Data suggesting more than 95% traders are losing

fullhdpixel

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Quote from: jrrsparkles on March 04, 2021, 02:05:18 AM

Traders fail because they don't have patience, even warren Buffet told that people in the investment field never get rich like him because they wanted to be rich quickly so they are losing their money and giving up when there is no money left. Those 7% maybe denotes that ho are successfully living out of trading but the actual numbers will be lot higher for sure.

Yeah, that is called the "snowball effect" because when one person lose and other trader gains similar to when one trader sells and the other sees that and sells too, few more people see it and sell, then a lot more people see the drop in price and get scared and start selling it all, and once you know it, there are thousands who are selling. The same could happen with buying as well, it could honestly end up going super high just because someone bought it and took it higher, all of a sudden in few days we are 10%+ higher without stopping.

So, it is not just one person that changes the price, nor it is not all of us, it is about movement. That first person to sell could be any of us, it could be all of us, it is more about direction we suddenly take all together but also something that decides on that direction as well. It means 95% of people choose the wrong direction or wrong timing just because of following wrong people. Or, even they follow right person, entering/exiting at wrong time also lead to losses overall.

South Park

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Quote from: qwertyup23 on April 02, 2021, 12:07:04 PM

I think I also read a similar article where 97% of the day traders lose money on the first year of trading; and those who profited earned at least an amount similar to that of a bank teller.

The problem with day-trading are the risks associated with the cryptocurrency themselves. Unlike in stocks trading, the price of cryptocurrencies are VERY volatile. The changes on its value are so significant that there maybe times where the increase/decrease are above 10% on a single day. Be reminded also that most day traders, in order to gain profit, trade in large amounts.

I don't think the volatility of this market has anything to do with it, it is a widely known fact that the majority of newbie traders not only lose money but they lose everything after just one year of trading, that is just the way it works, this is why people in the forum often recommend that you hold your bitcoin, because we know that the chances that someone makes it while trading are simply too low, but newbies do not want to listen, they do not want to take the long path and wait for years or even decades before they can make a fortune, they want to make it now and that is what day trading promises and they only discover too late that they had no chance at all to make money by trading.

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Making profit from trading Lies on different factors. First account size plays a key role because Bitcoin has high volatility and with this it is most likely that smaller account size will get blown easily with the high spike. This means rubbing the poor to pay the rich. It would be preferable you learn the analysis as a small account owner to rather hodl your coin. More opportunities would come in the future where you would likely trade them then your account size would stand the waves of the market to avoid been kicked out

jerry0

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Is this on crypto or all types of trading including stock? I thought i read it was more like 80 percent of traders lose... but this was on the Ramsay show.

milewilda

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Quote from: qwertyup23 on April 02, 2021, 12:07:04 PM

I think I also read a similar article where 97% of the day traders lose money on the first year of trading; and those who profited earned at least an amount similar to that of a bank teller.

The problem with day-trading are the risks associated with the cryptocurrency themselves. Unlike in stocks trading, the price of cryptocurrencies are VERY volatile. The changes on its value are so significant that there maybe times where the increase/decrease are above 10% on a single day. Be reminded also that most day traders, in order to gain profit, trade in large amounts.

Comparing out stocks/forex with crypto then you can really tell the difference but to know that most scalpers or day active traders are much more preferring on playing with active
price movements rather than on those barely moving stocks or currencies? This market wont really make this big if interest isnt really on here. Losing is part of the journey
when you do make up some trades because this market composed of sellers and buyers which losing would really be inevitable and i dont believe much about
percentages to be precise because we dont know on whats actually happening behind in overall trading activity circling or happening globally.

qwertyup23

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I think I also read a similar article where 97% of the day traders lose money on the first year of trading; and those who profited earned at least an amount similar to that of a bank teller.

The problem with day-trading are the risks associated with the cryptocurrency themselves. Unlike in stocks trading, the price of cryptocurrencies are VERY volatile. The changes on its value are so significant that there maybe times where the increase/decrease are above 10% on a single day. Be reminded also that most day traders, in order to gain profit, trade in large amounts.

rodskee

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Quote from: Charles-Tim on March 03, 2021, 05:26:42 PM

It is surprising what I saw about trading, that 95% of traders are losing, this was not what I even thought before, I was considering 75% of traders, but no research paper exists that proves this number right while some suggesting that the actual figure is much, much higher.

