Topic: The reason why investors often lose money (Read 1297 times)
Investors may face losses at different times for different reasons. All the reasons for investors to face more losses is to invest without understanding the project. Moreover, due to lack of proper knowledge, they face losses at different times.
Catching cryptocurrency trading is a complex process that ordinary traders do not understand the value of. Especially those traders who come to trade with little knowledge, they face losses in trading without realizing it.
Some of the reasons mentioned are why i do loose money to trading but i will say greediness is the main cause and not adopting any strategy, though i was inexperienced. I am still learning how to to trade properly and i will try to apply the mentioned and see the outcome.
The loss i encountered while trading made me believe trading is not for everyone.
The loss i encountered while trading made me believe trading is not for everyone.
An investor or a trader loses money because of so many reasons,and the reasons are;
Lack of experience.
Lack of strategy.
Impatience.
Inability to do proper research.
Fear.
These are some of the reasons why we lose money while investing.We must try to avoid these in order to get the desired result.
Lack of experience.
Lack of strategy.
Impatience.
Inability to do proper research.
Fear.
These are some of the reasons why we lose money while investing.We must try to avoid these in order to get the desired result.
In Addition greedy traders don't go far, their accounts aways crashes
Because of their greed, they don't make it far. There's a discipline in trading that every trader must follow. Because if you're not that disciplined at all, you're missing the whole point of what you're doing.
You don't have to be greedy, what you need is satisfaction for most of the gains that you make so you don't lose them.
You should really be mindful on how to deal up with things and trying out to minimize lossess as little as possible because if you dont
then you would be just continuing on losing money.
But with being greedy, you're attracting more loss onto you and that's why controlling that side of yours is a must. Because if you can't, you have to face it on your own.
Anyway, experiences are teaching us and we're growing with it after dealing.
In Addition greedy traders don't go far, their accounts aways crashes
Because of their greed, they don't make it far. There's a discipline in trading that every trader must follow. Because if you're not that disciplined at all, you're missing the whole point of what you're doing.
You don't have to be greedy, what you need is satisfaction for most of the gains that you make so you don't lose them.
You should really be mindful on how to deal up with things and trying out to minimize lossess as little as possible because if you dont
then you would be just continuing on losing money.
In Addition greedy traders don't go far, their accounts aways crashes
Because of their greed, they don't make it far. There's a discipline in trading that every trader must follow. Because if you're not that disciplined at all, you're missing the whole point of what you're doing.
You don't have to be greedy, what you need is satisfaction for most of the gains that you make so you don't lose them.
I don't know which version of investors the OP is referring to but I completely disagree, can you match your statement with those who have invested in btc, eth, bnb, sol, axs, dot, etc from the beginning or at a certain point where they buy-in?
If you as an investor didn't recognize the right time to sell or buy it is on you but don't generalize it to the behavior of every investor.
If you as an investor didn't recognize the right time to sell or buy it is on you but don't generalize it to the behavior of every investor.
Exactly, because timing is really important, knowing when to buy and sell is the right strategy to make ourselves profitable. However, we cannot expect that everyone will be profitable as the demand of crypto for usage is not really that huge, therefore, expect that when some makes money from investing, others will also lose, it's just up to us to choose which side we will fall.
The reason why investors often lose money; as a novice, I summarized the experience in trading:
1. Investment does not equal speculation
2. Not aware of new market changes
3. Do some price comparisons of several currencies that are promising in the past and this year (you can also search the project keywords in the forum to see everyone's thoughts on this project as a reference)
4. Speculators also lose money. Investors are thorough gamblers. When I didn't buy in, I kept holding. If the currency price drops sharply, we will be finished. Maybe speculators buy at the same time (the speculators who have done the market record will be aware of the red flag warning, bad things will happen, the speculators will take action to minimize the loss, and then wait for the next favorable Opportunity to act again
There are some rules to keep in mind:
1. Never sell because the price looks high. For example, if you look at it from 10 to 20, what should you judge at this time is what is preventing them from 20-50?
2. Similarly, don't buy directly because of the high price in the previous period and a lot of drop. The decline is justified.
3. Never equalize the loss in your current account, as there is a high probability that you will lose more.
We are already in a fickle market, and more often there are no rules to follow, but setting up some own trading rules will reduce my losses.
Hope to communicate with everyone
1. Investment does not equal speculation
2. Not aware of new market changes
3. Do some price comparisons of several currencies that are promising in the past and this year (you can also search the project keywords in the forum to see everyone's thoughts on this project as a reference)
4. Speculators also lose money. Investors are thorough gamblers. When I didn't buy in, I kept holding. If the currency price drops sharply, we will be finished. Maybe speculators buy at the same time (the speculators who have done the market record will be aware of the red flag warning, bad things will happen, the speculators will take action to minimize the loss, and then wait for the next favorable Opportunity to act again
There are some rules to keep in mind:
1. Never sell because the price looks high. For example, if you look at it from 10 to 20, what should you judge at this time is what is preventing them from 20-50?
2. Similarly, don't buy directly because of the high price in the previous period and a lot of drop. The decline is justified.
3. Never equalize the loss in your current account, as there is a high probability that you will lose more.
We are already in a fickle market, and more often there are no rules to follow, but setting up some own trading rules will reduce my losses.
Hope to communicate with everyone
In Addition greedy traders don't go far, their accounts aways crashes
I don't know which version of investors the OP is referring to but I completely disagree, can you match your statement with those who have invested in btc, eth, bnb, sol, axs, dot, etc from the beginning or at a certain point where they buy-in?
If you as an investor didn't recognize the right time to sell or buy it is on you but don't generalize it to the behavior of every investor.
If you as an investor didn't recognize the right time to sell or buy it is on you but don't generalize it to the behavior of every investor.
