When Greed Comes First in Trading, the Result is Bankruptcy

[Ahli38]

Many people who enter the world of crypto trading start with their greed because they see people who have had great success through crypto trading.
greed makes them rush to jump in and start trading without exploring it first. and they lose because of their greed.

Are you one of those who have experienced it?

me: yes

early in my career I went bankrupt because of greed. But in the end it taught me a lesson to be able to control myself from greed and to prioritize common sense.

thanks for reading.
please input criticism or suggestions.

[NeuroticFish]

While I can easily understand that greed can get you into the world of crypto, it can easily be seen as easy money (although it's usually incorrect), I don't understand how can one become "bankrupt" from this.

I mean that this would also mean a huge degree of irresponsibility. One has to know that he cannot just put all his money into one investment without doing some research. Then, in order to be at such a great loss, one has to also sell his assets when the price is low. While newbie trader wannabes can easily FOMO buy (buy high) and panic sell (sell low), this should be not done repeatedly (one should understand that he's done wrong and start learning) and with small funds (funds one can afford to lose). Otherwise it's not trading, it's gambling.

On the other hand, if you bought high and didn't sell yet, you have lost nothing. Of course, this means that you may recover your loses or lose more, depending on how the price evolves and the moment you sell.

---
Since you asked, I'll also tell that while I was newbie too, I've also done may fair share of trading without being completely aware of what I'm doing. What I've lost was mainly my time, since I was smart enough to do that with rather small funds. I've got good trades, I've got bad trades, the overall balance was positive, but the wasted time was big, especially because after the learning - small funds period I didn't go forward to actual trading-as-a-business, instead I understood it's not for me and I've dropped it.

You can see it as a criticism (irresponsible, wasted more money you could afford), or you can see it as something you can learn from. Your choice.
Good luck and keep in mind that trading is not for everybody. Heck, even HODLing is not for everybody.

[TheUltraElite]

Many people who enter the world of crypto trading start with their greed because they see people who have had great success through crypto trading.
greed makes them rush to jump in and start trading without exploring it first. and they lose because of their greed.

Greed is the extreme emotion that might be associated with gamblers more than traders. The ones who actually run for long end up being diligent more than greed. Without greed it is not possible for any speculative market to run, be it stocks or crypto.

But how much you are losing track of due to your greed is what you should keep in mind. Trading should not be the only thing in your life. You have to keep time for friends and family related work, exercise and be healthy and keep trading. Doing these with a balance keeps the mind sane and greed under control.

early in my career I went bankrupt because of greed. But in the end it taught me a lesson to be able to control myself from greed and to prioritize common sense.

Be happy with what profit you have made and strive to build on it. Dont chase losses, because losses are losses, they will not come back. However if you are facing difficulty in controlling your impulsive behavior, you would need professional help than posting on a forum.

[GreatArkansas]

One of the many triggers here is social media, where some content creators or influencers are only posting the success trades or just manipulating just to make a lot of views.
Most of the victims here are newbies, then the greed comes here. I already experienced this when I was a newbie, that's why I am glad that I am still here, still doing trading, fixed those mistakes at the beginning is a MUST.

[tranthidung]

Greed is sort of psychology types and it has effect on your emotion then actions when you trade or invest. Consequently your initial plan will be broken because of uncontrolled psychology or emotion.

However, most of times, when you are greed, you make bad decisions which in turn will put your position under margin call, liquidation, etc.

The hilarious fact is people are greed when they are poor and they use leverages when they want to get rich. However, this approach only makes them poorer.

My advice is oppositely: If you are not rich, don't use leverage!

Because when you are poor, you will go to bet with high leverage and don't have enough collateral in order to keep your position safely to face with liquidation, margin calls.

[Ararbermas]

 Correct! and that always happen at first but after all your money will disappear like a dust especially if you're a newbie and don't have enough knowledge because greediness always the main problem on that situation. So if you're newbie always remember these 3 most important things such Risk management, discipline and plans to follow because without these its useless..and your wasting money to be honest.

[tvplus006]

Many people who enter the world of crypto trading start with their greed because they see people who have had great success through crypto trading.
greed makes them rush to jump in and start trading without exploring it first. and they lose because of their greed.

Are you one of those who have experienced it?..

The fact that greed is the cause of money loss is a well-known axiom. But most often greed manifests itself in the fact that the trader is waiting for an even higher price and does not fix his position. But in the end, he closes his deal at a loss, as the price of the coin unexpectedly decreased.

[carlfebz2]

Partially true on which most people does have that kind of mindset on whenever they do see someones success in terms of financial then they do really thought that it was easy to achieve and its true that noobs

would be particularly minding about this stuff and the reason on why they jumped into trading or crypto investment but once the reality do slap into their faces then this is where self realizations do happen.

Dont let greed overcome you or else you would be fucked up because this is something that cant be achieved easily if you have done the wrong thing.

[crzy]

Being greedy is too risky, in trading you should always go according to your strategy and not based on your emotion. Many are losing money because of that greed, better to stop doing this if you think you can’t control yourself anymore. Greedy will put you to nothing, don’t wait for that moment and start doing the right thing.

[sheenshane]

I don't see the main point of bankruptcy is greed which I think there are too many factors to consider when you experience a massive loss in trading.  Though yes, greed isn't a good practice in trading and we should have under control of this emotion and should have a mindset of focus on trading.  Trading isn't an easy way of making a profit, there's a lot of strategies and skills that we must be considered before thinking about the potential profit.  If you don't have those skills and knowledge, it seems you're dreaming about how to fly without wings.

Always remember this, spend the amount that you can afford to avoid that you've said about bankruptcy.  If you're lucky enough, then trading is the best for you.