Well I think depend in which people are we talking and how often we read about the losses or winning in trading.

Quote

This poll are strictly for traders, it is clear that holding bitcoin and some other strong altcoins in the past did not later result to loss, unless the people that sold out of panic, because the price of these crypto assets increased back. So, this poll are only for traders, for us to know how trading is risky.

I have only several trades in my whole entire career here in crypto but all I can say is that I gained , maybe with the help of my mentors and friends so i go along with their trades.

Quote

This is not about what you feel about trading, it is about what has happened to you, maybe you have lost to trading, or you are gaining from trading.

https://tradeciety.com/24-statistics-why-most-traders-lose-money/

Specifically i traded AFAIR 8x and i made profit in 6 of them , meaning those 2 remains as my Holding up to now so basically i have not lost anything so far.

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Quote from: Quidat on April 01, 2021, 06:56:53 PM

Quote from: South Park on April 01, 2021, 12:52:38 PM

Quote from: JooBra on March 27, 2021, 02:44:45 PM

Funny to see that most obvious option has the lowest votes. I'm sure almost all of us have gained and lose while trading that's the reality. We just need to be more in positive trades than negative ones.

It is in fact easy to explain it is known that gamblers have a clear tendency to tell the tales of the times they won and hide the times they lost, this gives the appearance that everyone is a winner when in fact we know that statistically speaking that cannot be the case, and something similar could be at work here, and about your second point this is not accurate, you can in fact be a winning trader even if you lose more than 50% of your trades but you need to obtain more profits during those trades if you choose that path.

Would just matter if you do really make profits aside of those losses that you had experienced and that whats the most important thing.
Being profitable inspite of the losses you had committed and this is why we do still see lots of traders who do really keep on trading even though it is hard
and its not something that can be done by everybody.Trading isnt for everybody but i dont really believe that 95% do really fail up into this industry or market.
We wont see such liquidity if there are people who are losing into this field.There are still who do make out success and still continuing.

You are right, but it is really difficult who it is they achieve it, in particular I know that trading must be studied every day, and each operation is a teaching, the best thing that can be done to not be in the statistics of that 95% is to read and have information Some are governed by the news, but according to my little experience I think that reading books from market speculators where they explain their experiences helps a lot, and the important thing is that out of every three or 5 operations they come out with a positive balance, that's the way to become consistent.

My way of operating is as follows:

I trade 3 maximum trades, if I lose one, I must recover with the other trade, otherwise with the 3rd trade I must recover and leave with a positive balance, it is very important to leave with a positive balance, if I lose the 3 trades it means that my plan is not the correct one and that I do not have the adequate market vision, and I must change the way I operate, but I do not allow myself to lose 10%, it must always be less than that amount, I think that is my general stop loss. If all operators were similarly careful, that percentage would likely be reduced.

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Quote from: South Park on April 01, 2021, 12:52:38 PM

Quote from: JooBra on March 27, 2021, 02:44:45 PM

Funny to see that most obvious option has the lowest votes. I'm sure almost all of us have gained and lose while trading that's the reality. We just need to be more in positive trades than negative ones.

It is in fact easy to explain it is known that gamblers have a clear tendency to tell the tales of the times they won and hide the times they lost, this gives the appearance that everyone is a winner when in fact we know that statistically speaking that cannot be the case, and something similar could be at work here, and about your second point this is not accurate, you can in fact be a winning trader even if you lose more than 50% of your trades but you need to obtain more profits during those trades if you choose that path.

Would just matter if you do really make profits aside of those losses that you had experienced and that whats the most important thing.
Being profitable inspite of the losses you had committed and this is why we do still see lots of traders who do really keep on trading even though it is hard
and its not something that can be done by everybody.Trading isnt for everybody but i dont really believe that 95% do really fail up into this industry or market.
We wont see such liquidity if there are people who are losing into this field.There are still who do make out success and still continuing.

