Trading Lessons that Traders should know

[danherbias07]

For me, the first lesson I learned was that trading was one of the jobs that needs a lot of monitoring, and I think that's one of the reasons that I stopped it. It went to a point that I didn't sleep for a day, and I missed going to work because I was too groggy to go.

Anyway, one of the good points there is number 5. The waiting game. How long of a patience can a trader have. It's not like it will move according to how we predicted it. There are instances when it will come late, so we cannot panic and just sell out because we are losing. Reading the market is very important in those instances, and I think the decisions will be crucial at every point of the trade.

[Hamza2424]

Hmm, great work bro. You put great work into this topic, and it is really useful for newbies to understand what it takes to trade, and that it is not as easy as it seems.

Psychology is the biggest barrier for many newbies because they have seen people making money without lifting a thing, and they made good money, so they think they can make the same. But their first try empties them, then the next one, and so on, until they realize it is not as easy as it looks.

We must have a checklist when trading and should definitely ask ourselves about the things which we are not going to do today, as it creates SLOs for us, like a lesson plan for a student.

[CryptopreneurBrainboss]

Any other lessons should come from a good understanding of technical and fundamental analysis because they are the pillar of how to approach the market in any instance with confidence.

That's just perfect, with technical and fundamental knowledge (analysis) in trading, the chances of you making mistakes are going to be slim and that's why we advise newcomers to undergo lessons before choosing a career as trading. Once you are familiar with analyzing the market either through any of the types of analysis then you stand a chance not to make mistake like an amateur. Most mistakes people make are always easy to avoid but because they lack the understanding of the market then they are always prone to make that mistake. We can go on and on listing the different mistakes traders should avoid but that won't stop them from making mistakes in the future, the only thing that can reduce mistakes is by traders being cautious of their decision making and learn from others experience.

[Big Dirams]

Hmm, great work bro. You put great work into this topic, and it is really useful for newbies to understand what it takes to trade, and that it is not as easy as it seems.

Psychology is the biggest barrier for many newbies because they have seen people making money without lifting a thing, and they made good money, so they think they can make the same. But their first try empties them, then the next one, and so on, until they realize it is not as easy as it looks.

We must have a checklist when trading and should definitely ask ourselves about the things which we are not going to do today, as it creates SLOs for us, like a lesson plan for a student.

New traders always felt there isn’t much work in trading and most of this professional traders are just making easy money but they don’t know the real hardwork behind it. Trading isn’t what this new trader think of it, trading is more complicated than we think of it and the sacrifices involved in trading is so high so it only few people that gives the commitment and keep going despite the losses in it so this trading isn’t an easy career at all and the money traders makes are from their knowledge not just luck.

[nelson4lov]

Patience is truly an underrated skill in trading and I don't think people talk about it enough. The ability to sit on one's hands and watch the market do it's thing as it makes its wsy unto a region/zone/level we can trade from is a skill I don't think can be taught. It has to be learnt from experience. A lot of people's equity curve will look so much better if they had just sat on their hands, do know and let the market do it's thing.

[stadus]

For me, the first lesson I learned was that trading was one of the jobs that needs a lot of monitoring, and I think that's one of the reasons that I stopped it. It went to a point that I didn't sleep for a day, and I missed going to work because I was too groggy to go.

Anyway, one of the good points there is number 5. The waiting game. How long of a patience can a trader have. It's not like it will move according to how we predicted it. There are instances when it will come late, so we cannot panic and just sell out because we are losing. Reading the market is very important in those instances, and I think the decisions will be crucial at every point of the trade.

Trading is a game of patience really, and those who were able to stretch their patience and wait longer, but of course with their right strategy in trading, they end up profitable. While those who comes out impulsive and easily get panic when the market turns upside down, those were the people that are actually not meant to be traders.

Trading is risky, no doubt with that. But if you are patient and has high risk tolerance, eventually trading will be quite less risky for you.

[Royal Cap]

However, I think the most important thing is to trade more. Because most new traders think that if they stay in front of the chart all day, they will make more profit. But in reality many times the best decision is not to take any trades. One more thing can be added, if there is no good setup you should not trade just for the sake of trading.  After one trade is completed, you want to take another. That's where most of the mistakes start. So trading less but according to the plan, seems more effective to me.

[GreatArkansas]

5.  The best Traders WAIT, they don't hunt
This means we should practice, identify the level ahead of time, if we want to get involve and then we wait for it, we don't need to check it from time to time, instead,
we just have to be selective.

Among the list, this is the one I can relate to the most, like one of my many mistakes I frequently did when I was just starting to trade. Being a trader is really difficult; you need to be patient.
Not all the time is good to trade. Like it doesnt mean you already closed your long trade position, it's already bear, like you can open again a short position - that's not how it works.

[Zanab247]

Patience is truly an underrated skill in trading and I don't think people talk about it enough. The ability to sit on one's hands and watch the market do it's thing as it makes its wsy unto a region/zone/level we can trade from is a skill I don't think can be taught. It has to be learnt from experience. A lot of people's equity curve will look so much better if they had just sat on their hands, do know and let the market do it's thing.

