The reason why investors often lose money - page 9.

lablab03

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Quote from: lightning0 on August 04, 2021, 01:36:38 AM

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

new investor nowadays always rushing to invest their money especially when they saw a promising project even though they're lack of information, and that's how they start losing money..
I dont know why they don't have time to make research first and efforts to read such information what you shared @op. as the matter of fact it's a big advantage. Maybe they're enjoying what mistakes they're doing reasons there's no changes until now. Lmao

jaberwock

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Quote from: lightning0 on August 04, 2021, 01:36:38 AM

The reason why investors often lose money

Often? You are wrong.

Investors definitely will not lose and even they lose it may not occur in more frequency given that if they invest bitcoin kind of highly recognized assets. If you invest into a random thing and crying about losses then I will categorize you philanthropist and not an investor.

Quote from: lightning0 on August 04, 2021, 01:36:38 AM

Not aware of new market changes

This happens only with random things and not with reputed assets. Invest only into bitcoin and you never lose anything in long run or at least in next 4 years. It means all bitcoin investors may start enjoying good returns for their investments from minimum 4th year onward.

Kelvinid

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It's easy to list down those things but one things is for sure many investors lose money because of lack of information/knowledge or probably letting the emotion affect their trading where in fact it supposed to be pure technical. But not exactly because some times there are some cases that we are just really unlucky and lose our positions.

Some have the courage to invest but are too unfortunate that they just suffer such difficulties in order for them to learn. They are obviously not fully knowledgeable with the market and they often rely on what they feel and might follow some influencer. Their market survival is too tin and that is many of them had gone after losing their capital and hopes. Yet, some just to stay as are still wanting to recover and wanting to know more about crypto, and these people are true investors. Quitters never win, that's probably the mindset we have to keep.

John Jefferson

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Quote from: lightning0 on August 04, 2021, 01:36:38 AM

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

These points should be remembered and learned by anyone who wants to be in crypto. because basically crypto trading is not as simple as we think. we need a lot of stages and also speculation that is in accordance with the technique so that our assets can be maintained and not lose

If someone asks you what should I buy?
You can answer to buy bitcoin
If you ask you when are they best to trade?
You can answer anytime
If he wants to buy at the lowest price, is now the time to buy?
I should answer: I don't know

Because no one can determine his direction

Here we need to find the latest strategies for trading and imitate them. In this process, we all need to constantly learn to trade to see market changes. One day you find that you don’t need to imitate other trading methods, so congratulations, you got it Very valuable gain.

isaac_clarke22

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Quote from: lightning0 on August 04, 2021, 01:36:38 AM

~

Not sure about #2, OP. What do you mean by not aware of market changes? Surely every investors are still looking into the price charts at least once a week making sure that their investments are going through. Not to mention that I had a bad habit of refreshing the price of Bitcoin before every 5 minutes and it is kind of a bad habit for me back then because it renders me unproductive.

ethereumhunter

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I would say that they do not know when to leave the markets. That makes them still lose if they sell at a low price. But if they can still hold whenever the price is down and do not think to sell, they will have a chance to sell in the future. That will make them get another big profit in the future because bitcoin can increase so high anytime. We know that the crypto market price is moving fast without stopping so we must know how to prevent the panic that will come to us if the price jumps to the lower price.

LUCKMCFLY

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Investors usually lose money too, it is something very normal, in fact investors or whales in trading usually make movements in the market that include a lot of money, and sometimes they are not so accurate, and they lose some money, the only difference is that they tend to recover the money much faster, because it is the large amounts of money that make it possible to recover when a major movement occurs in the market.

In 2018 there were many investors who bet on BTC "Short", because they wanted to buy cheap BTC and the best option to get them was by going "short" taking advantage of the fact that many panicked and sold their BTC very cheaply, for this reason that the Market is usually like a jungle, for being so wild in the movements. For this reason, when those investors entered "Short" at that time there were many investors who were in LONG, there were many who lost, but at the same time they recovered, the losses are normal for investors, traders and small operators.

Reid

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Quote from: Mauser on August 04, 2021, 02:17:56 AM

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.

Precisely. 1 Bitcoin will always be 1 Bitcoin. If you sell some of it, that's when you lose Bitcoin.
I like how the OP idea putting rules for himself. It may not be applicable to everyone but we have our own kind of view with investing or trading.
In a sense, it's the correct method for him while some will not agree.
Just like this case.

Quote from: lightning0 on August 04, 2021, 01:36:38 AM

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?

