The reason why investors often lose money

[goaldigger]

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.

Losing is indeed part of the game and losing will make you more wise and stronger the next time you play in the market. Investors should take this as an opportunity to learn things, though its a costly mistake I’m sure you can still get it once you master trading or investing. There’s always an opportunity to make profit in cryptomarket, don’t lose hope and don’t give up easily if you lose money, again that is part of investing.

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[cryptolord2077]

As a rule, more often than not, people simply do not have enough patience. The crypto market does not adjust to expectations, it goes against them, therefore, when people expect growth from their coins, they often cannot accept the fact that the coin is falling and is not going to stop. Lack of understanding of the mechanisms of market management is the main reason why people lose.

[kawetsriyanto]

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

That's the point. Losing makes investors learn, they will realize their mistakes. Since all investors must have the intention to take profits, they will force themselves to know well the effective ways to invest then. No investor will accept losing forever, so they must learn hard and more seriously. Well, losing doesn't always be a bad thing. If an investor can understand it and know what to do after losing, it even can be a big motivation for him to improve their investment skills.

[3la9l_kolbaCa]

When we lose our money, realization came to our mind afterwards and you'll eventually learn all the mistake you had. As an investor, trading is our usual career and it's a matter of hardwork once you overcome all struggles you're facing in times of trading pressures.
Taking profit is our main objective during the midsts of green days, but it's not an easy task because greed is really prone on every traders.
They failed of too much market expectations, that's why missing out some good opportunity will be ignored and won't able to take profit quickly.

[el kaka22]

The main reasons I saw investors can lose money is because they sell because of panic, if they did not sell they will still make the money back if invest good coins

Panic will play a role in your decision making only when you are not confident about the coin, you have invested.
If you choose coins after a strong due diligence then you can easily continue your holding regardless of whatever corrections you are encountering. So, TA and FA are more important not only for active traders but also for investors.

without losing money, investors won't learn much.

To learn much, you do not need to be an investor neither.

all investors must have the intention to take profits, they will force themselves to know well the effective ways to invest then.

That learning process should be done before finalizing the investments. Basically being investors in crypto space also requires lots of preparations like crypto trading and if you are too busy and unable to find time for learning then you may stick with bitcoin investments alone.

[davis196]

Investors are thorough gamblers

I guess that by "investors" you mean traders.Investing is not gambling,despite all the risks involved.
Trading can be compared to gambling,if you don't know what you are going.
There's nothing wrong with losing money when trading,if you make more money at the end of the day.
Some traders are afraid of losing money when trading,because this would mean that they lack skills or they simply suck.This creates an emotional blockade and "fear of failure". Even the best traders are losing money here and there,so we have to get rid of the "fear of failure".

[suryana]

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

this is very useful for me personally..Thanks for reminding us through this topic. Maybe sometimes I still make the mistakes that have been mentioned, which is often selling prices that seem to still be higher.

[kawetsriyanto]

Basically being investors in crypto space also requires lots of preparations like crypto trading and if you are too busy and unable to find time for learning then you may stick with bitcoin investments alone.

You are right. There are many things needed for a crypto investor, especially if he wants to be a professional investor with multi assets. He must accept having a learning process and it is probably timeless. There are many things needed to learn, not only about skills or knowledge. A professional investor must learn about the current trend in crypto, a possible situation on the next season, factors that lead to increase/decrease in crypto coins, and many other things. This must require a lot of time and a serious intention.

[Ryker1]

Investors are commonly losing their money because of investing in a coin without doing any research about it, this is all about knowledge, if you haven't done any research about the coin that you are going to invest then for sure you will lose your money, so better to do for all newbies who is going to invest, you have to know that it is not an easy thing, you have to make sure that you are investing in a good coin.

Why not stick on the top 10 cryptocurrencies including altcoins. Investors can still make a profit on it via holding and sell when your profit was there.
Perhaps the common problem in investors did not have proper research before putting their money, because they are in the hype with other people most especially when you know there is a group of pump and dump. But if you are going to ask me, I will stick to bitcoin investment itself than altcoins, the most reason is here.

[Rengga Jati]

The reason why investors often lose money; as a novice, I summarized the experience in trading:

Besides those four reasons, I think that there are also some other reasons why often losing money when investing in cryptocurrency:
5. Don't know enough what is invested in at that time because only following any hype
6. Doesn have any target of price or range of period to take profits
7. Some greediness
8. Investing but too panic when the prices fall down

[jeha2015]

Losing is indeed part of the game and losing will make you more wise and stronger the next time you play in the market. Investors should take this as an opportunity to learn things, though its a costly mistake I’m sure you can still get it once you master trading or investing. There’s always an opportunity to make profit in cryptomarket, don’t lose hope and don’t give up easily if you lose money, again that is part of investing.

loss was a one of stages that we must passed in our trading journey , when we could overcome it and never give up as you said we will be good trader later. from mistake we made , improvement in trading skill bring new spirit for us to generate profits in next trades.

