The reason why investors often lose money

[AakZaki]

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

Not knowing what they are investing in because just following the bye would be a fatal mistake. they don't know their money is at stake in it.

Some greed also arises because some beginners do not have experience. also have not prepared strategies and price targets that must be achieved.

As a result they will panic when the price starts to fall. This panic will give them a loss because they start selling it at a low price without making a profit.

[tygeade]

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.

I do believe that we are not really thinking about what the mental outcomes of losing money could be as well. He could be losing a small amount but even while losing a small amount people should not be really focusing on what they did, or what they lost, but how they feel. Just because you lost 10 bucks doesn't mean that the feeling of it does equal to 10 dollars.

I had times when I rather lose 10 bucks by dropping it on the street without realizing instead of losing on trading, it was that much of a pain. I don't know what I could do about this, I know that it doesn't sound like it could be as good as it gets because I should be emotionless while trading and I do that as much as I can nowadays, but I also understand the newbies who feel that way, because once upon a time I was one of those newbies that did lost a lot and felt even more sad then just the amount itself.

[velosepur]

There are so many reasons as emotions, greedy people and investing on blind without deep analising of project, white paper and plans of developing.

[Panxora_COO]

Retail traders tend not to have a strategy and trade emotionally. This means one frequently makes a decision at exactly the wrong time. The best way to make money is to plan trades carefully based on your own research. Keep records of your trades and what you learn from each trade. Never commit more than 10% of available capital to any one position and keep your discipline. If you set a stop in your trading plan and the market moves through it, get out of your position.

[Johnyz]

There are so many reasons as emotions, greedy people and investing on blind without deep analising of project, white paper and plans of developing.

Those reason can be address properly to avoid losing money. You should come here well prepared because the market is too risky for irresponsible investor, and if you don’t want to lose your money you will do your best to learn things, to analyze things, to get updated as always because those are the things that you need to have before you invest. Yes, its normal and ok to lose but don’t make this as your main goal because your goal is to make money and not to lose it.

[Quidat]

There are so many reasons as emotions, greedy people and investing on blind without deep analising of project, white paper and plans of developing.

Those reason can be address properly to avoid losing money. You should come here well prepared because the market is too risky for irresponsible investor, and if you don’t want to lose your money you will do your best to learn things, to analyze things, to get updated as always because those are the things that you need to have before you invest. Yes, its normal and ok to lose but don’t make this as your main goal because your goal is to make money and not to lose it.

Even you are prepared but doesnt mean that it will guarantee you to avoid risk because chances of losing money or investment on this market is likely to happen.This is why experience is a must
and would make out research and learn from it. Losing cant really be avoided but you can lessen it out as you do go ahead into your trading or investment career. You would lose money in
first tries but as long you do go further and gaining experience then you would eventually learn up things which would make those risk even lesser as you go ahead.
Just dont rush into it and it do takes time on learning everything or familiarizing.

[DibiaVxosis]

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.

Wow you nailed it man, i so much love this point of yours. The fact is most investors takes decisions like traders which isn't supposed to be so, an investor who saw a coin and had a purpose of buying that coin, then after investing later prices went down, as a long-term investor this doesn't mean you have lose your capital and should  sell of that coin, that's the mindset of traders, an investor is supposed to hodl for the good days to come.

[Shasha80]

There are so many reasons as emotions, greedy people and investing on blind without deep analising of project, white paper and plans of developing.

Those reason can be address properly to avoid losing money. You should come here well prepared because the market is too risky for irresponsible investor, and if you don’t want to lose your money you will do your best to learn things, to analyze things, to get updated as always because those are the things that you need to have before you invest. Yes, its normal and ok to lose but don’t make this as your main goal because your goal is to make money and not to lose it.

Even you are prepared but doesnt mean that it will guarantee you to avoid risk because chances of losing money or investment on this market is likely to happen.This is why experience is a must
and would make out research and learn from it. Losing cant really be avoided but you can lessen it out as you do go ahead into your trading or investment career. You would lose money in
first tries but as long you do go further and gaining experience then you would eventually learn up things which would make those risk even lesser as you go ahead.
Just dont rush into it and it do takes time on learning everything or familiarizing.

Actually everyone must experience losing money when trading crypto, but the losses we experience can be minimized with knowledge and
experience. Sometimes with highly volatile markets, losses are unavoidable, but most importantly how can we minimize losses and recover.
That's why we don't stop to learn everything about crypto trading, so that our knowledge is always updated, and find the best solution how to
deal with volatile market. Sometimes it takes patience where we achieve success, don't be in a hurry to become a successful trader, just enjoy
the process. If we do it consistently, we definitely get the results we want.

[Clavulanic]

Too much aggressiveness of an investor made them lose more money, they're always going through deceptive promotions which lead them to invest without scouting a certain project related to cryptocurrency. These days had gone so very prone to scammers and fraudulent activities which those innocent people being attracted to.
Same with trading ventures, you don't know what assets to choose that's why on person who doesn't have a good idea towards a good coin they failed to gain good profit.

