



A Brief History of Losses

Humans have always been fascinated by markets. The prospects of profiting and becoming rich attract so many people. Sometimes people enter the market uninformed or undereducated, and they lose almost all their money. Many actors and other famous persons who come into a lot of money have fallen into this trap. Investment scams and ponzi schemes have always been around, and they will continue to do so. People can also play the market incorrectly and lose money that way as well. These people would do far better if they understood that investing is a game of patience and knowledge.

In the world of investing there are “money losers” and “money winners.” Three things separate the money winners from the money losers. The first of these three things is your knowledge. If you are to be a successful investor in any area, you must do your own research. You should never enter a new investment being uninformed about all aspects of it. The second idea is education about the financial system in place and investing. You don’t have to go to some fancy government scam school to get the education you need for investing. The internet is full of many places to learn everything you should learn about these topics.

Experience is the third thing you should try to obtain. Experience and time in the market will teach you so many different things to make you a better investor. If you make a bad move or lose some money you shouldn’t get disgruntled. Take it as a learning experience and use it to make better decisions in the future. It is often said that time in the market is far more important than a timed market.

Who Needs Patience?

Common posts I see around chatrooms, forums, and reddit involve people always asking where the price will be in x days, how long until the next bull run, or they complain about price drops. Most of these people are new investors without much experience or investment education. The most important thing these people need to realize is just how important patience is in investing. Markets always go in cycles, they will go up in bull runs, and back down in bear markets. One thing is for sure, if you have less patience than the investors around you, you will lose money.

“The stock market is a wonderfully efficient mechanism for transferring wealth from the impatient to the patient.” -Warren Buffett

I have seen to many investors drop great projects because of a lack of patience. Many of them will surely regret these moves in the future, but hopefully it teaches them a valuable lesson. Technology and businesses take a lot of time to develop. Each company or project has a different development plan that will be completed with time. Those who avoid dumping at market lows and wait through the development cycle will surely be rewarded.

The Fear of Missing Out

The crypto market is extremely volatile, we have seen yearly returns in the thousands of percent’s. This is extreme compared to more traditional markets such as the S&P 500’s average yearly return of 11.69%. These crazy returns cause so many people to become overly-emotional about the market. Hoping for massive returns, they will experience the “fear of missing out” in the market. A piece of great news comes out for a certain currency and causes the demand to spike. The price starts to jump up, and more people keep jumping in the hype train. The price will rise and rise as more people FOMO in, but eventually, that uptrend can’t be sustained, and the price corrects back down. Those who bought at prices too high and never sold before the drop lose a lot of their money very quickly.

Cryptocurrencies are extremely volatile; the corrections can be very violent at times. This means that it’s even more importantly to think logically and have patience. If you see prices jumping up of a coin you are interested, you must be careful. If the price is reaching unsustainable levels and you aren’t in early, you will lose a lot of money with one bad move. Have enough patience to make wise decisions, and don’t get burned too many times!

I appreciate you guys reading my post and I really hope you learned something! If you have any comments or other tips for newer investors out there, please let me and everyone else know below! All resteems and upvotes are very appreciated and good luck on your investments!