I don't know what you mean by greed. But having invested in electronic money, you have to take risks. When you earn a lot of rata, you will be like, I think you are proud that you make the right decision and are good, but if you lose it you blame the money. invested in electronic money, please take risks.
risks are something without which it is simply impossible to be on the cryptocurrency market. And those people who have learned to properly assess their risks will earn big money in this market 
Topic: Greed is bringing loss for traders - page 11. (Read 16113 times)
I don't know what you mean by greed. But having invested in electronic money, you have to take risks. When you earn a lot of rata, you will be like, I think you are proud that you make the right decision and are good, but if you lose it you blame the money. invested in electronic money, please take risks.
Greed is not so bad as you imagine. Sometimes it is greed that pushes people to incredible actions. As for me, everything should be in moderation.
Interesting. I didn't read the whole thread of this post, but other than greed, I think do think it also due to behavioral psychology as well.
I'm no expert myself, but I was just reading about investor's risk appetite a few days back. In behavioral economics, prospect theory suggests that people, in general, are loss-adverse such that people dislike loss more than equivalent gains. e.g. Losing $10 has a larger impact on you as compared to gaining $10. And in order to such negative emotions, people are riskier in loss situation. This is also proven by many empirical studies which have shown that people are riskier in loss situations, and risk-adverse in gain situations.
On the other hand, there's the "house money effect", which suggest investors are motivated to invest more if they've gained from their previous investments over other options such as depositing it into their savings account. As such, contrasting to prospect theory, the house money effect suggests that gains will make an investor more risk-seeking.
Putting into the context of trading cryptocurrency, a man that has gained from his trading activities will, therefore, be more motivated to trade a larger amount the next time due to the house money effect. Next, assuming that he suffered a loss, instead of backing out, he will once again invest more money to trade in hopes to recoup his losses as what prospect theory suggests.
But anyway, this is just a generic example regarding investor risk appetite, which ignores variables such as their personality and type which may play a part as well. Just another way to look at why traders losing because of greed.
If you are interested, one of the research articles I read is this: https://www.hindawi.com/journals/ddns/2014/158386/
I'm no expert myself, but I was just reading about investor's risk appetite a few days back. In behavioral economics, prospect theory suggests that people, in general, are loss-adverse such that people dislike loss more than equivalent gains. e.g. Losing $10 has a larger impact on you as compared to gaining $10. And in order to such negative emotions, people are riskier in loss situation. This is also proven by many empirical studies which have shown that people are riskier in loss situations, and risk-adverse in gain situations.
On the other hand, there's the "house money effect", which suggest investors are motivated to invest more if they've gained from their previous investments over other options such as depositing it into their savings account. As such, contrasting to prospect theory, the house money effect suggests that gains will make an investor more risk-seeking.
Putting into the context of trading cryptocurrency, a man that has gained from his trading activities will, therefore, be more motivated to trade a larger amount the next time due to the house money effect. Next, assuming that he suffered a loss, instead of backing out, he will once again invest more money to trade in hopes to recoup his losses as what prospect theory suggests.
But anyway, this is just a generic example regarding investor risk appetite, which ignores variables such as their personality and type which may play a part as well. Just another way to look at why traders losing because of greed.
If you are interested, one of the research articles I read is this: https://www.hindawi.com/journals/ddns/2014/158386/
Always set a TP for any trade. When you see going up than is never enough and you are keep saying to yourself just a bit more. And then you end always chasing ATH at this period and you might soon end up in red numbers.
Set TP and never cancel or move it.
Set TP and never cancel or move it.
Naturally, traders come to crypto currency with a loyal and considerate mindset
Which is to make profits from 1% - 50%
I.e a trader of 100$ investments wishes to get 150$ (50$ profit). But when the bull spikes comes in; instead of cashing out their profit, Begins to imagine building mansions and suddenly wants to hodl to 3000$
When they wake up the next day and are left with 25$; they say altcoin is shit, that is shit
What can be done to ease greed amongst investors ??
Which is to make profits from 1% - 50%
I.e a trader of 100$ investments wishes to get 150$ (50$ profit). But when the bull spikes comes in; instead of cashing out their profit, Begins to imagine building mansions and suddenly wants to hodl to 3000$
When they wake up the next day and are left with 25$; they say altcoin is shit, that is shit
What can be done to ease greed amongst investors ??
in my opinion this is a matter of knowledge and experience. and on the one hand humans are very natural to have desires and greed I think this is inseparable.
so, however, we will never predict 100% precisely that the market will fall like last year, the problem is not greed.
well, this is the situation when you can seek profits through short or daily trading if you want to reduce losses
This is indeed a problem for traders, especially if they do not control their emotions when there is an increase. their satisfaction will never exist because they continue to expect a higher increase so that something like this happens
Experienced traders usually know this things and have a strong mental on trading. That's why usually only newbie traders or beginner traders that become greedy and keep holding their tokens even the profit is already big. One of my friend also like that, i give him an advice to just sell his coins because the profit is already good but he keep hold it until the profit become smaller.
