Reasons why the 95% of future traders lose all of their money

darewaller

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Quote from: bitzizzix on February 01, 2023, 02:39:31 AM

There is no way to say that 95% of traders lose money, but the majority do, it's true. And it happens not only for beginners, but the majority often happens for beginners due to lack of knowledge and discipline that doesn't support or even doesn't exist at all.

Now in trading, like any other business, money is squeezed out of many of the least savvy traders and given to elite traders.
No way, 100% of all traders will make money, except for a continuous bull market.
Greed, emotional, mental and fear rule the majority and they will lose money for trading reasons.

Indeed 95% seems too much already even though I also saw a lot of threads here about the people who fail on futures trading. To fail can be normal especially if we are only getting started but later on, it is still possible for us to improve and recover what we have lost. Just like in trading that some people will lose first in order for others to profit, that is also how the bull market works.

There will be people first who will lose money during the bear market and then there must be people who will offer their money first (buy coins) to build up the price. If we know that we have all the negative traits that you mention, it will be better to avoid trading first because it can only affect our performances.

Bobrox

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Based on my experience in future trading I have some trick how to get profit and less risk or loss there,

Apply Profit Target

Many people in future trading become greedy without use how percentage for profit target, they will forget when looking PNL profitable more than 100% until price going drop.

Set Stop Loss

This important points in future trading, have set with how much percentage loss and stop trading tricked will help us from liquidation, make stop loss above from your target because some time Binance can't take or filled with your stop loss price.

bitzizzix

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There is no way to say that 95% of traders lose money, but the majority do, it's true. And it happens not only for beginners, but the majority often happens for beginners due to lack of knowledge and discipline that doesn't support or even doesn't exist at all.

Now in trading, like any other business, money is squeezed out of many of the least savvy traders and given to elite traders.
No way, 100% of all traders will make money, except for a continuous bull market.
Greed, emotional, mental and fear rule the majority and they will lose money for trading reasons.

bettercrypto

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Entering and performing trading activities in futures trading requires sufficient knowledge and you cannot be willing to take a risk.

If those who already have ideas and knowledge in futures trading are still losing, what about those who don't know about it yet, right? That's why even if you lose in trading, you must also know what lesson you can get from it so that that mistake doesn't happen again so that you can stay longer and deepen your knowledge here as an individual trader in cryptocurrency.

cozytrade

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Quote from: Kasabus on January 13, 2023, 03:58:44 PM

Quote from: mvdheuvel1983 on January 12, 2023, 03:38:36 PM

Quote from: DevilSlayer on November 15, 2022, 10:29:16 AM

1. Psychological – Trading is inherently risky; futures traders should be aware that no trade has a guaranteed outcome. When you put a trade, you are correspondingly accepting the risk but that’s where the problem comes in. All of the traders are taking the risk but are they accepting that the trade has a non-guaranteed outcome? The answer is No. Consistent traders are aware that there is no sure profit or magic in trading. They embrace the risk where if they lose, it is okay for them because they know that there is no guaranteed outcome.

I know why I lost some time ago- greed that made me increase the size of my position beyond my capacity.
The thing was I understood that I wasn't supposed to over increase my size and position. I couldn't control the risk with the position size, and I did lost a huge chunk of my portfolio.

Well, if you act like that, then losing will always be certain. It’s very unhealthy to trade motivated with greed since that will not help you to come up with smart decisions. Instead, once you lose in your trade, your emotions will burst out too leading into a very unhealthy position that will eventually make you a loser in the end.

I often see that all the money is lost because of a little greed. So never be greedy. The more we can stay away from greed, the better for us. But most of the time I am in a lot of trouble because of my own mistakes. But now I am After understanding everything, I don't have the decision to do the work because of this, my loss amount has decreased a lot.

milewilda

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Quote from: Kasabus on January 13, 2023, 03:58:44 PM

Quote from: mvdheuvel1983 on January 12, 2023, 03:38:36 PM

Quote from: DevilSlayer on November 15, 2022, 10:29:16 AM

1. Psychological – Trading is inherently risky; futures traders should be aware that no trade has a guaranteed outcome. When you put a trade, you are correspondingly accepting the risk but that’s where the problem comes in. All of the traders are taking the risk but are they accepting that the trade has a non-guaranteed outcome? The answer is No. Consistent traders are aware that there is no sure profit or magic in trading. They embrace the risk where if they lose, it is okay for them because they know that there is no guaranteed outcome.

