The reason why investors often lose money

[lightning0]

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

[1714930450]

1714930450

[Bustart]

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

Basic rules will only apply for us if we follow our emotions, though we have the courage to battle all the anxieties that we felt everytime btc and other altcoins go down. That's always important to consider your safe zone first before final decision will prevail. Often times we lose money because of greed, when you find all things work out for good then don't hesitate to dump while there's no possible spikes will exist after your coins reached the peak of its value.

[John Jefferson]

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 rules apply to me. I often lose myself in trading because of more laziness. One of the reasons I like forums is that your trading experience often reminds me.

good luck

[Mauser]

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.

[gabbie2010]

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

Basic rules will only apply for us if we follow our emotions, though we have the courage to battle all the anxieties that we felt everytime btc and other altcoins go down. That's always important to consider your safe zone first before final decision will prevail. Often times we lose money because of greed, when you find all things work out for good then don't hesitate to dump while there's no possible spikes will exist after your coins reached the peak of its value.

When I got to real trading that is where I battle with  emotions and fear this is a big challenge especially for newbies following those trading rules becomes a big problem infact after a losing streaks a trader will jettisoned the trading rules and trade in a bid to recoup all the loses thus ended up with more loses I believe to ease such emotions and fears is by trading with the amount of fund you can afford to lose at least to reduce the risk involved in trading this is the area where a lot of traders or investors fails this main reasons why a lot traders fund got liquidated.

[palle11]

When I got to real trading that is where I battle with  emotions and fear this is a big challenge especially for newbies following those trading rules becomes a big problem infact after a losing streaks a trader will jettisoned the trading rules and trade in a bid to recoup all the loses thus ended up with more loses

Sometimes when the market hit you, you want to leave the rules as you said but I want to advise newbies not to leave the rules when they are down. The rules are the ways you can get back on track.
Most times the market does that and you make losses, use stop loss to minimize your losses and you have more opportunity to trade again. Emotions is not proper to be involved in real trading but good strategy and the rules.

[lightning0]

When I got to real trading that is where I battle with  emotions and fear this is a big challenge especially for newbies following those trading rules becomes a big problem infact after a losing streaks a trader will jettisoned the trading rules and trade in a bid to recoup all the loses thus ended up with more loses

Sometimes when the market hit you, you want to leave the rules as you said but I want to advise newbies not to leave the rules when they are down. The rules are the ways you can get back on track.
Most times the market does that and you make losses, use stop loss to minimize your losses and you have more opportunity to trade again. Emotions is not proper to be involved in real trading but good strategy and the rules.

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.

[palle11]

But we should develop strategies and implement them before trading. This allows us to not panic when placing orders.

I like this and that is the attitude from a good trader. Understanding your strategy that is working is better because you don't jump in at every candle spike but to wait for the right entering time. And going in with stoploss activated, you can relax having in mind the worse to be the Lost of just a little percentage of your balance.

[michellee]

The investor becomes a speculator because they do not research what coin they should buy instead just follow the other people. That is the most common mistake by the investor and maybe that is happening to us in some cases. Those investors do not have a target price or time frame when they should sell their coin instead still holding for the unknown time frame and become panic if the price drops significantly.

The research will help you to determine which coin you can buy as your investment. But you should know when you should sell your investment and not wait for the other high price because that will not always happen. Sometimes the price will adjust to the lower price before the price jumps to the next high price.

[Xuanansent]

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

[Cherylstar86]

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.

[jrrsparkles]

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.

[LimLims]

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.

[zanezane]

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.

[Yamifoud]

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.

[Tervelatuk]

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.

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,

[Lakai01]

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$ ...

[Karish2return]

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.

[passwordnow]

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.

[taufik123]

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.