Everyone can make mistakes, including you. Your mistakes are invaluable experience. Admitting your mistakes is a great feat, not everyone is capable of it.
CONTENT:
Newbie trading mistakes.
Methods for solving mistakes in trading for a beginner.
1) Newbie trading mistakes.
The vast majority of people live only to satisfy their material passions. Whoever controls the flow pipe of these passions also controls their behavior. Forming for themselves very controlled, stupid, greedy individuals, with an instilled sense of importance for the world. They want everything at once and effortlessly by any means.
The thinking of their consciousness is tuned to the wave of only insatiable receiving by any means. Pure selfishness. Ideal controlled biorobot.
Some of the main reasons for newbies to lose money in the cryptocurrency market are:
Desire to quickly get rich without working.
Low level of intelligence.
Laziness to work.
Not a serious attitude to work.
Lack of elementary knowledge of psychology and sociology. Not the ability to analyze people's behavior and distinguish deceit from the truth. Not the maturity of the individual.
There is no common understanding of the market and trading. There is no knowledge of technical (TA) and fundamental market analysis.
Not wanting to learn the basics of trading on your own. Elemental laziness.
Trading on various paid and free signals from traders and imaginary traders without knowledge and independent trading experience.
There is no practice in work. There is a lot of theoretical knowledge about trading, but there is no experience in applying this knowledge in real trading.
There is no clear chosen plan and trading strategy.
There is no understanding of where the price is and what phase of the market is now. There is no clear choice and definition of the working trend (main, secondary, insignificant (local).
Wrong choice of entry and exit points from the position. Imitation of the work of a monkey with a keyboard.
Dependence on the opinion of the majority. There is no clear position. Listening to public opinion and the opinions of the FUD media authorities of the crypto market. Cowardice in one's own independent actions.
Buying crypto coins when "important news" is released when the price rises.
Not tracking the price after entering a position.
Not using Stop Loss when necessary.
Greed. Most of the position is not sold in an uptrend or on a short-term pump, in the hope of earning even more.
Work in "Va-Bank" with the entire deposit in the hope of a quick big profit.
Work without basic knowledge of trading in margin trading. The work of a large part of the depot without adequate security. Not using Stop Loss in margin trading. margin call.
The desire to earn a very large sum with a small deposit. Use of inadequate leverage X10-100 in margin trading. margin call.
Buying "at the bottom" cheaply and repurchasing on the next "day" at even sweeter prices, without really understanding what is happening with this asset.
Joining a sect of believers in one of the thousands of crypto scams. Faith in the air Entry into various "promising" ICOs. "Hold promising scam".
Returning money to the trust management of the "Internet guru" of trading.
This material is a translation of the original article in Russian. Links to the author and the original article can be found at the bottom of the page. The structure of the article is preserved, the photos are presented as links and are taken from the original article as is.
2) Methods for solving mistakes in trading for a beginner.
From the pixels of the thinking of individuals, an image of the thinking of the crowd is created. The knowledge and desire of the crowd is very important for making money, because they have to give you money. There is simply no other way. In order to increase somewhere, it is necessary to decrease somewhere.
Mistake - 1
Mistake - Desire to quickly get rich without working.
Solution - Initially, you need to understand that trading is work.
There is no easy money here! If you came into trading hoping with a small deposit, doing nothing and knowing nothing, to earn a lot of money in a short time, you are doomed to failure. Then the casino is better for you, where you have more chances to make your dreams come true. An overwhelming number of people want easy money.
As a result, most market participants, due to the illusory understanding of the market and the work itself, lose all their money to the penny. This is why the cryptocurrency market is so highly profitable. The greater the number of fools and lazy people in the market, the higher the earnings in it.
Trading is a hard way to make easy money. It is open to everyone, only not everyone will go through it ... The more a person is fixated on the final result, and not on the action now, the less chances he has to go through this path to the end. There are a majority of such characters, which means that the market will still bring extra profit until the last fool runs out...
Mistake - 2
Mistake - Low IQ. It's more of a diagnosis.
Solution - Do not engage in trading and any slave where the use of the mind is required.
The solution is very simple and understandable, but because of the low level of intelligence of this type of person, they cannot adequately assess their capabilities. As a rule, such characters "stink" a lot and prove their case in something, even in something they have no idea about. In real life, as a rule, these are ordinary workers or antisocial personalities, they understand only the language of brute force.
