Topic: Data suggesting more than 95% traders are losing - page 6. (Read 1178 times)

I felt bad back in the days when I was still day trading. It felt like a defeat when I experienced loss in my first day in my day trading experience.
It is written in my journal as well, but that's almost like buried already in my history here in crypto. It should be safe to say that I, at the least, became a short-term trader because I already experienced both sides.

As if a lot of trader have the funds for their trading upkeep costs. If the trader is losing because of his/her decisions then there is no saving grace such as going long or short. Also, most traders are greenhorns who just wants to get into trading because a friend of their friend introduced them to trading and they think that they can do it themselves and most of the time, the people who genuinely wants to learn about trading and such are a fraction of those 95%.

The numbers presented by the OP may seem surprising but this is the reality on most markets, most people lose money that is inevitable, this is a competition and when we take into account the fees you need to pay to move your coins, the fees of the exchange and the taxes you need to pay then it is normal that more than 50% of traders lose, then wen we add the ignorance of most traders this numbers grows even more dramatically, which is why a minority of the traders keeps most of the profits to themselves and are the only ones that can become profitable over the long term.

Losing in trading depends, for new traders that are not patient to learn, 99.99% or more of them will lose, trading is not about thinking about profit, it deals mostly to think about ways not to lose and how to manage risks. That 95% traders to be losing is also too high, I think it can not be up to that extent, but trading is risky. Someone can lose millions to trading in just a short period of time. I like to advice about savings which helps people in life, but if want to trade, it should be done with what you can afford to lose.

I have experience working with proprietary firms. Let me share with you my experience and some undeniable fact, unfortunately many of the trader out there especially retail traders unwilling to accept. It's not just crypto, this includes almost the whole financial market for instance stocks, commodities, bonds, precious metals etc.

GREED AND HOPE TO GET RICH OVERNIGHT
Human born nature to be greedy. This is the main reason someone get into trading but they forgotten no one can predict future.

EITHER HEAD OR TAIL
A financial chart is almost like a TV screen in front of a roulettes table inside casino. It's RED on this hand but it does not predict the outcome on next hand, still 48.7% RED, 48.7% BLACK, 2.6% GREEN. Sometime they get lucky getting in before the trend and think they are good enough to get rich soon, they forget the outcome are always either HEAD or TAIL.

MONEY MANAGEMENT
Putting small money and hope to win big. That's call gambling and not trading. Those who really success in trading are putting big money to win small money with predictable risk.

These couple examples are the most common why most trader loss their money. Investing is buying something which you assume it has appreciation value and hold for some time. But when it comes to trading especially on intraday or short term trading, if someone lack of experience or discipline, it can easily become gambling. If someone still think they can get rich by predicting the direction in short terms, I can assured you that's not how it works especially those big investment firms. Very few of them can success trading on intraday or short term, but always remember, the shorter time frame you trade, the higher skill level you need. Sorry for my broken English because it's not my first language.

Dont mind about the losing percentage of traders who are into this market.What matter most is to think up for yourself to succeed or making yourself included to the
profiting side.Its true that lots are on the losing side but doesnt mean that you would allow yourself to be sitting on that part, have some goals and strive the best as
you can to be profitable.In the poll, i had put up im on the profiting side.Not to be boastful but somewhat i do able to sustain myself into this market on what ive been trading.
Losing is inevitable but doesnt mean that this will be completely shut your off or make your stop on dealing with the market.

First of all I think we must start by making a distinction between trading (which is basically speculating about the price movement of a certain asset in a set timeframe) and investing which is a more fundamental-based approach where you put your money to work for the long-time. Some will argue that investing is simply trading on longer timeframes. Well, that's not true. When you're doing intra-day trading or even swing trading you're basically betting on one part of the market forces being stronger than the other so you are exposed to the random players that enter and/or exit the markets. You've got to be extremely careful when you define your activity.

Holding or investing in Bitcoin has been proven to be profitable on the medium to long timeframes, but remember that past performance is not necessarily an indication of future results.

The liquidity is provided by the %95 of losers and the losers feed the limit orders of the top 1% winners. The trading is a zero-sum game, someone has to lose more for winners to get the big fish. The more the short-term traders don't wanna learn the secrets of market patterns over the long term, the traders with long-term market vision will take all. Long-term goals are important to achieve the goal of top 1% winners.

In forex markets, the situation is completely different. As the old spot forex trader, I confirm it is less than 5% winners in trading and the 95% lose the all balance in the long run. The long-term investing has better R:R compared to the short-term market movements, better to check the market sentiment before trading the majority of the market participants in such cases.

So, this is just the same on what are the percentage that we can look also in forex.
https://dailypriceaction.com/blog/successful-forex-traders/#:~:text=A%20well%2Dknown%20figure%20in,figures%20aren't%20far%20off.

How much more on cryptocurrency? I cant say if its lower or higher but basing off on profitability chances or opportunities then
I can say that there are somewhat higher successful traders out there.