Patience is among the lesson some new traders have achieved that is making them to make progress in crypto trading today, because they don't rush when other traders are rushing to make profit when it is not time to trade to earn massive profits. There is no way you will relax on your patience you will not make it how you want it in your crypto trading, because you will not waist time once the bull run start rising in the market, which is a sign that is motivating majority of traders to begin to trade to earn what they wish to achieve.

Just make sure you have a plan toward the market, and once the price you have be waiting for occur you can start alerting other traders that don't have the knowledge of crypto trading to join you to start trading to make a good profit, and they will surely going to appreciate you for what you help them to achieve from their crypto trading.

[Awaklara]

1.  Most Traders lose due to of how much they trade, not what they trade
We all know that over trading is the silent killer, isn't? these are the people that everytime the market move it looks like an opportunity for them to take an action.
But then in the end they don't have the good one result.

Every trader certainly feels the drive to keep trading while you are learning or improving your skills and knowledge about trading. Someone's interest in trading naturally makes them want to keep trading. Understanding the market, which may also relate to a trader's psychology and control, will develop as more lessons are learned from trading that has been done. Becoming a successful trader is not something instant. There is a constantly evolving process of understanding at all times.

[boyptc]

For me, the first lesson I learned was that trading was one of the jobs that needs a lot of monitoring, and I think that's one of the reasons that I stopped it. It went to a point that I didn't sleep for a day, and I missed going to work because I was too groggy to go.

I think that's being done when you're a day/scalp trader. I agree that it requires a lot of monitoring when you're trying to hit some target of how much you should earn in a day.

That's exhausting and that's also a reason for me why I stopped doing daily monitoring. Aside from it consumes a lot of time, it's stressful when the market suddenly shifts oppositely from the position that we set.

While it's a rewarding job or side hustle, those who are able to manage into that point went through a lot of losses, stress and frustrations.

[LastKiss]

~snip~

5.  The best Traders WAIT, they don't hunt
This means we should practice, identify the level ahead of time, if we want to get involve and then we wait for it, we don't need to check it from time to time, instead,
we just have to be selective.

Personally, this was really hard for me when I first started trading, waiting isn't easy because after winning a trade I wanted to experience the feeling again and believed I could do it again. However, my impatience led me to overtrade and the domino effect continue.

No matter how experienced we become there's always a chance we'll make the same mistakes again like you mentioned. That's why it's important to keep our discipline intact cause without discipline everything else becomes a rollercoaster, we follow our plan sometimes but other times we forget and let our emotions take over.

[Cgrexp]

Any other lessons should come from a good understanding of technical and fundamental analysis because they are the pillar of how to approach the market in any instance with confidence.

That's just perfect, with technical and fundamental knowledge (analysis) in trading, the chances of you making mistakes are going to be slim and that's why we advise newcomers to undergo lessons before choosing a career as trading. Once you are familiar with analyzing the market either through any of the types of analysis then you stand a chance not to make mistake like an amateur. Most mistakes people make are always easy to avoid but because they lack the understanding of the market then they are always prone to make that mistake. We can go on and on listing the different mistakes traders should avoid but that won't stop them from making mistakes in the future, the only thing that can reduce mistakes is by traders being cautious of their decision making and learn from others experience.

However, technical knowledge alone does not reduce the possibility of making mistakes. A trader needs technical knowledge, how to buy, how to sell, how to protect his wallet, all of these are included in technical knowledge. However, it does not help in making completely correct decisions. Along with technical knowledge, risk management and experience are also needed. Especially when someone chooses trading as the only strategy, he should take training. However, choosing trading as a profession is very risky. And to avoid risks, risk management, analytical skills and experience can be used to make decisions, but it is difficult to maintain profits in the long run.

[tygeade]

Overtrading is definitely a bad practice, but so many traders do it when they are new in the space. They actually believe that they can make better profits by overtrading. If a trader has already made some profits for the day, they should stop right there and call it a day, but no, so many traders actually decide that if they have made some profits already, and the day is not over yet, they should make some more trades so that they can make some more profits, but a trader should be disciplined and not like this. I also believe that a trader shouldn't have a specific target for a day to achieve, because you can't get the same results every day, and trying to reach the market might cause overtrading.

A trader can only make more profits if they have a bigger capital, which means that the percentage of the profits will be the same, but the amount will be higher; making more trades is not the right way to make more profits, especially when there are no clear and good opportunities in the market to make trades that can be successful, and you can't force it because when you do that, you are surely going to lose money instead of making more. Trading is all about patience and discipline, and if you can't maintain that, your journey is going to be very short as a profitable trader.

[puloweh555]

Overtrading is definitely a bad practice, but so many traders do it when they are new in the space. They actually believe that they can make better profits by overtrading. If a trader has already made some profits for the day, they should stop right there and call it a day, but no, so many traders actually decide that if they have made some profits already, and the day is not over yet, they should make some more trades so that they can make some more profits, but a trader should be disciplined and not like this. I also believe that a trader shouldn't have a specific target for a day to achieve, because you can't get the same results every day, and trying to reach the market might cause overtrading.