Therefore, due to the lack of real punishment in the conditionally anonymous Internet, they in every possible way want to assert themselves and show off their "lack of brains." Unfortunately, or, fortunately, there are a lot of such people coming to the market, they are all doomed to zeroing their deposit, as well as lowering their already low real (non-Internet) self-esteem and developing a depressive state.
On the other hand, the more such characters come to the market, the more potential profits can be made for people with intelligence starting from the average level.
Trading is more all the same knowledge of psychology and the level of intelligence. For many people, unfortunately, initially it is impossible to achieve even an average result. Like them, it would not be a shame to read these lines. Do what is yours in life.
Mistake - 3
Mistake - Laziness to work.
The solution is to develop self-discipline and responsibility. Punishment/rewarding for non-fulfillment/fulfillment of the planned amount of work.
Simple examples of how to use the punishment / reward scheme for not completing / completing the planned amount of work to motivate yourself. For example, you planned to learn some information about trading, but laziness won. Therefore, on this day, you completely limit yourself in food. The next day, laziness again won - again the hunger strike.
In any case, you will have to master the planned amount of knowledge, because you cannot live without food. An example is like an extreme, but the extreme shows the very meaning without blurring.
Also, if you are a lazy person by nature and you admit it, then a good incentive to do work that is not entirely interesting for you, but necessary, will be a reward from yourself for doing the work. The reward must be adequate in comparison with the work performed. For example, you want to go to an expensive restaurant, but in your opinion it is very expensive for you and this is not a rational waste of money.
But despite the ban, the desire has not gone away. It sits inside and waits to be satisfied. You set a goal for yourself. If you can earn, for example, +20% to the trading deposit in 2 weeks, then you have the right to irrationally spend all your earnings and even more on a restaurant and make your dream come true. If you can’t, then the trip to the restaurant is canceled until you achieve your goal.
I probably showed some pretty funny examples to motivate real lazy people, for whom motivation with words is an empty phrase. Sometimes extreme measures followed by real financial punishment/satisfaction are more effective. In most people, they only know how to work well with a whip. And there will be nothing bad and shameful if you are the same as the executioner and at the same time the magician for yourself.
But, this method of punishment / reward for motivation only works if you are a "man of your word", first of all in front of yourself. If you are not responsible for your words in life, then this kind of motivation to work will not save you, as you will constantly deceive yourself. And promise yourself that next time it will be different...
Those people who count on a quick profit without effort and time-consuming are doomed to give their modest deposit to the more intelligent and hardworking.
Mistake - 4
Mistake - Not a serious attitude to work.
Solution - Knowledge + practice. Repulsed - merged deposit.
More knowledge and practice will give you a clearer picture of the market and sober your attitude towards it. More beaten off - only a merged deposit or the loss of most of it will give an understanding that there is no place for frivolity and frivolity in this market. Lack of seriousness in trading, as a rule, disappears when a person drains a significant amount of money for him. This action very often sobers up many people.
If you are like everyone else, then the result will be like everyone else.
Mistake - 5
Mistake - Lack of elementary knowledge of psychology and sociology. Not the ability to analyze people's behavior and distinguish deceit from the truth.
Solution - More practice in trading in the market, as well as in studying the behavior of real people.
This is where practice pays off. Books on psychology cannot replace the real study of people and their behavior. Although books on psychology can serve as a good addition, they are not the basis of knowledge for understanding the future actions of people in a given situation. For example, gypsies are excellent psychologists, and at the same time they have not read any books on psychology from their family. Their practice and competition among similar ones since childhood for the sake of survival and easy money served as the basis of their psychological skill in manipulating ordinary onlookers.
Trading is the highest psychology, understanding, with the help of numbers and a price chart, the desires of people and their future actions without contact with the very root cause that generates all this.
Mistake - 6
Mistake - There is no common understanding of the market and trading. There is no knowledge of technical (TA) and fundamental market analysis.
Solution - This problem is solved quite simply and logically. What is missing must be acquired, namely knowledge and experience in trading.
The correct application of market knowledge can inflate your trading deposit to an indecent size.
Mistake - 7
Mistake - Not wanting to learn the basics of trading on your own. Elemental laziness.