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Quote from: JooBra on March 27, 2021, 02:44:45 PM

Funny to see that most obvious option has the lowest votes. I'm sure almost all of us have gained and lose while trading that's the reality. We just need to be more in positive trades than negative ones.

The main point, I don't think, is what is meant, but regarding the data, it shows that many traders cannot perform technical market analysis. of course if a trader experiences a loss is a natural thing, but if it continues it's not a good thing, there must be something wrong with the way we trade. trading business is not an easy one that everyone can do. the risks and emotions in this business can make us poor in no time

South Park

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Quote from: JooBra on March 27, 2021, 02:44:45 PM

Funny to see that most obvious option has the lowest votes. I'm sure almost all of us have gained and lose while trading that's the reality. We just need to be more in positive trades than negative ones.

It is in fact easy to explain it is known that gamblers have a clear tendency to tell the tales of the times they won and hide the times they lost, this gives the appearance that everyone is a winner when in fact we know that statistically speaking that cannot be the case, and something similar could be at work here, and about your second point this is not accurate, you can in fact be a winning trader even if you lose more than 50% of your trades but you need to obtain more profits during those trades if you choose that path.

JooBra

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Funny to see that most obvious option has the lowest votes. I'm sure almost all of us have gained and lose while trading that's the reality. We just need to be more in positive trades than negative ones.

conected

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Quote from: Wawa2013 on March 25, 2021, 12:55:15 PM

I did not expect that the data shows that 95% of traders suffered losses, I thought the number of successful traders was very large.
It turns out that my guess has been wrong all this time, but if I think about it again, it is possible that the data is correct, because I still
often experience losses when trading. For now I prefer long-term investment rather than trading. It is indeed difficult to predict volatile
crypto price movements, which can rise significantly and can also fall drastically. Therefore it is very natural that 95% of traders are losing.
Because it is very difficult to make profit from trading.

- In my opinion, long term investment is also trading and trading is also investment, the exact thing I know is that we will never lose real unless we stop loss, so your view of this data is not entirely wrong, so your perspective or the sharing of this topic, both always point to the same problem, just the perspective is different, the result is also true in two different directions. Losing is natural when the price jumps too fast but the way we withstand and wait for a recovery will yield different results, in this way, we will at least have 40% -50% of winners in trading

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Quote from: Wawa2013 on March 25, 2021, 12:55:15 PM

I did not expect that the data shows that 95% of traders suffered losses, I thought the number of successful traders was very large.
It turns out that my guess has been wrong all this time, but if I think about it again, it is possible that the data is correct, because I still
often experience losses when trading. For now I prefer long-term investment rather than trading. It is indeed difficult to predict volatile
crypto price movements, which can rise significantly and can also fall drastically. Therefore it is very natural that 95% of traders are losing.
Because it is very difficult to make profit from trading.

Well, you may now expect that many traders had suffered losses but that 95% comes not true to me.

We don't have accurate data that could tell how many had failed in trading and quit. But can't deny that majority of these traders didn't reach what they wanted to happen. But I'm still believing that many were still successful despite the challenging part of trading. Some just quiet and still improving the knowledge and skill and for no reason that they shout that they are successful.

South Park

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Quote from: TastyChillySauce00 on March 24, 2021, 02:18:07 AM

Quote from: Kelvinid on March 23, 2021, 05:35:51 PM

Quote from: Myleschetty on March 23, 2021, 04:37:52 PM

I believe the calculations are true but cryptocurrency is not something a trader must do 24/7 because it has affected the relationship for some people and the last time I checked trading is not for everybody. After all, traders who can't control their emotions will always be among the 95% of trader that makes lost.

Even they lost control of their emotion but couldn't imagine those numbers, 95% is really high to think that only a few traders just succeed.
I think this 95% is not only in crypto trading alone or that possibly it is in the stock market where it is highly affected during the pandemic. The stock market dumps which means traders and investors had lost a lot, not in crypto where it keeps moving high making trader earn more.

