risky. Some people think that by trading they will make a profit, but this is not a reliable source at all because trading is always risky and even experienced people often face losses here. Long-term investment is never risky. There is a high probability of profit here and there is no possibility of losing the world, but when you make a trade, if it is stuck for a long time, it will definitely be risky. Trading will definitely cause losses because it is never possible to make a lot of profit by trading, it is possible to make some profit when the market is in a good position.

you said long term investment never risky, I don't agree with this, because even you are doing long term investments, there is always risk. Let's say you are buying a stock or coins, you see the price at the moment let say $1, are you sure that stock or coins can go to $2 within 10 years? we never know about that. Bitcoin today 77K, we never know the price in 2029, we are currently just in speculation if BTC will hit $100k again in 2029, but who knows, the price can drop even lower. everything have a risk, even long-term investments.

[WatChe]

Trading is never a safe and profitable management, it is risky. Some people think that by trading they will make a profit, but this is not a reliable source at all because trading is always risky and even experienced people often face losses here. Long-term investment is never risky. There is a high probability of profit here and there is no possibility of losing the world, but when you make a trade, if it is stuck for a long time, it will definitely be risky. Trading will definitely cause losses because it is never possible to make a lot of profit by trading, it is possible to make some profit when the market is in a good position.

Both trading and long term investment have risks associated with them. We can say trading is way more risky compared to long term investment but we need to do proper risk management while going for trading or long term investment. This is very much true that not everyone can handle wildfire of trading and even experienced traders find it difficult to avoid huge loses in trading. If you are new to crypto then avoid going for trading straight away rather get some experience of crypto market first through investment.

[Big Dirams]

~~

 Interestingly, this mindset of the brain also occurs in trading. Many people, tempted by the stories of some people's trading profits, consider trading safe. But logically and statistically, trading is much riskier than long-term investment. But many people consider trading to be more safe, which in most cases can lead to losses.

Trading is never a safe and profitable management, it is risky. Some people think that by trading they will make a profit, but this is not a reliable source at all because trading is always risky and even experienced people often face losses here. Long-term investment is never risky. There is a high probability of profit here and there is no possibility of losing the world, but when you make a trade, if it is stuck for a long time, it will definitely be risky. Trading will definitely cause losses because it is never possible to make a lot of profit by trading, it is possible to make some profit when the market is in a good position.

Well trading is risky and losses is part of the journey and it is inevitable. No matter how knowledgeable a trader is losses will always come but knowledge and experience reduces the chances of losses we will face than that of traders who lacks knowledge and experience. We can’t outrun losses in trading it is part of the journey.

 But I don’t agree with you with your statement about investing isn’t risky, That just bull shit. Investing is risky either long term or short term they are risky and also profits is guaranteed in investing because we don’t know the outcome of the investment so it risky.
Their might be probability of success in investing than trading due to fact that trading needs a lot more than investing and many new traders ain’t willing to give it their all but trading, investing are both risky.

[shawonngp]

Interestingly, this mindset of the brain also occurs in trading. Many people, tempted by the stories of some people's trading profits, consider trading safe. But logically and statistically, trading is much riskier than long-term investment. But many people consider trading to be more safe, which in most cases can lead to losses.

You have shown the car and plane accident as an example, actually, our brain thinks differently each time; it depends on the time and situation. When he was on the plane, he saw himself in the face of death. Later, when he started falling in the car, he didn't face anything like that, so he didn't feel unsafe. In the case of trading, everyone's mindset does not work equally, because new traders think that it is very easy to earn a lot of money from trading without any effort, such as no analysis, risk management, or practice. Still, experienced traders always think it is not easy to earn from trading. Of course, a lot of skill is required. Long-term investing is a bit less risky than daily trading, because if your coin's price dips after you buy, you can profit if you hold it long term.

[tygeade]

I also agree with people who are saying or have said that the example you used is quite irrelevant and wrong in this case, because being afraid of dying when there is turbulance in a plane is justified since you know that if something goes wrong, you will almost die unless you magically survive the crash which barely happens, whereas someone in a car without the car having any problems or with no overspeeding and stuff will surely not be afraid or worried, because even though accidents could happen, but you will only be afraid if you feel the fear because of something that increases the chances of it happening.