Solution - Learn some basic trading theory first. If there is no desire to study it yourself, which, by the way, is freely available on the Internet, then you should think about learning from real traders or imaginary ones.
Before you start trading with real money, you need to initially study well the whole theory of trading. You can study it yourself for free on the Internet, or take paid training.
Not the desire of people to learn to trade on their own, the search for "teachers" who will present everything ready-made on a silver platter stimulates the reproduction of fraudulent teachers. As a rule, in reality, these characters are not practicing traders, but only sellers of what they themselves do not know how to use. Therefore, they are forced to sell the theory of learning, as in real trading on the market they cannot earn.
In most cases, these are ordinary "hamsters", but more adventurous with a hanging tongue. They can give you in theoretical form only systematized material from books on TA or stolen someone else's material, which they pass off as their own. As a rule, they cannot explain what is what and how it really works not in theory, but in practice. Unfortunately, the Internet is flooded with this phenomenon, especially in the Russian-speaking community.
Paying a certain amount for a training course to a real trader-teacher or info-gypsy will not give you a guarantee that after completing the course you will be able to trade successfully. Here the reason lies primarily not in the material of training, but in the person himself and his abilities.
If a person is initially a fool, then having paid even for the highest quality training material, he will not be able to become not a fool, as is his nature. Naturally, he will look for the reason for his failure in others, but not in himself.
A lot of people study at universities in various specialties. But, very few become real sought-after specialists. Trading is no exception. And the reverse situation, even having received from the "info gypsy" simply systematized publicly available material from the Internet, the average person will be able to succeed quite well in trading, as he will receive an elementary amount of knowledge on trading in one place and immediately. Although, with some effort and desire, it could be obtained absolutely free of charge by spending some time and effort searching the Internet.
In connection with the mass prevalence of "info gypsies" it is worth remembering that information that is really valuable cannot cost $ 100-200 for a course of study. A person cannot spend time on you for such a penny, which is quite logical.
A trading training course cannot last 5-6 lessons. Info gypsies want to get as many people through their training as possible in a short time. After all, the more people undergo training, the more money the course organizers will receive. They are not interested in the quality and the result of the students. These characters earn on quantity, not quality.
In an extremely short time of learning, which is replete with the Internet, it is impossible to present even the most elementary knowledge in an extremely abbreviated form, so that a person who is far from this work really learns at least something and begins to work successfully on his own. Is it possible to master a rather difficult profession to mastery in a few lessons?
Think for yourself, can a lawyer get all the knowledge for real independent work that has been studied at the university for 5 years in 5-6 classes? The profession of a trader is not simpler than the profession of a lawyer. Then why does the bulk of the crowd think otherwise? But on the other hand, the bulk of the crowd is losing money. Thanks to their ignorance of work, we earn extra profit.
Quality goods have a corresponding price tag. What is the price, what is the quality of the product. Quality items don't cost pennies. Some things are not for sale at all.
Mistake - 8
Mistake - Trading on various paid and free signals of traders and imaginary traders without knowledge and independent trading experience.
Solution - The best solution until you have mastered the basic knowledge of trading and have not received the minimum practice of trading on your own is not to use any signals. You also need to understand that very often trading signals are sold not by traders, but by the same hamsters, only more enterprising. You have to be careful with this. After all, a hamster always remains a hamster, even veiled as a guru.
Without certain knowledge and experience in market situations, even the most accurate and profitable signals for a hamster will be unprofitable. The mind cannot be bought, you need to create it yourself, as a rule, stupid people forget about this.
Buttons "loot" - does not exist. There are various market situations that can break this button in an instant. Where an experienced trader gets out, a beginner will be at a loss and receive losses.
Very often signals are sold by traders - zombies of TA books. It's very easy to bankrupt them. Some traders who have been working in Forex for many years under the hype of cryptocurrencies have moved to this market. Usually it's sadness. After all, each market has its own characteristics. The volatility and manipulative actions of cryptocurrencies are not comparable to the Forex market.
It must be remembered that the loss by Stop-Loss is the same loss and it does not matter what it is called. If you are knocked out 5 times by Stop-Loss -5%, then in the end you will receive a -25% loss, and a +10% finger-to-sky signal that accidentally triggered will not be able to equalize the loss. At a distance it will be a tragedy for you.