The fact that mostly of the people in crypto currency is to earn some profit and they are much capable to that, but mostly also there are some precautions that needed to apply especially when you are holding a good alts that you to hold in long term. because mostly of the alts can be more develop and be more valueable tru years had pass.
This is indeed a problem for traders, especially if they do not control their emotions when there is an increase. their satisfaction will never exist because they continue to expect a higher increase so that something like this happens
losses due to greed are common because they want to get more profit and in conducting our trade we are required to continue to monitor the price movements of coins that we trade so as not to miss the opportunity to throw away.
If people do not have control on themself then they may incur huge losses as trading requires a discipline and you should set the goals and once you achieved it you should buy/sell accordingly rather than waiting for too long to price rise or fall .
This is just a normal for the traders because of the effect of high risk of each coins they trade, they can't avoid that what happen if they gonna get luck and with good analysis that they get also earning not loses and of course trading is almost the same with the gambling investing that have a minimal risk before you can have profits.
The crypto market is one of the most risky because the level of fluctuation is very fast and high, so that errors in taking momentum to be executed are at risk of loss. Even the profits that have been obtained can be lost.Therefore, crypto owners must prioritize logic in order to be able to control themselves and not profit too much because of potential losses that can occur at any time. It's better to get a little profit but to add assets rather than chasing big profits gets a loss.
losses due to greed are common because they want to get more profit and in conducting our trade we are required to continue to monitor the price movements of coins that we trade so as not to miss the opportunity to throw away.
Greedy in trading will indeed make us lose in trading as an example we want profits of more than 100% of our capital, it is something that is very impossible, but it is not impossible, usually traders take profits up to 50% of their capital, but it is also rare , for fear that the market will fall again, wise traders usually profit a little but continuously.
This is just a normal for the traders because of the effect of high risk of each coins they trade, they can't avoid that what happen if they gonna get luck and with good analysis that they get also earning not loses and of course trading is almost the same with the gambling investing that have a minimal risk before you can have profits.
I agree. I'm afraid that many people see in crypto only way of earning money...
It is related to financial so expect that it would be like that.I think there is no greed
As long as there is money relation, people will start to become greedy. it’s ridiculous, it’s not realistic to change human nature, if a person is subject to greed, he will always remain like that) some traders simply don’t have enough experience or these are very romantic people flying in the clouds and dreaming to get rich for one deal) but as they say on “mistakes are learned”, however, not everyone draws conclusions from their failures and with manic persistence attacking the same rake ... I agree with you that many transactions are better with a small profit than a long hold with an incomprehensible prospect
It is basics of human nature, so let people do what they want, instinctly and emotionally. Our task is taking advantage of their wrong decisions in order to maximize our ROE from capital investment. Even if we want to help them to change, it is really hard to succeed, and maybe we might see side effects, they might hate us because we want to help and want to prevent them to do & enjoy their instinctly investments.
I think there is no greed
Losses are losses
Profits are profits
Depending on the individual; you can choose your profit margin or manage to survive the loss margin
No one is forced to learn; we all learn daily either by taking profits or by shorting losses
Dyor
Losses are losses
Profits are profits
Depending on the individual; you can choose your profit margin or manage to survive the loss margin
No one is forced to learn; we all learn daily either by taking profits or by shorting losses
Dyor
it is indeed one of the common risks when traders have the opportunity to dispose but not carried out because of their greediness, I personally experienced it when the opportunity came but did not throw away, and what happened was that the value of coins that I had at that time dropped dramatically so I did not get much profit on target .
I agree. I'm afraid that many people see in crypto only way of earning money...
Greed is a powerful word that has to be examined and dealt with very even not in crypto alone but in our Normal life. I think it's natural to all humans. Have seen a friend of mine that bought a particular ICO like that at $0.95/1 for a certain units that I can't remember. Fortunately, the coin did well and went to like $1.75/1, we told him to cash out his capital but refused that he's going to wait till it enters $2/1 but unfortunately before dawn of the day it went even below ICO price and never bull again. So I will say we should first deal with it in our normal life before going comig to crypto.
Jump to: