Why I Always Encourage People To Lose Money

in HODL9 months ago

Hey Jessinvestors

I am no professional investor, If I had the choice I wouldn't even bother to do it, I would work and save and go about my day, but in a world of currency debasement, we cannot merely save and rely on healthy interest rates. We are now forced to invest not to make a profit but to continue to break even. I've had to find out the hard way, my friends and family have no history of investing so I've had to figure this out all on my own and I continue to learn every day.

Learning to invest has been an expensive lesson, I've lost money, and I'll continue to lose money as I reduce my mistakes and the size of errors.

The key to investing isn't to try and always make winning trades it to be patient in your trades and be less wrong then you were the year before. When people ask me for investment advice, I will always encourage people to pick a niche they are comfortable with and learn all about it. I don't want to bring my biases into other peoples investment goals and strategies.

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The more you learn, the more you earn

Many investors want to come in and time the market, but successful investors are those who spend time in the market. The more you spend managing your trades, the more you reduce your emotional response to the change in prices and you start to know when to cut your losers and when to ride your winners just that little bit harder before taking profits.

Time in the market will incur loses, but it brings confidence and pattern spotting that can be profitable in future.

You can't learn without being burned

I find it funny that people are willing to pay thousands for a degree that is no guarantee of income and many don't earn from it or have a reduced ROI due to the debt to get a degree. But they are not willing to lose a few 100 bucks attempting to try and investment strategy and learning from it.

If you are wrong you learned an expensive lesson, if you are right, you rewarded, and so you get to grips with the ebbs and flows of the market you trade in.

Don't be fearful, be careful

Markets may have some fundamentals you can review to help make your decisions but a large part of the market is sentiment. There are many investors who fall for emotions and it can be heavily influenced by fear and greed. To understand these trends and how groupthink works in the market you're in is the best way to find winning trades as going against the consensus means more risk, but also means higher rewards.

If you can successfully collect data on fundamentals, reduce your emotional response and review market sentiment you'll be able to make more profitable trades more often.

However, this only comes from trial and error, so if you are going to get into the markets, get ready to lose money but lose it in a way that provides you with additional benefits.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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Yes, you definitely can't learn anything without getting burned, or at the very least being open to getting burned. "Way back when" I made no shortage of mistakes day trading tech stocks... but I eventually got pretty good at it. And that process of getting "pretty good" was all about constant learning, and a willingness to constantly tweak my approach to hone in on something better.

=^..^=

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I agree with you I am by no means the best trader, but I've learned what to look at, when to jump in and out as a I feel comfortable a range of where I am willing to take profits and all this comes from being burned.

You sound of developing your strategy as an active investor and you pick up on the signs sooner, you're more confident in your positions and you know when to cut and when to sit

It's not about being right all the time, just being less wrong than the majority

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Thing is, at least here in the UK, you are losing money by not spending or investing it anyway because interest rates are below inflation. But everyone seems fine with that so I'll leave them to it whilst I get called crazy for giving alternative investments a go 😁

Same here even if people don't understand the fisher effect, we have 4.6 reported inflation but its way more than that and your return is like 1.9 - 3.2% based on the various rates I see. Purchasing power eroding, so you lose if you don't play, so you might as well try playing somewhere else and spreading your ability to lose

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My ability to lose is spread far and wide in crypto 😂 next year it will be spread even more into buying a house. You got to be in it to win (lose) it hey!

Lol spread it like your first day in prison :P

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LOL! Operation "Drop the Soap" in full effect

LOL stacking in the old "prison wallet"

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Haha! that really is cold storage right there

LOL what better place to keep your private key than your private parts

No doubt we learn from trying and not shying away from trying.
Lose carefully like you said, test the waters before diving in and getting rekt😀

Its the cost of doing business, in any transaction, you will have a cost, its up to you to make sure you account for it and make a profit. Same with your time, you go to work and you sell your time at a profit because the cost to live and travel and do the work is less than the reward.

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Learning doesn't come for free.
P. S. Congrats on you reaching nr. 1, I know how much you wanted it! 😊

Totally, everyone is so caught up in free they don’t see the cost that striving for free involves, pay your dues and get what you’re worth! If you always chase free you’ll end up with what free is worth, worthless

LOL oh thanks! You mean you let me be #1 kidding, yeah I just wanted at least once so I can be in the hall of fame with you

I'm very happy for you, I am sure that everybody will get to be nr. 1 one day. Glad to be able to see you reach the top!

I hope so too, it's fun to see how engaging you need to be to remain in the top spots. I think once we have more users it will really be interesting, I am sure more people will find this place each day and discover the value of using the platform like we have. We all like free crypto but the people you meet and things you learn on this site are even more valuable and what kind of keep you here to engage

The people you meet are the best thing in here!

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