Shaf
Verified member
Majority of traders get attracted to it due to the possibility of gains that one can make, especially with the high volatility of crypto allowing huge profits inna short time. Along the way, most fail and low their capital.
One of the main problems is the initial perception of trading. The online community, particularly bloggers and vloggers have made it seem like a quick way to get rich. Some people are that lucky, but a lot of retail traders just end up being ''dumb money" for whales. New traders need to get into trading with the mindset that it is not easy and one can fail woefully without proper risk management.
Another reason, closely related to the first is the traders themselves. Trading makes one feel intense emotions like fear and greed. Unless there's a balance and control here, most traders go for revenge trading when they lose money, or they ignore profit taking in hopes of gaining more.
This effect is amplified by the knowledge that each single trade affects your capital, whichever the trade goes. This is one of the hardest things to manage as a retail trader and proper control can give the trader a powerful edge.
One of the main problems is the initial perception of trading. The online community, particularly bloggers and vloggers have made it seem like a quick way to get rich. Some people are that lucky, but a lot of retail traders just end up being ''dumb money" for whales. New traders need to get into trading with the mindset that it is not easy and one can fail woefully without proper risk management.
Another reason, closely related to the first is the traders themselves. Trading makes one feel intense emotions like fear and greed. Unless there's a balance and control here, most traders go for revenge trading when they lose money, or they ignore profit taking in hopes of gaining more.
This effect is amplified by the knowledge that each single trade affects your capital, whichever the trade goes. This is one of the hardest things to manage as a retail trader and proper control can give the trader a powerful edge.