Blindly copying the trading methods of a successful trader, which bring him big profits, can only bring you losses.
Mistake - 9
Mistake - No practice at work. There is a lot of theoretical knowledge about trading, but there is no experience in applying this knowledge in real trading.
Solution - Training deposit 50-200$. Theory is confirmed by practice.
Initially, when you have already mastered the theory, you should begin to practice. Most importantly, you need to start with a training deposit of $50-200 no more, regardless of how much money you have. Trading with a small amount of $50-200 is much better than trading on a demo account, which in most cases is not available on exchanges. Only when your transactions are correct in most cases, you can try to trade an already acceptable amount for work.
Be practical, not theorists. Only the weight of your deposit matters, not memorized book information.
Mistake - 10
Mistake - There is no clear choice of a trading plan and strategy.
Solution - Test strategies and trading methods for yourself.
Try different trading methods and strategies on a symbolic training amount of $50-200. Choose through success and failure what suits you best. It is not scary if during the test of the strategy, you completely drain your entire training deposit. After all, the amount is symbolic, and your task is to gain experience and find your more effective trading strategy for you. The time spent on it does not matter, the result is important. Hurry up slowly.
There must be a strategy and a plan. There is no strategy and plan, act on the will of chance - you are doomed.
Use in your trading an effective strategy that brings profit at a distance. If you didn’t find one in the textbooks, create it yourself.
The best trading strategy is the one that only you use! The more people use the same strategies in their trading, the less effective they become over time.
Mistake - 11
Mistake - Not understanding where the price is and what the phase of the market is now. There is no clear choice and definition of a working trend (main, secondary, insignificant (local) for work.
Solution - Learn the basis of trading - Dow Theory. Learn to recognize trends. Determine market phases. Nobody will do it for you.
Trading against the trend is like standing in the way of a train and hoping it bounces off you.
Mistake - 12
Mistake - Wrong choice of entry and exit points from a position. Imitation of the work of a monkey with a keyboard.
Solution - The right entry point. The risk/reward ratio must be at least 1:3. Setting adequate target sales zones after purchase. Using Stop Loss when necessary.
The use of Stop Loss by beginners in trading will teach them how to choose the right entry point into the market. As the wrong entry point will always bring losses and knock out Stop Loss. This will help extend the life of the deposit if a person is not friendly with the mind and does not know how to learn from others' or their own mistakes.
The amount of potential profit must initially exceed the amount of potential losses.
Mistake - 13
Error - Dependence on the opinion of the majority. There is no clear position. Listening to public opinion and the opinions of the FUD media authorities of the crypto market. Cowardice in one's own independent actions.
Solution - Disconnect from chats, channels, YouTube crypto bloggers, news resources of the world of cryptocurrencies. There is no FUD information and no other opinion! Kill in yourself such things as: the dependence of actions on public opinion, greed, a sense of lost profit, not confidence in your actions.
If your task is to trade profitably, do not listen to public opinion and the opinions of the FUD media of crypto market authorities. Never use any paid or free trading signals, especially signalmen.
Do not enter into a position on the news or when "all". A good solution would be to completely disconnect during trading from channels, chats, YouTube crypto bloggers. Use them only as an indicator of public opinion of stupidity. Your advisors and assistants in trading are the chart, the order book, the history of purchases/sales and your level of intelligence.
Memorizing movement options without actually understanding what causes them will leave you poor and easily controlled.
Mistake - 14
Error - Buying crypto coins when "important news" is released when the price rises.
Solution - Disconnect from chats, channels, YouTube crypto bloggers, news resources of the world of cryptocurrencies. There is no FUD information and no other opinion!
People are afraid to buy cheap, they buy high. The higher the price, the more willing they are to buy, a high price gives the illusion of a safe and valuable purchase. The crowd as a whole buys and sells at the wrong time, don't follow the always losing crowd!
to be continued...
The author of the original article - Spartacus of Macedon
Communication with the author (telegram) - @SpartakMakedonskiu
Link to original article - https://telegra.ph/Odni-iz-glavnyh-prichin-poteri-deneg-na-rynke-kriptovalyut-12-22
Link to the author's telegram channel - https://t.me/SpartaBTC777