Why did 95% of traders fail and lose money?

Suslived

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Quote from: jane mario on October 30, 2019, 10:01:35 PM

Here are 6 of my reasons, what about your thoughts

1.80% of day traders give up within the first two years;

2.Among day traders, only nearly 40% of the day's trading was within a month only;

3.Within three years, only 13% continued trading. After 5 years, only 7% were left;

4.The average individual investor is 1.5% less than the market index;

5.Active traders' performance drops by 6.5% annually;

6.Traders with up to 10 years of experience continue to trade.

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Where did they get those statistics? Even in bitcoin/cryptocurrencies I don't think 95% of traders fail, and that depends on your definition of fail, because that seems to be too high of a number. I believe traders "fail" because the market is a zero-sum game. There will always be winners and losers so it depends on the trader to decide his destiny.

Once people are more financially educated and more people start trading crypto, it will really be interesting to see more statistics.

Boov

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Quote from: zeze18 on November 01, 2019, 09:13:55 AM

I think they want to become rich just by trading.
I'm sure the expert traders right now has lost a lot of money in the past, becoming a trader for living needed a lot of experience and also lot of capital money. So, the expert traders might be lost much of their money when they started trade and they must be have an income first before they become a trader. Become a trade with almost zero capital and hoping to get rich by doing it is hard except he is very lucky.

Yes possible, newly trader thinks that when they trade they will becom rich in an instant. They didnt know that in trading there is possibility that you will lose more than of your investment, they always put their money without thinking that if it is the right time to buy that, then dump happen, they loses money because of that.

crisanto01

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Quote from: Inkdatar on November 01, 2019, 10:06:10 AM

Quote from: zeze18 on November 01, 2019, 09:13:55 AM

I think they want to become rich just by trading.
I'm sure the expert traders right now has lost a lot of money in the past, becoming a trader for living needed a lot of experience and also lot of capital money. So, the expert traders might be lost much of their money when they started trade and they must be have an income first before they become a trader. Become a trade with almost zero capital and hoping to get rich by doing it is hard except he is very lucky.

This is the thinking of others to get rich when doing trading. All of us experience loses even experts do during trading that is why we should learn and analyze what we are doing to come up with winnings. We experience failure and lose money hence, patience and not be greedy could help us to minimize loses.

Well, that's our main reason why we should do trading, our purpose in not that to earn but to become rich, what's wrong is that people are expecting too much, they think that they can earn thousands of $$ in just short period of time,they are not thinking that it is not that easy and will take them years to become expert in trading.

Inkdatar

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Quote from: zeze18 on November 01, 2019, 09:13:55 AM

I think they want to become rich just by trading.
I'm sure the expert traders right now has lost a lot of money in the past, becoming a trader for living needed a lot of experience and also lot of capital money. So, the expert traders might be lost much of their money when they started trade and they must be have an income first before they become a trader. Become a trade with almost zero capital and hoping to get rich by doing it is hard except he is very lucky.

This is the thinking of others to get rich when doing trading. All of us experience loses even experts do during trading that is why we should learn and analyze what we are doing to come up with winnings. We experience failure and lose money hence, patience and not be greedy could help us to minimize loses.

zeze18

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I think they want to become rich just by trading.
I'm sure the expert traders right now has lost a lot of money in the past, becoming a trader for living needed a lot of experience and also lot of capital money. So, the expert traders might be lost much of their money when they started trade and they must be have an income first before they become a trader. Become a trade with almost zero capital and hoping to get rich by doing it is hard except he is very lucky.

Colt81

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Quote from: jane mario on October 30, 2019, 10:01:35 PM

Here are 6 of my reasons, what about your thoughts

1.80% of day traders give up within the first two years;

2.Among day traders, only nearly 40% of the day's trading was within a month only;

3.Within three years, only 13% continued trading. After 5 years, only 7% were left;

4.The average individual investor is 1.5% less than the market index;

5.Active traders' performance drops by 6.5% annually;

6.Traders with up to 10 years of experience continue to trade.

If you are interested in electronic payment systems, please click on this link: https://vakaxa.net/he-thong-thanh-toan-tien-dien-tu/ otherwise you should ignore it.

I think it is pretty normal for a trader to fail and to lose money, that is why most traders experienced difficulties in trading that some of them give up from doing trading. Honestly, i am not a professional trader and i always experienced losses too, but for you to be a successful trader you should make a strategy and learn to control your emotions to have patience for you to minimize your losses.

DarkDays

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Here's a simpler explanation.

The market is controlled by those dealing with significant volume. Little guys, and inexperienced traders often don't understand the thought processes of those dealing with tens of millions.

Because of this, the fish will make moves that play into the hands of the big guns, unaware that they are fueling their own failure.