A trader can only make more profits if they have a bigger capital, which means that the percentage of the profits will be the same, but the amount will be higher; making more trades is not the right way to make more profits, especially when there are no clear and good opportunities in the market to make trades that can be successful, and you can't force it because when you do that, you are surely going to lose money instead of making more. Trading is all about patience and discipline, and if you can't maintain that, your journey is going to be very short as a profitable trader.

You're absolutely right and many people fall into the trap of overtrading because they think the more trades they make, the more profit they'll make when in fact the opposite is true. They should stop after they've made a profit or achieved their daily goal. Don't force yourself to continue trading because you think there's still time, because that's what leads to greed, even though in trading greed is every trader main enemy. So, as a trader don't push yourself too hard to reach your targets especially since the market doesn't care about your targets.

Trading is an activity that prioritizes patience and discipline not how many trades you make. So, we can say that good trading isn't measured by how many trades you make, but how well you can manage everything. Sometimes this advice is easy to understand, but many beginners don't take it as a lesson for success in trading.

[mirakal]

Hmm, great work bro. You put great work into this topic, and it is really useful for newbies to understand what it takes to trade, and that it is not as easy as it seems.

Psychology is the biggest barrier for many newbies because they have seen people making money without lifting a thing, and they made good money, so they think they can make the same. But their first try empties them, then the next one, and so on, until they realize it is not as easy as it looks.

We must have a checklist when trading and should definitely ask ourselves about the things which we are not going to do today, as it creates SLOs for us, like a lesson plan for a student.

Well, experience makes the most effective teacher, but that does not mean that if they lose on their first attempt, eventually they will stop trading. Those who are trading with greed will hardly stop trading, because for them if others have been profitable into trading, then definitely they will also, but the problem is if they can make from those unstoppable losses from trading, most especially if they are trading the wrong way.

It's really a must to have a trading plan or let's say a checklist in trading, so that one will be guided and may lessen the risk, but its not that all traders practice that.

[Out of mind]

Traders should understand that position sizing and risk management practices are the bedrock to having successful trades, irrespective of the strategies you know and choose to adopt at any moment such a trader decides to make an entry into the market.
Any other lessons should come from a good understanding of technical and fundamental analysis because they are the pillar of how to approach the market in any instance with confidence.

Of course, traders should understand that when entering the market, they have to enter with confidence, and they have to review their strategies and risk management well and then make decisions. Moreover, for the long term, they have to practice risk management well and then enter with good strategies. Moreover, having a strong knowledge of technical and fundamental analysis is very important. However, these things should always be remembered in trading. The key to successful trading is not just to make a profit, but also to protect capital, control risk and consistently make the right decisions.

[Mpamaegbu]

We all know that over trading is the silent killer, isn't? these are the people that everytime the market move it looks like an opportunity for them to take an action.
But then in the end they don't have the good one result.

Over trading is every noob trader's practice, except those who've strict mentors who hold them by the hand to lead them. I was guilty of this. I'm not going to be hard on any newbie trader caught in that but it's an unpardonable error if more experienced or veteran traders do the same. The reason being that experienced traders (whether profitable or not) ought to know that rushing to trigger trades is most likely a recipe for losses.

You'll hold losing trades too long due to you can't accept the loss.

I once lost over $100 on a trade I should've walked away from with less than $20 loss. Allowing trades float and create drawdown without determining a stop loss often ends up as a bad decision. This is why I don't joke with SL now.

[Abu-Naim]

5.  The best Traders WAIT, they don't hunt
This means we should practice, identify the level ahead of time, if we want to get involve and then we wait for it, we don't need to check it from time to time, instead,
we just have to be selective.

Exactly, most successful traders wait for opportunities, they don’t usually enter the market in search of trading positions, they set their targets based on their analysis, and once the market hits their targets it became an opportunity to them, and most times, they do make good profit from that than traders that used to chase entry positions in the market or day traders who must find a way to trade by all means.

I understand that there are traders who are already used to the market and will always find entery any time any day, they are actually making profit, but I think they are taking more risk that other traders because they are always expose to the market and can get liquidated anytime.

[justdimin]

most successful traders wait for opportunities, they don’t usually enter the market in search of trading positions, they set their targets based on their analysis, and once the market hits their targets it became an opportunity to them, and most times, they do make good profit from that than traders that used to chase entry positions in the market or day traders who must find a way to trade by all means.

I understand that there are traders who are already used to the market and will always find entery any time any day, they are actually making profit, but I think they are taking more risk that other traders because they are always expose to the market and can get liquidated anytime.

It is not as easy as it sounds. Just saying "wait" means that there are so many vague things involved. First of all, in order for someone to wait for a good trade, instead of rushing into a bad trade, you have to know what is a good trade and what is a bad one. Most people do not even know the difference.

Secondly you do not know how long, maybe for a full day, you look at charts of hundreds of pairs and you see none, it does happen, not impossible, and sometimes you find one, and a minute later you find even better one. So these are all vague and usually not that easy to handle, many people make mistakes on these type of things and that's not really good for the future at all. This is why I think it's quite important to see that difference.