Retail traders tend not to have a strategy and trade emotionally. This means one frequently makes a decision at exactly the wrong time. The best way to make money is to plan trades carefully based on your own research. Keep records of your trades and what you learn from each trade. Never commit more than 10% of available capital to any one position and keep your discipline. If you set a stop in your trading plan and the market moves through it, get out of your position.
The most important reason is they Dont know the main thing of trading and crypto market what is technical analysis and some most important thing that's why they loss money
I think most investors often lose money because of fear particularly it happens to new investors.like take coins investors as example. They always sell their coins when the market is going down or the particular coin they invest in is dumping.but they don't know that is not the right time to sell but few losses because they invest all their money and anytime they have financial problem go there to sell some of coin they invest in,and some people don't have target and anything you are doing once you don't have target that means you are also ready to fail, always try to have target.
In addition, investors often lose money because they are more on gaining quick profits and they tend to forget that patience is the best virtue in an investment. They are carried easily by their emotions so they always create decisions without anticipating if the timing is right or not. All these fall having lack of knowledge on how to become a profitable investor. If they will always go investing by not having the right mindset, then they will never be totally profitable in an investment no matter how they long they are investing.When a person's emotions control thinking and rationality, 90% of the decisions made are wrong. At this time, what the brain thinks is often actions that the hands cannot make. This is also the rule of the game. Without these people, there would be no market liquidity.
It is not fair to assume that all investors will face cryptocurrency trading losses. Only those investors who have limited knowledge and previous experience face losses in trading only. And all the experienced and knowledgeable investors who are in the state never face any loss.
That's your wrong assumption, why say a broad experienced investor will never lose, all investors almost experience it, the market price will not be easily guessed by anyone even if it's a long time expert in the cryptocurrency field but when the market suddenly becomes bearish who can avoid in this case?All of them have their respective skills in every investor they do, it's just that the experienced will always anticipate any correction or resistance direction and of course if they continue to hold it can be said to be a loss but not completely and investors are more waiting for the price to recover normally.
All in all, everyone makes losses and these losses can occur at any time, even for experienced investors as mistakes are liable at every stage of any investment.
Indeed, every trader goes through losses and this is also an experience
It is not fair to assume that all investors will face cryptocurrency trading losses. Only those investors who have limited knowledge and previous experience face losses in trading only. And all the experienced and knowledgeable investors who are in the state never face any loss.
That's your wrong assumption, why say a broad experienced investor will never lose, all investors almost experience it, the market price will not be easily guessed by anyone even if it's a long time expert in the cryptocurrency field but when the market suddenly becomes bearish who can avoid in this case?All of them have their respective skills in every investor they do, it's just that the experienced will always anticipate any correction or resistance direction and of course if they continue to hold it can be said to be a loss but not completely and investors are more waiting for the price to recover normally.
could definitely become better if he intents to make out experience on what they do.We all goes for this one
and its inevitable but somewhat we do learn along the way.
It is not fair to assume that all investors will face cryptocurrency trading losses. Only those investors who have limited knowledge and previous experience face losses in trading only. And all the experienced and knowledgeable investors who are in the state never face any loss.
That's your wrong assumption, why say a broad experienced investor will never lose, all investors almost experience it, the market price will not be easily guessed by anyone even if it's a long time expert in the cryptocurrency field but when the market suddenly becomes bearish who can avoid in this case?All of them have their respective skills in every investor they do, it's just that the experienced will always anticipate any correction or resistance direction and of course if they continue to hold it can be said to be a loss but not completely and investors are more waiting for the price to recover normally.
There are some rules to keep in mind:
1. Never sell because the price looks high. For example, if you look at it from 10 to 20, what should you judge at this time is what is preventing them from 20-50?
2. Similarly, don't buy directly because of the high price in the previous period and a lot of drop. The decline is justified.
3. Never equalize the loss in your current account, as there is a high probability that you will lose more.
We are already in a fickle market, and more often there are no rules to follow, but setting up some own trading rules will reduce my losses.
Hope to communicate with everyone
1. Never sell because the price looks high. For example, if you look at it from 10 to 20, what should you judge at this time is what is preventing them from 20-50?
2. Similarly, don't buy directly because of the high price in the previous period and a lot of drop. The decline is justified.
3. Never equalize the loss in your current account, as there is a high probability that you will lose more.
We are already in a fickle market, and more often there are no rules to follow, but setting up some own trading rules will reduce my losses.
Hope to communicate with everyone
I appreciate the guide you made but I want to mention a point you raised about selling when the price is high.
Remember that every investor has their respective goals set in mind. Whether an investor is short or long-term, the goal is always common- which is to profit at the end. Instead of selling everything when the price of your investment reaches an ATH, sell 40% and retain the %60 for re-investment. The percentage may vary depending on your current needs/goals but it is highly advisable that you prevent from cashing out all of your investments.
The OP is pretty well written and is full of important points. But to be honest these happen in very advance level. Investors lack in the beginner level only.
They lack basic knowledge for which they often lose money. Mostly investors can’t figure out when to invest and where to invest for which these types of losses occur.
They lack basic knowledge for which they often lose money. Mostly investors can’t figure out when to invest and where to invest for which these types of losses occur.
It is not fair to assume that all investors will face cryptocurrency trading losses. Only those investors who have limited knowledge and previous experience face losses in trading only. And all the experienced and knowledgeable investors who are in the state never face any loss.
IMO there is no exact key to sucess or loss in crypto trading. One strategy that works for you may or may not work for you. Copy trading or signaling group that gives you indications of buying a coin to become quick rich are one of prime reason why many people fail. You have to spend time in market , making your own strategies that can give you success.
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