Topic: Reasons why the 95% of future traders lose all of their money - page 6. (Read 1323 times)
November 25, 2022, 04:49:32 AM
The trading system is at failure if you are an emotional trader. Let us say that 95% are losing their trades but I think they still do their best, however, it was not enough to catch the momentum, and ended up losing their money. But despite this negative view of future trading, many were still trying to look for their luck there. And I have no gut to discourage them either but to let them do what they want so they will find themselves what this future trading is all about if compared to spot trading.
November 25, 2022, 12:01:10 AM
Are you guys aware that only 5% of futures traders are consistently earning money in the market? The 95% is traders like everyone else that keeps blowing their account and losing their money.
(....)
Exactly. Trading is a difficult job to make money, it's like a PVP battle game (Player versus Player) which always has losers and winners.(....)
If you want to be in 5%, there's a lot of work to do and experience to happen.
3 parts of what OP said are precisely exact, especially the risk management, why? Because most of the traders started to trade but later on, they stopped. It is because of the lack of capital anymore. Capital preservation is always part of risk management, so that's why having always the capital is always important, it's not always a good time to trade and you must have proper risk management to mange your capital properly on your every trade.
November 24, 2022, 11:13:48 PM
I hope the first thing needed is the fixed mentality, I think second you need to decide how you will determine the profit and loss share then you need to decide how to manage future trading. Because here most of the people make mistakes in management due to which they lose their money. The main problem here is that they do not have detailed experience in futures trading, they invest only for profit, I think if you have experience in trading so that futures trading is possible to make some profit.
November 24, 2022, 10:37:43 PM
Though there is no source for this study but yes I believe it because market has become way way competitive than before. With digital era resources are becoming more prominent and tech behind every trade takes a footprint which needs to be analysed before anyone could move an inch in the system. One wrong move and one can end up in the bankruptcy. The factors like psychological and emotional is all about that greed which one takes up Once they loose.
November 24, 2022, 09:35:03 PM
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. 
November 24, 2022, 06:54:34 PM
I have always seen people on YouTube and other platforms showing off what they have been able to own through trading.... But truth be told, trading is never easy but does put unnecessary pressure on themselves belive you can change
Spot trading is the safest bet when it comes to day trading as futures is more of a gamble. Even if you are setting a stop loss, it’s still a loss.
Trading is said to be some kind of gambling because we can't be 100% certain about what will happen in the future. Expect more losses in futures trading as a newbie or beginner. But experienced ones aren’t exempted, especially some of my friends who are doing futures trading in Binance. They might show off their gains, but refusing to show their losses.
This is something I need to venture in as my price action has really improved to give me the edge over the competition. most people who are showing their profits via social media channels are not showing the whole picture. they may be showing only their profits but the losses they are not reporting it. who knows, their losses are much bigger than their profits? so don't be naive about these tempting videos.
spot trading is also good for new traders. don't go in futures if you don't know what you're doing.
November 24, 2022, 06:45:13 PM
I have always seen people on YouTube and other platforms showing off what they have been able to own through trading.... But truth be told, trading is never easy but does put unnecessary pressure on the trader as this could leave one in revenge trading, no trading styles applied and bad risk management.
Spot trading is the safest bet when it comes to day trading as futures is more of a gamble. Even if you are setting a stop loss, it’s still a loss.
Trading is said to be some kind of gambling because we can't be 100% certain about what will happen in the future...and no its not the safest when risk is high. Expect more losses in futures trading as a newbie or beginner. But experienced ones aren’t exempted, especially some of my friends who are doing futures trading in Binance. They might show off their gains, but refusing to show their losses.
This is something I need to venture in as my price action has really improved to give me the edge over the competition. And fyi I think futures trading is still young and people are still experimenting with it hence the losses. November 24, 2022, 04:35:16 PM
So the more we learn the more we make mistakes in trading?
I don’t think its correct since we should know already what to do once you have learned how trading works and its good to have different strategies depends on the market situation. The only problem I see here is about consistency and commitment, many trader tends to change their mind easily and focused too much with their emotion. Many says traders are not winning in long term, but once you have established a good trading system probably you will be part of those 5% trader who are winning at all.
