Reasons why the 95% of future traders lose all of their money - page 7.

palle11

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Quote from: Silberman on November 21, 2022, 11:53:26 PM

Quote from: tvplus006 on November 21, 2022, 08:59:19 AM

I have a doubt that there are such 5% of traders who consistently earn on futures. It is impossible to get 100% profit trades, so most likely we are talking about such traders who have a higher percentage of profit trades than unprofitable ones.

That is most likely the point of the OP, those which are in the 5% of traders which earn money with futures trading could win just 60% of the time but with a solid money management strategy that can be more than enough to make good profits out of the markets, personally I am not surprised the percentage of winning traders is so low, as in most markets profits are concentrated in just a few hands while the rest of the market participants lose their money.

If a trader is taking 60% winning from the market that is good, such trader is doing good trading because that also means the trader is taking 60% profit from the market as well. 100% is the stand point and it is not always so that a student will score a 100% mark in an examination especially in analytical work. The traders that are losing is suppose to be higher no doubt so if we get a 5% doing a 60% profit this is very resourceful because the trader has covered the loses of 40%.

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Quote from: tvplus006 on November 21, 2022, 08:59:19 AM

I have a doubt that there are such 5% of traders who consistently earn on futures. It is impossible to get 100% profit trades, so most likely we are talking about such traders who have a higher percentage of profit trades than unprofitable ones.

That is most likely the point of the OP, those which are in the 5% of traders which earn money with futures trading could win just 60% of the time but with a solid money management strategy that can be more than enough to make good profits out of the markets, personally I am not surprised the percentage of winning traders is so low, as in most markets profits are concentrated in just a few hands while the rest of the market participants lose their money.

EdenHazard

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Those 5% might be getting profit accumulatively , yet they are in losing phase multiple time but do comeback with bigger amount as well so ... yeah the number looks too good for most of us as beside it was all about statistics ... we have experienced it too right? A personal experience become a witness.

Either the future trader have no sufficient bankroll to keep it back to green after a loss or it's just the game of math odds.

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

I'm not sure whether the percentage figures are appropriate or not, that big or not. But it is certain, not all traders are able to survive in future trading which does have a very high risk. In futures trading, we don't only have to have sufficient capital and basic knowledge, but more than that. We must have a good level of market and fundamental analysis, think broadly and logically, be able to pay attention and analyze each market condition more precisely and be able to make the most appropriate strategy when experiencing losses. Here, we are required to learn more and understand more, we cannot just rely on luck or coincidence. Because this is futures trading, not spot trading where we can still hold if the price drops rapidly at any time. Because of this, many futures traders eventually give up when the market is under certain conditions, some may continue when the market has improved slightly and some may stop considering the plus and minus sides.

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Quote from: tvplus006 on November 21, 2022, 08:59:19 AM

I have a doubt that there are such 5% of traders who consistently earn on futures. It is impossible to get 100% profit trades, so most likely we are talking about such traders who have a higher percentage of profit trades than unprofitable ones.

That is the key factor here, I mean we are talking about just the people who have overall profit in the end, this means that when you look at like from 1st of January 2022 to December 31st of 2022, there must be at least 5% people who made a profit overall.

Do not look at the market going down and assume that everyone lost money, there are still a ton of places and people who made a profit from shorting the market and that means there are more than 5% people who made a profit. Doesn't mean that’s the whole market, most people did lose money and that’s understandable but that doesn't change the fact that no matter which direction we go, there are some people who make a profit.

tvplus006

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I have a doubt that there are such 5% of traders who consistently earn on futures. It is impossible to get 100% profit trades, so most likely we are talking about such traders who have a higher percentage of profit trades than unprofitable ones.

DevilSlayer

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Quote from: hugeblack on November 18, 2022, 04:15:54 AM

Is there a person who consistently profits in futures trading? I used to think that the end result is profit, but the continuity of profit is something close to impossible, and 5% is considered very high.
What is the source of this data or the closest analysis to reality?
So the majority will lose their money even if you are experienced.

