The reason why investors often lose money

[2double0]

They lose money out of their mentality, their disability to hold and also unknowingness of when to leave the markets. Fomo is one very important reason for which even 'thorough' investors who are focused on holding while also keeping an eye on the markets, lose. Crypto markets are very dangerous compared to stocks and forex, and very proper research must be practiced before investing anything on these so wow coins.

[Reid]

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.

Precisely. 1 Bitcoin will always be 1 Bitcoin. If you sell some of it, that's when you lose Bitcoin.
I like how the OP idea putting rules for himself. It may not be applicable to everyone but we have our own kind of view with investing or trading.
In a sense, it's the correct method for him while some will not agree.
Just like this case.

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?

Short-term traders will try to short this and never expect more. Investors will.
The mindset to take the profits as soon as possible should be intact when you trade.

[LUCKMCFLY]

Investors usually lose money too, it is something very normal, in fact investors or whales in trading usually make movements in the market that include a lot of money, and sometimes they are not so accurate, and they lose some money, the only difference is that they tend to recover the money much faster, because it is the large amounts of money that make it possible to recover when a major movement occurs in the market.

In 2018 there were many investors who bet on BTC "Short", because they wanted to buy cheap BTC and the best option to get them was by going "short" taking advantage of the fact that many panicked and sold their BTC very cheaply, for this reason that the Market is usually like a jungle, for being so wild in the movements. For this reason, when those investors entered "Short" at that time there were many investors who were in LONG, there were many who lost, but at the same time they recovered, the losses are normal for investors, traders and small operators.

[ethereumhunter]

I would say that they do not know when to leave the markets. That makes them still lose if they sell at a low price. But if they can still hold whenever the price is down and do not think to sell, they will have a chance to sell in the future. That will make them get another big profit in the future because bitcoin can increase so high anytime.  We know that the crypto market price is moving fast without stopping so we must know how to prevent the panic that will come to us if the price jumps to the lower price.

[isaac_clarke22]

~

Not sure about #2, OP. What do you mean by not aware of market changes? Surely every investors are still looking into the price charts at least once a week making sure that their investments are going through. Not to mention that I had a bad habit of refreshing the price of Bitcoin before every 5 minutes and it is kind of a bad habit for me back then because it renders me unproductive.

[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 points should be remembered and learned by anyone who wants to be in crypto. because basically crypto trading is not as simple as we think. we need a lot of stages and also speculation that is in accordance with the technique so that our assets can be maintained and not lose

If someone asks you what should I buy?
You can answer to buy bitcoin
If you ask you when are they best to trade?
You can answer anytime
If he wants to buy at the lowest price, is now the time to buy?
I should answer: I don't know

Because no one can determine his direction

Here we need to find the latest strategies for trading and imitate them. In this process, we all need to constantly learn to trade to see market changes. One day you find that you don’t need to imitate other trading methods, so congratulations, you got it Very valuable gain.

[Kelvinid]

It's easy to list down those things but one things is for sure many investors lose money because of lack of information/knowledge or probably letting the emotion affect their trading where in fact it supposed to be pure technical. But not exactly because some times there are some cases that we are just really unlucky and lose our positions.

Some have the courage to invest but are too unfortunate that they just suffer such difficulties in order for them to learn. They are obviously not fully knowledgeable with the market and they often rely on what they feel and might follow some influencer. Their market survival is too tin and that is many of them had gone after losing their capital and hopes. Yet, some just to stay as are still wanting to recover and wanting to know more about crypto, and these people are true investors. Quitters never win, that's probably the mindset we have to keep.

[jaberwock]

The reason why investors often lose money

Often? You are wrong.

Investors definitely will not lose and even they lose it may not occur in more frequency given that if they invest bitcoin kind of highly recognized assets. If you invest into a random thing and crying about losses then I will categorize you philanthropist and not an investor.

Not aware of new market changes

This happens only with random things and not with reputed assets. Invest only into bitcoin and you never lose anything in long run or at least in next 4 years. It means all bitcoin investors may start enjoying good returns for their investments from minimum 4th year onward.

[lablab03]

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

new investor nowadays always rushing to invest their money especially when they saw a promising project even though they're lack of information, and that's how they start losing money..
I dont know why they don't have time to make research first and  efforts to read such information what you shared @op. as the matter of fact it's a big advantage. Maybe they're enjoying what mistakes they're doing reasons there's no changes until now. Lmao

[lightning0]

The reason why investors often lose money

Often? You are wrong.

Investors definitely will not lose and even they lose it may not occur in more frequency given that if they invest bitcoin kind of highly recognized assets. If you invest into a random thing and crying about losses then I will categorize you philanthropist and not an investor.

