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Topic: The reason why investors often lose money - page 5. (Read 1387 times)

legendary
Activity: 3346
Merit: 1191
Most investor which loos money are newbie and he don't have any knowledge about trading and do trade without any analysis or follow someone signal so this is the main reason to loose for success trader first learn then we don't face loos in trading

I guess that newbies lose money more often, but it's not like that with experience and all analysis you can think off you will have a guaranteed profit. We all make mistakes here and there,  bad timing is usual mistake we all make, but I guess that wrong choice of pairs is something that happens often. Anyway making a mistake in trading shouldn't be the end of the world for anyone, just do a little thinking about what went wrong and try to not repeat the same mistake again, it's the learning process.
jr. member
Activity: 111
Merit: 1
Most investor which loos money are newbie and he don't have any knowledge about trading and do trade without any analysis or follow someone signal so this is the main reason to loose for success trader first learn then we don't face loos in trading
member
Activity: 728
Merit: 12
Most investors lose money usually because their emotions are difficult to control even though emotional control is important in trading. Unstable market conditions certainly play with the emotions of traders, so here they are trapped. Another factor that also happens is that some investors use the money for their economic needs to be used as investment capital, this should be avoided because when the need suddenly comes when you are holding and the market is still going down, like it or not you have to sell coins at low prices even loss.
hero member
Activity: 3080
Merit: 603
Investors who do not understand anything, do not have an advance idea about the marketThey face losses and experienced investors do not.
There are also those investors that know little yet still invests wisely with the market. They may face some adjustments at the beginning but it's part of the learning process as they get to know more about the investment that they're getting in.
But to those investors that don't have any idea and don't have plans to grow with their experience in the market and just throws money as if it's going to grow like a tree, they're the most frustrated investors.
sr. member
Activity: 1484
Merit: 277
~snip~



1. Placing orders or selling orders when market is manipulated.
2. Not being aware of what is happening around the coin like the news, updates etc.
3. Not being patient enough to hold back the coin for a better profit.
4. Investing in just one coin rather then investing on multiple coins. 
5. Not using stop loss option. This leads many new users loose money.

These are few points to share

Those things was associated with day traders, but for long term holders that won't work. Same with what I've been doing for years, patience and awareness also applies but I fell on wrong asset that's why I still lose more money.
Much better if we stay on trusted coins like btc and eth, your future is going to be brighter when bullrun commence someday.
member
Activity: 630
Merit: 10
rocket.hashbon.com
All of that is related to our knowledge and also emotions where the ups and downs of the crypto market make our emotional turmoil. For people who don't really understand the crypto world, the ups and downs of the crypto market will make a mental drop and this can make someone's emotions become chaotic. Moreover, if they have sold their assets in a panic, it is a big mistake and makes a big loss too. Investing in crypto is not an easy thing because it requires practice and requires sufficient experience in it. So dont give up easily.
sr. member
Activity: 2366
Merit: 305
Duelbits - $100k Bonus/week
Biggest mistake i seen investor do.
Nobody ever wants to buy when the price is low because they don’t know the bottom

Then the price goes up and they want to buy high because they don’t know the top.



1. Placing orders or selling orders when market is manipulated.
2. Not being aware of what is happening around the coin like the news, updates etc.
3. Not being patient enough to hold back the coin for a better profit.
4. Investing in just one coin rather then investing on multiple coins. 
5. Not using stop loss option. This leads many new users loose money.

These are few points to share
hero member
Activity: 2828
Merit: 611
There are some human weaknesses as greediness, hurried decision, impatience and to become rich in a night. Having these, we buy a big trade for earning a huge profit, to average a trade avoiding loss, occurring some wave and market ups and downs. All these facts result in the liquidation of an account and loss of money. These weaknesses can be control in a limit but not completely.
Even 1/10 is a lot if you are an intraday trader but I get your point and I agree with it. There will be maybe 10-20 trades you do inside of a day if you are that kind of a trader and not all of them will be profits, plus each day may not be same, one day you will lose $30 the other day you make $50 and you can keep doing this for a long time, what is important is your average, what do you make in a week on average?