Yes there are traders like that, that's why I said that only 5% who are consistently making profit in futures. I met them personally so I saw their portfolio and their trading journal and their trading system. They have high win rate with good risk and reward ratio that makes them profitable. For me it what's impossible is a trader who never lose. There is no trader who consistently trade without incurring loses. Losing is part of the process to become a better trader, it's up to you on how will you handle it with risk management and trading psychology.

Quote from: justdimin on November 19, 2022, 09:29:22 AM

Quote from: hugeblack on November 18, 2022, 04:15:54 AM

Is there a person who consistently profits in futures trading? I used to think that the end result is profit, but the continuity of profit is something close to impossible, and 5% is considered very high.
What is the source of this data or the closest analysis to reality?
So the majority will lose their money even if you are experienced.

There is none, I can guarantee you that. I do not mean that the overall result wouldn't be a profit, there are people who make money from this on the long run, like let’s say they make 3000 profits then lose 2500 and then make 4000 profit and lose 3000.

Those type of people do exist, the overall results if you look at them yearly would be a profit, not a common thing and very rarely found because most people lose money obviously but the long term profitable ones do exist. But there are NO futures traders who make money consistently, they all profit some and lose some, there are none that profit all the time. That’s why you need to be ready for the loss while making a profit.

I can't agree with you. There are people who consistently making money wherein, I can guarantee it but don't be confuse because those traders are also losing because like what I said; it is all about probabilities so incurring losses is normal in trading. The example that you gave is a trader who don't have good risk management because the trader giving back the profits to the market that he/she made.

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Quote from: hugeblack on November 18, 2022, 04:15:54 AM

Is there a person who consistently profits in futures trading? I used to think that the end result is profit, but the continuity of profit is something close to impossible, and 5% is considered very high.
What is the source of this data or the closest analysis to reality?
So the majority will lose their money even if you are experienced.

There is none, I can guarantee you that. I do not mean that the overall result wouldn't be a profit, there are people who make money from this on the long run, like let’s say they make 3000 profits then lose 2500 and then make 4000 profit and lose 3000.

Those type of people do exist, the overall results if you look at them yearly would be a profit, not a common thing and very rarely found because most people lose money obviously but the long term profitable ones do exist. But there are NO futures traders who make money consistently, they all profit some and lose some, there are none that profit all the time. That’s why you need to be ready for the loss while making a profit.

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Is there a person who consistently profits in futures trading? I used to think that the end result is profit, but the continuity of profit is something close to impossible, and 5% is considered very high.
What is the source of this data or the closest analysis to reality?
So the majority will lose their money even if you are experienced.

milewilda

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Quote from: worle1bm on November 16, 2022, 01:04:57 AM

Quote from: Franctoshi on November 15, 2022, 01:22:22 PM

Loosing money in trading is normal and to become an Experience trader is a process, So you will definitely encounter series of failures in the process of trading, which later results to loses, Therefore to become a successful trader you need to know /learn why we have 95% of traders loose money and take those mistakes into account, work on it and take the correct, which are greediness , emotions, and the
Psychological aspect of trading etc.

You always learn with your mistakes and gain experience with it and if you seek advice from the successful traders they will also share their loss journey and how they manage to learn from it to avoid it in the future.Profit and loss are two side of one coin and you can't avoid them so the thing is how well you manage your loss and risk.In this bearish time all traders make loss out of their investments but it will be turn out how they survive in these conditions.

As a trader whether you do make yourself involved with spot or futures then it would really be just normal that you should really make yourself learn.Some do really mind most of past experiences of others but there are
some who do really dive on directly and find for themselves on how this market behaves or works. You are the ones who would discover out on what are the realities of this market.
If you do experience lots of losses then its really that impossible for a certain individual not able to find out nor notice out with those mistakes and wont really be making adjustments.
It would really be just common sense on your part on doing so if you do really like to sustain out.

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High risk get high return and likely why many people still trying with future trading, I don't think with many people loser with future trading quit exactly keep trying until earn much profit. Some people stopped with future trading based on their faith have the same working like gambling, but I think excited with future trading we can earn double profit with small fund in short time and difficult earn much profit with spot trading.
I don't think until 95% of future trader loss their money, but under 50% they can't controlling emotion and not use "stop loss" when have fault with analyze.

