Topic: The reason why investors often lose money - page 3. (Read 1387 times)
Being carried away by Fuds and FOMOS could easily be the reason why most investors lose their money. A proper mindset would be the best asset that we could have upon entering trading. Continuous learning is still needed because we couldn't be trading experts in just a blink of an eye. Also, you should do a series of research about a coin of your choice before investing, which will help you make firm decisions.
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 I believe to ease such emotions and fears is by trading with the amount of fund you can afford to lose at least to reduce the risk involved in trading this is the area where a lot of traders or investors fails this main reasons why a lot traders fund got liquidated.
I can see from the way you sound in your submission trading generally is easy and is not for everyone just because some people who are good are money from it. The only way for you to deal with the issue of emotion while trading is to be sure of when you are to place trade if and only if you have seeing the sign for you to enter and the most of all is to reduce your lots size.
Investing in crypto has both advantages and risks. the most common risk is loss which makes many people depressed. There are several reasons for the losses experienced by some investors and an investor should know that. it is not easy to accept failure but it can be a lesson in the future to be more careful and alert. the crypto market can go up and down at any time, don't be in a hurry to act because all of that requires careful thought.
The most common reasons lack of experience/knowledge, greedy and can't handle your emotions. Patience is always the key for investors or traders to success and gain more profit but because of your emotions it ruin your investment/trading plan. It's very important to control your emotions because you already know how much volatile the crypto market is. Also need to learn from your experience and don't be greedy to avoid too much losses.
Timing in short but this is actually the hardest thing to be done because no one could able to point out on which is the bottom and which is on the peak
and thats why we do make out decisions mixed up with our guts and intuition which cant really be avoided on some cases which we do really consider it out.Why people do lose money? Due to mistakes which had been affected by neither emotion or greed you do have inside or having lacking knowledge
and skills on overall aspect.This is why you do really need to enchance yourself overtime.
You do not have to pick the absolute bottom and the highest peak. However, when the price is at 64k and it drops to 30k, anywhere along the line would be great place to buy, I mean it is dropping so much which means that it is getting closer to bottom, divide your money into pieces and keep buying each time it drops if you want to make sure.and thats why we do make out decisions mixed up with our guts and intuition which cant really be avoided on some cases which we do really consider it out.Why people do lose money? Due to mistakes which had been affected by neither emotion or greed you do have inside or having lacking knowledge
and skills on overall aspect.This is why you do really need to enchance yourself overtime.
After that it started to skyrocket back, you do not have to sell it at 67k if you are not going to wait that much, or maybe you would but we could still go higher, but you could still make a profit and get out at a profit as well. So all in all, timing could be a little bit of a problem but you could still profit very well when you buy at crashes and sell at bull runs.
Investors lose money because they enters and exit the market at wrong time, poor financial management and also lack of proper knowledge related to assets they are all investing.
True. Entry and Exit at right time is very important for success of any trade otherwise you will continue losing in trading, you nmight win in one or two trades but that happens by chance or by luck. As a matter of fact Trading is ba wonderful Profession and it requires good knowledge of market Fundamentals, skills to read and understand Technical Indicators to make entry and exit at right time as well as awareness Money and Risk management.
The most common reason is a lack of experience. It depends on the investors themselves, because they often simply overestimate their abilities.
Yes, lack of experience and yet, it seems they know the market well but still end up losing. I guess we all started as newbies and as being new in the market, we should exert more effort by doing consistent researches before applying them because it is the only way where we can gain experiences that will definitely be our best teacher and motivator. Another thing that keep us from losing is the greed that tends to manipulate everyone. If we fall for greed, we will never improve our investing and trading strategies as we will be in controlled by our emotions and that will be a big hindrance from getting big profits at the end of the day.
The most common reason is a lack of experience. It depends on the investors themselves, because they often simply overestimate their abilities.
Traders may lose money for many reasons, the most common is that they have lack experience and they entered the trade late in FOMO, which is not advised for newbies. If you are a beginner, learn about crypto before doing your own trades.
Investors lose money because they enters and exit the market at wrong time, poor financial management and also lack of proper knowledge related to assets they are all investing.
True. Entry and Exit at right time is very important for success of any trade otherwise you will continue losing in trading, you nmight win in one or two trades but that happens by chance or by luck. As a matter of fact Trading is ba wonderful Profession and it requires good knowledge of market Fundamentals, skills to read and understand Technical Indicators to make entry and exit at right time as well as awareness Money and Risk management.
and thats why we do make out decisions mixed up with our guts and intuition which cant really be avoided on some cases which we do really consider it out.Why people do lose money? Due to mistakes which had been affected by neither emotion or greed you do have inside or having lacking knowledge
and skills on overall aspect.This is why you do really need to enchance yourself overtime.
Investors lose money because they enters and exit the market at wrong time, poor financial management and also lack of proper knowledge related to assets they are all investing.
True. Entry and Exit at right time is very important for success of any trade otherwise you will continue losing in trading, you nmight win in one or two trades but that happens by chance or by luck. As a matter of fact Trading is ba wonderful Profession and it requires good knowledge of market Fundamentals, skills to read and understand Technical Indicators to make entry and exit at right time as well as awareness Money and Risk management.
