When Greed Comes First in Trading, the Result is Bankruptcy

[palle11]

Greed is the big problem of traders. Sometimes you delay for more profit but lose the little you got and trying to recover will cost more pain to you. Well as a human being, greed is part of us but we can try harder not to allow greed take us back to level we have gone past. This will be taking us backwards instead of progress. Apart from our greed if we can take care of emotion we can succeed better.

[pawanjain]

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.

Of course that has happened to me and with the most us. Crypto is a volatile market and trading without having a good experience of without doing proper research often ends up in huge loses.
I have made such loses in the beginning too but as I kept losing money it made me realize that I should trade only after doing proper analysis and setting my targets.
Even after setting the targets it's not necessary that we will get profits which is why we have to do proper risk management as well.

[Renampun]

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.

It's no secret that greed is the cause of human destruction...

I see 99% of people who go bankrupt in terms of gambling, trading or investment are the result of their own greed, learning to manage greed from an early age is a good thing that everyone must do so they don't regret it later.

[el kaka22]

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.

Leverage is definitely one of the main reasons why people go bankrupt over crypto. I have seen way too many people who get a loan from a bank and use that to do leverage trading and end up losing all they have. This could sound very silly and idiotic to you but unfortunately there are still people who do this type of thing. I do not know why they do it, and how they recover from it but I have even seen people who commit suicide because of the financial situation they put themselves in.

The saddest one was this one guy who sold someone else's house, and suppose to give it to that house owner, and ended up doing leverage to get rich beyond his wildest dreams (imagine how much you could make if you are right on a 100x leverage worth a house, probably tens of millions of dollars) but he lost it all and he committed a suicide instead. Just one idiotic move and his life was over. So, bankruptcy is very much real in crypto, for those who do stuff they shouldn't do.

[nelson4lov]

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.

Greed is a bad attribute of any trader whether he/she trades with leverages or not. It's outright bad. What's more interesting is that it's a common emotion that traders feel in the space. It usually happens when you've the opportunity to get something out of a trade and you start feeling like there's room for more and it usually ends badly majority of the time. So it's just best to have a plan and stick with it regardless of what happens.

[adaseb]

Yes greed and fear are the reason why something like 1% of people make money in trading the rest make nothing or lose a bunch.

When Bitcoin was at $69K many people were in profit, especially those that bought around $20K last year. However everyone had dollar bills in their eyes and thinking $100K that nobody took any profits and now they are debating if they should get out or not. Most won’t until it’ll go back to their break even price and somewhere in that area it will end up reversing.

This is why when people are greedy you need to be cautious because normally it means a top is around the corner just like at $69K.

[Ahli38]

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.

Yes, I have been bankrupt because of greed

and yes I lost all my possessions including my entire life savings.
I have only the things that I use and that my wife uses. I even sell laptops. and all I have is a cellphone at that time.

I even went back to live at my parents' house.

when greed has taken over you then your common sense will become dull, the mind becomes unclear and far from calm.

maybe those who have experienced this can understand it.

Greed should not be eliminated but must be controlled. That's the experience I took from my personal life.

and the unique thing about people who are controlled by greed is "he will only realize when he has lost everything"

but I am a lucky person because I still have a family who continues to support me so that I can rise from bankruptcy armed with invaluable experience.

now that bad memory has turned into a very valuable experience.

and the lesson is "don't start everything with greed because it will put you in the dark, you will forget your common sense, you will forget your knowledge, and you will forget to be careful. but don't get rid of greed but control it And don't let him control you."

[Oilacris]

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.

It's no secret that greed is the cause of human destruction...

I see 99% of people who go bankrupt in terms of gambling, trading or investment are the result of their own greed, learning to manage greed from an early age is a good thing that everyone must do so they don't regret it later.

Greed is never been recommended or something you should really take in control whether you are doing investments or doing gambling because this would really result into disaster if you do really let

yourself get dragged along with greediness inside you specially when you are aiming on making profits in short term.You would really be that impulsive when it comes to that
which would result into bad decisions.

Be sensible on your actions and be aware on what you are doing.Dont rush up things and taking that slowly but surely kind of path.

[tygeade]

greed makes them rush to jump in and start trading without exploring it first. and they lose because of their greed.

This is definitely not the case for many people; yeah there are people who switch over to long term trading after few losing experiences in crypto trading due to high volatility. Unlike any other market, crypto trading will be a definite profitable one in long run which makes things easier even for greedy people. Your greedy may lead you to bankruptcy when you are running out of time (like liquidation reasons) but when you trade with no-time limit, your greed may help you to achieve what you want.

