The investor becomes a speculator because they do not research what coin they should buy instead just follow the other people. That is the most common mistake by the investor and maybe that is happening to us in some cases. Those investors do not have a target price or time frame when they should sell their coin instead still holding for the unknown time frame and become panic if the price drops significantly.
The research will help you to determine which coin you can buy as your investment. But you should know when you should sell your investment and not wait for the other high price because that will not always happen. Sometimes the price will adjust to the lower price before the price jumps to the next high price.
Topic: The reason why investors often lose money - page 10. (Read 1372 times)
But we should develop strategies and implement them before trading. This allows us to not panic when placing orders.
I like this and that is the attitude from a good trader. Understanding your strategy that is working is better because you don't jump in at every candle spike but to wait for the right entering time. And going in with stoploss activated, you can relax having in mind the worse to be the Lost of just a little percentage of your balance.
When I got to real trading that is where I battle with emotions and fear this is a big challenge especially for newbies following those trading rules becomes a big problem infact after a losing streaks a trader will jettisoned the trading rules and trade in a bid to recoup all the loses thus ended up with more loses
Sometimes when the market hit you, you want to leave the rules as you said but I want to advise newbies not to leave the rules when they are down. The rules are the ways you can get back on track.
Most times the market does that and you make losses, use stop loss to minimize your losses and you have more opportunity to trade again. Emotions is not proper to be involved in real trading but good strategy and the rules.
Buying in batches is the best option to solve these situations.
We cannot overcome panic and greed. But we should develop strategies and implement them before trading. This allows us to not panic when placing orders.
If you really can't adapt to this state, market trading is not for you. They are cruel, and most people will lose money for a reason.
When I got to real trading that is where I battle with emotions and fear this is a big challenge especially for newbies following those trading rules becomes a big problem infact after a losing streaks a trader will jettisoned the trading rules and trade in a bid to recoup all the loses thus ended up with more loses
Sometimes when the market hit you, you want to leave the rules as you said but I want to advise newbies not to leave the rules when they are down. The rules are the ways you can get back on track.
Most times the market does that and you make losses, use stop loss to minimize your losses and you have more opportunity to trade again. Emotions is not proper to be involved in real trading but good strategy and the rules.
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
Basic rules will only apply for us if we follow our emotions, though we have the courage to battle all the anxieties that we felt everytime btc and other altcoins go down. That's always important to consider your safe zone first before final decision will prevail. Often times we lose money because of greed, when you find all things work out for good then don't hesitate to dump while there's no possible spikes will exist after your coins reached the peak of its value.
I think you should add to your list that a drop in price is not directly equalling losing money. We still own the coin and as long as we are not selling we don't realise our loss. On paper we might be losing money but it is not yet confirmed. In the future we could always see another rally in the coin and make back our losses. As trader we might be inclined to trade coins quickly, but as an investor we could always switch to a more long term approach. Just like with Doge Coin for example, there wasn't much price changes for years and then all of a sudden the coin started to rally.
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
These rules apply to me. I often lose myself in trading because of more laziness. One of the reasons I like forums is that your trading experience often reminds me.
good luck
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
Basic rules will only apply for us if we follow our emotions, though we have the courage to battle all the anxieties that we felt everytime btc and other altcoins go down. That's always important to consider your safe zone first before final decision will prevail. Often times we lose money because of greed, when you find all things work out for good then don't hesitate to dump while there's no possible spikes will exist after your coins reached the peak of its value.
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
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