You underestimated the amount of newbies that trying to make quick bucks in trading within a year, they are those people who said to buy high sell low mainly because they are still heavily influenced by their emotion which is fear than quit trading after failing a few times. I've seen so many people like that and even some of them go back to trading just to fail again since they are not really good at emotion management and I think they are the one that makes up those 95% number of traders who are losing.

It is because of this that newbies should try to learn how to protect their capital in a more efficient way before trading the markets, instead they spend most of their time trying to create a system of signals that tells them when to buy and when to sell and when that fails then they take bad decisions like staying in the same losing trade thinking the market is going to switch and once again go up only to find out this does not happen and they become just another statistic.

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Quote from: SquallLeonhart on March 26, 2021, 12:09:44 PM

Trading and investing are two very different things. Even though I do not believe that 95% traders lose money […]

I believe that 95% of people in this "Trading" board do not know the difference between trading and investing. *giggle*

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Quote from: isaac_clarke22 on March 25, 2021, 08:47:34 AM

there could be also day traders that could still be successful in one of those 5% and some long-term hodlers that are easily driven by emotion that exits the market to quickly.
But I believe as well that most of them would be long-term hodlers, though I won't count myself into the 5% because I am not that too active in trading as I don't really have the time at all in looking at the charts, the candles, as well as those indicators.

Trading and investing are two very different things. Even though I do not believe that 95% traders lose money, I do agree that investors and specially long term investors do not lose nearly as much as traders. In the trading world if you are not good at all, you will end up losing all of your money, but in the investment world, all you have to do is look away for few years and you will be profiting a lot.

In the long run investors always wins, whereas traders have a harder time. It still can't be 95%, that is waaay too much, but I still think it is quite obvious that there is a level of truth to "most" traders losing money, that is at least what I feel like could be going on. Maybe more like 60% to 70% levels, those look much better numbers. Of course investors have 60-70% win numbers instead of losing numbers so that is a big deal.

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Quote from: RealMalatesta on March 25, 2021, 09:48:56 AM

Quote from: Charles-Tim on March 03, 2021, 05:26:42 PM

It is surprising what I saw about trading, that 95% of traders are losing, this was not what I even thought before, I was considering 75% of traders, but no research paper exists that proves this number right while some suggesting that the actual figure is much, much higher.

Trading is difficult, I already know a lot of people are going to be losing. It’s just like the time I wanted to be an options trader, I noticed that most of the platform I wanted to make use of had lots of negative comments of people who keep accusing them that they are scammers that keeps stealing their money, but later on I got to understand that most of the people dropping those comments are just some inexperienced traders that lost their money from trading.

So, they are pissed and attacking the companies. Trading has never been easy, no matter what kind of trading it is, lots of people are losing.

When it comes to options then i do really consider this to be more risky than on making doing spot or long term trades which the risk is somewhat equalled if you you do compared off with leverage kind of trades.
Losing is common and success will really vary on how someone do deal up with the market.We do have our own ways and methods and success isnt something that can be acheived with just few try outs or
trades which basically simply means that this will take a long time.95% is indeed high if we do talk about losing traders but we wont really be achieving this kind of liquidity rate if there are no
people who had been actively trading with these very volatile prices.

masterzino

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95% is a too big number. The average % of losers is in the 70%-85% range.

FX/CFD brokers are obligated by law to have disclaimers like:

IG.com - "75% of retail investor accounts lose money when trading spread bets and CFDs with this provider."

Plus500.com - "76.4% of retail investor accounts lose money when trading CFDs with this provider. "

and so on.

Trading is not a zero-sum game. Fees are eating a lot and when you add freed and incompetence, then the % is skyrocketing.

Wawa2013

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I did not expect that the data shows that 95% of traders suffered losses, I thought the number of successful traders was very large.
It turns out that my guess has been wrong all this time, but if I think about it again, it is possible that the data is correct, because I still
often experience losses when trading. For now I prefer long-term investment rather than trading. It is indeed difficult to predict volatile
crypto price movements, which can rise significantly and can also fall drastically. Therefore it is very natural that 95% of traders are losing.
Because it is very difficult to make profit from trading.

Topic: Data suggesting more than 95% traders are losing (Read 1178 times)