If you do this for a whole year, and check how much you made total in profit, you will be capable of knowing how much you can make in a year, the amount is not even important because you should look at % how much you made. However sometimes even years do not count, look at this year, many people made a profit, but look at 2018, many lost. So it is the long term, even if you make 10-20 trades a day, still the long term is more important.
member
Activity: 416
Merit: 30
There are some human weaknesses as greediness, hurried decision, impatience and to become rich in a night. Having these, we buy a big trade for earning a huge profit, to average a trade avoiding loss, occurring some wave and market ups and downs. All these facts result in the liquidation of an account and loss of money. These weaknesses can be control in a limit but not completely.
sr. member
Activity: 563
Merit: 254
Chief Operating Officer of the Panxora Group
Even if you are an intra-day trader, to be profitable you need to be in it for the long-term. You never bet everything on each trade. And you make a plan before starting a position. A good rule of thumb might be to risk 1/10 of available capital on a given trade. You also set a stop, so that you have decided on a place to get out if what you expect to happen does not play out. There is a balance between being rigid and flexible, so your stop might move as things move forward, but you always need to be intentional about your trading. Never close your eyes to the market going against you and hope that things will come right in the end.
I also suggest keeping a log of each trade, jotting down what you observed and learned from each trade - whether it was profitable or not.
Trading/investing is one of those things you can learn from your whole life. It's multi-dimensional and so exciting because of this.
jr. member
Activity: 121
Merit: 1
August 15, 2021, 07:59:56 AM
#99
what often happens is that investors lose control of their emotions. investing in cryptocurrency also relies on the patience of its investors, this is actually an important key. those who get too emotional often lose a lot of money when trading, this is a problem that must be addressed immediately. In addition to needing extra patience, investors must also really understand the basics of cryptocurrency itself. don't let them misunderstand.
full member
Activity: 1190
Merit: 100
August 14, 2021, 05:36:17 PM
#98
Not all investors are money launderers, only those who want to get a lot out of cryptocurrency at a loss. Investors who do not understand anything, do not have an advance idea about the marketThey face losses and experienced investors do not.
jr. member
Activity: 619
Merit: 1
August 14, 2021, 02:19:29 PM
#97
I've found that nowadays, people frequently invest without having sufficient expertise. When their overconfidence prevents them from assessing the situation objectively, even experienced investors overestimate their talents. As a result, people prefer to see an investment instrument's potential from only one perspective: risks or benefits.
full member
Activity: 1442
Merit: 116
Enterapp Pre-Sale Live - bit.ly/3UrMCWI
August 14, 2021, 02:39:10 AM
#96
someone is said to be an investor means he is prepared to hold in the long term. but if he loses, I think it's because of panic selling. therefore we must prepare the worst scenario in investing, so that something like this will not happen, because previously we were ready to take the risk and not only think in terms of profit.
member
Activity: 893
Merit: 43
Random coins :)
August 12, 2021, 04:07:05 PM
#95
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
Honestly what I see above is all what afters we retail traders(investor's) not the whales aka institutional investors.
Institutional investors are not moved by speculations or market anticipation, these whales they write the rules because it's easy to manipulate these markets if you have the most coins ,which is based on volume.

I have noticed that nowadays, people often take up investments without having enough knowledge to do so.
And in crypto being a retail investor without the knowledge about how these works can make you trade emotional against the markets.
sr. member
Activity: 1904
Merit: 306
August 12, 2021, 04:02:49 PM
#94
Greed is the number one reason why investors loss their money. Everyone really wanted to earn a huge amount of profit and because of that they become greedy and loss their focus on their investment. This is why they still loss even if they do investing for a long time.
I agree with you, greed is one of the main reason why most investors lose their money in trading, it's not always about holding sometimes you might hold way too long and the value might dump 90% then there's no way to return back up, it's important to know the when you should be holding and the most important thing know when to sell off and let go, you can't buy a lambo with just one project Cheesy being a greedy holder will only get you losses.
legendary
Activity: 2464
Merit: 1102
August 12, 2021, 03:15:41 PM
#93
The hasty attitude is indeed one of the causes of investors experiencing losses, because if they feel the price is good, it turns out that the price has fallen again, many of them have panicked sell so they make a cut loss. Actually for investors this is very unfortunate because at first they had intended to invest
Haste makes waste as quite correctly said.

But the haste comes from the realization that they are late to the game. I would advice such people to not get FOMOed, though better said than done. There is always a chance to buy when the prices come down because it is a constant cycle and no price is ever absolute in a speculative market.

Often a few months of stalking charts and patience pays off but many newbies who have never had a first hand experience in stocks, forex make this mistake.

In this context, newbies also make the mistake of settling for shitcoins just because they dont have enough to buy "1BTC" (which seems to be a norm) and go for tons of shitcoins. Essentially they wasted their money right then and there. But I dont think that this can be changed without the person being informed prior to investing. In fact these newbies are the ones on whom the shitcoin bagholders drop their shit and exit.
I do not get why people are worried about not having 1 bitcoin, that is something I heard too and never really made any sense to it, do you know what is exactly behind that? I mean why wouldn't they just buy 0.01 bitcoin if that is all they have? Why go for 100 doge instead? I do not know if that is the ratio but you got the point of what I am asking.

Some people just like shitcoins because they give bigger returns as well, it is not a simple thing but it is definitely something they like to do, bitcoin can't profit you 10x easily, but the coin at 848th place could go 10x very easily, because volume is low and liquidity is low so if someone puts up 10k dollars then suddenly you have 10x profit. That is a lot more sweeter reason to not buy bitcoin but buy something else. I understand that it is not easy to pick one, and many do fail to do so, but I feel like it is definitely the main reason.
member
Activity: 154
Merit: 10
August 12, 2021, 12:34:23 PM
#92
When novice investors first begin investing in the stock market, they are frequently disappointed when the value of their initial investment diminishes. Because the investor does not comprehend why or what happened, he or she frequently makes reckless actions that result in the loss of even more money. The new investor doesn't have enough knowledge about the coin. The other thing is that they don't have patience and so in this way the lose money.
sr. member
Activity: 1484
Merit: 253
August 12, 2021, 07:01:56 AM
#91
Biggest mistake i seen investor do.
Nobody ever wants to buy when the price is low because they don’t know the bottom

Then the price goes up and they want to buy high because they don’t know the top.


Indeed. I also observe that to some of investors. They never buy when price is low but they buy when price is high or started to increase. I understand that they have their own techniques and strategies but they might lose huge amount of money if they continue on doing that things. Some of them also lose money due to lack of knowledge and experiences, many make mistakes that leads to losses.
member
Activity: 210
Merit: 10
The World's Leading Cryptocurrency CFD Exchange
August 11, 2021, 08:45:15 AM
#90
Biggest mistake i seen investor do.
Nobody ever wants to buy when the price is low because they don’t know the bottom

Then the price goes up and they want to buy high because they don’t know the top.

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