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Trading and investing in financial markets seem so easy. The market can only do one of two things. It can go up, or it can go down. So why do so many people lose?

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It's clear why so many people lose, and trading isn't always so easy..
Yeah it's quite easy to buy when prices are low and sell when prices are high, basic hodling

But what about those who flout trading rules and buy when the price is rising(its always not so good), for example numerous individuals bought bitcoin when it was 20,000usd and they've seen the price fizzle down to 6000+,that's about 14,000usd dollars loss for those who've been faced with issues and had to sell off.  
And for those who are still hodling,they only can wait and hope..

It's basic,never sell lower than what you bought for,except you're in dire need of the cash

So many people also lose because they put all their eggs in one basket
No matter how little your capital is always try and split it into different baskets,that way in case of any mishap you'll have what to fall back on

So many people lose because they are not clued up on technical or fundamental analysis or are very impatient and start trading with emotions and for the wrong reasons. A lot of people in crypto have no real education and are too lazy to learn anything, so they just follow some pumps and think they can trade, then when the coins tank then they get all angry. I also was a real noob and being a noob cost me all my wealth in 2018 because I was a hodler and not a trader. So we all need to get educated and learn in order to save ourselves form big heartache like I am going through now.

It's easy to invest and trade, you'll just put your money and you're done. That's already an investment you did there but the question is what will be the outcome of your investment?

Trading and investments aren't for everyone, for someone that doesn't have any courage for risks then these two isn't for him.

Lack of experience.
Lack of knowledge.
Panic selling.

loss can actually be prevented by the ability of patience, we must first learn which coins we will make long or short investments, we need time to get to know the market movements and coins that we will invest, understand the basic price will survive loss, carelessness and panic is big loss to a trader

It is not easy to trade because it is too risky to do it. If you say that trading is easy then are you rich now? Because maybe you are good at analyzing right? Many people are struggling from analyzing with investing or trading because it is not easy to speculate and no one will know how the market will flow it is always just a speculate.

So an easy question to ask. Off course many people lose because of so many reasons too.

As you said, it is up and down but if you ride on the wrong direction of the waves, the beach will eat you up.

If you don't have sufficient capital, it is also dangerous.

If you don't make stop-loss your friend too.

And money management and good leverage.

There are a lot of reasons to why people lose in an investment. Yes you are correct about the market being volatile that is to say it prices pumps and dumps this can also be the reason to why people lose you buy a coin and it dumps then out of panic you sell. Also investing in the wrong coin can make one lose money, outing emotions in trading could also make one lose money

If it was that easy then all of us would have been rich by now. Investing your money and making profit are two different things. That is why people tend to Invest and HODL rather than trade as there is high risk in trading.

80 percent traders and 50  percent Investors loose their money the first time. This is mostly because of Lack of patience, experience and knowledge.

Better to do some research/study and then only enter the market.

So many people lose because they don't know how to trade and when to trade, When you buy at a price like $6000 as soon as the price goes down you shouldn't sell but to wait until the price is higher than what you bought your coins with.

Prices can only move up or down but how to know when prices will go up or down? of course with predictions, unfortunately, the prediction can be wrong and if your prediction is wrong you will experience a loss, the loss can continue if the trader doesn't have a strategy to overcome it, therefore, do not panic if your prediction is wrong, make a prediction again and dare to cut losses if your prediction states prices will fall again

I would not call trading an easy task. This is a very nervous kind of work. Many people are often under stress, especially emotional people. But the main problem for any trader is discipline. It often happens that traders do not follow their own trading strategy. It is because of this that stresses and disappointments from trading often occur. In order to become a good trader, it is not enough to have good knowledge and a clear trading plan, it is necessary to have iron discipline and strong nerves.

i will answer only from your question, people lose because simple thing. They not have knowledge and trade without analysis. Only fomo and follow what still trend but don't know how to solve when they losses.

Although it looks easy, the mentality to trade must also be prioritized. Crypto market is easy to go up and easy to go down. When the market goes down, they will lose if they panic and sell it directly. At first, I traded in the crypto market, I almost lost a lot of money when I panicked. Luckily my friend suggested holding back the assets that I had. 2 days later the price increases to 80% and I get a decent profit.

The is a saying in cryptocurrencies market and forex trading that "ninety five percent of traders lose money and five percentage make profits and gained what the 95% lose" I agree with this fact and of a truth people lose money in forex and cryptocurrencies market than any other field of endeavour. To accurately analyze the market is not a child game and you must be highly intelligent skillful in other to make profit from this market.

The fact it seems easy it's accompanied by the fact it's not actually easy. Trading is clearly not for everybody - people need certain boldness for that - and investing without properly doing the homework is nothing else than lottery. And .. that's why so many lose..

If you think like either you win or lose then you are basically doing trading as gambling if you want to be a proper gambler then you need to find the ways how to mke money even in the bear market.Because the crypto market is just pure speculation it is not for everyone that is the reason why more people keeps losing their capital amount.