That, and the VAST majority of cryptocurrency traders have absolutely no trading experience and just dive in willy nilly, some of these trade on leverage and get rekt instantly, while others get slowly grinded out through successive losses.

Simple trick to not lose money: Don't f***ing trade if you have no idea what you are doing.

perla

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Altcoin market condition sometime force trader to change their methods, in past, market really full with high volume coin. Pump and dump very fast to happen and it is chance for day trader to make profit with it. For now market volume not much and it is expanded because of new tokens and new exchanger. In past, there are only few big exchanges that be central to people do trading.

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Quote from: janggernaut on October 31, 2019, 06:39:51 PM

Quote from: rodel caling on October 31, 2019, 06:04:28 PM

This a good advise and traders know that strategy and ideas to avoid loses in trading, but I am curious to op where he got the statistic survey that 95 percent of trader are failed to get earn profits, meaning only 5 percent of the trader can get earn.

On here you can even see if they said only 1% who profited from trading (they keep on trading and don't quit).
https://www.tradeciety.com/24-statistics-why-most-traders-lose-money/

95% people lose in trading is only rough assumption since there is no any proofs or data can say like that, but it's not false either since i've only seen few people who really earn big profit through trading.

Interestingly enough I read the article,The data that I saw in the article was quite interesting. not everyone will lose and profit. a trader himself must have experienced a loss but if the trader on average they experience large losses every day there is certainly something wrong with their method

palle11

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Quote from: jane mario on October 30, 2019, 10:01:35 PM

6.Traders with up to 10 years of experience continue to trade.

I believe this is because they have seen it all. Seen the falls many times and have risen many times too, have tried not to make their mistakes again. They have swam the bad waters of volatility, managed it and moved on because of the zeal and passion they have for the business.
This is a clarion call for early quitters. That is as the saying goes, hard times requires patient people.

ableh

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Quote from: jane mario on October 30, 2019, 10:01:35 PM

Here are 6 of my reasons, what about your thoughts

1. 80% of day traders give up within the first two years;
2.-
3.-
4.-
5.-
6.-

Point number one is the results of survey or just your own assumptions? Logically, if 80% of daily traders give up in the first two years, i am sure most of the altcoin would be to zero value. But in fact, there are still many altcoins who continues to growth until now, although there are altcoins that lose a lot of value, but not until zero (dead). On the other hand, when viewed in terms of daily volume, there seems to be no significant decline from the previous year. So, please stopped making fud.

BigBos

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Quote from: k@suy on October 31, 2019, 01:02:07 PM

Thats the problem wrong choice of coin to invest with is the main problem also putting all your money in trading even though you are not well trained as trader, and sometimes when they trade for a long term sometimes they didnt check if the coins goes pump or dump, they doesnt even check for updates, it is the main fault of a trader .

not only that, actualy some people have chosen popular recommended coins, but trading is not that easy. conditions also determine whether you buy, or have the coins on time or not. many people complain about this, even some people complain because of bitcoin, or popular coins that they hold dump in a few hours. because of that people's insist to find the right information before starting trading.

nydiacaskey01

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I am not an expert trader and I myself lose money in trading and one reason why I lose money is when we follow our instinct instead of coming up with a reason why I will Hold, Sell or Buy. Results could have been different if we only follow or use TA instead of personal feeling or even FOMO.

Another reason why we fail in trading is not coming up with a plan. No plans means you are planning to fail. Plan when you place a Buy or Sell order and stick to the plan. If you say you will Sell at $9,200 then place a Sell order and move on. Sometimes thats the reason why we fall on a trap holding an expensive coin because we did not let go when it reached your target.

janggernaut

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Quote from: rodel caling on October 31, 2019, 06:04:28 PM

This a good advise and traders know that strategy and ideas to avoid loses in trading, but I am curious to op where he got the statistic survey that 95 percent of trader are failed to get earn profits, meaning only 5 percent of the trader can get earn.

On here you can even see if they said only 1% who profited from trading (they keep on trading and don't quit).
https://www.tradeciety.com/24-statistics-why-most-traders-lose-money/

95% people lose in trading is only rough assumption since there is no any proofs or data can say like that, but it's not false either since i've only seen few people who really earn big profit through trading.

rodel caling

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Quote from: Tipstar on October 31, 2019, 12:53:10 AM

For me, I decide too soon. Patience is the key to success. The best way is to not to sell your coin (in case of top coins) for a loss. USD is a great tool if you are trying to make good profit. Sell on Spike and buy more when down. Don't panic if the market seem to be going differently than you want.

This a good advise and traders know that strategy and ideas to avoid loses in trading, but I am curious to op where he got the statistic survey that 95 percent of trader are failed to get earn profits, meaning only 5 percent of the trader can get earn.

