A lot of folks jump into trading without doing their homework, and that's why so many keep losing money every time they try. I wanna share some important points we should think about before getting into trading, so when losses hit, we’ll know the reasons behind them, whether big or small. You'd be surprised how many people end up losing their cash simply because they heard some hype about how trading could make you a billionaire overnight. It's usually just the buzz that drags in those who haven't grasped the basics of trading, causing them to hope for success without really knowing the ins and outs.
Here’s what we need to understand before we dive into trading:
- Learn the essential aspects of trading first.
- Recognize that trading has its pros and cons.
- Understand that there’s a risk involved that could wipe out your funds.
- Familiarize yourself with market analysis before you trade.
- Most importantly, grasp risk management strategies.
- And lastly, know when to buy and when to sell.
Honestly, I think a lot of newbies skip the research part before they start trading, and that's why they keep facing losses. If you put in the effort to understand these concepts, it could help anyone new to trading reduce their losses significantly.
You won't even think about trading under pressure if you are learning to trade the right way. You cannot trade under pressure if you read trading books, have mentors, be a part of peer group of traders. The people who are likely to trade under pressure are those who are greedy and want to make it a get rich schemes. Trading for them is short term and not a long term endeavor.
Under pressure, it is likely you are forcing yourself to enter into trading without confirmations that's totally gamble and risky.
I've experienced it on my first month without doing a good analysis and confirmations. It leads to lose all my capital luckily I can afford to lose that amount because I earn that amount from airdrops and exchange it into USDT to use for trading.
I learn from those mistakes, which is why I decided to start trading first with paper money to build confidence and learn more about the BTC price action. I tried almost all strategies and indicators until I found a strategy that works on both intraday and swing trading. Not 100% always wins. I am still far from professional out there since I still make some mistakes in trading, but if I consistently trade and use all my experience, I do manage my risk management.
After building confidence, I sometimes enter the live market to test what I learn without pressure, and the result improves and I learn more patterns compared to before.
Experience is still the best; don't force yourself or trade under pressure. It is still a good idea if you go trade with paper money and learn from mistakes.
Most traders know when to buy and sell, but the problem is that traders sometimes do not analyze well so they think about maximum profit which actually leads to losses. Traders without skills will lead them to losses, so it is not pressure that occurs due to lack of skills.
Even worse they see some people who are successful in making so much money in trading that without the support of good knowledge they force themselves to get involved in trading in the wrong way.
I remember some people who were involved in trading using the wrong way and were generally influenced by the results obtained by others and they thought it could be done easily and eventually lost some money in trading.
Without knowledge, they will never be able to make analysis or research because there is no pattern that can be applied in running a trade.
It is better to learn from people who are experienced because they can start the right way even though in reality experienced people are also not able to guarantee profits every time, but they have the view to start in a much better way to maximize risk.
Firstly research is most important before start trading, newbies did not analyzing about market condition and i know some my friend who's choose random coins, those have low volume and if price will crashes those will not recover in short time, they losing money in those coins, they lost their capital because of picked wrong coin, and they don't know when is good time to buy/sell.
Sometimes I ask this simple question, cryptocurrency trading is more of gambling than it is a business and the reason is that the cryptocurrency market can not be predicted because of the unstable nature of the crypto market, so regardless of how much analysis is put in place before the start of the trade, it will still depend on look to make a profit since the market is the determinant factors for profits or loses so is out of the trader's control.
Pressure may be one of those things that elementarily affects trading choices but still it doesn't add up so much to what makes traders lose or gain, I have seen newbie traders who made so much profit from their first position in trading, and the reason is that the market went so much in his favor, so it's all about luck as far as cryptocurrency trading is concerned.
We determine when we can trade by analyzing the market so we don't rely on some people who say that they are an expert. Learning is the best thing that we can do before we trade so we can understand what we should prepare. Management risk is important because that will see how much money and other things that you can use and prevent the risk become bigger.
Most beginners forget about that and just rely on other people that they find in the Telegram or other social media. They believes that those people can help them trade and make money but the reality is they just want to take your money. So you need to be careful when you trade and make sure you analyze before take action.
Pressuring yourself on making trades will really be that a huge gamble because making up some positions without any basis or analysis will really be that a huge problem because at the time or moment that you had that kind of approach towards your trading on which trying to chase up on making profits then this isnt trading anymore but rather this is already that showing that you are doing the gambling thing. When you do make trades then it does really need up that kind of patience because if you wont really be that good when it comes on handling out your emotions or simply patience then would really be that eager on trying out to make forceful trades on which this will be showing up that kind of desperation.
We are just humans though on which there are really those times or moments that we do really that become that impatient specially if we cant be able to see or look up some entry or exits in regarding into our current open position. We do know that when it comes to this manner on which this is really that indeed part of ourselves that wanting to make money and we do know that trading could give out that but since there are conditions or times that you will be that rushing up and thinking up on derailing into the rules then this is where you do make out such actions.