Proper understanding with the way cryptocurrency move is the way in winning with tradings, one should have full knowledge regarding the way the market should go, And experience is another adding factor to victory, It is not really easy to trade and trading is not actually for all, you will need to check for the latest news and hypes in the particular thing you want to make a profit, if you don't take time in researching you will certainly lose and because a huge percentage of people are losing with trading if they don't take in mind that there is a risk involved in it.

to become an investor and trader you must have patience and calm, they invest for the long term so they don't panic when prices fall. there is no investment that will give you profits in an instant.

Buying at a high price then he panics and sells that the more the value goes drop,the more he loses money and so on well knowledge is also highly prioritized when you invest in crypto there are lots of irresponsible ALT.

That’s also said of the stock market but it’s not accurate, you have to subtract fees. The more operations people make, the more fees. I would be surprised if the winners make more than 1% of that 5%.

To think that trading is easy, it's so funny to think that someone like you telling us that it is easy, you don't seem to step on our shoe if i were to ask. Trading can be complicated and hard at the same time if you do know how to persevere your patience in a long run and doesn't stop like that if you have ever tried it once.
The market is always unpredictable in the first place so the best hope of chances are to be found within the chart of every cryptocurrency you have invested.

basically, trading is only you two possibilities namely up or down. but the problem here is that people don't all know when the condition will rise and when it will go down because it happens very quickly and randomly. so for people who cannot control their emotions, they will certainly be vulnerable to losses.

it is a simple thought. but in fact we find it difficult to take advantage of the momentum. price changes will always occur and we must continue to monitor price movements. the problem is that we cannot monitor prices and besides that we usually can't wait to face various conditions. it is a natural thing for every human being and as I said before that trading is indeed a simple matter. all results depend on what we do !!

Panic selling and FOMO is the main reason why they lose so much, if they don't want to lose they should have hold for a long time until they get the right price of the market to sell it. And also if they do know how to diversify their investment they shouldn't lost that much. There are times that the market would stay low for a very long period of time and this is what we are experiencing today.

You seems to be right but I can assure you that is not every person that make loses were through panic sell or FOMO as you said because the power of making profit in crypto currency trading or investment are knowledge and the right timing. Do you the numbers of newbie which were prey with this current market due to lack of knowledge and not mention those the enter the market at the wrong time.

Yes, exactly. I agree on what you have said if you can't control your emotion probably that is the point you have got loose on this. People weak hand were easy to do panic selling even they know that they have already loose they think that it is a right way to have an early cut their losses and it means that you accept already that you are a loser, I am right? Sad to say that there are some people like that and it wont help the entire market.

Unless people learned and stay positive with this market, those who are still deciding to sell while market is in its bear market are really losing their investment, they needed to adjust and think a lot, there's always a rebound from each situations that occur inside the market, you have to stay focus and keep your coins on hold trading is not for you if you allowed yourself keep losing your money inside the exchange.

People lose because they easily panic with negative news so they decide to sell low, even if they can be patient, they will be able to benefit because the market will rise.

A lot of people lose due to an extensive lack of knowledge and the rush to make easy and quick money. Any kind of trading is a science, and winning traders master their art to T before seeing profits. Without an edge and discipline, it it mostly a waste of time and it would be better to find something else worthwhile to do. A lot of folks are looking to earn profits without fully understanding the risks that come in play during trades and once things go south, instead of cutting losses, they sit, wait and pray the market turns around in their favor. That isn't trading, it is gambling.

Because they have to lose, it seems that many do not really have an idea of how trading or investing really works, by its very nature it is impossible that every single person wins at trading, if you are making profits with an investment that you made then that means that someone else is having losses, so it doesn't matter if the market seems as an easy way to make money the truth is the complete opposite of that and you cannot escape it.

The truth is that you need to be very consistent in the way you trade if you want to make profits in the market, and consistency is one of the things that people do not have when it comes to trading because they use their emotions when they trade and that leads to decisions taken by impulse.

You are wrong about what you think hodling is. Hodling is buying at some point then holding through all the moves. They may add coins, but never sell. Like Warren Buffet and his Coke stock, he will take it to his grave. The only reason a hodler would ever sell is if he was desperate for money. They believe the price will always go up over time due to the deflationary nature of bitcoin.

In trade the number of gainers is always equal to the losers so your earnings is the loss of any one. Also finding the direction of price in crypto trade is not easy and another reason for loss is mobility. Even if you know more than anyone in the world, losing is valid for everyone.

In literally speaking you have a point, but logically the problem with this investment strategy is time pressures. The speculation and panic by waiting with many news going around like crazy is killing them inside.

No one must be a loser if they only have the patience or the willingness to believe in to its future, but humans have the tendency to think negatively in a span of an hour.

Time and money with greediness is disastrous.

Investing into financial markets is not as easy as you think and that is why people keep loosing money.  Trading is a game and you have to plan and play it well before making profits.  It might interest us to know these, that no human,  software and hardware that can accurately predicts the cryptocurrencies and financial markets generally as this market has it own mind and it do move to the directions it desires .