Unfortunately, sometimes investors take unjustified risks that may not bring the most positive results. It is for this reason that many investors suffer losses.

they didn't prepare well before involved in crypto market or other finance market. most of them blind when entering this market and maybe no one guide them

[Nigrinn]

I believe that you do not need to start working with a real account right away, it is best to try your efforts on a demo account, and thus you can understand where mistakes are made, this advice was recommended to me by Amarkets managers.

[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

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.

Yes, there are too many examples. We all understand the truth, and usually disrupt our plans during operation.

Investment will be risky, and keeping it within a price we can afford to lose is a good condition for our health.

[lightning0]

The reason why investors often lose money; as a novice, I summarized the experience in trading:

Besides those four reasons, I think that there are also some other reasons why often losing money when investing in cryptocurrency:
5. Don't know enough what is invested in at that time because only following any hype
6. Doesn have any target of price or range of period to take profits
7. Some greediness
8. Investing but too panic when the prices fall down

Yes, I very much approve of your supplement. I have a few friends with wealth and freedom around me. Their successful experience is not something I can bear. We are all learning from experience and using what I can do to help more new people. .

[ROSERTY]

1.greedy  Anyone who is greedy wants to make huge profits quickly and trades frequently. When the market fluctuates too much, investment and exit strategies will become more difficult.
2.Inexperienced   Although many people have some understanding of the knowledge and information of cryptocurrencies, they rarely trade and cannot start their strategies correctly, and they are not sure about their own data.
So I think emotions, fundamental knowledge, and technical analysis are all important in trading. It is best to learn the basics of correct trading first, try to learn to read charts from experienced traders and practice on demo accounts.

[Ryder Kudrow]

Lack of knowledge and experience, overconfident in trading and investing a lot of money, just greedily focus on profit.
Easily affected by market sentiment, the market may fluctuate at any time, making you panic.
Before investing, make sure that we understand the market and choose the currency to invest in,learn from experience instead of making as much profit as possible. When investing, you must have good knowledge and patience, set correct goals and manage risks, and stop losses in time.

[checkmatesir]

According to my opinion Individuals lose money within the trading since they think and expect investing is their ticket to getting rich quick. ... This can be what happens when investors try to defeat the market with steady buying and offering to form quick benefits.

[Hypnosis00]

Lack of knowledge and experience, overconfident in trading and investing a lot of money, just greedily focus on profit.
Easily affected by market sentiment, the market may fluctuate at any time, making you panic.
Before investing, make sure that we understand the market and choose the currency to invest in,learn from experience instead of making as much profit as possible. When investing, you must have good knowledge and patience, set correct goals and manage risks, and stop losses in time.

You've talked a lot and everything you've said is right.
I know that they are already aware of what might happen to them upon trading but too unfortunate that they still get into a mess and are unable to think wisely. If we don't want our life in trading to end like this then we should have to correct all our mistakes as soon as possible.

Maybe there is something we need to change in our mindset and stop focusing on earning a profit but instead focus first on learning how to trade. Coz once it was done and we are capable enough to trade, profit will keep on coming. 

[sou-kou]

According to my opinion Individuals lose money within the trading since they think and expect investing is their ticket to getting rich quick. ... This can be what happens when investors try to defeat the market with steady buying and offering to form quick benefits.

I agree with you. I joined cryptocurrency in order to gain my interest in trading. Losses and profits are not balanced, most losses will be more, but I only use a small amount of funds to operate, exercise my trading feeling. This is not good at all.

[SquallLeonhart]

I know that they are already aware of what might happen to them upon trading but too unfortunate that they still get into a mess and are unable to think wisely.

Yeah, we are seeing that the dangers of investing is being taught at every part of this forum, still many new people are getting into investments even they are aware of what had happened into most other investors even after they had enough/suggested knowledge preparation. Most new people are driven by fake belief like they could filter out scammy things more easily unlike anyone else.

Losses and profits are not balanced, most losses will be more, but I only use a small amount of funds to operate, exercise my trading feeling. This is not good at all.

I could not understand your statements properly still I believe you are trying to say that you are operating only very small amount of funds for your investment purposes still you are going for wrong trading which is not good for your capital.

Probably you must take some break from your investment/trading so that you could come up with new ideas which might be bringing you decent profits in future.