It is why I've always stayed as a holder. I trade sometimes but I make sure that I make profit instead of just losing my capital.

Many traders do really lose and in these times, there are more new traders that came and they added to that stats because they lack of experience.

But I think, knowing about how many percentage of traders make money, they're more than the remaining 5%.

It is understandable that not all traders may not be making money but remember that most traders do not trade like it is full time job, even if it is not your full time job there are very few people who trade daily, like at nights after dinner start trading for 5-6 hours a day type of deal, that could be done and not many people do it. Most people just trade here and there rarely and end up losing money and leaving, that is the majority of people who lose money.

Any decent trader would know what to buy, wouldn't buy something horrible and shady, and would wait if it is on the down and buy even more to drop the purchasing average and would sell later on when it goes up, so basically anyone smart enough to do what they can would basically end up with a lot of money, that is why I do not believe that 95% would lose money, a "true trader" would be 70%+ profitable people with just 30% unlucky that's it.

Not surprising, because 95% of those who lose is the percentage that goes through many surveys that can be found online. If you look at this article from 2013, it also raises the question of whether it is possible that as many as 95% of Forex users also lose money. I also read somewhere that as many as 97% of people who bet on sporting events also do not make a profit, but it should be taken into account that some actually consider this form of investing as fun.

While we can't know the real number of those who make a profit from some kind of trading, I don't think it's more than 20% at best - although I'll agree with what's in the OP, and that number is actually much lower. One wonders how then is it possible that the internet is full of stories of those who have become so rich in this way? Let's say that such platforms attract fresh blood in this way, because it is easiest to sell a story about how you don't have to do anything, and you can gain a lot of wealth.

There is no way about winning if we have been controlled by our emotions. It should be stopped in order to make a good decision that will results positive.

It can't deny that many traders had lost but many were also are profiting.
What brings us to losses is that because we wanted instant, we wanted to become rich in a day but we even don't know to work patiently to achieve our goal. That's something we commonly missed and that is why most traders will say that they are badly losing than profiting. They don't have the record to help track their traders either. So they never know exactly, IMO.

Many traders fail because they are brought about by their emotion. Can't really blame them because to be human is to feel emotions. One's emotions can really sometimes hinder your ability to make intelligent decisions. Most are affected by their fear too much. As Warren Buffet said "Be greedy while others are fearful".

One thing to note though is that a trader will not always be profiting every single day. It's normal to see their PNL track record to have some red. What's important is the profit should outweigh the losses. I've learned over quite some time from trading that you can always gain back your losses. The market is always there and will recover even after experiencing a crash. Just this time last year, markets have crashed due to the corona virus outbreak but right now the scenario is very different and the sentiment for the markets is very positive as everyone is hoping for the economy to recover.

Not really a thing to believe because I was thinking that the majority of the traders are in good and profiting. Because I believe that they are taking the advantages of using the trading tool available and works effectively, but somehow it just results like this? It never works great.

I'm not sure how reliable it was but that's it, the result is really bad and the more it discourages people to go in trading rather than to be a holder. I have the plan to become a full-time trader once I have enough capital but this gives me worries what if I just ended up nothing like this 95% of traders who suffered losses.

I think the option should be adding more such as my percentage in gain and loss will be 50%-50%

I can profit from trading, but I am not always making a profit because sometimes, I miss analyzing the market. But I am not a daily trader as I do not think that I can analyze the market better than other people.

The trader will lose their money if they can not analyze the market because that is the key for them to have in trading. So if you want to become a trader, you should have that and learn more about trading.

I don't think the numbers are this extreme. If they were then trading would have stopped. Always losing will not only discourage that many people but also bankrupt them so they can't continue trading and the volumes would have dropped by 95% too!
The fact that volumes remain high suggests that a lot more than just 5% are making profit. It may not be massive profit and not on every trade but there must be a net profit at the end of the day.

Besides we have no way of actually studying the numbers and coming up with a percentage without getting ALL the trade history of at least one exchange for users not the trade history without the user ID attached. And no exchange would ever provide this information because it is an invasion of privacy.

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.

Traders are losing because that's normal and our goal is not to always make profit but of course to earn money and reach our target profit at the end of the day.

I personally have an excel file of my trades (journal), and I can say that I lose on many trades but I also make money on some of my trades. My result last year was great since I'm on a gain position. Many says that, long term investors are way more profitable than trading and less hassle of course which is true so if you're not into trading, then play long. 

It is a research paper? - so you have to take it with a grain of salt. Of course the motion is correct if they say that those who panic lose early than those who hold for long to sell at the right time.

I saw a lot of points that have been posted there but having been in trading for quite some time, the majority of the statements in that article seem to promote the idea of "keep going you will earn a lot" - a type of propaganda that such blogs run in order to get their referral commission from signups.

Thing is trading is not for everyone and in case you are a part of the lot that cannot cope with losses, you need to stop trading. This is tough when you are being brainwashed into continuing to trade. Not that I am discouraging people to read such articles on random blogs, but do their own research first and stop listening to opinions.