You've made some good points to what leads to traders looses without boost of profits but after reading the thread, it somehow feels such traders ventures into the trading market with ignorant not pressures. Reading through intensive news that tells about quick rich on trading doesn't really force one in to trade but likely convincing.
So the audience of interests to the news would had made their own research before venturing knowing that the Internet can is flooded with jokers and self centered streamers even though there're still trust worthies.
Back to base, one major requirements outlining profitable trading is the ability of market analysis to know when to activate and deactivate from the trades, know your risk management and build up your psychological emotions to accept looses because you can't successfully stay lost free in the trading market nomatter how good you may be.
Also know the potential values of Coins to trade on and as well the trust rate of the exchange you're using so that you don't blindly bump in Judy by how good of informations that's being speculated.
Those who trade under pressure are people who don't have any other source of income. So, to them trading is the only way out. Whether their signals and strategy are not set for triggering a position for entry in the market; they want to force themselves to be in trade.
Patience is key in trading. Beyond having set skills, patience and Money Management are the next important thing in trading.
Trading is pressure as it was, that is for me.
That is why I don't agree, saying they don't have other sources of income, but rather believe they are chasing to make money too fast. In other words, they are impatient. And indeed right, this kind of approach will never send them to favorable results but rather be a losing end.
So I say that in order to become a successful trader, we need to be more patient. And most of all, you need to appreciate small profits rather than chasing huge money.
That's the problem of newbie, at least before some one join trading, a research is supposed to be made, I know quite well that curiosity has been one of the things that made people to join trading without bothered to make a research, but they realise their mistakes immediately they experience a lot of lost in trading, at least we need to know the preamble of trading before we join.
Did you say as it "was"? Meaning it's no longer pressure for you now? We will need clarity on that to properly situate the discussion (not argument).
I don't understand what it is you didn't agree with there. Anyway, I know that anyone who has other sources of income won't be all that impatient to always close trades as they aren't going to relay on regular income from trading alone. This has been proved to be so, not just imagination.
Anyone that is being influenced by the success news of some online traders would have their self to blame because majority of the stories from some traders are mostly lies. I have some traders in my country who sees themselves as professional traders but they make their students to lose money back to back. Being successful in trading requires patience, dedication, steady learning and also, a new trades will always pay the sacrifice of blowing accounts or losing so much money before they can learn risk management.
Your reasons and then the solutions are not enough to bring differences to anyone's trading experiences regardless of they are newbie or experienced trader unfortunately. Researching what are there in trading and then understanding the concepts might get you sufficient knowledge but your knowledge may play a very minor role in your profit making skills.
Assume there are 100 or even 1000 different skill and knowledge needed to make consistent profits from trading, then I am sure at least 1% of world population will learn them and may make profits. If it is 10k of skill and knowledge then how many people will master it? 0.1% of people, right? Same goes for 0.001% of people for 100k of skills. This way I am sure at least 1 millions of skills and possibilities we need to master which means only 0.0001% of world population may learn and remember all of them and may make profits.
These all could be summarized like mastering all requirements for profitable trading is near to impossible task.
In simple words, profits making from trading is possible but there will be no guarantee that you will not lose your profits and then your capital as well. In my personal experiences, protecting my capital itself a big task in day-trading/ short term trading.
Joining trading with pressure will even kill you more,and you we lose the little money in hand just like that,what are my trying to say,if have to trade or if you must trade it shouldn't be out of pleasure it's a gradual process,first go for knowledge very important,second exercise patient and take your time,lastly know what you want and what you are doing,after this little process you can trade and grew experience in market while trading.
You will only feel pressure on trading if you invest what you cant afford to lose which is same ideology with gambling. A simple buying at low price and selling at higher price will not give any pressure technically.
The amount of money we put on our trade is the one that makes us feeling pressured even buying a token or coin that dump hard for a long time makes it difficult to purchase easily.
But you will use just small amount like 1$, Even buying at peak will not make you feel pressured at all since you can afford what you lose.
You wont get pressured in trading if you know to your self already that you have a plan before executing the trade, plan is already right there if something changes happen we must need to take an action immediately if the trade is against to us or still base on our plot. Most likely trading under pressure if there's only sudden movement in the market like getting pump because of the current event happenings or getting dump due to take profit or market manipulation so even its just a trading we need to consider a lot of things if we want to gain profit which is more likely this happens only in the lower time frames.
most beginners in trading may make those mistakes. but some who have a serious interest in trading will definitely prepare their trading well. unfortunately, more beginners have different motivations for trading. they want to trade to quickly gain profit in a short time. they start with the wrong initial understanding.
I see beginners who have an interest in trading today are too hasty to know how to buy and sell. because maybe the concept they understand about trading is very simple. many beginners get stuck at the beginning because of those mistakes.