The reason why investors often lose money

[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.

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.

I fully agree with you. Newbie cant just come and start investing and trading with expectation to earn and make profit. Learn first, dyior and then think about to start. But even with all knowledge and experience profit is not easy to put in pocket just like that.

[Questat]

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! 

Just think twice, trice or even more just to sure that we are in good and our decision is right (at least). Sometimes we got to rush in making a decision which often results bad and even it gives us losses in the end.
We are to think smart of course but can't deny that sometimes we got to fail. And this seems so hard for emotional investors and the only way to help this is to change our mindset and deepen our market understanding. Of course, this never works instantly, yeah it needs some time and full commitment.

[Meysa_richa]

Those who lose money the most are those who are new to the world of Crypto investment, Crypto Investment is not the same as other investments. Cryptocurrency prices that have very high fluctuations often make new investors panic and make wrong decisions, even though if they are willing to be patient they can get big profits. 
The second is the wrong choice of the coin to invest, and new investors are also very easily influenced by the hype of the coin which sometimes actually does not have a good future. 
Learning more about Cryptocurrency is very important, before we spend large amounts of our money on investment.

[Ianlanim]

Due to lack of knowledge and experience, many make mistakes that lead to losses.

[breathlessz]

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! 

Just think twice, trice or even more just to sure that we are in good and our decision is right (at least). Sometimes we got to rush in making a decision which often results bad and even it gives us losses in the end.
We are to think smart of course but can't deny that sometimes we got to fail. And this seems so hard for emotional investors and the only way to help this is to change our mindset and deepen our market understanding. Of course, this never works instantly, yeah it needs some time and full commitment.

The hasty attitude is indeed one of the causes of investors experiencing losses, because if they feel the price is good, it turns out that the price has fallen again, many of them have panicked sell so they make a cut loss. Actually for investors this is very unfortunate because at first they had intended to invest

[adzino]

Yeah, in other words don't buy because of FOMO, don't sell because of FUDs and stay away from shit coins because investing in those coins will highly likely make you lose everything. Heck, just don't even sell when you are at a loss when you invest in well known coins. As long as you don't sell, you don't make any loss since the number of coins you are holding is still the same .

-snip-
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.

Don't buy, don't sell. Then what should we be doing? When the price goes from "10 to 20", then if you think you have made enough profit, then sell. Stop thinking that it might go to "20 to 50". I thought you just said we shouldn't invest based on speculation.

[Lanatsa]

Yeah, in other words don't buy because of FOMO, don't sell because of FUDs and stay away from shit coins because investing in those coins will highly likely make you lose everything. Heck, just don't even sell when you are at a loss when you invest in well known coins. As long as you don't sell, you don't make any loss since the number of coins you are holding is still the same .

-snip-
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.

Don't buy, don't sell. Then what should we be doing? When the price goes from "10 to 20", then if you think you have made enough profit, then sell. Stop thinking that it might go to "20 to 50". I thought you just said we shouldn't invest based on speculation.

We should set take profit time or level on where we do consider on pulling off our profits and securing it as this had been always our main goal on why we do invest on this market.

Losing money is inevitable but due to experience and knowledge then we can really at least lessen the risk on losing that much. We would really be making ourselves a lot more better

as we do get experience by engaging into this market.We do have different takings and decision because we do have different mindset and goal.

[Yatsan]

There are different reasons and factors affecting why investors mostly lose their money in an investment or trading. Mostly those reasons and factors are somewhat environmental, economical and even social that contributes on how their mind behave on dealing with their investment and trading. It is in need for an investor and trader to be disciplined and knowledgeable to be able to identify what are his essential needs so that he won't be much affected by external factors that can affect his decision making for the sake of saving up his money.

[TheUltraElite]

The hasty attitude is indeed one of the causes of investors experiencing losses, because if they feel the price is good, it turns out that the price has fallen again, many of them have panicked sell so they make a cut loss. Actually for investors this is very unfortunate because at first they had intended to invest

Haste makes waste as quite correctly said.

But the haste comes from the realization that they are late to the game. I would advice such people to not get FOMOed, though better said than done. There is always a chance to buy when the prices come down because it is a constant cycle and no price is ever absolute in a speculative market.

Often a few months of stalking charts and patience pays off but many newbies who have never had a first hand experience in stocks, forex make this mistake.

In this context, newbies also make the mistake of settling for shitcoins just because they dont have enough to buy "1BTC" (which seems to be a norm) and go for tons of shitcoins. Essentially they wasted their money right then and there. But I dont think that this can be changed without the person being informed prior to investing. In fact these newbies are the ones on whom the shitcoin bagholders drop their shit and exit.

[Handpari]

Biggest mistake i seen investor do.
Nobody ever wants to buy when the price is low because they don’t know the bottom

Then the price goes up and they want to buy high because they don’t know the top.

[Cherylstar86]

Biggest mistake i seen investor do.
Nobody ever wants to buy when the price is low because they don’t know the bottom

Then the price goes up and they want to buy high because they don’t know the top.

