Losses are an unavoidable part of the journey, even for experienced traders.
Market Volatility: Sudden, unpredictable price swings.
Lack of Research: Investing without understanding the project or market.
Emotional Decisions: FOMO (Fear of Missing Out) and FUD (Fear, Uncertainty, Doubt) leading to impulsive buys/sells.
Over-Leveraging: Amplifying gains, but also magnifying losses.
Poor Risk Management: Not using stop-losses, over-investing, or lacking a trading plan.
Mitigating losses requires discipline:
Only invest what you can afford to lose.
Diversify your portfolio.
Use stop-loss orders.
Conduct thorough research (DYOR).
Manage your emotions and avoid impulsive decisions.