how do i make this loop work

You should clean it up some more but this will fix your code:

<?php get_header(); ?>
<div class="posts"><!-- BLOG -->

    <!-- Shapes on sides -->
<div class="shapes_left"> </div>
<div class="shapes_right"> </div>

    <?php if (is_tag()) { ?>
        <div id="archive_title">
            <h1><?php single_tag_title(); ?></h1>
            <?php }?>
    </div>


<div id="featured_home">        

    <?php $counter = 0;
        while ( have_posts() ) {
            $counter += 1;
            if ( $counter > 5 ) {
                break; 
                }
                the_post();

     ?>
    <article class="sticky">
        <div class="desc">
                <div class="desc_over"><h2><a href="https://wordpress.stackexchange.com/questions/182455/<?php the_permalink(); ?>"><?php the_title(); ?></a></h2></div>
             <?php the_post_thumbnail(large); ?> 


        </div>
    </article>
    <?php }?>
    </div>





    <?php
    // I've added the missing if statement and corrected some php grammar
    if ( have_posts() ) : while( have_posts() ) :
        the_post();
        // it's a post! Display the post!
                 ?>


        <div class="post_main">
            <h3><a href="https://wordpress.stackexchange.com/questions/182455/<?php the_permalink(); ?>"><?php the_title(); ?></a></h3>
                <ul class="postinfo">
                    <li>Posted by <?php the_author_link(); ?></li>
                    <li><?php the_time( 'jS F Y'); ?></li>
                </ul>   

             <?php the_content( ''); ?>

            <div class="read_more_blog"><a href="https://wordpress.stackexchange.com/questions/182455/<?php the_permalink(); ?>">Read More</a></div>
        </div>

    <?php endwhile; ?>
    <nav id="pagination"> <!-- PAGINATION FOR BLOG -->
        <ul>
            <li class="older"><?php next_posts_link( 'Older posts'); ?></li>
            <li class="newer"><?php previous_posts_link( 'Newer posts'); ?></li>
        </ul>
    </nav>

    </div> 
    <!-- END OF BLOG PAGINATION  -->
    <!-- because the if statement has been started the else will now work  -->
    <?php else : ?>
     <div id="post">
        <!-- 404 Messege -->
            <h3>404 ERROR!!</h3>

        <p>Sorry we can't seem able to find what you are looking for</p>
        <p><a href="<?php echo home_url(); ?>">Click here to get back to the homepage</a>
        </p>
    </div>
    <!-- now the if statement is ended  -->
    <?php endif; ?>
    <?php get_sidebar(); ?>
</div>
<?php get_footer(); ?>

Hope this helps