Right now the future trader have been smart and they waiting for coin pump drastically for short opening and have preparing with Stop Loss if suddenly price going up.

OcTradism

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You should start with normal traders who trade spot only. Most of them lose their capital too and I read some articles that it should be 80% or higher.

Before mentioning about risk of future trading, you should continue with Margin or Leverage trading that is risky. With Leverage trading, more than 90% of traders lose their capital and worse than Spot trading, they more easily lose 90% or all of their capital.

Future trading is more risky than Leverage trading and trading fees for Future trading is more expensive than Leverage trading.

worle1bm

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Quote from: Franctoshi on November 15, 2022, 01:22:22 PM

Loosing money in trading is normal and to become an Experience trader is a process, So you will definitely encounter series of failures in the process of trading, which later results to loses, Therefore to become a successful trader you need to know /learn why we have 95% of traders loose money and take those mistakes into account, work on it and take the correct, which are greediness , emotions, and the
Psychological aspect of trading etc.

You always learn with your mistakes and gain experience with it and if you seek advice from the successful traders they will also share their loss journey and how they manage to learn from it to avoid it in the future.Profit and loss are two side of one coin and you can't avoid them so the thing is how well you manage your loss and risk.In this bearish time all traders make loss out of their investments but it will be turn out how they survive in these conditions.

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Curious by the title of the thread, what new things were conveyed by Op, but it turns out that these are common things that have been conveyed by many people in other threads, nothing new

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.

Agree that traders must have risk management how much value they can afford to lose and this is definitely different for each trader, but why trade if the focus is how not to lose, all the purpose of trading is to make money and this makes no sense if you only think how not to lose.

Coin_trader

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@OP Where do you get this stats as reference to your data? Actually, Exchange is the only entity that I know that consistently wins on futures trading since even whales are sometimes caught by the price manipulation. I really believe that exchange is somehow the culprit for those huge wick that hitting stop losses or liquidation of open position since they are not completely regulated and the SEC is not auditing what shit they are doing inside. CZ and Binance is the best example which is why CZ don’t want to cooperate to become a fully regulated exchange.

Price behaviour on crypto is very unpredictable and no person nor bot can catch up on that price data to open an accurate position. Futures trading is purely a gambling with an extra difficulty from exchange that liquidates open position at random basis. Even with a good risk management will not stand on a manipulative market. I stop futures long time ago and just focus on spot trading and sometimes margin trading with lower lev.

agustina2

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Actually, even without checking some real information and stats, it's clear that most future traders losing their money. That is because future trading is really hard to do. High risk, high reward therefore no easy money here. But if successful, a good profit in return.

Maybe just do it if we are really ready. Future trading is not a joke. If spot trading that's way more manageable is hard, what's more on doing future trades.

NicNacCoin

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The people lose the most money in trading are those who start trading without considering anything while trading. Especially when doing futures trading you need to look at all aspects. One little mistake in futures trading will ruin all your money. Future trading should be done with a healthy mindset. Never cheat on a futures trading platform. Know about each indicator. And the most important thing is that you have to use stop loss system. Most people don't use stop loss which is why most people lose money.

chaser15

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Futures trading is more of a gamble therefore don't expect that majority here is winning. It's the riskier version of spot trading.

Risk-management is something that we really can't control once you are in Future trading.

More importantly, just consider doing that if we are really prepared to face the risks and we know what we are actually doing.

sheenshane

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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.

The problem is here.
The higher leverage offers the more chances of losing your capital which means high risk. It commonly can't sustain your losses.
So how can you manage risk in this, the percentage that OP has given was right, only 5-10% will gain profit using future trading and it could be a lucky decision of trading.

That's why I prefer holding and investing it in a long term or purchasing it in a DCA way which feels better.

blockman

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Not just on the futures but also in the spot trading. It's a fact that only a few traders are really making their way for the profits that they share. While most traders, it's no longer a question and a secret that most of us are getting rekt by the market.
Trading is being hyped by the influencers because they only show their wins but if you ask them to show their losses, they're going to snub you and ignore you.

Topic: Reasons why the 95% of future traders lose all of their money - page 7. (Read 1326 times)