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.

But, 90% of traders do repeat the same mistake again and again which includes multiple bankruptcy as well. I like to suggest you to go for 60% of your capital into long term and only with remaining you may go with active trading along with your prioritized common sense.

[Botnake]

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.

It's no secret that greed is the cause of human destruction...

I see 99% of people who go bankrupt in terms of gambling, trading or investment are the result of their own greed, learning to manage greed from an early age is a good thing that everyone must do so they don't regret it later.

Greed is never been recommended or something you should really take in control whether you are doing investments or doing gambling because this would really result into disaster if you do really let

yourself get dragged along with greediness inside you specially when you are aiming on making profits in short term.You would really be that impulsive when it comes to that
which would result into bad decisions.

Be sensible on your actions and be aware on what you are doing.Dont rush up things and taking that slowly but surely kind of path.

Well, its definitely hard to control our greed since most of the time, we are overwhelm with emotions and so we let it carried what is on our mind. But if you trade with full of greed as your motivation, expect that you will find it hard to trade successfully. Maybe don't be too emotional when you trade so you can focus on your strategies and attain your goal, because if you cannot control your greed in the first place, i guess even if you have been trading for years, it will definitely won't work on you.

[AicecreaME]

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.

I definitely agree with you.

Greed can only be the reason for someone's bankruptcy if what he do all the time is repeating the same mistake over and over again, instead of learning from it, he decided to embrace it and stand strong for his trading technique hoping that it will give him profits if he will stick to it, but that's not how it works. Trading is a very broad profession, that you need to be very versatile in what you need to do in order to always gain profits.

You need to look for different angles to recuperate your losses to avoid getting bankrupt. Pride won't gonna help you to be a successful trader, but accepting your mistakes and learning lessons from it will do.

[Cling18]

Greed and uncontentment are the reasons why we lose a lot in trading. We're always advised to take control of our emotions so it wouldn't control us because sometimes, too much excitement and aiming for more than what we deserve could only result in regrets. As for me, it's fine to aim higher but we should also know our limits especially if it's beyond our skills or the capability of the coin that we're investing with.

[Hypnosis00]

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.

Not only because of greedy that sent people into losing or bankruptcy, but it was also because they are too impatient and so aggressive which they can never think quite good but always in a hurry.

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.

I can't figure out if I have in that situation. Maybe I was not greedy but somewhat impatient until I realize that it was wrong and I change it. Our experience is always a lesson to learn and that experiencing failure means a lot for our development and self-discovery. That is why I don't make any regrets when I lose but I use this to become knowledgeable and to be wise in making decisions.

[stompix]

~

Leverage is definitely one of the main reasons why people go bankrupt over crypto. I have seen way too many people who get a loan from a bank and use that to do leverage trading and end up losing all they have. This could sound very silly and idiotic to you but unfortunately there are still people who do this type of thing. I do not know why they do it, and how they recover from it but I have even seen people who commit suicide because of the financial situation they put themselves in.

I have never heard of somebody from my friend's circle or poeple I know or interact with or somebody at least from my town that would do such a thing. Of course, I heard in the news about poeple doing so but not a direct or at least 3rd contact. On the other hand, I think I have heard of a dozen who have lost a lot of borrowed money on gambling although not a single case of going straight to suicide or something nearly as worse, losing money they couldn't afford to do so, yeah, especially in roulette games in those new casinos that have popped up in nearly all malls in the country.

Probably the complexity of trading or the extra steps needed has kept a lot of poeple safe from losing a lot of money, those who couldn't figure up how to trade were easy prey in the market.

I don't understand how would somebody borrow money taking a risk and multiplying that risk by x10 or x50 on leverage, I understand risking money on leverage, any investment is a risk but not go 200% in when one event, like the one we had a few days ago can ruin your life completely. Is it greed, desperation, hopium, who knows??

[Kasabus]

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.

Not only because of greedy that sent people into losing or bankruptcy, but it was also because they are too impatient and so aggressive which they can never think quite good but always in a hurry.

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.

I can't figure out if I have in that situation. Maybe I was not greedy but somewhat impatient until I realize that it was wrong and I change it. Our experience is always a lesson to learn and that experiencing failure means a lot for our development and self-discovery. That is why I don't make any regrets when I lose but I use this to become knowledgeable and to be wise in making decisions.

We will never be good traders in the long run if we don't know how to deal with losses in the start. We are losing maybe because of greed that we find it hard to control, we tend to be more impatient and impulsive, and we are not using effective trading strategies. All of these could contribute to our losses, but if we can change them and focus on our own goal in trading, i think we will be able to minimize losses. Greed is the most common factor that make us lose, so as much as possible, we should learn to control our greed if we aim to succeed in trading.