The users do not investigate about the project and coin and they do not have information about it and make investment. They loss money as a consequence of their shortage of knowledge. Another issue is that they loss money as a result of their greedy nature. Some people lack patience as a result, they loss money. So these are the reasons of losing money.
Well, not all the time that investors lose money because of shortage of knowledge. Remember that trading is just between losing and winning profits in trading. So if you lose, others might have been winning. But if you keep on losing your funds, there might be something wrong with how you invest or how you trade. Maybe in the first place, you are not investing on the coins that are more established and solid compared to others, and this goes out for shortage of knowledge. Second, you might have bought them when they are still in high price, so once they drop down their prices all of a sudden, that will make you lose once you start selling it. As long as you follow the basic buy the dip, and sell at its peak, you will never be totally in loss.
The users do not investigate about the project and coin and they do not have information about it and make investment. They loss money as a consequence of their shortage of knowledge. Another issue is that they loss money as a result of their greedy nature. Some people lack patience as a result, they loss money. So these are the reasons of losing money.
not aware of new market changes. I think this is often underestimated, even though in crypto the market is always changing, in terms of prices, coin trends, and is also bullish. I think investors should always update this in order to maximize the security of the money
Even the strategies have to be changed after a while. Some traders who did excellent earlier are suffering now because they failed to keep themselves updated to the market trends and behavior. So I agree with you that understanding the market trend and molding your strategies accordingly is among many other reasons for the loss.I think using market previous situations to determine the current market probable outcome is one the reason for losses! Cryptocurrency is very dynamic and usually form similar pattern not situation. Situations are always different but you can pick a pattern and bank on pattern for profit!
Right it's basically the same thing, not being able to update yourself with time. I see people discussing whether the bull run will continue or stop and how much price we will reach but most of them make their prediction based on how the market reacted based on previous data. I understand that reading past data is important but the market changes every minute. As far as we know there are many qualities in the cryptocurrency market that you have to follow letter by letter. You need to know the market, coins, very well before you can enter cryptocurrency. . Moreover Emotions will never give way to extra greed in cryptocurrency. Because of all these bad features you can face losses in various ways.
Yeah, I think traders lose more money as compared to investors. One of the big reasons why investors might lose money is because they are impatient and panic which is more of something traders do.To me, an investor is someone who puts his money into the future value of something and the only reason you can lose as an investor is because you made a mistake while analyzing the future of the project. So just work on the fundamentals if you are losing money despite neither panicking nor getting FOMO'ed.
I think using market previous situations to determine the current market probable outcome is one the reason for losses! Cryptocurrency is very dynamic and usually form similar pattern not situation. Situations are always different but you can pick a pattern and bank on pattern for profit!
As far as we know there are many qualities in the cryptocurrency market that you have to follow letter by letter. You need to know the market, coins, very well before you can enter cryptocurrency. . Moreover Emotions will never give way to extra greed in cryptocurrency. Because of all these bad features you can face losses in various ways.
And you need to be prepared about losing before trying crypto investment as this was not a simple and easy thing but a risky investment which most of us are at loose ends if we are too careless and much more if we are greedy. Investors who haven't deep knowledge about crypto and never have long market exposure to the market will surely have no excuse about losing, that is the reality. if we can't dare to take this, your emotions help you to suffer more losses and have a miserable end.
As far as we know there are many qualities in the cryptocurrency market that you have to follow letter by letter. You need to know the market, coins, very well before you can enter cryptocurrency. . Moreover Emotions will never give way to extra greed in cryptocurrency. Because of all these bad features you can face losses in various ways.
One of the reasons why investors lose their capital is because they do not have a basic idea about trading. You need to have enough knowledge about trading when you go to trade. You need to understand the signal well then you will be ready to trade.And those who start trading without following the basic rules of trading without seeing the market position are the only ones who lose their money.
Exactly my points what I want to say in this topic sometimes because of lack of knowledge not proper educate about bitcoin other reasons is panic and greedy plans they don't have patience to hold. Making quick decisions in hurry or in panic and they losse their money.If you feel the market pressure of missing an amazing coin, just tell yourself that this is not the last coin in the world. this will help you fight the "feat of missing out".
Similarly, if you feel panicking when your purchased coin is dropping, assure yourself by recalling the reason you purchased the coin initially.
I would highlight one of them that the investors should prevent greed, whenever there is greed in trading there will be more chances of getting loss. So, the investors should take profit, whether it is small or big. But is should be profit which needs patience too. Then only they will be safe from getting into more loss.
no one guarantees safety in investing everything can happen but by not being greedy to take large profits or quickly being patient and some information that reduces the risk of experiencing losses, and from whatever it is patience is the most important thing in investing to take profits .It might be a good idea to sell some coins at 2x then some more at 5x and so on until you have reaped the maximum possible value. It may drop at a certain point after reaching 5-10x but at least you are still in profit and you gave yourself the best chance of making the highest profits too.
Jump to: