Why do so many people lose their positions due to Bitcoin's decline?

[artdisrupt]

Trading financial instrument , derivatives have high risk , and having full knowledge of risk management of position size is a key to make a quality decision. The fundamental impacts news can make you rich or rekt you especially when the hype in social media get built up.  Many people lost their portfolio because of lack of market structure. Not every dip or rally you jump into.  These is my view why many lost during this Bitcoin decline.

[minhtra]

if you canot sleep well, you are over leveraged and get ready to be liquidated

[wxa7115]

Trading financial instrument , derivatives have high risk , and having full knowledge of risk management of position size is a key to make a quality decision. The fundamental impacts news can make you rich or rekt you especially when the hype in social media get built up.  Many people lost their portfolio because of lack of market structure. Not every dip or rally you jump into.  These is my view why many lost during this Bitcoin decline.

People take irresponsible financial decisions all the time and unfortunately they pay the consequences, in most fields and circumstances of our lives we can take a bunch of irrational decisions and get away with it but when it comes to our money you cannot afford to make mistakes, and this is because in order to get a decent amount of money it will take you years and you cannot waste those years by taking dumb decisions.

But unfortunately people do not get this, they think they can get away with the same mistakes they do in their everyday lives and still come up on top and then when that doesn't happen they say that the markets are rigged or that they are unfair when they are the ones that made those mistakes in the first place.

[passwordnow]

Many people lost their portfolio because of lack of market structure. Not every dip or rally you jump into.  These is my view why many lost during this Bitcoin decline.

Many actually lose if there's a correction to happen. But you will not lose until you sell. For a holder, it's normal to see a correction like this but you have to analyze that if you've been in the market, you're still profitable. Can you give more meaning about the lack of market structure?
An investor should get into it if he/she sees a dip. We'll not know if after this we get to skyrocket again until it finalizes to break $40k once again.

[Shayanrajput1]

 I have been reading research reports on ZB.com recently. A senior investor said. Liquidation is mostly related to improper fund management. In order to avoid this situation, it is necessary to control the amount of open positions and manage funds reasonably according to your capital.

[Shayanrajput1]

First of all, Bitcoin itself is extremely volatile, and investment must be cautious. Contracts amplify risks. The guarantee of ZB.com is still higher. No contract, no liquidation.

[DarkDays]

Many people lost their portfolio because of lack of market structure. Not every dip or rally you jump into.  These is my view why many lost during this Bitcoin decline.

Many actually lose if there's a correction to happen. But you will not lose until you sell. For a holder, it's normal to see a correction like this but you have to analyze that if you've been in the market, you're still profitable.

You're right. Especially, now with this correct when BTC has gone under 30K has made many people panic- all I have seen all day were huge and constant sell orders. This is where everybody is thinking that this is the end, throwing everybody else in the same predicament.

[Twinkledoe]

Many people lost their portfolio because of lack of market structure. Not every dip or rally you jump into.  These is my view why many lost during this Bitcoin decline.

Many actually lose if there's a correction to happen. But you will not lose until you sell. For a holder, it's normal to see a correction like this but you have to analyze that if you've been in the market, you're still profitable.

You're right. Especially, now with this correct when BTC has gone under 30K has made many people panic- all I have seen all day were huge and constant sell orders. This is where everybody is thinking that this is the end, throwing everybody else in the same predicament.

If you are new to seeing the downward trend, then you really will panic about what you're seeing in the market. But for those who used to seeing the upward and downward movements, it will just be another dip. And I believe, it will go up again. Don't lose hope. We already achieved a lot this month. There are so many stakeholders that are into bitcoin right now. But it is understandable that most of us are in panic mode. Especially those who bought at about 35k and up.

[passwordnow]

Many people lost their portfolio because of lack of market structure. Not every dip or rally you jump into.  These is my view why many lost during this Bitcoin decline.

Many actually lose if there's a correction to happen. But you will not lose until you sell. For a holder, it's normal to see a correction like this but you have to analyze that if you've been in the market, you're still profitable.

You're right. Especially, now with this correct when BTC has gone under 30K has made many people panic- all I have seen all day were huge and constant sell orders. This is where everybody is thinking that this is the end, throwing everybody else in the same predicament.

Not that long ago, we've seen it dropped I think @ $30,000 on the first days of this month. And if we'll base it to the one month chart, we're still in profit because a month ago, the price of bitcoin was $22,000. The same scenario just like before when bitcoin is dumping, everyone who panics will not be able to ride the train and they can't contain it because they'll regret what have they done. Well, just the whales want to take some cheap bitcoins before the skyrockets again.

[Fatunad]

Trading financial instrument , derivatives have high risk , and having full knowledge of risk management of position size is a key to make a quality decision. The fundamental impacts news can make you rich or rekt you especially when the hype in social media get built up.  Many people lost their portfolio because of lack of market structure. Not every dip or rally you jump into.  These is my view why many lost during this Bitcoin decline.

Pretty basic but the hardest thing that can be done into this market.Lets say you do have all the knowledge towards things when it comes to decision making neither you should enter or not
on a specific situation because you have seen the indications for you to get in or not but doesnt mean that would really be giving out precise results basing just only with fundamentals
but well having this kind of analysis is much more better rather than having nothing at all. This market is feirce and you should really be careful and be smart on every
action you would make or else you would really be fucked up.

[Obito]

Many actually lose if there's a correction to happen. But you will not lose until you sell. For a holder, it's normal to see a correction like this but you have to analyze that if you've been in the market, you're still profitable. Can you give more meaning about the lack of market structure?
An investor should get into it if he/she sees a dip. We'll not know if after this we get to skyrocket again until it finalizes to break $40k once again.

Not to mention that FUDs are stronger during these times, some will be affected by it psychologically and many will do an action that is in accord with the FUD. I think what OP means with the market structure is the decentralization or the lack of similarity to stock market, I might be wrong but from what I have read, that is how I interpreted it.

[Kittygalore]

Many lose their portfolios because they are just glued to the news especially from social media, social media should not be a reference for making a decision in trading either when buying or selling.

I do agree with you about social media as reference almost for anything, most people out there is just fame whores that only want your likes and subscribes. I think there is nothing wrong with being in touch with news, especially business articles which could help you do some rational decision, and to make it more effective strategy I suggest that reading multiple articles about what is happening in the market is the best case for anyone because a diversity in ideas will help you in formulating a decision that gets the best bits out of all the articles. Nothing wrong with being glued with multiple news articles, the problem is when they blindly follow only one.

[maydna]

Many lose their portfolios because they are just glued to the news especially from social media, social media should not be a reference for making a decision in trading either when buying or selling.

Yes, it is right. If they can not search for more information about that, they will lose more money because not all news from social media is correct. People often spread the wrong information to people using social media, and many people get panic because they read that the market will drop significantly. We can prevent that thing before it happens by searching on the other website, so we know what is happening to the market. People who are not ready with anything happen to bitcoin will not survive, and even they will lose their money.

[WalkerIVIV]

Trading financial instrument , derivatives have high risk , and having full knowledge of risk management of position size is a key to make a quality decision. The fundamental impacts news can make you rich or rekt you especially when the hype in social media get built up.  Many people lost their portfolio because of lack of market structure. Not every dip or rally you jump into.  These is my view why many lost during this Bitcoin decline.

Too much people are expecting something big will come from the bitcoin while they are not aware with the reality of the price of bitcoin will always be dumped and pumped.
I have seen so many newcomers entering into the crypto market when the market was pumping so hard.
They are also lack of knowledge about how to trade.

[passwordnow]

Many actually lose if there's a correction to happen. But you will not lose until you sell. For a holder, it's normal to see a correction like this but you have to analyze that if you've been in the market, you're still profitable. Can you give more meaning about the lack of market structure?
An investor should get into it if he/she sees a dip. We'll not know if after this we get to skyrocket again until it finalizes to break $40k once again.

Not to mention that FUDs are stronger during these times, some will be affected by it psychologically and many will do an action that is in accord with the FUD. I think what OP means with the market structure is the decentralization or the lack of similarity to stock market, I might be wrong but from what I have read, that is how I interpreted it.

The FUD this time was about the double spending and it's just another false claim by those articles that were made about it. Yeah, it may have been stronger within a day or for several hours. But it didn't became stronger after its drop.
You go to check the price of bitcoin and it's been up again and it has quickly gone up again. If that's what he meant about of market structure, it doesn't have to be similar with stock market.

[1l1l11ll1l]

Many lose their portfolios because they are just glued to the news especially from social media, social media should not be a reference for making a decision in trading either when buying or selling.

This is very important indeed, but believe it or not that most people who have just entered the crypto market are very easily swayed by rumors. especially if some whales are moving the media with PR, they are immediately doing something too much and should not have to do if they intend to invest in crypto, the point is that new market movements are still quite volatile and fragile

[Renampun]

Trading financial instrument , derivatives have high risk , and having full knowledge of risk management of position size is a key to make a quality decision. The fundamental impacts news can make you rich or rekt you especially when the hype in social media get built up.  Many people lost their portfolio because of lack of market structure. Not every dip or rally you jump into.  These is my view why many lost during this Bitcoin decline.

those who buy because of the hype on social media will only lose out...
amateur buyers who buy because of the hype will only sell their Bitcoins when the price drops a little, they are not armed with the knowledge and mentality of trading on Bitcoin. they just dug their own graves.

[zanezane]

The FUD this time was about the double spending and it's just another false claim by those articles that were made about it. Yeah, it may have been stronger within a day or for several hours. But it didn't became stronger after its drop.
You go to check the price of bitcoin and it's been up again and it has quickly gone up again. If that's what he meant about of market structure, it doesn't have to be similar with stock market.

It is good for the traders to be fair, with the current dump and then a surge back up is a good way to earn some profit, in a way God bless for FUDs for making traders get richer with a temporary dump.

[poodle63]

It's just some people expecting bitcoin to go up again like when they missed the chance to jump into the dip few weeks ago and turns out they are buying it too expensive since even the recent correction is still far above the price before bullrun started.
The hype due ton many influencer also really make people think they could make quick buck after witnessing bitcoin price pump despite already at its peak and waiting for correction due to lack of knowledge.

[Sterbens]

the point is easy panic and mentally not ready when experiencing a decline in prices. it's just about how strong the mentality of someone who really understands managing the finances in a portfolio. if we think bitcoin will be like any other altcoin, then it is true that it is not only the losses that can be obtained, failure to manage position size will definitely have a bad impact.