Why do most people lose money in Bitcoin and Litecoin stock trading?

In trading, the loss ratio of investors is usually over 90% . Why is it so difficult to make money? If a person who does not understand technology enters this market, in order to make money, he must first make all the mistakes in trading once. If this person has enough intelligence and self-control to correct the mistakes after one mistake, then he can start to make money, but how much loss can a person withstand?

What is particularly hateful is that after making a mistake, the trader will say, "I won't make the same mistake again next time." But he still makes the same mistake in the end . Why? Because it is due to human nature and habits. Trading itself is anti-human. We must always be vigilant about the harm caused by human weaknesses to trading funds. One lack of vigilance is enough to lose a lot of money.

Usually when we make a mistake, we don’t realize it right away. If there is an experienced person next to us, he or she will point out the mistake and tell us how to correct it. But we often don’t meet such a person, so we make the same mistake N times and lose a lot of money before we realize it. But we don’t find the way to correct it right away, and we have to figure it out on our own. It takes a lot of losses in trading before we find the right way to correct it.  

Even if the point is correct, many people still cannot make money. Because of their bad trading habits, they are destined to lose money. Whether a person can make money in trading depends entirely on her trading habits, just like a person's quality of life depends entirely on her living habits. Predicting the point correctly is like winning the lottery, but winning the lottery for a while cannot change his quality of life. In the long run, it still depends on his living habits.

When a trader makes money, he will praise himself, thinking that his judgment was correct and that it was all his own. When he loses money, he will take a completely different attitude. He will rarely blame himself or find the reason for his failure. He will make excuses, comforting himself that it was an accident, and that if he had not listened to other people's information and advice, he would have made money. He will find many reasons to think that it was not his fault. This is why he will make mistakes again and incur losses.

The investor must try to save himself and look for the reasons for his losses in himself rather than in others, because if he does not do this, he will never overcome his own weaknesses. After all, it is your own actions that cause your losses, because you are the one who is doing the buying and selling. You must find the internal reasons and correct them. In this way, you will succeed, and there is no other way.

Gann said earnestly: "I can give you the best rules in the world and the best way to judge the stock position, but you will still lose the money in your account because of the human factor, which is your biggest weakness. You failed to abide by the rules, you acted on hope and fear , not facts. You hesitated, you lost patience, you acted hastily, and you delayed opportunities. You therefore deceived yourself with human weaknesses and then blamed the market for your losses. Always remember, it is your own fault, not the behavior of the market or the behavior of market manipulators that caused your losses."

As a futures expert said: "Any trading method may seem simple on the surface and can be executed, but in fact it is not. It contains many unique attributes of the trader, his knowledge structure, his habits, his personality , and many things he has experienced in the transaction. These are all part of the transaction.

So, even if I tell you a method that I might make money with, you will steadily lose money if you use it to make trades, because many things that seem like common sense or habits to me are not possessed by you, and our experiences and cognitions are completely different . "

Some people buy randomly and make money, and their confidence soars. They mistakenly think that they are capable, or even geniuses, and they are just short of saying that they are the best in the world. If you make money by buying and selling randomly without your own fixed trading operating system and strict entry and exit conditions, it is just accidental and cannot be replicated. There is no guarantee that you will make money in the future. Once the market changes, you will be at a loss, and then one loss will offset many profits.

Only by building your own trading operating system and executing it like a robot without thinking, instead of changing midway according to your so-called market sense and inspiration, can you make money in the future. Some people do it according to their market sense, which undoubtedly magnifies the weaknesses of human nature.

Trading is inherently anti-human. Human weaknesses almost always interfere with one's operations. Without one's own trading operating system rules to restrain human nature, the ultimate result of trading based on market inspiration is doomed to be a loss.

This wave of Bitcoin and Litecoin stock surges has caused a large number of people to be greedy. They were originally profitable, but because they did not have their own system and discipline, they were reluctant to sell when the stock rose, thinking that it would rise every day, and they shouted that it would reach 6,000 . Once it fell, a lot of profits just now were gone, but they were unwilling to lose, so they hoped to wait for it to rise again. Who knew that the decline continued, and the profitable ones ended up losing money. They sold in a panic, and then a big rebound came after they had sold, and they said fiercely: Fuck you, I sold it and it went up. Then they chased it back, chasing the rise and killing the fall, they didn’t dare to buy if it didn’t rise, and chased it when it rose, and they were stuck at the top of the mountain again. They didn’t dare to buy when it fell, and they would only sell in a panic, and they would sell it at the floor price after they had sold it.

Should I sell Bitcoin at 3,300 ? I will definitely not sell it. If it rises a little bit, it will be 5,000 or 8,000. It will be over 10,000 after a good night's sleep. Didn't you hear the seniors in 2013 say: Buying Bitcoin while sleeping is the most profitable. Should I sell Bitcoin when it falls to 3,200? No, if I sell it, I will lose a lot of profit compared to 3,300 . I believe it will rise back. Now it is just a correction. In order to rise higher, don't you see the spring? It shrinks and bounces higher and faster.

Should I sell Bitcoin if it drops to 3,000 ? I definitely wo n’t sell it, because this is my cost, and I can’t endure so many days without making a penny. After being ravaged, at least I get paid for my hard work, but I don’t even get any hard work. Should I sell Bitcoin if it drops to 2,500 ? I struggled and hesitated for a long time, looking left and right, not knowing what to do . Not selling is not good, and selling is not good either. The grass is too hard to endure. Should I sell Bitcoin if it drops to 2,380 ? I want to sell it. Fuck it. I added several times leverage, and now I have lost most of it. If it continues to fall, I will be liquidated if I don’t sell it, and it will go back to zero. I just sold it, and Bitcoin rebounded to 2,600 . Fuck this coin, I will never touch this kind of junk again, it falls when I buy it, and rises sharply when I sell it.

When a person is eager to make money and is eager to catch every rise and fall, he only sees profit and cannot see loss. He naturally ignores risks and even throws away the trading system and trading discipline he has established. In the end, the final result of being busy with trading is naturally losing money.

When you have a trading system, the ups and downs of the stock will enter your system, and the ups and downs will be related to you. Without a trading system, you always feel that the daily ups and downs are related to you, and you lament: I missed this wave of market again, and I lost so much money. What you do every day is to chase the rise and sell the fall.

Without your own trading system and trading discipline, no matter how much you earn from Bitcoin, Litecoin and stocks , you will lose it all in the end, because only discipline and system can resist the temptation of various mistakes and opportunities arising from market fluctuations.

Everyone has his own personality, but he can't be suitable for everyone, only for some people, and others will hate his personality. Similarly, everyone's trading style and trading system are different, he can't be suitable for everyone, only for some people, and others will hate him.

For example, some people like to trade short-term and make money quickly, while others despise this kind of trading because frequent trading is an important reason for losing money. Your trading style may not be suitable for me, just as my trading style may not be suitable for you. You may even like what I hate, and I like what you hate.