Newbie Investors Be Ok With Taking Calculated Risks.

[Becky666]

Have heard many Newbie investors complained of their loses after successfully invested into cryptocurrency, this happenings; draw my attention toward the latest development on Newbie investors who are currently suffering from risk involvement in the world of cryptocurrency.

The volatility of cryptocurrency cannot be compare to any other investment class as they are not standard investment. There is always the risk an investor can take, which will help in reducing their looses. So, the most important thing here is: only risk money you can afford because loosing beyond your calculated risk; could lead to depression and depression could lead to death.

“Wence Casares, CEO of Xapo, said as I quote “

 “I always tell the [my family] that the second most stupid thing they could do right now is to own an amount of bitcoins they cannot afford to lose and the most stupid thing they could do would be to not own any. “

Feel free to add.
Source

[Lakai01]

For me the most important part is "control your emotions" in trading. As a newbie investor you close trades too fast or way too late, jump in and out of positions or accept losses when you shouldnt.

What helped me was to plan my trades on paper:
- entry points for a specific asset
- stop loss
- take profit
... and most important: stick to that plan and dont throw it away when a trade runs good.

[joniboini]

For me the most important part is "control your emotions" in trading.

Investment and trading is not the same thing. OP actually talks about an investment which usually requires years before it finally turns into a good profit. I think those "newbie cryptocurrency investors" are not prepared to hold, or in other words, they don't want to invest but look for quick and short-term gains, which is more suitable with trading.

That's the basic rule, don't put emotions into investment and only invest the amount that you can afford to lose. If those two are not fulfilled then you won't be able to make a good investment.

[QueenVera]

There's a saying that goes like this "invest only what you're willing to lose" in other words, invest with your spare money. When you do such, the possibility of your emoting affecting your decision will be reduced. As newbie investing in cryptocurrency should be based on knowing what you want as that's one of the ways of taking a calculated risk. Some newbies don't know what they want they just jump right into investing in bitcoin & Altcoin then fomo or fud at the smallest news they hear.

[Lakai01]

Investment and trading is not the same thing. OP actually talks about an investment which usually requires years before it finally turns into a good profit.

Fits both trading and investment strategies in my opinion. Controlling your emotions and stick to your investment/trading plan are the key to success because it prevents you from knee-jerk reactions like buying into falling knives or holding positions too long when greed kicks in.

[jhenfelipe]

The problem is that, most people/investors focus on one thing -> profit. IMO before investing, we should always consider both profit and loss. Tbh, much better to think the worse case scenario that might happen (ex. losing all/partial investment amount), prepare yourself (mind & heart). It helps not to expect or regret too much after.

[YoloBull]

Investment and trading is not the same thing. OP actually talks about an investment which usually requires years before it finally turns into a good profit.

Fits both trading and investment strategies in my opinion. Controlling your emotions and stick to your investment/trading plan are the key to success because it prevents you from knee-jerk reactions like buying into falling knives or holding positions too long when greed kicks in.

Yep! It's a business like any other and you need a plan. Not one you stick to no matter the circumstance, but one that serves as your guiding purpose. Are you willing to lose everything for a chance of an amazing return? Then your guiding principle is different than someone who wants to make enough profit to support themselves comfortably but also not risk losing everything.

[r1s2g3]

If something can be calculated then how it can be risk?
Just need to diversify your investment portfolio so if any asset did not appreciate (or depreciate) then the gains from other asset will make up. I will also advise to stay away from the product that you do not understand. Instead of going through word of mouth, you should first research the product yourself before making investment decisions. 

[Lakai01]

Just need to diversify your investment portfolio so if any asset did not appreciate (or depreciate) then the gains from other asset will make up.

Unfortunatly, I have already seen too many investors who have understood "diversify your portfolio" as "buying as many different coins as possible". Due to the fact that every coin is rising and falling with bitcoin it makes little sense to buy different coins, you should rather see your crypto investments as a single asset. Mixing cryptos with stocks and fonds or gold works very good in my opinion (no investment advice!).

[jossiel]

That statement just made me remember of a very tragic and sad news I've seen on reddit about someone who became depressed with his losses and commited suicide.

The problem is that, most people/investors focus on one thing -> profit. IMO before investing, we should always consider both profit and loss. Tbh, much better to think the worse case scenario that might happen (ex. losing all/partial investment amount), prepare yourself (mind & heart). It helps not to expect or regret too much after.

New investors needs to understand that they are taking risk and they are prone into losing and profit at the same time. I agree that investing in crypto isn't the same as other standard investments, there's too much emotion being applied if you see your assets going down.

[r1s2g3]

Just need to diversify your investment portfolio so if any asset did not appreciate (or depreciate) then the gains from other asset will make up.

Unfortunatly, I have already seen too many investors who have understood "diversify your portfolio" as "buying as many different coins as possible". Due to the fact that every coin is rising and falling with bitcoin it makes little sense to buy different coins, you should rather see your crypto investments as a single asset. Mixing cryptos with stocks and fonds or gold works very good in my opinion (no investment advice!).

Thanks for clarifying it. I really do not want to say that "buy different coins" for diversify the platform.
 The best investment in my eyes is to invest in yourself for building skillsets but it is one of the hardest job and require a lot of  dedication and commitment.

[Indamuck]

Diversifying among crypto coins doesn't really do much because the market all moves in the same direction together.  you need to go and put some money into regular companies, property, and gold if you truly want to diversify.