The market gives two choices up and down, and because people lose because they don't have the patience to hold on when the market falls.

Becouse when you think coin is in red and cant go lower but no it goes lower afther you buy and buyer who start to panic ,its simpple but not so easy its dificult.

I think forex and crypto are waay too different from each other to make that a possibility. First of all there are regular people doing forex and almost always they lose money there, not initially maybe (some lose right away, some lose later) but in the end if you are not a professional trader there than you will lose your money.

One of my friend's uncle was interested in forex and made a ton of money for a long long time, like couple years at least and than one day lost all he had in his savings account, it can take a long time before you run out of luck but it will happen. The reason why banks and professional forex traders do not lose like that is because they have a lot more capital than you, if you lose 100 thousand dollars in forex you run out of money probably, they can reinvest 500 thousand to get that back. That is why they succeed.

Crypto is not like that, most of the population here is not professional traders, its people. Professionals are not here yet.

Sometimes holding is also hurting more more than panic selling just imagine about people sold their coins at January 2018 because of panic selling are more profitable than who is holding now so speculation is about buying and selling at the right time sometimes it is just based on luck too.

One of the reason why many people lose is they still lack of knowledge about trading because if you already have knowledge about it you may not lose any amount of money. The market is always up and down so its hard to predict what will happen to the market.

Yes it is truly easy to make trading and investing but the reason why they only lose is just because they don't make any plan and sometimes they do some reckless some action. In making action we should consider first our action depending the sitaution we have. Don't have enough knowledge could also lead to loss. Market is volatile so you should pay more attention to it.

True, that is why trading can be so difficult, it is very easy to see a chart of the market and think about where you should have sold your coins and where you should have bought coins but all that calm and calculated nature goes out of the window when people are in the middle of the situation and they need to decide, do they buy coins now or do they wait for the price to get better? Do they sell now or do they wait for the price to go up even more?

Those are the questions that are going to cross your mind when you are trading and inevitably you are going to make some mistakes because we are not perfect and are precisely those mistakes what it is going to eat you from the inside and you are going to try to make up for them the next time you make a trade only to find out that that doesn't work and that you have made a small mistake even bigger.

The main reason seasonal traders do not end up losing a lot is because asides from having a lot of money, they actually know how to manage risks as well and they are not gambling their positions in the market. Talking about your uncle, the only thing I can point here is that he approached trading as a gamble with no strategy, got lucky at first and then reality kicked in and he ran out of luck.

What makes a professional trader one is their ability to be able to take advantage of the market, but even if you want to do that, you only need to have a good strategy and know how to execute it perfectly well without emotions and if you have none, you will definitely be screwed.

Every exchange has its own goods and bad. You can only decide on basis of your assumptions and information you see. Forex has some good reviews as well. It always the game of mindset matching.

One thing everyone cannot do is to sell, that is one basic thing with the market, as some people are selling, some people are coming newly into the market, and thinking of holding, and that is basically how it will keep going until we get to hit the level of mainstream adoption.

I know it can be a bit difficult to see what you are holding tank down seriously and then you are assuming if the market will even have any chance in the nearest future or the possibility of even growing in the long run, but you should remember always that at least, if you cannot trade, you should be looking at holding and focusing your attention on the future.

First mistake that people make is buying when price is rising, and they are selling when prices are dropping. Second mistake is making those trades with all amount, top or bottom should be chased, when prices are rising you are selling just some from your stash, it's how you touching the top, price rising you sell some, price rise a bit more you sell again, when price is going down you buy some, price drop more you buy some more, its how you touching the bottom. To trade successfully you need to have back up plan all the time, to be sure in that you need to have good control of your bankroll. If you buy on top and sell on bottom you will lose all your money, you lose if you don't have patience to wait market to move and make conditions for your trades to be successful.

Trading is not that much easy and simple as you said, though there is only up and down in the market sometimes market falls and take 9-10 months or 1 year to be stable again. During this time 70-80% investors sell their coins on a loss because most people invest from their savings or from salary and expecting to get profit earlier.

there are many factors that make a lot of people experience defeat because this decline is very fast, I also experienced defeat in 2018, what I can do now is letting out the mistakes that I made so that later mistakes do not repeat, hopefully this situation will end soon and change happiness

Many people lose because they let their emotions do the trading instead of having a rational mind when doing it. Starting is the most difficult part for me because you would be excited and then disappointed afterwards because you are greedy so you don't want to sell even if you already have a big profit and then see it slowly go down until such time you are already at a loss and again hope for it to go up only to be disappointed when it continues to go down and being a newbie, you would be thinking if trading is really for you.

Those who learned from their mistakes come back up with a strategy but still a number of people who attempt to be trader just sold their position and then left the crypto world and I would assume that many are doing it now seeing the price continuously go down.

The answer lies in your own statements, trading and investing seems easy but that is not the case, you must remember that you are trying to get profits but everyone else is trying to do the same because no one gets into a market thinking they are going to lose, they want to win, which means that everyone is doing their best effort to try to take money away from you and if you are a lazy investor you are the one that lose.