Now talking about the actual point of your topic, I would say that no one would say that trading isn't risky as long as they understand enough, it's only those who are misguided who might think that trading is safe and they are not going to face any problems in it, especially if they compare it with long-term investments. Besides, if anyone actually try both, they will understand and won't have the same mindset again. It's only those who have heard it from others would say things like that, with proper experience, no one would say that trading is less risky than long-term investments.

[Promocodeudo]

Trading is never a safe and profitable management, it is risky. Some people think that by trading they will make a profit, but this is not a reliable source at all because trading is always risky and even experienced people often face losses here. Long-term investment is never risky. There is a high probability of profit here and there is no possibility of losing the world, but when you make a trade, if it is stuck for a long time, it will definitely be risky. Trading will definitely cause losses because it is never possible to make a lot of profit by trading, it is possible to make some profit when the market is in a good position.

Trading js risky but experienced trader profit although not all the time but what I know is that trading far risky we cannot compare it with investment but it also depends on the investment if it is Bitcoin investment for a long-term then it is better because there's no much risk inside because there's a strategy that can help an investor to invest freely with what he can afford without going beyond his means which is the risk itself, I agree with you that as a trader losing is inevitable, your years of experience will not save you unless you apply stop technique, how many traders even do that, let's not compare the two because people do what they like even though some of us are not traders, some People are and also have their reasons for choosing that part.

[Mpamaegbu]

Interestingly, this mindset of the brain also occurs in trading. Many people, tempted by the stories of some people's trading profits, consider trading safe. But logically and statistically, trading is much riskier than long-term investment. But many people consider trading to be more safe, which in most cases can lead to losses.

It's simple. It doesn't cost anything but patience to hodl but it takes skills to trade. So, for those who think trading is far off than hodling but don't have any trading skills, losses and regrets shall continue to be their lot. For me, I consider trading a bigger risk than hodling but it's more rewarding; especially for those with set skills for it (trading). Any profitable trader would tell you that trading is way better than hodling. I believe that.

Come to think of it, there are also instances where hodling also lead to losses.

[alastantiger]

Trading will definitely cause losses because it is never possible to make a lot of profit by trading, it is possible to make some profit when the market is in a good position.

For new traders their mindset is that immediately they start trading that they are going to make profit but the reality is different because trading does not give people profit that easily. You have to have been trading for a very long time for you to have gain the experience to make profit from the market, the market is very volatile and it can take away your money as quickly that you won't be able to understand what happened.

Long time investors are the ones that make the most profit in the market but to do this you have to have enough capital both for investing and the one that will take care of you why you leave your investment to grow, but for you to trade you can start with little money that you have and then add more money if you lose the ones you already used in starting that is why people are always attracted to trading than to investing for a long time. Before you decide to become a trader or an investor you have to make sure that the career choice that you are choosing is the best one for you.

[Finebone]

Interestingly, this mindset of the brain also occurs in trading. Many people, tempted by the stories of some people's trading profits, consider trading safe. But logically and statistically, trading is much riskier than long-term investment.

It's true that investment in Bitcoin is less risky than trading, but most people especially newbies thinks otherwise because they are meant to believe that the fastest way to escape poverty is true trading, and since the possibility of making money fast are there in trading, they would rather trade than invest, even when they are aware of the risk attached to it.

But many people consider trading to be more safe, which in most cases can lead to losses.

Anyone that thinks or reason is such a way is either ignorant or is just blinded by his quest to get rich quickly, because trading is way more risky than investment in Bitcoin.

[Johnlomape]

Trading is never a safe and profitable management, it is risky. Some people think that by trading they will make a profit, but this is not a reliable source at all because trading is always risky and even experienced people often face losses here. Long-term investment is never risky. There is a high probability of profit here and there is no possibility of losing the world, but when you make a trade, if it is stuck for a long time, it will definitely be risky. Trading will definitely cause losses because it is never possible to make a lot of profit by trading, it is possible to make some profit when the market is in a good position.