Quote from: xiboothrezi on October 31, 2019, 05:14:34 PM

Surprisingly enough, where did you get this percentage, is there accurate data?
Well, being a trader is not an easy thing to learn and just instantaneously. It takes a process and experience that is qualified to be able to adapt in the trade ecosystem with a fairly high movement. Can not just rely on luck, feelings, let alone just fomo, went along with the trend, you will end up in vain if you do not have a strong foundation.

That what I want to say to the op, we know trading is a risky job but I don't believe 95 percent of the trader are getting failed to get earn profits I ask op to post the data where he get that information for the supproting for their thread.

xiboothrezi

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Surprisingly enough, where did you get this percentage, is there accurate data?
Well, being a trader is not an easy thing to learn and just instantaneously. It takes a process and experience that is qualified to be able to adapt in the trade ecosystem with a fairly high movement. Can not just rely on luck, feelings, let alone just fomo, went along with the trend, you will end up in vain if you do not have a strong foundation.

Quote from: Kambal2000 on October 31, 2019, 12:58:41 AM

Day trading does not guarantee that they will earn everyday, even experts in trading is also losing some money, but what's good thing about crypto trading is that they can maximize their money and trade in different coins so if one token is not good, the other coins might be good so it is compensating the loss.

Thats true. Especially in a market that is saturated. It is very difficult to find opportunities, instead, it is often trapped. That's why patience, consistency, and mentality are so tested here.

ashmodeus

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Quote from: BonfireBob on October 31, 2019, 12:00:45 PM

It is my theory based on my personal experience, but maybe most of the traders jumped into the train when the market was skyrocketing? After it fell down, most of them left?

mostly yes, and when its done , of course they will go, since they have no knowledge about the market.

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Quote from: jane mario on October 30, 2019, 10:01:35 PM

Here are 6 of my reasons, what about your thoughts

1.80% of day traders give up within the first two years;

2.Among day traders, only nearly 40% of the day's trading was within a month only;

3.Within three years, only 13% continued trading. After 5 years, only 7% were left;

4.The average individual investor is 1.5% less than the market index;

5.Active traders' performance drops by 6.5% annually;

6.Traders with up to 10 years of experience continue to trade.

If you are interested in electronic payment systems, please click on this link: https://vakaxa.net/he-thong-thanh-toan-tien-dien-tu/ otherwise you should ignore it.

1. i guess is that too much , 80% quit on 2 years, dont say u do a survey from 2017 to 2019 ,
2. totaly dissagree , i've joined several telegram group, i mean exchange group , there still a lot do day traders.

k@suy

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Quote from: BigBos on October 31, 2019, 12:06:06 PM

Quote from: bitbunnny on October 31, 2019, 11:43:02 AM

I think that number is exaggerated. Every traders experiences loss from time to time but that doesn't necessary mean general failure.
Lack of knowledge and experience as well as lack of long term strategy could lead traders to loss and that they might give up trading but still such big numbers of those who quit are not correct I think.

yeah, 95% is too much, it is almost all of it. in my opinion some people don't trade every day, even they only do it a few times a year. for those who have already made a profit, and have been in crypto for a long time, I think they will continue to trade. maybe some people give up after 2 years of trading, but that doesn't guarantee that they will stop completely. they could come back if they saw an opportunity, and that happened to me. trading is not easy, that's why many people stop doing it.

Thats the problem wrong choice of coin to invest with is the main problem also putting all your money in trading even though you are not well trained as trader, and sometimes when they trade for a long term sometimes they didnt check if the coins goes pump or dump, they doesnt even check for updates, it is the main fault of a trader .

Darooghe

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Because they are not HODLers, but greedy. You don't lose money if the prices fall. Note that you always COULD, theoretically, make more money by trading all the time, selling high, buying low, and so on. But what's theoretically possible isn't always realistically possible. the cryptocurrency market is so volatile that anyone can handle it, and stops following emotions when trading. If you have the right approach you won't even lose money EVEN when a company goes bankrupt. It's all about patience. invest in the right coins and just wait. Don't check every day on you coins and just let the market do it's thing. Be patient if the market dips low. The market has a cycle, the only way you lose money is if you sell lower than you bought. never do that. it's simple.

ajiz138

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Many challenges must be passed to become a professional trader. One of them is to study technical analysis in detail. 80% of traders give up in the last 2 years, maybe because they get a lot of loss and without any improvement on themselves. It still must be consistent and want to learn again and take lessons from previous mistakes. I'm just an ordinary trader and also still learning to become a professional trader.

Topic: Why did 95% of traders fail and lose money? (Read 614 times)