Indeed. I also observe that to some of investors. They never buy when price is low but they buy when price is high or started to increase. I understand that they have their own techniques and strategies but they might lose huge amount of money if they continue on doing that things. Some of them also lose money due to lack of knowledge and experiences, many make mistakes that leads to losses.

[LongStand]

When novice investors first begin investing in the stock market, they are frequently disappointed when the value of their initial investment diminishes. Because the investor does not comprehend why or what happened, he or she frequently makes reckless actions that result in the loss of even more money. The new investor doesn't have enough knowledge about the coin. The other thing is that they don't have patience and so in this way the lose money.

[SquallLeonhart]

The hasty attitude is indeed one of the causes of investors experiencing losses, because if they feel the price is good, it turns out that the price has fallen again, many of them have panicked sell so they make a cut loss. Actually for investors this is very unfortunate because at first they had intended to invest

Haste makes waste as quite correctly said.

But the haste comes from the realization that they are late to the game. I would advice such people to not get FOMOed, though better said than done. There is always a chance to buy when the prices come down because it is a constant cycle and no price is ever absolute in a speculative market.

Often a few months of stalking charts and patience pays off but many newbies who have never had a first hand experience in stocks, forex make this mistake.

In this context, newbies also make the mistake of settling for shitcoins just because they dont have enough to buy "1BTC" (which seems to be a norm) and go for tons of shitcoins. Essentially they wasted their money right then and there. But I dont think that this can be changed without the person being informed prior to investing. In fact these newbies are the ones on whom the shitcoin bagholders drop their shit and exit.

I do not get why people are worried about not having 1 bitcoin, that is something I heard too and never really made any sense to it, do you know what is exactly behind that? I mean why wouldn't they just buy 0.01 bitcoin if that is all they have? Why go for 100 doge instead? I do not know if that is the ratio but you got the point of what I am asking.

Some people just like shitcoins because they give bigger returns as well, it is not a simple thing but it is definitely something they like to do, bitcoin can't profit you 10x easily, but the coin at 848th place could go 10x very easily, because volume is low and liquidity is low so if someone puts up 10k dollars then suddenly you have 10x profit. That is a lot more sweeter reason to not buy bitcoin but buy something else. I understand that it is not easy to pick one, and many do fail to do so, but I feel like it is definitely the main reason.

[harapan]

Greed is the number one reason why investors loss their money. Everyone really wanted to earn a huge amount of profit and because of that they become greedy and loss their focus on their investment. This is why they still loss even if they do investing for a long time.

I agree with you, greed is one of the main reason why most investors lose their money in trading, it's not always about holding sometimes you might hold way too long and the value might dump 90% then there's no way to return back up, it's important to know the when you should be holding and the most important thing know when to sell off and let go, you can't buy a lambo with just one project being a greedy holder will only get you losses.

[roosbit]

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

Honestly what I see above is all what afters we retail traders(investor's) not the whales aka institutional investors.
Institutional investors are not moved by speculations or market anticipation, these whales they write the rules because it's easy to manipulate these markets if you have the most coins ,which is based on volume.

I have noticed that nowadays, people often take up investments without having enough knowledge to do so.

And in crypto being a retail investor without the knowledge about how these works can make you trade emotional against the markets.

[Xampeuu]

someone is said to be an investor means he is prepared to hold in the long term. but if he loses, I think it's because of panic selling. therefore we must prepare the worst scenario in investing, so that something like this will not happen, because previously we were ready to take the risk and not only think in terms of profit.

[Ruvi2000sew]

I've found that nowadays, people frequently invest without having sufficient expertise. When their overconfidence prevents them from assessing the situation objectively, even experienced investors overestimate their talents. As a result, people prefer to see an investment instrument's potential from only one perspective: risks or benefits.

[Kayum10029]

Not all investors are money launderers, only those who want to get a lot out of cryptocurrency at a loss. Investors who do not understand anything, do not have an advance idea about the marketThey face losses and experienced investors do not.

[Qirtov]

what often happens is that investors lose control of their emotions. investing in cryptocurrency also relies on the patience of its investors, this is actually an important key. those who get too emotional often lose a lot of money when trading, this is a problem that must be addressed immediately. In addition to needing extra patience, investors must also really understand the basics of cryptocurrency itself. don't let them misunderstand.

[Panxora_COO]

Even if you are an intra-day trader, to be profitable you need to be in it for the long-term. You never bet everything on each trade. And you make a plan before starting a position. A good rule of thumb might be to risk 1/10 of available capital on a given trade. You also set a stop, so that you have decided on a place to get out if what you expect to happen does not play out. There is a balance between being rigid and flexible, so your stop might move as things move forward, but you always need to be intentional about your trading. Never close your eyes to the market going against you and hope that things will come right in the end.
I also suggest keeping a log of each trade, jotting down what you observed and learned from each trade - whether it was profitable or not.
Trading/investing is one of those things you can learn from your whole life. It's multi-dimensional and so exciting because of this.