What causes crypto trading losses? Leverage trading, FOMO or lack of knowledge It could be same as stock trading, but I have seen a pattern among crypto enthusiasts, following others in fear of missing out and since Bitcoin and other coins are too volatile sometimes, many people lose huge amounts. Thoughts? |
It is a safe bet that most retail traders are not at all systematic in their trading or use poor systems, which are moral equivalents in this world.
A good trader looks for arbitrage opportunities, or failing to find any, takes calculated risks.
In bubbling markets, FOMO makes people risk-seeking as opposed to risk neutral. They overpay for risk, the volatility becomes a selling point. The bet works out for some, but most will be burned. It is basic statistics.