Short-term traders will try to short this and never expect more. Investors will.
The mindset to take the profits as soon as possible should be intact when you trade.

2double0

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They lose money out of their mentality, their disability to hold and also unknowingness of when to leave the markets. Fomo is one very important reason for which even 'thorough' investors who are focused on holding while also keeping an eye on the markets, lose. Crypto markets are very dangerous compared to stocks and forex, and very proper research must be practiced before investing anything on these so wow coins.

taufik123

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Another reason why investors often lose money (novice investors) is of course due to lack of research and not having the ability to read the market direction. As an investor do some research first before buying some coins. Technical analysis and fundamentals are also mandatory. Don't be an investor who is blind to technical analysis and doesn't observe the project you want to follow. Another problem is psychology. Don't be swayed by some of the FOMO going on. You must have a strategy, and do good management.

passwordnow

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Quote from: lightning0 on August 04, 2021, 03:57:39 AM

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.

That's known also as a dollar cost averaging. Which is one of the best strategies out there that can be tried by anyone. So if you're unsure whether you've bought at the dip, that will be the solution for you to keep yourself with the market as you buy and do DCA. Overcoming panic and greed is possible and that can happen when you're no longer that the same person that tackles it and you know how to flee from it already because of your experience as a trader. But newbies can't at the beginning.

Karish2return

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You are right bro at a certain percentage but sometimes newbies don't follow these rules and don't know the conditions in trading that how can hey have to face it because they don't have enough experience and patience is very important as wellin trading.

Lakai01

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Quote from: lightning0 on August 04, 2021, 03:57:39 AM

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.

In my opinion, the best way to get around the problem of "greed" is already that we buy in "batches" and preferably at fixed times, for example every Monday at 0 o'clock. In this way, we certainly never (or at least almost never) buy at the bottom, but the probability that we make bad purchases (buy at the top due to FOMO, ...) without a corresponding strategy is very high - and to be honest ... most of us know such "FOMO-situations". At least I do, I still have XRP in my portfolio which I bought at way above 2$ ...

Tervelatuk

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Quote from: lightning0 on August 04, 2021, 03:57:39 AM

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.

partiall buying could make our average price drop alot when in bottom we got it with huge amount. Over confidence and greedy in every trade really make our plan totally undity . Plan need to arrange weill before we entry in marke with any amount.

Quote from: zanezane on August 04, 2021, 09:18:19 AM

Entering and exiting the market can easily be solved because you just need to be good and smart at trading. Poor financial management can be learned too. I think there's a reason that everyone can't avoid and that is the fact that trading isn't for everyone.

to be good or smart trader was not easy because it depend on their possion and will in cryptocurrency market. trading only suitable for each person that have strong faith in this market,

Yamifoud

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Quote from: zanezane on August 04, 2021, 09:18:19 AM

Quote from: jrrsparkles on August 04, 2021, 08:46:00 AM

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.

Entering and exiting the market can easily be solved because you just need to be good and smart at trading. Poor financial management can be learned too. I think there's a reason that everyone can't avoid and that is the fact that trading isn't for everyone.

It is a need for us to think not only the positive things but also the negative ones as I see that most of us are neglected to do that nor it comes into our mind due to some excitements. I could say that not all investors are knowledgeable, they might just encourage to invest in crypto as maybe one of his/her friends tell them but they are not able to tell the truth about crypto. In this case, it was not a big surprise why we lose, to come into the market without any knowledge is just like suicide.

zanezane

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Quote from: jrrsparkles on August 04, 2021, 08:46:00 AM

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.

Entering and exiting the market can easily be solved because you just need to be good and smart at trading. Poor financial management can be learned too. I think there's a reason that everyone can't avoid and that is the fact that trading isn't for everyone.

LimLims

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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.

jrrsparkles

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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.

Cherylstar86

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Quote from: Mauser on August 04, 2021, 02:17:56 AM

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.

Indeed. When price drops, it doesn't mean you will lose money, maybe you will never earn additional of your prepared money but at least you can still earn even small percentage of it. When price drops, hold it and wait until price increase, because as long as we are still holding those coins, we don't lose anything. During downfall, we need to wait even it took for years as long as we know we can get a good profit in the future. Greed is the one reason why investors lose their money. I know everyone wants to earn huge amount of profit but it needs patience and knowledge before you earn it.

Xuanansent

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well, probably because investing is not such an easy thing, and very often it turns out that ideas just burn out

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