In fact it is true as you say because traders are not able to be consistent with their strategy due to market volatility.I don’t think its correct since we should know already what to do once you have learned how trading works and its good to have different strategies depends on the market situation. The only problem I see here is about consistency and commitment, many trader tends to change their mind easily and focused too much with their emotion. Many says traders are not winning in long term, but once you have established a good trading system probably you will be part of those 5% trader who are winning at all.
After all, failing to control emotions is also a factor that causes many traders to fail to make good profits during trading. Panic is another reason, whereas if they are able to do something consistently then I'm sure they will too. But we could just say, out there they are a lot harder to take because they are the ones doing the trading.
November 24, 2022, 04:29:40 PM
When a trader becomes more experienced and operates with many trading strategies, he becomes more uncertain when making a final decision, which eventually turns out to be wrong. At the same time, a beginner who is guided by one or two trading strategies has less doubts when making a decision and eventually gets a profit.
So the more we learn the more we make mistakes in trading? I don’t think its correct since we should know already what to do once you have learned how trading works and its good to have different strategies depends on the market situation. The only problem I see here is about consistency and commitment, many trader tends to change their mind easily and focused too much with their emotion. Many says traders are not winning in long term, but once you have established a good trading system probably you will be part of those 5% trader who are winning at all.
It not im saying that we should tolerate mistakes but these are indeed things which would help you to be molded as a better trader/investor.
Dont know about that 95% of people do fail on futures but i do somewhat agree that on general sense where lots is really that losing money.
Only a few could able to pull off and make profits in short time.
Futures isnt something that a noob could easily touched on.
November 24, 2022, 04:13:21 PM
When a trader becomes more experienced and operates with many trading strategies, he becomes more uncertain when making a final decision, which eventually turns out to be wrong. At the same time, a beginner who is guided by one or two trading strategies has less doubts when making a decision and eventually gets a profit.
So the more we learn the more we make mistakes in trading? I don’t think its correct since we should know already what to do once you have learned how trading works and its good to have different strategies depends on the market situation. The only problem I see here is about consistency and commitment, many trader tends to change their mind easily and focused too much with their emotion. Many says traders are not winning in long term, but once you have established a good trading system probably you will be part of those 5% trader who are winning at all.
November 24, 2022, 01:52:32 PM
Despite that some of my Facebook friends are getting insane profits in futures trading, consider themselves lucky. Spot trading is the safest bet when it comes to day trading as futures is more of a gamble. Even if you are setting a stop loss, it’s still a loss.
Expect more losses in futures trading as a newbie or beginner. But experienced ones aren’t exempted, especially some of my friends who are doing futures trading in Binance. They might show off their gains, but refusing to show their losses.
I do agree that it’s just pure luck to a point when we are talking about futures trading. I mean if you are trading with high leverage that means you are risking way too much, sure the rewards would be huge as well if you are right but that doesn't mean that it would be a low risk neither.Expect more losses in futures trading as a newbie or beginner. But experienced ones aren’t exempted, especially some of my friends who are doing futures trading in Binance. They might show off their gains, but refusing to show their losses.
You could end up losing all of your money with just a 0.1% drop if you are stretched too thin. This is why always be careful about what you are doing, it could end up with a bad return in the long run. I personally agree that spot trading is safer, it could give you as much as 10x return if you buy and hold the right coin and it is not going to be 100% gone most of the time.
November 24, 2022, 10:51:19 AM
Despite that some of my Facebook friends are getting insane profits in futures trading, consider themselves lucky. Spot trading is the safest bet when it comes to day trading as futures is more of a gamble. Even if you are setting a stop loss, it’s still a loss.
Expect more losses in futures trading as a newbie or beginner. But experienced ones aren’t exempted, especially some of my friends who are doing futures trading in Binance. They might show off their gains, but refusing to show their losses.
Honestly future trading is like gambling to me and those category of traders who trade it have a mindset of marking or earning huge profits quickly and consequently might lead to rekting of account swiftly due to high volatility in the prices of cryptocurrencies, meanwhile some future traders do post fake profits earned from trading in a bid to deceive unsuspecting investors to subscribe to their signal channel, the last time I tried future trading I got a margin call within 30 minutes and thereafter my account got liquidated, since then I switched over to cross margin and do trade whenever a step up is formed or a signal is generated by my trading strategy. Expect more losses in futures trading as a newbie or beginner. But experienced ones aren’t exempted, especially some of my friends who are doing futures trading in Binance. They might show off their gains, but refusing to show their losses.
November 24, 2022, 09:08:27 AM
Good tips OP. You seem to be part of the 5% since you are giving advice on how to earn and how not to blow our trade positions. However, I prefer proofs and actions rather than words. I rather want to see signals from successful traders and see how it performs rather than words. I always encounter people that say do this and do that, yet after some months I can hear that they aren't trading anymore. It is always easier said than done. Discounting market analysis and intelligence as not defining factors to earn is not true. We cannot have a good trading system and set up risk management without intelligence. Market analysis is necessary in order to strategize effective trading systems. Psychology in trading can only work when someone has the experience and is trading amounts that it can afford without emotional change.
November 24, 2022, 07:50:25 AM
Despite that some of my Facebook friends are getting insane profits in futures trading, consider themselves lucky. Spot trading is the safest bet when it comes to day trading as futures is more of a gamble. Even if you are setting a stop loss, it’s still a loss.
Expect more losses in futures trading as a newbie or beginner. But experienced ones aren’t exempted, especially some of my friends who are doing futures trading in Binance. They might show off their gains, but refusing to show their losses.
Expect more losses in futures trading as a newbie or beginner. But experienced ones aren’t exempted, especially some of my friends who are doing futures trading in Binance. They might show off their gains, but refusing to show their losses.
November 24, 2022, 07:44:07 AM
Well, I'm not sure about the figure but I'm going to agree that many future traders suffered more losses than those who earn a profit. It is really sad to say that this is the real life of a future trader which is why I don't advise taking this option if we are beginners but rather start and familiar with how this trading works through spot trading.
My brother has tried this one(future trading Binance) but never heard from him saying he is in profit. He is very quiet and probably he got in troubled.
My brother has tried this one(future trading Binance) but never heard from him saying he is in profit. He is very quiet and probably he got in troubled.
November 24, 2022, 07:31:20 AM
When a trader becomes more experienced and operates with many trading strategies, he becomes more uncertain when making a final decision, which eventually turns out to be wrong. At the same time, a beginner who is guided by one or two trading strategies has less doubts when making a decision and eventually gets a profit.
November 23, 2022, 06:59:50 PM
There are many reasons that cam make one to lose money in trading which is cam be as a result of greed. Greed had make many traders to end up being a big losers. Not understanding the market very well is also another reasons why people loses money. There are some newbies that do not learn about the well in the right way, they just jump into the market with adequate understanding and started trading. This alone can make one become a bad trader and whatever is used in trading will always lead to loses. Eager to make bigger profits without strong understanding of the market can become a problem.
November 23, 2022, 05:41:51 PM
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.
November 23, 2022, 04:55:43 PM
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.
Risk management is one factor that should be greatly delt with in future trading because most of this traders you classified under the every other, avoid using the stop loss indicator because they always focus on how much will be lost when the trade hits the stop loss but rather believe that no matter how much the trade goes down, it will definitely move to their favour which makes them end up trading with emotions and blowing up accounts.
One other aspect that can't be over emphasized is the over leveraging most traders do just to maximize profit forgetting the high risk involved .
Psychology is one thing that one should deal with and always count every penny as a win rather than being greedy
November 23, 2022, 04:28:47 PM
We are humans and we get emotional very fast and this factor that makes us do bad decisions. In begining I had many trades that made Me really nervous and just stop the trades too early and got Into losses , then sudenly market just went Into full dump or pump that I had bought and just screamed in my head why I STOP the trade.
Started to learn more of indicators, how they work and so on , how to remove those feelings when trading so I set up and indicator in TradingView and connected with bot for auto-trading . That fully removed all my worries and problems, all I see each week the profits I grew with it, rsearching more and updating Custom indicator with more knowledge and so on .
Showcasing how it looks, this just shows Me when to long and when to short.
https://ibb.co/NNmzxzf
https://ibb.co/JtNCTVG
https://ibb.co/3mKHcS0
Started to learn more of indicators, how they work and so on , how to remove those feelings when trading so I set up and indicator in TradingView and connected with bot for auto-trading . That fully removed all my worries and problems, all I see each week the profits I grew with it, rsearching more and updating Custom indicator with more knowledge and so on .
Showcasing how it looks, this just shows Me when to long and when to short.
https://ibb.co/NNmzxzf
https://ibb.co/JtNCTVG
https://ibb.co/3mKHcS0
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