Welcome back,
Trading is one of the most attractive things in the current era because people think that through trading they can make generational wealth, or if not generational wealth.
At least a very good passive income apart from their regular income. But let us talk about something that is really dangerous when it comes to trading.
The majority of people who start trading are not learners. They are just here to make money quickly, and that is why they either trade randomly or trade blindly.
Now, random trading is like buying an asset and then waiting for it to go up so that you can sell it. It is simply a guess, which can work or may not work. The probability might be 1 is to 2, but still random trading is very risky.
Now comes blind trading. Blind trading is even more dangerous because here you do not even take time to research an asset.
You simply head over to Instagram or any other social media platform, whether it is X or YouTube, and you start following one or two influencers who are sharing different future or spot positions. You just copy them without understanding anything.
The reason blind trading is very risky is because you do not get the chance to follow the influencer all the time. Influencers usually share when they open a position or buy a spot asset, but many times they do not share when they are closing the position or exiting it in loss.
Even in spot holding, some influencers sell at a 1 percent to 2 percent loss when they feel things are not going in their planned direction, but they do not inform everyone.
That is where the responsibility falls on you. If you are blindly following someone and they are not sharing live updates, then you are the one who will end up losing money in that asset. And this happens to a lot of people on a daily basis.
So what should you do? You should take time and start learning about trading. And if you cannot learn trading or do not want to put effort into learning, then please do not become a trader.
It is completely fine to be a spot holder or a long-term investor. Those people are also making money, sometimes even more peacefully than traders.
I hope I was able to clearly explain why random trading and blind trading are risky, especially blind trading, and why sometimes being a spot holder or a long-term investor is actually a good idea.
Thank you and happy trading everyone.
