Trading losses

[maydna]

People get losses in trading when they don't know where is their target sell, so they still hold the coin and expect the price can increase higher. If people buy and sell quickly, they need to have the target sell so that they can sell it right away at the high price. But you can use a stop-loss feature that is available at the exchanges, so when the price drops too fast, your order sell will be filled as soon as possible before the price reaches the lower price.

But if you don't want to sell even if the price is down, you don't have panic, and you only buy more bitcoin at a lower price and hold it again. That will be different for other coins, but the point will be the same.

[Heisenberg_Hunter]

There are quite a few factors which will determine the loss of any investor or trader in crypto scene. It could start with investing in even legit altcoins or more likely a scam coin. Since the market is highly decentralized, we can never predict on what factors does alts or bitcoin rise in numbers. Many consistently compare crypto market with stock market which isn't the case. In stocks a gain in momentum occurs only when the company is able to achieve a certain set of goals set by them thereby gaining the investor trust. But in bitcoin or other alt market, we could never expect as similar to that because of the decentralized nature of these crypto currencies. Back in the mid of 2019, facebook announced they are creating a new digital currency and the market reached its hype and similarly in 2020 March we faced a setback because of the pandemic. Eventhough they are related to an extent, the 2018 dump was unexpected and we still don't have a clear reason for it.

If you believe in bitcoin as a long term asset for your future generation, invest in them no matter at what price they are. With the deflationary nature of btc, it will keep gaining the momentum gradually and would never get back to its bottom like $100 or $500 as it was like in 2014 or 2016. If you have a short mind i.e willing to cash out immediate profits or need a lottery like gambling, never invest in bitcoin. Bitcoin is not a currency for you to gamble or get immediate profits, go and trade alts (more particularly DeFi coins) instead. We can face setback even during alt pumps, i.e I invested $50 once in STMX as soon as Bittrex CEO joined them and another time when Walmart started accepting their currencies. But unknowingly they failed to pump and I lost atleast half of what I invested.

Summarizing these :

1. If you believe in the potential of bitcoin : Invest regularly atleast once in a month and hodl them for the future generations to come

2. If you are gambling with your money : Invest in alts and ride in the ocean of scams.

[BTCappu]

If you can buy Bitcoin and hold it for long, and you happen to be lucky, based on what I have seen you will make profit. But everyone will always pass through that level where they will experience losses. Though the good thing about being a long-term investor is that your analysis was right and you have happened to buy at a deep, even the price should go down, as you continue to hold it, it will recover with time.

But for day traders, they are trying to make profit every minute, every hour, so they are steady trading and if you’re not good at it, it’s going to be a steady loss for you.

[Wulan_maniez]

Anyone can benefit from bitcoin trading and investing. But to get the most out of bitcoin will not continue to repeat if it does not improve the skill and strategy in investing. I think learning some important basics about cryptocurrency itself can be a supply of knowledge.
Especially if you want to learn to circulate and the total supply of coins that want to be purchased, this can be a reference in buying a coin so it can add confidence and not be afraid to make mistakes if it knows the potential of the coin.

[Inkdatar]

People suffer losses because of no patience to stay in Bitcoin. Those who truly believe in the growth of bitcoin able to wait for the price to increase and also some able to accumulate until it reached their target price to sell. So some wants for a quick profit that they do day trading and suffer loses. If they know the big opportunity in this industry they will be patiently hold and will accumulate more btc even the price is low.

[DevilSlayer]

There are a lot of greedy people out there, especially those people who are buying Bitcoins because they know it will help them to get rich without knowing what really Bitcoin is. They want to earn a huge return in just a short period of time, that's why they are ended getting rekt.
When entering on trading, we should really learn and very careful because we all know trading is really risky!

Trading is risky for those who do not understand the foundation and the basics, actually the real foundation of the trading is understanding the price action and also knowing how to plot the important levels like support and resistance. A lot of people are losing in trading because they are just buying without any backup ideas. It only become risky if a certain trader enter trading without prior education. For those who want to become successful traders out there, manage your risks and make sure that you have plan before you will enter in a certain trade.

Risk in trading will only increase if you have no certain education and background on what it is. The risk will be lessen through experiences. And for those who keep losing, treat is an opportunity to grow and do not quit in trading because you will not regain the losses that you incurred if you quit on trading.

[Zemomtum]

Some want to increase their BTC holding, and they trade it with other altcoins pairs. Either BTC move up or down, all these altcoins get crushed resulting in a massive loss.

[so98nn]

is it because people are looking to buy and sell quickly which may result in a loss if market falls?

What you describing here is actual day trading and yes people tend loose it because they get overexcited while making their profits and loose in the greed or zero patience.

On the other hand, I assume you made statement mentioning that Bitcoin is destined to grow is in association with the fact that everyone must hold the bitcoin and wait for the right opportunity.

Well this strategy is called as HODL, and it requires tremendous amount of patience. Considering both parts parts are different they have their own pros and cons. Not everyone benefits from the both, either way it's upto person-person how they do it.

[Dorodha]

There are risks in trading. If the market is analyzed well Trading losses is possible to avoid even a little bit of risk. There are many greedy people who invest all the currencies to get more money without knowing anything about the market in which case they have to learn the trade first in order to get something better because of the higher risk. There is a lot of volatility in the market which always puts a trader at risk. The market sometimes behaves in an unreasonable and unrealistic manner for which all traders must be careful.

[ice098]

There are risks in trading. If the market is analyzed well Trading losses is possible to avoid even a little bit of risk. There are many greedy people who invest all the currencies to get more money without knowing anything about the market in which case they have to learn the trade first in order to get something better because of the higher risk. There is a lot of volatility in the market which always puts a trader at risk. The market sometimes behaves in an unreasonable and unrealistic manner for which all traders must be careful.

There is always risk in everything, we just need to be selective, if we can't avoid it just do everything to minimize the losses by research about the current trend of the coin , reading charts, understand the candlesticks, and look for other speculations as well. It can help us not to lose or minimize it.

[Anyobsss]

There are risks in trading. If the market is analyzed well Trading losses is possible to avoid even a little bit of risk. There are many greedy people who invest all the currencies to get more money without knowing anything about the market in which case they have to learn the trade first in order to get something better because of the higher risk. There is a lot of volatility in the market which always puts a trader at risk. The market sometimes behaves in an unreasonable and unrealistic manner for which all traders must be careful.

There is always risk in everything, we just need to be selective, if we can't avoid it just do everything to minimize the losses by research about the current trend of the coin , reading charts, understand the candlesticks, and look for other speculations as well. It can help us not to lose or minimize it.

Agree. Losses are inevitable so what will you do? The best course of action is to at least minimize it. Trading losses can be minimized through risk management. This is a must-have skill for traders. also, you can have this feeling that if the trade is not right or does not meet the criteria for your trade, don't do it. There's always opportunity in the market so don't be afraid to miss one.

[bitgolden]

1. If you believe in the potential of bitcoin : Invest regularly atleast once in a month and hodl them for the future generations to come

2. If you are gambling with your money : Invest in alts and ride in the ocean of scams.

I would say you could combine these two points together to make a portfolio which has been a thing I have loved doing for years now. I do believe in bitcoin and I have invested into bitcoin heavily so far, most of my money (over 80% now with the increase) is in bitcoin and I will not change that, my aim is to have as much bitcoin as possible until I retire which requires me to keep this number at 80% or so level for a good future. I do have about 10% of it on ETH which is another great coin that I admire and believe in the future, "may" increase it in the future with eth 2.0 but haven't decided yet.

The rest of 10% goes to silly coins, they are not really anything but fun, I have not really made any serious money with them, few of them in the past made a bit but nothing really crazy, it is just like 10% experiment deal for me. So, both strategies could be implemented together if you are careful enough.

[Lordhermes]

There are different sets of traders, which are the day traders and the long term traders, the days traders sells out as many as they can in a day whereas long terms sells out once I.e after holding for a long time. In these cases, if you bought bitcoin with your fiat currency at $10,000, a day trader gambles with the btc while getting little profit or losing in little amount too continuously until it reach its limits, also long term one holds on the bitcoin till it reaches 200%+ before hitting sell on the market, that's how the system works.
So conclusively the both sets you on profit, but the case of day trading requires you to be smart enough to know the trading strategy and skills behind that's while beginners are said to practice to hold on bitcoin till it increases.

[palle11]

Some want to increase their BTC holding, and they trade it with other altcoins pairs. Either BTC move up or down, all these altcoins get crushed resulting in a massive loss.

Altcoins have not been profiting by hodling it. It drops down faster than you will realize it. Trading altcoins are better in profit for the trader and for the coin because as trading is recorded for the altcoin, its volume also increase but many are scared to trade their altcoins and prefer to hodl, at the end no profit to it.

[Distinctin]

Buying at low, sell at high. Actually, there is no wrong with that and for that kind of strategy, you will still be earning.
What might wrong with this is that they never make a record for their investment in which they can see if they are already profiting, if this is a time to sell, or the big possibility is that, they are impatient people.

It was really hard to make good in trading, become profitable if in our mind is different. We need to set our goal and stick to it otherwise, you'll go nowhere and have loose ends. It is very important to clearly know what we are doing so everything will be guided and succeeded.

[EdenHazard]

Some want to increase their BTC holding, and they trade it with other altcoins pairs. Either BTC move up or down, all these altcoins get crushed resulting in a massive loss.

Altcoins have not been profiting by hodling it. It drops down faster than you will realize it. Trading altcoins are better in profit for the trader and for the coin because as trading is recorded for the altcoin, its volume also increase but many are scared to trade their altcoins and prefer to hodl, at the end no profit to it.

Holding altcoins not always that bad , for example when you holding your xzc in late 2016 where the price is at $0.3 and make a cashout for profit in late 2017 for $120 in all time high , you are 400 times in profit! You just need to know when to have taking profit and move into a new altcoins as yeah altcoins most of the times didn't go further after hit the all time high , pretty different to bitcoin that always looking for a new all time high all the time.

But well yeah hodling for long time isn't advisable for latcoins though, losing in trading is just normal , making a comeback out of that losses , that is the difference between a newcomer and the experienced pro one

[tbterryboy]

Can someone balance me real quick, how do people get losses even though we know that Bitcoin is destined for growth?
is it because people are looking to buy and sell quickly which may result in a loss if market falls?
Because in my view i feel like buying and holding on to your bitcoin until its value has increased(which is an assured) will always set you for profits.

please correct me if im wrong...

What you have explained here is what's called HODL which is being down for long term, it can be for months or a year, and not everyone does that. For some people is a different case, they prefer to trade daily and be making profits daily, so this will sometimes, for some of them, result to a loss because their experience and skills are lacking.

The Hodl you have mentioned doesn't require much work, though you need serious planning , if you buy in at the wrong time you're going to be losing as well, but I believe those who lost when the price was at its peak some years back will be able to recover their money if they can wait now.

[Peanutswar]

What do you do on your trading?
Just a spot trading or margin trading?.

If you are going into spot trading one of the best technique I can give is to buy low and selling high the coin if you already gained profit also one of the effective ways is to buy a coin every time it dumps (base on my experience it works ) well this is just IMO also you can try another technique.

If you are into a margin trading this might be riskier if you don't have knowledge regarding the price movement and using of technical indicators they are the one who is giving you a sign what is the next trend.

I think if you still losing a large amount of money right now you may need to make changes to all the things you need to earn a profit. Find some effective way to earn profit which is suitable for your strategy.

[sotoshihero]

Some want to increase their BTC holding, and they trade it with other altcoins pairs. Either BTC move up or down, all these altcoins get crushed resulting in a massive loss.

sad  but its happening. It is truly a sacrifice doing these trade to altcoin pair but some also got lucky. But most is not lucky enough and burn their holdings. Knowledge of analysis tools is indeed important, better to invest  time and knowledge on these.

[noorman0]

If you want to trade, be prepared for the consequences of losses. When you buy, you have a set time limit that you set yourself to hold and must sell it at the right time (either up or down).

If you want BTC to profit on the basis of believing it will grow, then hold BTC for a long time with patience. However, when you start also matters.