THE TRADING CYCLE OF MISFORTUNE

A big reason why many traders spend years trying to make profits without any luck is often due to a crucial, yet sometimes overlooked topic in trading. Yeah, I know "the trading cycle of misfortune" sounds dramatic, but most people don’t really pay attention to it, even when they notice it. So what's this CYCLE OF MISFORTUNE? It's basically a mental loop that most traders get stuck in. This loop drives them to endlessly search for "the ultimate trading strategy" or "the best investment." It usually has three stages: THE SEARCH: This is where a trader gets really excited about trading. They start looking for what works and what doesn’t, trying to figure out which strategy or trading style might bring in quick cash to solve their financial struggles as fast as possible. So, they’re scouring YouTube, Facebook, Google, and anywhere else they think might help them find what they need. THE ACTION AND RESULT: At this point, they think they’ve found the answer, maybe a paid strategy they don’t fully study or backtest, or possibly a free one. Their excitement to finally start trading and making money is through the roof. They can’t wait to dive in and start raking in millions. They put in their hard-earned cash with hopes of getting rich quickly. Trading kicks off (though often without properly testing the system or strategy), and if they get lucky, that strategy might bring in some profits in just a few days or weeks.

You are right about what you said. They want to make money quickly from trading which is a bad approach they have while they begin to trade. The mistakes I learn from trading is the use of high leverage and also not want to be patient in a way that I should average instead which must be done professionally to make money from trading. Most traders are gambling but think they are trading.

Getting a mentor or trading mentors can prevent the circle of doom. Like you have defined is the constant search for the best strategy which doesn't exist. Having a circle of trading friends and being a member of a good trading community also prevents the circle of doom. I believe that it is only lone traders that fall into this circle of doom. And trading should not be done as a one-man-affair. Don't trade in isolation. All the terrible things happen to a trader when they standalone from other traders. To grow will be hard. Even the experts still need people around because they know they need some checks and also people to ask quick questions when they run into a problem.

Very correct sir, the challenge often is lack of proper mentorship, impatience and the laziness to follow the right procedures, instant gratification is the driver on sit

Also, bear in mind that trading cryptocurrency does not strategy that works 100% since the cryptocurrency market direction is unpredictable, so for whatever we do with skills and knowledge or strategy, we should always watch out for luck, most times traders tend to expect the market to go in they favor but when the market goes against them it becomes a doom days. Trading and gambling should be done with the ultimate guide and information but above that also you have to rely totally on luck and to take the first profits and avoid greed, we must lose in trading just as we lose in gambling.

Such a nice idea sir, there is no strategy that works 100% and the truth is no one actually needs a 100% working strategy to make money trading crypto..however I wouldn't totally agree one should rely totally on luck to make money from trading crypto currencies, luck surely has its part to play in some cases  but in most cases we can't ignore the efficacy of hard work in the right direction, proper knowledge in the right areas from the right sources and the right information at the right time will often yield better results that will stand the test of time

yeah, trader should just trade and find out what's better for them and use it. basically know the basic and start with small capital to get the gist of the market then make strategy by their own accordingly based on their abstract understanding of the market, using other people strategy is fine but the people that I know that make consistent trading profit always stick to their strategy which has been proven to be effective for them and their style. some stick with just arbitrage, some high leverage, bascially there's many ways to become profitable, choose one.

Great read, though the thread itself would be a lot more readable if it was formatted a little nicer. I and I know many others have experienced this in their beginning days of trying to play the markets. I think the keys before trading a single dollar in the real market, is education and practice/demo trading. Greed causes many to skip this step.

One ugly truth about trading that makes it very difficult is that knowledge, Skills in technical and fundamental analysis are not enough to succeed in the craft, patience and knowing when to stay off the market is another skill a trader needs to have in other to stands a chance of succeeding, but the most important skill in my own opinion which a trader must have is the ability to control his or her emotions, because lack of emotional control destroy all your knowledge and skills as a trader, because it makes you doubt your own analysis, which will eventually makes you to be pulling out of trades you should have stayed a little bit longer, and at the end of the day, the trade with eventually play out as expected, but lack of emotional control  have make you pull the plug already, so emotional control is the most important skill a trader must have in other to be able to implement any working strategy he has in mind. Then lastly, in this circle of doom as you call it, it's very necessary to stay alive, what am talking about is not liquidating all your available funds while searching for perfection or a better working strategy, because constantly having huge losses might discourage you completely from even trying again, so it's very necessary to trade with a very small margins till you are very much sure of what you are actually doing, so staying alive in the market while seeking perfection is very much important as a newbie trader.

