Reasons why the 95% of future traders lose all of their money - page 4.

virasisog

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Quote from: Adbitco on December 11, 2022, 10:16:33 AM

Quote from: Oshosondy on December 10, 2022, 03:45:45 AM

Quote from: Adbitco on December 09, 2022, 08:43:35 AM

One thing they forget about is that before going into such decision of trading in future they should be ready to accept what may comes of it.

This sounds more like you are talking about gambling. Newbie traders are not traders though if they do not follow the rules and strategies and if they are full of emotion without no risk management. What is most important in trading that newbie traders fails to understand is that risk management is very important, traders have to reduce their risk, looking for less profit rather than focusing on higher leverage.

Quote from: Adbitco on December 09, 2022, 08:43:35 AM

Do you think trading bots are 100 percent correct or right?

There is nothing that is 100% correct in trading, only a strategy that bring patience and low risky trading is what is more correct. Even indicators can fail.

Quote from: Ararbermas on December 09, 2022, 10:40:31 AM

Risk management and skills is the most important things specially in futures trading, wherein reason mostly fails and blown their money because they take all the risk on their own way not the real way of trading.

Exactly, risk management is very important, but it is easily said than done.

Actually it most not be gambling before they could lose money, from my understanding trading is more or less of a gambling because one thing for sure is that you must lost money most especially future trading. Just of few days ago a friend of mine whom i know too well lost money and he claims to be too good with trading and yet i have been warning him not to trade, though he makes profits but the risk over it is more than his profits.

The risks in trading are manageable and bearable if we understand how the market moves and we're fully aware of how to deal with the volatility of cryptocurrency. Trading in futures is a challenging thing and it will surely be more like gambling if you aren't familiar with it. Honestly, it will take time for you to learn everything and for you to you fully understand it. If you're a beginner, you'll surely end up having big losses if you couldn't apply any effective strategy to succeed futures. It requires knowledge and a series of research.

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Quote from: Oshosondy on December 10, 2022, 03:45:45 AM

Quote from: Adbitco on December 09, 2022, 08:43:35 AM

One thing they forget about is that before going into such decision of trading in future they should be ready to accept what may comes of it.

This sounds more like you are talking about gambling. Newbie traders are not traders though if they do not follow the rules and strategies and if they are full of emotion without no risk management. What is most important in trading that newbie traders fails to understand is that risk management is very important, traders have to reduce their risk, looking for less profit rather than focusing on higher leverage.

Quote from: Adbitco on December 09, 2022, 08:43:35 AM

Do you think trading bots are 100 percent correct or right?

There is nothing that is 100% correct in trading, only a strategy that bring patience and low risky trading is what is more correct. Even indicators can fail.

Quote from: Ararbermas on December 09, 2022, 10:40:31 AM

Risk management and skills is the most important things specially in futures trading, wherein reason mostly fails and blown their money because they take all the risk on their own way not the real way of trading.

Exactly, risk management is very important, but it is easily said than done.

Actually it most not be gambling before they could lose money, from my understanding trading is more or less of a gambling because one thing for sure is that you must lost money most especially future trading. Just of few days ago a friend of mine whom i know too well lost money and he claims to be too good with trading and yet i have been warning him not to trade, though he makes profits but the risk over it is more than his profits.

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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.

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Quote from: Falconer on December 11, 2022, 03:00:49 AM

My one thought on investing and trading, investors and traders just need to know how the market works and how they can make a profit. One fact is that if they want to be long-term holders then maybe a really detailed analysis is not really needed, especially if the asset of choice is bitcoin.

for futures trading, it will be more complicated than you say. it may look like reading the direction the market is moving. but in reality, many futures traders experience losses. they don't do any research or pretend they know how to analyze the market. but actually, only predictions are used. isn't that the same as gambling?
I will not say all of them. most of the beginners who trade futures must be like that.

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Quote from: OcTradism on December 11, 2022, 02:41:59 AM

Most of newbies including traders and investors are gamblers.

Why are they gamblers but they think they are traders or investors? Because they spend money to invest or to trade without knowledge, without their own research.

Don't be in a hurry to come to a conclusion because it is very possible that what you think is actually not what is the fact.
Indeed, there are some traders or investors who are unable to do analysis or research before investing, but by having basic knowledge about trading and investing, they are also said to have something to strive for. Buy low and sell high is the foundation of successful trading and investing, especially if they are confident and willing to invest in bitcoin instead of altcoin.

My one thought on investing and trading, investors and traders just need to know how the market works and how they can make a profit. One fact is that if they want to be long-term holders then maybe a really detailed analysis is not really needed, especially if the asset of choice is bitcoin.

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Quote from: Oshosondy on December 10, 2022, 03:45:45 AM

This sounds more like you are talking about gambling. Newbie traders are not traders though if they do not follow the rules and strategies and if they are full of emotion without no risk management. What is most important in trading that newbie traders fails to understand is that risk management is very important, traders have to reduce their risk, looking for less profit rather than focusing on higher leverage.

Most of newbies including traders and investors are gamblers.

Why are they gamblers but they think they are traders or investors? Because they spend money to invest or to trade without knowledge, without their own research.

They invest because they read or heard someone wrote or said that Bitcoin is a good investment. They don't know market cycles, prices and psychology. They don't know effects of Bitcoin halvings, fud and massacres to clean up the market before each new bull run.

They trade because they receive signals, entry price and exit price from a signal group. They don't know how to use Stop loss, Stop limit orders and over use leverages.

With serious lack of knowledge, experience and risk management, they will be very easily to panic sell by themselves or be liquidated forcefully by exchanges.

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Quote from: Adbitco on December 09, 2022, 08:43:35 AM

One thing they forget about is that before going into such decision of trading in future they should be ready to accept what may comes of it.

This sounds more like you are talking about gambling. Newbie traders are not traders though if they do not follow the rules and strategies and if they are full of emotion without no risk management. What is most important in trading that newbie traders fails to understand is that risk management is very important, traders have to reduce their risk, looking for less profit rather than focusing on higher leverage.

Quote from: Adbitco on December 09, 2022, 08:43:35 AM

Do you think trading bots are 100 percent correct or right?

There is nothing that is 100% correct in trading, only a strategy that bring patience and low risky trading is what is more correct. Even indicators can fail.

Quote from: Ararbermas on December 09, 2022, 10:40:31 AM

Risk management and skills is the most important things specially in futures trading, wherein reason mostly fails and blown their money because they take all the risk on their own way not the real way of trading.

Exactly, risk management is very important, but it is easily said than done.

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Risk management and skills is the most important things specially in futures trading, wherein reason mostly fails and blown their money because they take all the risk on their own way not the real way of trading.

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

3. Risk management – The reason why people blow their futures account in less than a year is that they have poor risk management. Always remember that it is not about how much money you make, but it is about how much money you don’t lose. Risk management helps us trader's accounts from losing all of our money. Through risk management, we can know if the trade is worth it or not.

This is one aspect of trading that can't be over emphasized because of its importance. No matter how one might be in trading, without a proper risk management technique, such trader wouldn't definitely stay long in the market.
Just as OP stated that it's not about how much profit a trader makes but how much money we don't lose really touch a great spot in me and if I'm to explain, it simply means that, no matter how much money or profit you make, never run out of your trading capital.

Another area I want to contribute is the fact that, demo accounts shouldn't be related to a real money account.
This is because in my few months of trading, there is one thing I've noticed which is the fact that most newbie traders after practicing with a demo account for some time and feel they're good, then to jump into the market and when they start making loss in a row, start thinking their broker is bias and frustration starts creeping in.
So I will always advice people to take a better lesson on trading while making practice with demo accounts.

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Do i say they aren't yet prepared to trade on future because i believe that they only venture into it due to their friends are trading on future or possibly due to inflow of cash which they think could be generated from it. One thing they forget about is that before going into such decision of trading in future they should be ready to accept what may comes of it.

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.

Do you think trading bots are 100 percent correct or right?
I think i have heard of trading bots on whatsapp group i do join then when someone was lamenting about using the bots they introduced to him without proper research about the bots.

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Quote from: LastKiss on December 09, 2022, 06:39:01 AM

Which mean we should be able to control our greed, our greed makes us can't choose correct decision when it comes to risk management. Even when we have our greed controlled we still can't guarantee our profit tho there are a lot of fundamentals we need before we enter futures trading since it really tempts us with its return or it's destroying us with its risk.

I believe greed is not only a problem for futures trading. it is a mistake for all traders. even investors and also gamblers also have the same problem.
Self-control is indeed very important in determining our choices. Apart from our analytical skills, other factors can make us enter into a loss.

but I believe, more futures traders lose money than succeed with big wins.

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Quote from: valeneu on December 09, 2022, 01:30:17 AM

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

~snip~

3. Risk management – The reason why people blow their futures account in less than a year is that they have poor risk management. Always remember that it is not about how much money you make, but it is about how much money you don’t lose. Risk management helps us trader's accounts from losing all of our money. Through risk management, we can know if the trade is worth it or not.

In trading, risk management is very important. Many traders are constantly seeking higher profits while ignoring the high risks involved. Don't pursue getting rich overnight, you must have proper risk management to stop losses in time and minimize losses as much as possible.

Which mean we should be able to control our greed, our greed makes us can't choose correct decision when it comes to risk management. Even when we have our greed controlled we still can't guarantee our profit tho there are a lot of fundamentals we need before we enter futures trading since it really tempts us with its return or it's destroying us with its risk.

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Quote from: Emitdama on December 08, 2022, 01:10:22 PM

The biggest reason is "brave ignorance" and that is something greatly troublesome in every part of the world as well about any topic in the world. People who know absolutely nothing about a thing, ends up reading something on twitter or facebook or wherever and thinks that it's fact and true and starts talking about how true it is.

When in reality what they read there is false and not a fact and wrong, which causes them to have amazing courage and confidence on a factually wrong thing. This causes them to bother the public in other things, but on this it causes them to lose a lot of money, because they simply wanted to believe in a thing just to believe it.

Many people believe that reading something on social media gives them an idea. Of course, yes but we should not just be reliant on it instead, we keep learning more and find another source of information. We never have to be confident of what we have learned online as it was more important to apply the learning we got in order to verify if it is true or false.
- lack of knowledge and less experience are common reasons why traders lost their money

And they have to change the way they think about trading as this is not just simple as people think, it is risky and difficult to analyze.

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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.

Trading psychology is an important factor affecting trading. Don't be overly greedy when trading, control your emotions and take due risks, use failure as a learning process and gain experience from it. Slowly accumulate more trading experience, there will always be a profitable day.

Quote

3. Risk management – The reason why people blow their futures account in less than a year is that they have poor risk management. Always remember that it is not about how much money you make, but it is about how much money you don’t lose. Risk management helps us trader's accounts from losing all of our money. Through risk management, we can know if the trade is worth it or not.

In trading, risk management is very important. Many traders are constantly seeking higher profits while ignoring the high risks involved. Don't pursue getting rich overnight, you must have proper risk management to stop losses in time and minimize losses as much as possible.

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The biggest reason is "brave ignorance" and that is something greatly troublesome in every part of the world as well about any topic in the world. People who know absolutely nothing about a thing, ends up reading something on twitter or facebook or wherever and thinks that it's fact and true and starts talking about how true it is.

When in reality what they read there is false and not a fact and wrong, which causes them to have amazing courage and confidence on a factually wrong thing. This causes them to bother the public in other things, but on this it causes them to lose a lot of money, because they simply wanted to believe in a thing just to believe it.

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Quote from: Issa56 on November 24, 2022, 09:35:03 PM

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

3. Risk management – The reason why people blow their futures account in less than a year is that they have poor risk management. Always remember that it is not about how much money you make, but it is about how much money you don’t lose. Risk management helps us trader's accounts from losing all of our money. Through risk management, we can know if the trade is worth it or not.

Considering the little trading experience I have, I believe risk management is one of the main reasons why most future traders consistently lose money. Since most of them are constantly seeking for higher profits, they always use high leverage when entering trades simply because doing so will increase their profits (the higher the leverage, the higher the profits), but they don't really about the risk, immediately the trade goes against them since they are using high laverage, they easily gets liquidated. when you are using low laverage, then you chances of losing money is less, but also your profits will be kind of small compared to if you use high laverage, but your chances of losing money will be less even if the trade goes against you.

That's true, that's why we have VAR in the 1st place. VAR means Value at Risk wherein it is the percentage of the your money that you can afford to lose. The ideal VAR for traders are usually 1%-2%, to make things clear. If you have $100,000 in your portfolio, then your VAR is 1%, it means that you will risk $1000 in a trade. In this case, you can preserve your capital and you cannot blowout your account through the use of VAR. I actually created a trading calculator in Excel that can compute my trading margin, VAR, and the leverage. Those people who keep losing are usually the traders who doesn't use or even aware to what is VAR.

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That's the reality dear whatever you have mentioned I do agree and you have mentioned some of decent points too. I would say your post is informative and it might be more helpful to our upcoming and current future traders but bro no one can control the emotions and greed a strong emotion never underestimate this emotion because its the root of destruction in trading.

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Quote from: Rufsilf on December 04, 2022, 05:16:17 PM

~snip~reediness can be found in everybody but I don't think that was really the problem in futures trading because what I see is that it is our decision-making. And if we talk about strategies, I think most of us are using the same but what it went wrong is how it was been implemented.

Keep in mind that decision-making depends on how a person's psychology. Wrong decision-making is usually influenced by unstable psychology, as well as greed which makes traders unable to be consistent with the main targets that have been achieved. About the strategy of every trader will not be the same, only a few indicators that they use are the same. Concerning capital management, risk management and others can be combined so that the strategies to be made are not the same.

Quote from: Rufsilf on December 04, 2022, 05:16:17 PM

Whether it was futures trading or not, many traders will often lose rather than make a profit.

Those who often lose money rather than gain are of course those who are beginners and don't understand. For professionals, the percentage of profits will be greater.

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Well in trading --risk management is very important because it manages your losses like doing stop-loss.
This high leverage on future trading will make traders out of control, it could be their emotions will become greedy seeing the market movement. The rapid fluctuations of futures prices and no one can tell the future price since it has fluctuated. On my own, I rather hold my coin in a long term than trust a custodial exchange in a long term, in that way, I have control of my fund and I have a right when I seel my coins.

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Quote from: kamvreto on December 04, 2022, 03:48:38 PM

Quote from: Falconer on December 03, 2022, 03:07:05 PM

You've said something true about futures trading, but really one can never escape being greedy in trading. They may learn from their own experience, have emotional control and wise use of laverge, but things will not be as easy as we imagine and the practice will be very different.

I had to avoid futures trading because it's so hard to control my urges and emotions not to get greedy, so in the end I tended towards spot trading instead of futures trading so far. I can learn it, but I'd rather avoid something I don't understand properly.

Greed is a natural trait that humans have and the level of greed also differs from person to person. It is very difficult to regulate psychology if we are not used to it, greed will arise when we are faced with a choice that is a win-win.
I also even stay away from futures trading because the risks are indeed higher, but some people who are able to control futures trading, can take advantage of every movement to make a profit. Futures trading is not for beginners because the risks are greater and also psychological control will determine profits.

Those traders who found themselves in a better position in trading will succeed whether it was futures trading or spot trading. Greediness can be found in everybody but I don't think that was really the problem in futures trading because what I see is that it is our decision-making. And if we talk about strategies, I think most of us are using the same but what it went wrong is how it was been implemented.

Whether it was futures trading or not, many traders will often lose rather than make a profit.

Topic: Reasons why the 95% of future traders lose all of their money - page 4. (Read 1326 times)