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Topic: 90% retail traders lose 90% of their deposited margin $ within 90 day (Read 321 times)

full member
Activity: 588
Merit: 100
In my opinion this is depend on the level of leverage / margin and lot that we use in trading, many trader loss because use high level of leverage and they has too high target profit. If we use low leverage and make target profit 10% to 20% amonth will be possible to earn profit by consistent.
hero member
Activity: 2926
Merit: 722
DGbet.fun - Crypto Sportsbook
Not so long ago I got known that there is the rule 90/90/90 which means that 90% retail traders lose 90% of their deposited margin $ within 90 days. I am wondering to get to know your opinions, experience and observations to figure out whether the rule works or do not work.
What about my opinion, I guess it is really true because every retail trader, whom I knew, lost money on margin trading with various assets (Forex, futures, CFDs).  

Some traders doesn't even know what they are doing with their investments in trading. They just do it for fun like gambling and doesn't even have a plan.
Not only some but most of them doing such thing.Lets talk only with traditional trading like forex and stocks. Only 5% of them become successful and the rest?
They all blown up their accounts not only on not having a knowledge but this field of trading is also hard.Same goes with crypto but in terms of fast profitability then crypto do have it.
hero member
Activity: 994
Merit: 504
Not so long ago I got known that there is the rule 90/90/90 which means that 90% retail traders lose 90% of their deposited margin $ within 90 days. I am wondering to get to know your opinions, experience and observations to figure out whether the rule works or do not work.
What about my opinion, I guess it is really true because every retail trader, whom I knew, lost money on margin trading with various assets (Forex, futures, CFDs).  

Some traders doesn't even know what they are doing with their investments in trading. They just do it for fun like gambling and doesn't even have a plan.
hero member
Activity: 784
Merit: 500
this is what makes me dislike trading like forex, I am more happy with trading cryptocurrency in the market, because it looks real and clear
Forex is institutional level of financial markets that contains spot currency deals, cfd contracts. Cryptocurrency trading is dangerous due to known reasons about losing rate. Even small startups have 90% fail rate in first year and strong team,creative ideas cant help sometimes depending on the situation.
full member
Activity: 588
Merit: 100
I think this is true because is very hard to make profit from margin trading, I was tried margin trading in forex market but i got bad result, is very difficult to make consistent profit from it. In my experience in trading activity, its more easy to make profit from spot trading in crypto or stocks market although we can make profit only from long potition.
you have to evaluate your own self, did you make analisys well and not based on our emotion? some trader have good skill but they could not controll their psychology and make over trades.
member
Activity: 462
Merit: 10
I think this is true because is very hard to make profit from margin trading, I was tried margin trading in forex market but i got bad result, is very difficult to make consistent profit from it. In my experience in trading activity, its more easy to make profit from spot trading in crypto or stocks market although we can make profit only from long potition.
full member
Activity: 420
Merit: 102
There are 2 type of trading, that is spot and margin trading. Spot trading include trade crypto on the crypto exchange without margin, trade stocks on securities platform. Margin trading include futures trading and CFDs, i was try all this kind of trading and i know the risk of margin trading is higher than spot trading, so i avoid it and chooce to do spot trading.
legendary
Activity: 1526
Merit: 1179
I consider that it is possible to use a leverage sometimes but not more than 2x or 3x. I mean particular situations where a trader is absolutely sure about a situation.
Unless you have insider information about an event that will for sure affect the market, or you're a market marker yourself, there is no such a thing as being absolutely sure about trading, especially not when it comes to crypto.

Also, most realistic traders always assume that they are wrong just because of the fact that they don't know what they are doing. Even with technical analysis you are still hoping to be right, so that somewhat reeks of gambling.

Overall, there are so many different levels of greed, that you some times wonder why people keep using leverage with crypto. Crypto by nature is insanely volatile already, so why is there a need to go beyond that?

With stocks and traditional assets I can definitely understand that people want to boost their gains with leverage, but with crypto it's way over the top in my opinion. But then again, maybe I'm being too conservative here.
jr. member
Activity: 658
Merit: 1
One of big lessons i learn when i'm beginner is stay away from margin. When the market is up, you get double prize. But when the market goes down, you lose all you got. Understand everything and choose wisely before doing.

Aren't you referring to binary options? It's near impossible to bust yourself out of your position entirely by "just" having a 100% reward potential, unless the price of whatever asset absolutely tanks like there is no tomorrow (which in that case would indicate that you bought in at peak levels) and you don't do anything to stop it.