[Fatunad]

Greed
Lack of Knowledge
Impulsive Emotion
FOMO

These are main behaviors on where these newbies do really experience it first and as other members said that on  the time that you had faced up reality
you would surely realize that things on your mind are totally not gonna happen when you do already deal with the real thing.
When greed controls you then expect unfortunate events.

[Vaskiy]

That's a wrong perception. If greed accompanies your learning it won't lead to bankruptcy. It gives you learning, because it is the good about trading. You'll experience loss and lucky ones make profit. Gambling is the one where you'll experience bankruptcy if greed gets accompanied. With trading you need to have the mind to analyse and choose the right one. Because, most of the users go on random choice than making a research before investing.

At times investing on shitcoins with the hope of making big return lets you go bankrupt, because there are coins that have been sold on presale and never gets listed.

[Wexnident]

What I lost more was time than money tbh. I was running like a headless chicken when I first started. I was very frugal with how I started with my trading, I only traded low amounts together with only going for very famous coins but I didn't know jack on what to actually do after that. The basics of when to buy, sell, etc, were lost on me and it took me a long time to actually understand what they even mean in the first place. I don't really mind losing money to learn trading, it's like a learning fee, but I do mind losing money due to not understanding what the hell I'm doing. 

[Coin_trader]

Bankrupt as in all your life savings included? If you use all your money for the things that you know there's a high risk involve, that is not greediness but rather foolishness since you didn't do risk management. There's a time that you need a greed to have a huge profit but you should allocate only a certain amount of money by doing that. Foolishness is when you all-in without thinking the possible repercussions of your action.

[Vaculin]

Bankrupt as in all your life savings included? If you use all your money for the things that you know there's a high risk involve, that is not greediness but rather foolishness since you didn't do risk management. There's a time that you need a greed to have a huge profit but you should allocate only a certain amount of money by doing that. Foolishness is when you all-in without thinking the possible repercussions of your action.

Greed is part of a human's behavior, you cannot just took it away easily but definitely you can control it. And once you are greedy because you want instant and huge profits, without investing on the amount you can bear to lose, then you know exactly where you are heading to but certainly losses. Of course since you are in high risk investment, then you should set a limit. Trading is good and could give good opportunities to make profits, but if you trade with greed, then it will only make you a loser in the end. So never trade with greed, that's the basic in trading.

[Taskford]

Bankrupt as in all your life savings included? If you use all your money for the things that you know there's a high risk involve, that is not greediness but rather foolishness since you didn't do risk management. There's a time that you need a greed to have a huge profit but you should allocate only a certain amount of money by doing that. Foolishness is when you all-in without thinking the possible repercussions of your action.

Too fool for people to use all of their life savings for something they didn't know since this could turn all they have to ashes and this was proven by many many times and Its so dumb  for other to do certain risky action trying to double or tripled up their money in quick blink. Maybe the best time to put greed into action is by holding bitcoin for quite long time when you buy it at the dip since for sure you will be rewarded on saving it for long years.

[Jawhead999]

Bankrupt? Do you already use all of your money including you've sold your house, vehicle precious metal etc? If so it's bankrupt. While if you're only using some of your money e.g a month salary, you're not bankrupt since you still have money to cover up your daily expense.

However in trading, lose is your friend so don't scared if your trading aren't made any profit. If you're not comfortable, better to invest Bitcoin only and not the shitcoins.

[ipanks]

Yes, my honest answer

I already have that experience many times before and it makes me can not make the top profit from the top price because, at that time, I want to make a bigger profit. I forget that the price can go back to the lower price and make me lose the chance to sell at the top price. After the price is down for some level, I realize that I must sell it right away if I want to make a profit, so I can not make the biggest profit. But that is okay for me and I realize that is because of my mistake.

[JunkieMiner]

The main reason is that everyone in now a days want to earn more and more in less time, which is a bad concept in my opinion because success come with the time , learning something new and get experience in that field requires time which most of the people don't know. And that's why being in a hurry most of the people got loss.

[stompix]

While I can easily understand that greed can get you into the world of crypto, it can easily be seen as easy money (although it's usually incorrect), I don't understand how can one become "bankrupt" from this.

One way would be to put all the money he borrowed in an investment fund that guarantees 25% profit in 24h. But since the OP is referring to trading probably leverage is the only culprit, you think a coin would go to the moon because of random dudes on Twitter or pump groups on telegram and then you're left with everyone mooning you and penniless.

Of course, it would have been far easier if OP would have actually explained how he/she/they went bankrupt, but...I smell a merit fishing scheme than some financial advice, especially based on past history.
I'm also curious about this "bankruptcy", and I'm wondering if he even knows what that is.

When I bought at a high price and the price after I bought it turned out to be down drastically.
Because I didn't know the market situation and conditions, I panicked and was in a hurry to resell the coins I had bought at a high price. and in the end I lost.

Losing money =/= bankruptcy.

I don't see the main point of bankruptcy is greed which I think there are too many factors to consider when you experience a massive loss in trading. 
~
If you don't have those skills and knowledge, it seems you're dreaming about how to fly without wings.

Yeah, greed is the culprit, greed is making you want to make money when you lack any knowledge of the way you're planning to use to make that extra profit. While you can blame the wrong actions that triggered the loss of your lack of knowledge it was greed that put you into the situation.
If you make an accident driving a truck with no license you can blame the lack of experience, but you have to also look a few steps back and see what made you drive it in a first way.

That's why I don't daily or even weekly trade because I know my emotions and my views would take over and I will bet on how I want things to happen rather than what I think they will. One has to know himself better than the markets before starting risking money.