Sure sir.. thats as true as it sounds, emotional and self control are just as important as the proper knowledge itself, the thing is that even this emotional intelligence in trading is taught, and since these group of traders are always after the best strategy and are looped in that circle  they don't even learn the intelligence,. One of the most impulsive and hyper emotional traders I have come across are 95% of traders in that loop.  Staying alive in trading can't ever be over emphasised because it is the key to even starting in the first place

Well we all want to make funny fast with trading. But if we trade crypto we must know there is alot of ways we can lose our capital very fast. Trading crypto is not like trading anything else like stocks, bonds, metals, or other currencies. Crypto is so volatile and it is not so easy for us to predict how a markets are going to move. There is not alot of crypto investors that make big profits trading crypto. Yes there is some but most investors will tell you just to hodl your coins. If we wait for the 'bull run' we can make more profit then from trading our crypto.

It's very hard to distinguish trading and gambling and I think that we have a lot of discussions with that topic already. And yes, high leverage specially if you really don't know the concept of it, is very dangerous for beginners. Patience as well, if you don't have that much time in you, very hard to make good decisions because you are time constraint, and usually the difference is like minutes because a good trade and huge profit from losing big. So it's really a big risk to target huge profits very early and we all know that it also takes extreme luck to be able to pull that one off.

Trading generally are very risky as long as leverage is involved. Forex and stocks are as risky as crypto trading because they are designed in a way that traders can also use very high leverage to trade. It is easy for a trader to lose in any of them. You said investors. Investors will invest but traders will trade. Do not regard investors as traders. As there are people investing in crypto, there are also many traders that are trading crypto.

Maybe every trader finally gets into the cycle of doom described, but as a trader, I think that this cycle of doom can be avoided if a new trader has mentorship. With a mentor, a new trader will not need bothering about the best strategy to adopt because the mentor will be teaching them one already. Aside from the strategy, there is a wealth of experience and a lot more to gain from a mentor. A good mentor can introduce you to resources that will be very useful to you all through your journey of investing.

The motivation to make money fast in large amounts is the basis for most traders to lose because this way of thinking will drive them to use leverage and a much larger percentage of capital and eventually they experience losses that cannot be avoided. Knowledge, experience and risk management are important foundations for someone to be involved in trading because with these three ways people can control themselves. Many traders are destroyed because of too much ambition and they have difficulty controlling themselves when involved in trading and end up losing a lot of money. This is something we often hear because big ambition will kill you in a faster way and it should be avoided when you want to get involved in trading.

2 of my worst mistakes in my trading journey especially the using of high leverage. I've experienced it as well where I lost a huge amount in a wrong position then I tried to recover those losses through entering again, but now with a higher leverage until I got emotional, and I lost all of my money because of that one simple mistake that I did. This year, I'm trying to use low leverage, and will focus more on the top market cap coins. I will try to do the "slow-but-sure" technique where I'll just use x5 leverage for most of the time and will set a target TP percentage. Aside from that, I will make my trades based on a higher time frame like 4H, 1H and 1D. There are more adjustments that I need to do along the way, but I hope I'll be successful with my trades along the way.

With trading bots, demo accounts, back trading, it is possible to verify and test the trading strategy while reducing the psychological impact. Therefore, most of those who want to trade directly without learning are those who hear that the opportunity to make profits from trading cryptocurrencies is great and the risks are non-existent, and therefore they see that there is no need to learn, and this is wrong. In addition to the tuberculosis and choosing the copy trading option. Also, many do not have trading experience or have traded stocks/forex before. So laziness is the main reason for the loss.

Does anybody else feel like this 'Circle of Doom' isn't really born from trading but from general risktaking behavior? Take out the trading context and you can apply this to any kind of risky behavior. Gambling comes to mind immediately but people who take drugs, people who seek risky relationships. THE SEARCH: The enthusiasm to find something new, a new thrill to make your day. ACTION AND RESULT: The win or lose phase, and the high you get from it. REGRET: Consequence comes and you feel bad, but you think, if you try again, you get something different. Sounds familiar right? BTW, OP spelling regret as reret made my day, but it was gonna be even better... I never thought I would see TB in this forum