[Ararbermas]

There are some scam project that's why the often lose money when it comes investment. Wherein we cannot blame them because of their greediness as we are all have that kind of attitude..  yes there are some way how to fix it and it's by making research in order to protect our money from scamming.. But the fact that mostly projects nowadays are almost the same with trusted projects, it seems too difficult to escape especially for beginners and perhaps even those who been years now on this space and have enough knowledge still can experience such issue.. So it's not normal if we didn't learn from all of our mistakes..

[molsewid]

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.

This is definitely the sum up of the reasons why investors often lose money, there's a lot of reason but some of the investors come up losing associated with many reasons written above that is why they literally lose their money in just one click. But above written reason I would be sure that many of the investors losses were very much associated with lack of knowledge in which every one of us have been through being a newbie and let's admit that we are also once being lack with knowledge.

[tvplus006]

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.

If a trader does not have enough knowledge and experience to trade in a bear market, you need to take a break and wait for an upward movement. From my experience, I know that even in the absence of knowledge, it is easier to trade in the bull market, a hold is enough for this.

[Oceat]

Too much aggressiveness of an investor made them lose more money, they're always going through deceptive promotions which lead them to invest without scouting a certain project related to cryptocurrency. These days had gone so very prone to scammers and fraudulent activities which those innocent people being attracted to.
Same with trading ventures, you don't know what assets to choose that's why on person who doesn't have a good idea towards a good coin they failed to gain good profit.

Why would they failed to gain such profit when Bitcoin is just around the corner and why choose altcoins that doesn't have a reputation yet in the past? I think these so-called investors didn't know what is Bitcoin and how to trade properly or make profit. The ICO era is long gone and the hype for altcoins this time is the NFT games which is somehow had a great outcome.

If these investors are going to hop in on the hype of NFT they better have some knowledge or experience about how the crypto market works. It's fluctuating frequently and there's no need to be upset so easily if you saw the price suddenly goes sideways which is different from you are expecting. Avoid thinking about how you would want to push your luck in order to gain more profit in one go, you might find yourself regretting because you didn't take the profit when you have the opportunity.

[RealMalatesta]

If a trader does not have enough knowledge and experience to trade in a bear market, you need to take a break and wait for an upward movement.

If you are technically approaching the market then you can easily make profits on either directions of market movement. When investors are not making use of fundamental analysis and basics of technical analysis then probably they will often book losses.

There are only a few people who have the knowledge and ideas to deal with a bear market.

Definitely no; for those technical traders, the market direction is not a big deal. Because, all trading strategies are applicable for both bear and bull markets hence it will be a wrong assumption that only very few people are having knowledge to deal with bear market.

[Samandra]

1.There is no timely stop loss. Strict control of the stop loss is very important, and controlling the risk is equivalent to controlling the return. Set the scope within the scope of how much risk you can bear, so that you will not exceed your own capacity.
2.Excessive investment due to greed for profit. The outbreak of Bitcoin will attract many people, and many people spend almost all their life savings on investing in Bitcoin. Do what you can, don't expect to get rich overnight.
3.Market sentiment affects manipulation. Many investors are susceptible to market volatility and panic, which can easily lead to the wrong operation of chasing ups and downs.

[feelideb]

The bottom line here is that there is no rule as to safe guide your investment as investor in cryptocurrency, each trader must formulate his/her own rules into a plan that can followed both during bear and bull market period! Trading effort is not cut and dry, you must be able to swim with the tide and most of the time with Whale and Shack! And never to forget your trading experience, alwaus apply it to your trading effort!

[Ziskinberg]

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.

This is definitely the sum up of the reasons why investors often lose money, there's a lot of reason but some of the investors come up losing associated with many reasons written above that is why they literally lose their money in just one click. But above written reason I would be sure that many of the investors losses were very much associated with lack of knowledge in which every one of us have been through being a newbie and let's admit that we are also once being lack with knowledge.

It comes to my mind that these investors are totally not prepared. They just assume that everything will find once they are on the market and they just underestimate the volatility of the market which is one reason for their losses due to uncontrollable emotions. If they just know and are aware of the situation, I don't think if they will come and invest here, not for sure. But what makes them get encouraged are those people who are telling lies that there is easy money in crypto.

[Sanugarid]

The bottom line here is that there is no rule as to safe guide your investment as investor in cryptocurrency, each trader must formulate his/her own rules into a plan that can followed both during bear and bull market period! Trading effort is not cut and dry, you must be able to swim with the tide and most of the time with Whale and Shack! And never to forget your trading experience, alwaus apply it to your trading effort!

Agree, no one for all cure formula to trading because if there's one then we would all be prosperous when it comes to trading. My rule of thumb in trading is what Warren Buffett said, be greedy when others are fearful and be fearful when others are greedy.

[kawetsriyanto]

My rule of thumb in trading is what Warren Buffett said, be greedy when others are fearful and be fearful when others are greedy.

Be greedy should be always too risky, better to avoid. Even Buffett said to be confident doing it once people feel afraid, just be careful since it cannot be applied to every situation. In my opinion, we must always analyze the situation carefully. Do it when it looks like to be worthed and realistic, and kindly refuse to do it once it is likely too risky. Simply, be smart in analyzing! 

[layoutph]

I admit of being greedy sometimes. Few weeks ago I lose $200 in Binance futures by making wrong decisions and putting high leverage in my position. For newbies like me, if you want to jump in futures. 2x to 3x would be the safe option.