If you're trading on a professional margin platform you should be in the position to add more margin to you existing position in order to prevent a total bust. In case you're using binary option platforms you can't do that, but binary options have nothing to do with trading or investing since it's gambling. You either win or lose, there is no inbetween.

Binary option platforms mostly have an insanely high house edge of up to 30% which should be a discouraging factor, but it's not unfortunately. People are too dumb to understand how poor the risk to reward ratio is while the chances of winning are flat 50%. You get more bang for your buck by putting the same money on red or black in the casino, lol.

Generally speaking such a situation may be possible on trading futures or exchanged-traded options (I mean sold options). By the way a broker may close or cut an amount of a client position if a margin call happens it need to read rules of a broker.

Be carefully, "Forex kitchens" and binary options are scam.


this is what makes me dislike trading like forex, I am more happy with trading cryptocurrency in the market, because it looks real and clear

True Forex is not bad


Yes most people that day trade or desperate to find a different way of life.  So they jump in and see the dollar signs and trade way to aggressively.  They may win for a second but in the end the house wins.  The house also cheats which makes the situation even more one sided. 

Yeah, "Forex kitchens" attract gamblers


Not so long ago I got known that there is the rule 90/90/90 which means that 90% retail traders lose 90% of their deposited margin $ within 90 days. I am wondering to get to know your opinions, experience and observations to figure out whether the rule works or do not work.
What about my opinion, I guess it is really true because every retail trader, whom I knew, lost money on margin trading with various assets (Forex, futures, CFDs).  

That's fact and we already knows that as reality. Maybe they don't have enough preparation and psychology when enter the market or they get wrong analyze/signal and still believe will get income at this moment. That's why basic knowledge and practice needed, don't ignore it. Dream is fine but start with wrong step will lost your asset.

It need to be crazy to start beginning trading with a margin account
newbie
Activity: 7
Merit: 0
many traders in the crypto space are noobz and cant even trade spot so should stay away from leveraged positions even ones of 2-3x
jr. member
Activity: 658
Merit: 1
In my opinion i think its not 90% , but about 70%. Many trader was get successfully and changed their life from CFDs trading. In my country there are many trader community and many of them can changed their life from CFDs trading.

In fact I am really surprised that there are nearly 30% successful traders who trades CFD I think it is quite much.


One of big lessons i learn when i'm beginner is stay away from margin. When the market is up, you get double prize. But when the market goes down, you lose all you got. Understand everything and choose wisely before doing.

Most of people are greedy so they will use margin trading despite of anything.


Change middle 90 with 60 and you'll know new rule of ideal body parameters (for women of course).
Yeah, that rule works and as one user posted, it's usually 90/100/90 but I would say 100% lose can be in less than 90 day because of silly actions or lack of patience.
Also remember this rule: If I am rich, it's because you are poor.
I like that last part and apparently, as one person is losing a lot from trading, someone is gaining a lot from it, and in this case it is usually the market makers and manipulators that make shit loads of it anyway. A lot of margin traders lose a lot since they are never really learned that much, even though they may still want to classify themselves as retail traders. It is what it is anyway and some people still make some pretty good money from it.

I consider that it is possible to use a leverage sometimes but not more than 2x or 3x. I mean particular situations where a trader is absolutely sure about a situation.


Not so long ago I got known that there is the rule 90/90/90 which means that 90% retail traders lose 90% of their deposited margin $ within 90 days. I am wondering to get to know your opinions, experience and observations to figure out whether the rule works or do not work.
What about my opinion, I guess it is really true because every retail trader, whom I knew, lost money on margin trading with various assets (Forex, futures, CFDs).  

The 90% (some put it at 95%) of traders lose figure comes from Forex trading. Not sure if it applies to Crypto aswell but it is likely, especially considering how little info there is out there on trading and investing Cryptocurrency.  

I am sure that it does not matter whether a trader trades Forex currencies or other assets the basic rules of trading are equals (the money management and so forth) but unfortunately true Forex is unavailable for the most of traders.
full member
Activity: 686
Merit: 100
★Bitvest.io★ Play Plinko or Invest!
Not so long ago I got known that there is the rule 90/90/90 which means that 90% retail traders lose 90% of their deposited margin $ within 90 days. I am wondering to get to know your opinions, experience and observations to figure out whether the rule works or do not work.
What about my opinion, I guess it is really true because every retail trader, whom I knew, lost money on margin trading with various assets (Forex, futures, CFDs).  