I know why I lost some time ago- greed that made me increase the size of my position beyond my capacity.
The thing was I understood that I wasn't supposed to over increase my size and position. I couldn't control the risk with the position size, and I did lost a huge chunk of my portfolio.

Well, if you act like that, then losing will always be certain. It’s very unhealthy to trade motivated with greed since that will not help you to come up with smart decisions. Instead, once you lose in your trade, your emotions will burst out too leading into a very unhealthy position that will eventually make you a loser in the end.

Doesnt matter on what are the emotions you should set upon or what are the things that you are doing with which losing is inevitable and there's no way that you could be able to avoid that even with those veterans or professionals that we do have in this market.Thing that differs them is that those pro's does have the idea on what to do or on what measure they would really be doing in the time that they are facing such condition.
Futures is really that too risky i must say but since it does give out that opportunity on getting high profits specially on high leverage on which it do really sparks out everyones interest on doing so
and this is why its not really that surprising that they would really be tending to dive in without any proper preparations and awareness.

Gladitorcomeback

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In my opinion if a person wants to involved in trading then he must have to clear one thing that with success you will definitely face some failure at some moments. Failure does not mean that now you are looser and you will not make profit ever but instead from these mistakes you learn and this lead you to the successful path.

Giving time to trading is also very important because if you do not give time to it then you will not realize that what's going on. Always focus on price, market situations and your strategies. If a price drops then you should never sell your holding coin as it can drops your money but whenever markets stabilizes then sell that coin to get better revenue.

Kasabus

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Quote from: mvdheuvel1983 on January 12, 2023, 03:38:36 PM

Quote from: DevilSlayer on November 15, 2022, 10:29:16 AM

1. Psychological – Trading is inherently risky; futures traders should be aware that no trade has a guaranteed outcome. When you put a trade, you are correspondingly accepting the risk but that’s where the problem comes in. All of the traders are taking the risk but are they accepting that the trade has a non-guaranteed outcome? The answer is No. Consistent traders are aware that there is no sure profit or magic in trading. They embrace the risk where if they lose, it is okay for them because they know that there is no guaranteed outcome.

I know why I lost some time ago- greed that made me increase the size of my position beyond my capacity.
The thing was I understood that I wasn't supposed to over increase my size and position. I couldn't control the risk with the position size, and I did lost a huge chunk of my portfolio.

Well, if you act like that, then losing will always be certain. It’s very unhealthy to trade motivated with greed since that will not help you to come up with smart decisions. Instead, once you lose in your trade, your emotions will burst out too leading into a very unhealthy position that will eventually make you a loser in the end.

Hamphser

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Quote from: mvdheuvel1983 on January 12, 2023, 03:38:36 PM

Quote from: DevilSlayer on November 15, 2022, 10:29:16 AM

1. Psychological – Trading is inherently risky; futures traders should be aware that no trade has a guaranteed outcome. When you put a trade, you are correspondingly accepting the risk but that’s where the problem comes in. All of the traders are taking the risk but are they accepting that the trade has a non-guaranteed outcome? The answer is No. Consistent traders are aware that there is no sure profit or magic in trading. They embrace the risk where if they lose, it is okay for them because they know that there is no guaranteed outcome.

I know why I lost some time ago- greed that made me increase the size of my position beyond my capacity.
The thing was I understood that I wasn't supposed to over increase my size and position. I couldn't control the risk with the position size, and I did lost a huge chunk of my portfolio.

If you do make yourself in a hurry then it is really that prone to mistakes and errors which on the time that you do decide to make out some changes then you should really make sure that you are really that fully aware about the risk involved and since you've been talking about sizing up your position then you are aware that risk of losing is high.

