The Real Reasons You're Losing Money in Stocks and Crypto

Everytime I look around and observe more people in the markets like stocks and crypto one thing I've seen common amongst all of them is that no one wants to loose money willingly but they still do loose more than once.

An average person invest savings and grows that investment over the time in a particular stocks or assets to grow but sometimes it just doesn't work out and they see loss on those investments or they're fully liquidated.

I used to think why most people somehow loose money in trading or investing and I found many answer to this one question but only one thing made most sense.

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You're competing against the smartest and stupid people in the Market

When you're losing money in trading it's not because "this thing isn't for you" but it is because the other people are more smarter than you.

_{image by Barbara A Lane from Pixabay}

And to be more precise from the smartest I mean they study, observe, learn and evolve all the time and take decisions based on facts not on emotions so they're smarter and better in all these things.

It's not just drawing lines on chart and than pressing buy/sell. It's hours of research, days or maybe weeks of wait behind a trade that goes by X10 or more.

But there's also the stupid people and they still manage to make it big being the lowest iq in the room not because they've luck but cuz of money they've and not having fear of losing, they simply don't give up after getting liquidated and keeps on gambling memecoins etc.

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This Mentality Makes More Money than Average

To be honest some people have this mentality that they think if they'll lose they'll lose small but when they'll win they'll win big.

People bet on the opposite of what majority of crowd follows and that counter trades have higher probability of making big and losing small.

_{image by Mohamed Hassan from Pixabay}

It's way too trading crypto when you're aware of how people are speaking on twitter like when they're bullish you just need to counter them and when they're bearish you just need to step in and play.

If you turned out wrong you'll lose small but when you're right which is going to be 80 to 90% of times it'll be big win.

Trading is more like Chess

Smart people are involved in trading and they see it more like a game of chess because both comes with "win or lose" and you need to use mind.

_{image from Pixabay}

There's so many trades and coins in the market, so many narratives and options to make money just like there's so many countless possible moves in chess but all you need to do to win is: think ahead of the opponent.

So, everytime you're trading one thing you should apply is "you thinking of one step ahead of your opponent" (opponent: market maker, exchanges or whales moving market) etc.

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Wrapping Up...

In the end it is the people who don't learn and invest time on studying, research or evolve have made investing and trading complicated which is the only reason they're losing and not getting any better.

Like a wise person once said invest on yourself because it is worth it and before you invest in stock or start trading it is wise to invest in yourself to prepare and compete against the smartest people who also don't want to lose money and are there with a mind or making money. I hope you will agree with it and would love to know what you think about it in the comments.

fin.

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_{Thanks for reading.Greetings.}

All the content and images are mine except indicated. No copyright infringement intended. 19/07/2024.

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