[Oilacris]

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.

It's no secret that greed is the cause of human destruction...

I see 99% of people who go bankrupt in terms of gambling, trading or investment are the result of their own greed, learning to manage greed from an early age is a good thing that everyone must do so they don't regret it later.

Greed is never been recommended or something you should really take in control whether you are doing investments or doing gambling because this would really result into disaster if you do really let

yourself get dragged along with greediness inside you specially when you are aiming on making profits in short term.You would really be that impulsive when it comes to that
which would result into bad decisions.

Be sensible on your actions and be aware on what you are doing.Dont rush up things and taking that slowly but surely kind of path.

Well, its definitely hard to control our greed since most of the time, we are overwhelm with emotions and so we let it carried what is on our mind. But if you trade with full of greed as your motivation, expect that you will find it hard to trade successfully. Maybe don't be too emotional when you trade so you can focus on your strategies and attain your goal, because if you cannot control your greed in the first place, i guess even if you have been trading for years, it will definitely won't work on you.

This is where experience do sets in  and you wouldnt really be able to handle out these situations if you wouldnt learn from your past mistakes and this is inevitable.Greed is always been a bad thing
if you do tolerate it or making into some certain extent on where you do set out goals without minding about the risk behind.

You would go bankrupt if you dont mind or wouldnt tend to be aware on what things are going around.So talking about investment then you should be keen on any angle.

Dont let your emotions control over your decisions and this isnt something easy to be done.

[SquallLeonhart]

its definitely hard to control our greed since most of the time, we are overwhelm with emotions and so we let it carried what is on our mind. But if you trade with full of greed as your motivation, expect that you will find it hard to trade successfully. Maybe don't be too emotional when you trade so you can focus on your strategies and attain your goal, because if you cannot control your greed in the first place, i guess even if you have been trading for years, it will definitely won't work on you.

I do not want to sound like Gordon Gekko but if the topic is about making money then greed is actually quite good. Greed by doing something shady is definitely wrong, you should not be doing anything that is illegal or anything like that just to make money, for example insider trading doesn't sound like it hurts anyone and people do not care about it being a crime but it is still a crime.

However, if you are in the crypto world and want to make money by investing or trading then greed can be good. Greed doesn't mean just wanting more money, it also means finding ways to make more money, greedy people do not just hold things and hope it goes up, they also calculate when to get in and when to get out as well and finding fundamentally good projects as well. Use that greed to your advantage and you can turn that into something that allows you to profit easier.

[TheUltraElite]

when greed has taken over you then your common sense will become dull, the mind becomes unclear and far from calm.

That is called obsession, it is worse than greed.

Greed should not be eliminated but must be controlled. That's the experience I took from my personal life.

Not bad, you learnt your lesson.

and the unique thing about people who are controlled by greed is "he will only realize when he has lost everything"

Greed for anything should not turn into an obsession is what I understand.

and the lesson is "don't start everything with greed because it will put you in the dark, you will forget your common sense, you will forget your knowledge, and you will forget to be careful. but don't get rid of greed but control it And don't let him control you."

Any emotion for that sense can draw a moral human into a dark place. But it is also important to be reminded that these emotions are a part and parcel of life and they make a human. From what you have said, I hope you are in a better condition than what you have been previously.

The nature for taking risks and attempting to make money is hardwired into humans. It may not work out for everyone hence not every risk taker can be a good trader. Not sure about you, but I have enjoyed trading between bulls and bears and I still do, but I dont allow that to be the only reason I am staying awake. That is more of a hobby for me and if I make a profit out of it, good for me.

Not everyone can set up this type of mentality, and it is not their fault either.

[boyptc]

@OP and for the other newbies in trading. No one forces you to jump into having a good result as you start out. Expect that you'll have your worst days in trading but don't be discouraged by that.

It will help you realize that you're going through the normal process of being good in it. As you learn the process, you learn to avoid being greedy because it's not going to help you out go further from it and at the same time, you're learning that trading isn't easy.

[xmonkeyx]

there are so many novice traders who are still very difficult to control their emotions so they are not greedy, including myself. In my opinion it is a very difficult thing to control in trading because basically humans always want more than what they have achieved, and of course when they are controlled by greed, many mistakes will occur which will lead to bankruptcy.
I think that what can change that is my own experience, where I have experienced it before I traded full of greed after everything was destroyed I realized and started trading again without greed because I know what will happen again if I trade without being able to control myself for greed.