Trading js risky but experienced trader profit although not all the time but what I know is that trading far risky we cannot compare it with investment but it also depends on the investment if it is Bitcoin investment for a long-term then it is better because there's no much risk inside because there's a strategy that can help an investor to invest freely with what he can afford without going beyond his means which is the risk itself, I agree with you that as a trader losing is inevitable, your years of experience will not save you unless you apply stop technique, how many traders even do that, let's not compare the two because people do what they like even though some of us are not traders, some People are and also have their reasons for choosing that part.

For anyone trying to make money from trading, you must know what you are doing so that you don't continue making the same mistakes over and over again. There are traders that do trade like a gambler without bothering about the risks that are involved when trading to make profits from the market. There are traders that have the mindsets to make huge profits from trading without knowing how to trade very well. Trading is not about the mindset that you have to make money from trading but your physical ability to utilize the strategy you are using and other tools to make money from trading.

[Faisal2202]

There is a point in your words. You are right that the chances of dying in a plane crash are much higher than in a car crash. But I also want to make you think that plane crashes basically do not happen regularly. I do not know the exact truth, but as an example, we hear about 1 or less plane crashes in every 1000 flights. But car crashes are happening all the time somewhere in the world. And people are dying every day somewhere in the world in AU accidents. Especially in underdeveloped or developing countries where the roads are very bad. If you try to find out by searching on Google, you will see that statistically the rate of car accidents on the road is a thousand times higher than that of plane crashes.

But finally, what you are saying is also absolutely true. In a plane crash, almost all the passengers on the plane are more likely to die. But in most cases, there is a chance of survival in a car accident.

I cannot agree with you more because the numbers are clear. We do not travel a lot in planes and that is why we fear them more than cars. We travel in cars a lot like daily. As a matter of fact we spend most of our lives traveling in motor vehicles and the chances of an accident in them are 1 in 100, while on planes the chances of a crash are 1 in a million.

The human brain is not wired naturally to feel that way. Those who are used to traveling by plane do not feel any pressure. Although plane crashes or accidents could result in zero chances of survival, while car accidents could have some chances, that is why I think this happens, though I do not know how true that can be.

That is why we should unlearn everything we know about trading before we start learning about it seriously.

[SOKO-DEKE]

But many people consider trading to be more safe, which in most cases can lead to losses.

It is a lack of knowledge that makes some people see trading as the best way to make profit from Bitcoin, but I am very sure that anyone who has proper knowledge about Bitcoin will never see trading as safer than investment.Another issue is the eagerness to make money quickly in crypto. Some people say they cannot invest in Bitcoin because it takes too much time to make profit. They believe that by trading and making small profits, then gathering them together, it will eventually become a large profit sometimes even bigger than what they would have made from investing.

However, when they start trading, they realize it is not the way they thought it would be. Instead of quitting trading and starting Bitcoin investment by accumulating gradually, some people prefer to keep chasing the money they have lost. They continue trading until it becomes an addiction.Another thing that deceives some people about trading is the quick results. When someone trades, they see results within a short period, whether profit or loss. Despite the fact that many people say trading is very risky and an easy way to lose money, some individuals will never stop trading.So, there will always be traders

[barbara44]

If you know that safety has to do with the defeats of risks and threats and you also understands how risky trading maybe and what it requires to be profitable as an investor, then you should never compare the risks of trading which involves technical studies and same time, prediction of volatilities remains unpredictable with NON of the strategies to be reliable on in taking the risks of trading, you'll understand that the risks of investments which basically requires investors patients with the insight of holding for a long term goals will be very common to be defeated than trading.
Accumulation strategies such as the Dca for the investment is an added opportunity to acquire more Bitcoins.

Not only that we are also talking about risk but investing and trading and their acts are not that far away from each other. I mean both involves buying and selling too. It is just that one is done quickly than the other, therefore it is only common for us to see a comparison between the two of them. Even you there, compares them too. Each has pro and cons but depending on the person, one is better than the other.

So some may not agree with what you wrote there that the risk in investing is defeated by the risk in trading. Not that I'm mostly into investing but if we are talking about patience that we do in investing or once we start hodling the coin for the long-term, then that actually doesn't have any risk because we are not doing any active actions here.