Whether you do make use of small or high amount positions if you do find out that your small positions turns out to be that positive or profitable then its not bad to make out such changes as long you would be that sticking into your own ways and methods but of course on the time that you do make out such changes then you should really bare up with the risk involved into that because the higher chances that you would really be losing money but if things turns out to be good then profits is also better.

mvdheuvel1983

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Quote from: DevilSlayer on November 15, 2022, 10:29:16 AM

1. Psychological – Trading is inherently risky; futures traders should be aware that no trade has a guaranteed outcome. When you put a trade, you are correspondingly accepting the risk but that’s where the problem comes in. All of the traders are taking the risk but are they accepting that the trade has a non-guaranteed outcome? The answer is No. Consistent traders are aware that there is no sure profit or magic in trading. They embrace the risk where if they lose, it is okay for them because they know that there is no guaranteed outcome.

I know why I lost some time ago- greed that made me increase the size of my position beyond my capacity.
The thing was I understood that I wasn't supposed to over increase my size and position. I couldn't control the risk with the position size, and I did lost a huge chunk of my portfolio.

Fondarchand

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Losing is common and every person experience failure in his life time but i think that future trading is not good and it can never make you rich as there is great hazardous related to future trading so i will suggest that instead of future trading just buy some coins that you know that is the best coin and will become enhanced, so hold these coins for further enhancement in cost, it will boost your money and success chances.

lixer

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Quote from: WalkerIVIV on January 05, 2023, 05:40:51 PM

investing and trading honestly is more than what's written in technical analysis books, there are so many emotion involved and that could influence your decision in trading and investing, so if you happened to lose your money in your trading maybe you're getting too carried away emotionally and make some haste decision, moreover the fact that so many coins out there don't follow technical analysis pattern is enough reason that you could be losing your trading and investments since sometimes it's all about luck.

If the book is only about analysis then that is the only thing that you will learn there but other things are not yet tackled there. Investing is so wide but there might be books who are complete already. Trading mainly uses technical analysis but in investing, it's more on fundamental.

It's still up to us if we think learning both can be more beneficial to us then why not? If there is one thing that have in common for both investors and trading then that would be the emotions. It can messed you up pretty badly no matter what you do so we should learn how to control it to be able to be successful in our journey. Losing is sometimes inevitable but this should discourage us totally. Just carry on.

Golfler

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Quote from: imamusma on November 15, 2022, 04:43:55 PM

Quote from: mk4 on November 15, 2022, 10:50:02 AM

There's a reason why a lot of successful traders use algorithms/bots/scripts to execute their trades — it's to take as much emotion as possible out of the picture.

I get a good point, you are correct on this. Basically, uncontrolled emotions can make traders lose money in the market, whether it's in futures or spot trading. Emotion management is a must have for every trader, but if they use tools like bots then it will be very helpful.

Watching market volatility during trading will allow anyone to lose control of their emotions, especially if the market is undergoing a sharp correction.

To control emotions, you must first control your heart and subconscious mind. You must put your subconscious mind back into a state of positive energy, and make the trading decision you want to make most in your heart. Then don’t have any expectations. There is no absolute right or wrong, and some wrong decisions will last for a long time. It might be good to see too.

Jensen Guttenberg

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"The only way to avoid mistakes is to gain experience, and the only way to gain experience is to make mistakes." - Robert Kiyosaki

Well, unfortunately, there are many scams and sharp schemes in the world of cryptocurrencies... And sadly, some investors may fall victim to these. It's important for investors to do their due diligence and be cautious of any investment opportunities that seem too good to be true.

WalkerIVIV

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investing and trading honestly is more than what's written in technical analysis books, there are so many emotion involved and that could influence your decision in trading and investing, so if you happened to lose your money in your trading maybe you're getting too carried away emotionally and make some haste decision, moreover the fact that so many coins out there don't follow technical analysis pattern is enough reason that you could be losing your trading and investments since sometimes it's all about luck.

Sanitough

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Quote from: Rockstarguy on December 17, 2022, 05:01:47 PM

Quote from: Subbir on December 11, 2022, 07:39:38 AM

The reason for losing money in trading is that most traders are new to the crypto market and expect to make more profits in a short period of time, in which case they face more losses. To determine risk tolerance, start trading with a virtual account and analyze the market well. If you have limited risk capacity and cannot handle large losses then it is better to close the trade.