That's fact and we already knows that as reality. Maybe they don't have enough preparation and psychology when enter the market or they get wrong analyze/signal and still believe will get income at this moment. That's why basic knowledge and practice needed, don't ignore it. Dream is fine but start with wrong step will lost your asset.
member
Activity: 100
Merit: 10
Most Advanced Crypto Exchange on the Blockchain
Yes most people that day trade or desperate to find a different way of life.  So they jump in and see the dollar signs and trade way to aggressively.  They may win for a second but in the end the house wins.  The house also cheats which makes the situation even more one sided. 
newbie
Activity: 106
Merit: 0
this is what makes me dislike trading like forex, I am more happy with trading cryptocurrency in the market, because it looks real and clear
legendary
Activity: 2170
Merit: 1427
One of big lessons i learn when i'm beginner is stay away from margin. When the market is up, you get double prize. But when the market goes down, you lose all you got. Understand everything and choose wisely before doing.

Aren't you referring to binary options? It's near impossible to bust yourself out of your position entirely by "just" having a 100% reward potential, unless the price of whatever asset absolutely tanks like there is no tomorrow (which in that case would indicate that you bought in at peak levels) and you don't do anything to stop it.

If you're trading on a professional margin platform you should be in the position to add more margin to you existing position in order to prevent a total bust. In case you're using binary option platforms you can't do that, but binary options have nothing to do with trading or investing since it's gambling. You either win or lose, there is no inbetween.

Binary option platforms mostly have an insanely high house edge of up to 30% which should be a discouraging factor, but it's not unfortunately. People are too dumb to understand how poor the risk to reward ratio is while the chances of winning are flat 50%. You get more bang for your buck by putting the same money on red or black in the casino, lol.
member
Activity: 205
Merit: 16
Not so long ago I got known that there is the rule 90/90/90 which means that 90% retail traders lose 90% of their deposited margin $ within 90 days. I am wondering to get to know your opinions, experience and observations to figure out whether the rule works or do not work.
What about my opinion, I guess it is really true because every retail trader, whom I knew, lost money on margin trading with various assets (Forex, futures, CFDs).  


The 90% (some put it at 95%) of traders lose figure comes from Forex trading. Not sure if it applies to Crypto aswell but it is likely, especially considering how little info there is out there on trading and investing Cryptocurrency. 
hero member
Activity: 952
Merit: 503
Change middle 90 with 60 and you'll know new rule of ideal body parameters (for women of course).
Yeah, that rule works and as one user posted, it's usually 90/100/90 but I would say 100% lose can be in less than 90 day because of silly actions or lack of patience.
Also remember this rule: If I am rich, it's because you are poor.
I like that last part and apparently, as one person is losing a lot from trading, someone is gaining a lot from it, and in this case it is usually the market makers and manipulators that make shit loads of it anyway. A lot of margin traders lose a lot since they are never really learned that much, even though they may still want to classify themselves as retail traders. It is what it is anyway and some people still make some pretty good money from it.
newbie
Activity: 126
Merit: 0
One of big lessons i learn when i'm beginner is stay away from margin. When the market is up, you get double prize. But when the market goes down, you lose all you got. Understand everything and choose wisely before doing.
full member
Activity: 616
Merit: 100
https://exip.live/
In my opinion i think its not 90% , but about 70%. Many trader was get successfully and changed their life from CFDs trading. In my country there are many trader community and many of them can changed their life from CFDs trading.
jr. member
Activity: 658
Merit: 1
Not so long ago I got known that there is the rule 90/90/90 which means that 90% retail traders lose 90% of their deposited margin $ within 90 days. I am wondering to get to know your opinions, experience and observations to figure out whether the rule works or do not work.
What about my opinion, I guess it is really true because every retail trader, whom I knew, lost money on margin trading with various assets (Forex, futures, CFDs).  
Margin trading is the highest level. When you bought and withdrew, you control the exchange. But if you have margin trading, you are playing against the central core of the exchange, which knows your position to the last cent. For this reason, most remain without anything at the first error.

I absolutely agree with you I also consider that the most difficult and dangerous assets are futures and options and retail trader must be very experienced to begin trading derivatives. I understood it when I traded futures. By the way you noticed excellently that when trading derivatives you trade with professional traders I would like to pay attention that there are no amateurs on that market.
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