Not aware of new market changes

This happens only with random things and not with reputed assets. Invest only into bitcoin and you never lose anything in long run or at least in next 4 years. It means all bitcoin investors may start enjoying good returns for their investments from minimum 4th year onward.

Yes, investment will be risky.Although you choose Bitcoin, smart investors are good at observing market changes and depend on simple trading plans.

I am willing to believe that holding Bitcoin for 4 years will increase my assets, but this is not entirely correct. "Will the price exceed $40,000 tomorrow? Only tomorrow will I know."

As an investor, you should always maintain a vigilant attitude, right?

[aquafinewater]

The main reason to loose money  because new invester don't read first market analysis(TA) so that's why he don't judge market movement Market going down or up  or follow anyone signal so this is one of the main reasons to lose money

[Renampun]

...

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

laziness often makes us lose money and it is a big enemy in each of us...

in any field it is often laziness that makes it difficult for a person to move forward, and laziness is almost the same as greed, it destroys one's body and mind. stay away from laziness and also greed then your trading will be successful.

[NewRanger]

...

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

laziness often makes us lose money and it is a big enemy in each of us...

in any field it is often laziness that makes it difficult for a person to move forward, and laziness is almost the same as greed, it destroys one's body and mind. stay away from laziness and also greed then your trading will be successful.

laziness to learn from mistakes will make the trader repeat the same mistakes again, and eventually will make him lose again so that the same disappointment arises. Therefore, we should not even learn from analyzing to learning to control our own emotions. if we are still controlled by emotions, of course we will harm ourselves later, because most traders lose because of emotions in dealing with the market, for example greedy

[Lordshiva]

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

Yes i agree with your points..some points I would like to add is the greediness in the mind of the investor. Other thing is that he does not know exactly when to sell. The investor must be clear in his mind that after how much profit he should sell the amount

[perfect999]

some points I would like to add is the greediness in the mind of the investor. Other thing is that he does not know exactly when to sell. The investor must be clear in his mind that after how much profit he should sell the amount

You must need to be greedy if you have invested with only bitcoins. People who invested in bitcoins some 5 to 10 years back and being greedy are making massive amount of profits right now. So, being greedy cannot be a problem especially if you are an investor and you have invested into bitcoins. Investors will lose only when they choose shitcoins and/or not bothering about technical things while investing.

Long term projects can feed your greediness. So, being greedy with right project is highly recommended. So, I am not ready to accept that greediness is a reason for investors to lose their capital.

[RealMalatesta]

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.

Your number one rule in what to keep in mind, I don’t know if I really agree with that. Well, I’d say it all depends on what you’re looking for. I think investors should have a target, and when the market is way high above that target maybe it’s good to hit the sell button, but not sell all your assets at once. You can still hold some of the assets in case the market should continue with the uptrend.

There is no need to be in a hurry, and you have to also analyze and be sure that you’re doing the right thing. And follow your results and not your emotions. Then it’s very important to be aware of market changes. If you’re an investor you should be aware of what’s happening in the market you’re investing your money in. Some developers can decide to make changes at anytime, and if you’re not aware of it, you will be left behind.

[Fivestar4everMVP]

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.

I totally agree with you most especially on this last part, there are absolutely no outlined rules that have proven to work effectively in the crypto trading environment, every one has different strategies and standards of trading, so also, it is advisable for each to make his or her own rules in a way that it will suit or match he's or her trading strategy.
Rules are very important most especially in the financial sector, not keeping them can sometimes result to devastating loss of money, so  traders should pay attention and learn the strategies that works, make and keep rules that will help them maximize profit.

[AliMan]

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

It made me think about my brother who was ranting over his xrp and trend to dump because the value went at losing state. At first he was only motivated due to higher value price of his assets consisting other coins. But recently he was demotivated because of falling market which altcoin also suffered while btc was struggling to be back at $40k level.
That situation litteraly an example why a person lose in trading, emotions is our very concern here.
Never sell just because you're afraid to lose it all, but rather sell when price again comes for another ATH.

[harizen]

But without losing money, investors won't learn much.

For me, I'd rather see them being in that worst situation so that next time, they are now more serious to prevent it. There are no perfect investors and all successful investors today really struggles on their way up.

Soon, they can create their own way how to deal with these market struggles and challenges. I won't advise them what to do because even we are in the same ocean, we are on a different boat. It means, our approaches are different.

[lalabotax]

The investor is different from the trader.
So, basically, when investing in some certa9in cryptocurrencies, they have known and thought that they will not use the money in the short term period. They will have certain target of the period of holding the coins until they are predicting the next bullish era.
But sometimes,s they forget about how to choose the right coin to invest in for the long term. Bitcoin is the best and it is no matter. But if it is about the new hype coins, it will end soon and lose much money soon.
The bad ways are about going to invest but they don't know anything, don't have any target, and also only follow other people.