Reasons why Retail investors lose money

[Phronesis]

Looking at the entire investment market as a market full of opportunities and risks, it often looks like an opportunity to make money quickly, but it is actually a hotbed of risks. Don't always think about speculation to avoid the misunderstanding of investment, besides, so adjusting your investment mentality and improving your operational level is the most effective.

Trading purpose: making money

First of all, we must clearly know that the purpose of our trading in the market, multiplicity of financial derivatives transactions usually include hedging, speculation, arbitrage and asset -liability management, etc., to directly make money.

For example: if you have 1 million, enter the market and lose 400,000, and only 600,000 are left, then your next idea is to make 400,000.

So if you can use 600,000 to make 400,000, then the overall income is 66%, then why not use 1 million to make 660,000?

Therefore, speculating on coins without any changes is just to make money back, which is never possible.


Trading principles:

1) Guarantee principal at all times

2) Respect the facts

3) Long-term survival

In the entire market, only 10% of people make money, and even more than 50% of people make money. They lose money and stop playing. There are another 40% of people like to try all kinds of endless loops: lose money-borrow money-lose money, this type of people either follow orders, go to classes and even then they are hard to succeed because they rarely look for problems for their own reasons.

Elements of investment

• The need to bear the mistake
• In trading, losses and profits are equally worth accepting
• Good psychological adjustment ability

 

[Josemendez]

With my little experience in the cryptocurrency world , I have came to realize that for one to have a significant profit from any form of cryptocurrency investment ; be it long term Investment or short term Investment , the person needs to invest a considerable amount of money.

Now , the issue here is that one may lose this huge amount of money when he invests in a shit coins.

This is why top coins are the best coins to invest huge amount of money in , because they will surely offer back profit to the user.

For example , someone who invested $20,000 when Bitcoin price was $10,000 will have extra $20,000 profit by now compared to one who invested just $1000.

Similarly , someone who invested the same $20,000 in altcoins like Tron may not have up to $2000 profit by now ,because the coin has not risen well