People lose money in trading for different reasons, some maybe because of not having good understanding about trading but they force their self in trading just to make money. Some people come into trading having a mindset to become rich without making good research to know the essence of trading. Lack of knowledge is the reason why people lose all of their money in trading. If traders should consider learning and having patience their wont be to much lose of money.

But the sad fact nowadays is that traders are more on earning for quick profits, and if they see the market is not cooperating, they end up panicking and lost their patience along the way, so they turned out to be losers instead of profiting. As long as people trade with emotions and greed, they will never be successful from trading and will continue to waste their money from trading.

blockman

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Quote from: ?? on ??

Most often, traders choose the wrong strategy, or simply do not know how to work correctly. As a result, most often this leads to a negative result.

Everyone believes has got a good start by having any strategy that they know would be good as they test it. But sooner or later, after testing it, there goes the result, and will depend on its outcome. If it's not worth it at all then that means that strategy really has failed and they've chosen the wrong one but if it works, then they're the geniuses and that strategy works for them perfectly and makes money for them. But the reality in trading, no matter what strategy you've got, everyone has the high chance of just losing from it.

Pandu Geddon

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Quote from: Shinpako09 on January 05, 2023, 08:36:14 AM

They are losing because some thinks trading is simply buy low, sell high. They got carried away by the hype from the videos they watched. They don't realize that trading takes time before they honed their skills or too lazy to take one step at a time. Trading isn't for someone who is eager to make a fortune quickly. Some are only buying when the market or coins is being hyped or at peak thinking they can ride but the thing is. They have come at the wrong time when traders reach their selling point.

that's what makes most novice traders who want to quickly profit receive a lot of losses. they do not prepare themselves with good knowledge and skills. what's more, beginners only follow trading signals from telegram groups. not a group thing, but applying their trade takes some skill too.
maybe indeed more futures traders receive losses than gains.

Shinpako09

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They are losing because some thinks trading is simply buy low, sell high. They got carried away by the hype from the videos they watched. They don't realize that trading takes time before they honed their skills or too lazy to take one step at a time. Trading isn't for someone who is eager to make a fortune quickly. Some are only buying when the market or coins is being hyped or at peak thinking they can ride but the thing is. They have come at the wrong time when traders reach their selling point.

stomachgrowls

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Quote from: Taskford on January 02, 2023, 05:41:00 PM

Quote from: freedomgo on January 02, 2023, 04:29:59 PM

Quote from: Rockstarguy on December 17, 2022, 05:01:47 PM

Quote from: Subbir on December 11, 2022, 07:39:38 AM

The reason for losing money in trading is that most traders are new to the crypto market and expect to make more profits in a short period of time, in which case they face more losses. To determine risk tolerance, start trading with a virtual account and analyze the market well. If you have limited risk capacity and cannot handle large losses then it is better to close the trade.

People lose money in trading for different reasons, some maybe because of not having good understanding about trading but they force their self in trading just to make money. Some people come into trading having a mindset to become rich without making good research to know the essence of trading. Lack of knowledge is the reason why people lose all of their money in trading. If traders should consider learning and having patience their wont be to much lose of money.

Remember that losing is still a part of trading, so even if traders tend to be more knowledgeable and skilled, there are still unavoidable losses that are hard to resist. What makes more difference in trading is that traders should have the right mindset, why they are in trading and what will make them survive in trading despite of their imperfections as traders.

That's right because even experience people miscalculate things which cause them for losing and there's no total assurance of getting profit with it that's why for newbies they should not believe that someone is earning a passive income with it since trading is somehow gives unexpected scenarios which can cause a lot to everyone. Maybe the least we can do is to avoid losing big and how to discipline ourselves to not getting more greedy to want more if we are already winning.

When you are just new on trading then you shouldnt touch up futures or derivatives trading which it would really be totally a risky move for you to do so.You should stick with spot trading for some long time
and trying out to make yourself that sustainable on this way and never ever tend to jump directly in futures.Its true that even experienced or old traders could really mess up with touching up this area.
Why? Liquidation duration and probabilities is on high chance but of course it is also the same on how you do make profits and this is where people do really get interested on which they would really be
seeing that it would be something that would make them rich in no time but sooner or later they would really be realizing that it wont really be that just simple.

Topic: Reasons why the 95% of future traders lose all of their money (Read 1323 times)