Topic: Why do traders lose money in trading? (Read 631 times)

Apart from these reasons mentioned above, a person can lose money due to other reasons.  For example, there may be a sudden global collapse while trading or there may be some natural cause. As an example, I can share my experience.  Ukraine and Russia went to war while I was trading.  I also lose profit from my potential field.  Again, during the Corona period, there is a collapse in investment. Apart from people like me, many experienced people will also fall victim to this collapse.

All traders lose money like it or not, in the beginning i was all hyped and i always say ahh the next trade is gonna be it, Binance futures was my addiction,  but in time i got to understand that it is an unpredictable market, you are in, just like a coin flip, you might get the head or the tail but only thing you can do is minimize losses. So instead of focusing on not losing money which you will defiantly lose, just concentrate on how to minimize losses  and don't let your emotion determine your trade.

Losing in money is normal in trading because what we are doing here is we are trying to outsmart each other and trade against the market which is very volatile to deal with. If you are a trader, you have to equip yourself with the right knowledge so you can be more profitable and of course expect losses along the way. What we can do is to minimize the number of our losses and have a good and realistic target profit.

A step by step pocess to make yourself familiar with how the market works, that kind of practice will help you to established good strategy and not just to step inside and throw your money, getting your point it's best to have that deeper inderstanding with how trading works before inveting your money.

It helps you to pevent making big mistake and lose what you can't afford to let go, most traders who quickly decide to trade without investing with their knowledge ends  up losing a lot.

Of course it is true that losses are not only for beginners but for all traders, including those who are professionals or who already have a lot of experience in the world of trading. But maybe if we talk about the risk of loss then there is a difference between the losses experienced by beginners and the losses experienced by professional traders, which means that it is clear that those who are professionals already have enough experience and knowledge so that the possibility of losses they won't be very significant.

But if we are talking about beginners who are just getting involved, it is very likely the opposite, in the sense that the amount of their losses could be quite large because they don't know many things, especially they don't have good risk management. On the other hand, of course learning is the main thing that must be prepared before you enter a real trading session, you can study on a demo account for several weeks or months, each person has different capacities and abilities so of course their learning process is also different. in terms of time. One of the reasons why learning is a top priority for a trader is because every trader must make decisions based on clear foundations and reasons from what they know while studying, which can increase their chances of profit. Lastly, yes, you said a good thing by advising beginners to always install stop stops.

Majority of those people who do really expect or anticipate that trading is really just that easy are to those newbies who do able to see and watch those big profits in internet and having those kind of molded up
emotions that they could really be able to make money on the moment that they would really doing trading. On the moment or time that they will really be making up those trades then they would really be that definitely be having those kind of realizations or slap into their faces that trading is never been easy and it would never be. This is why on the moment that they do experience hardship then they would really be
tending to make those adjustments accordingly.

Losing money is normal, the key on here is on how you would really be that making yourself that be able to adjust accordingly for you to be able to make yourself that sustain or
able to make yourself that survive despite of such conditions.

Yeah, trading is not as easy as some people might think it is, and most traders these days aren't actual traders but are newbies who hear about trading and how much profit it can potentially provide and they get into it without any knowledge or doing any research and end up losing money.

Such traders don't follow the right approach for trading which is to first gain enough knowledge about trading and the market, do practice your knowledge with demo modes to see if your strategies and knowledge you've got are working well, and then get into real trading using a small portion of the capital so that in case things don't work out, not a lot of money is wasted and then the trader should reevaluate the process and improve what's causing issues.

Losing money on trading platforms is a very common thing but if one thinks that there is no loss if one acquires enough knowledge then it is not credible. No matter how much knowledge a trader acquires, he can make loss in trading. Certainly no one can make money from this platform. However, if one tries to trade as a result of various factors, then the risk can be reduced a lot. A trader is exposed to profit or loss due to various strategic reasons. Some can't hold emotions and some can lose because of too much greed and some can lose because of lack of knowledge. If a trader trades after observing these things well, the chances of losing there will be reduced. Trading is an uncertain platform where even after thorough research, many times it is not possible to avoid losses.

It's not just beginners who experience losses, traders who are experienced or often trade can experience mistakes or losses in analyzing the market. It is best that before entering the world of trading we have to learn about it first. In cases like this, knowledge about trading, in my opinion, is very important as our basic foundation for learning to analyze a very wild market in the market. From this knowledge we can form our skills from the failures we experienced previously. At least if you want to trade, you should use Stop Loss. By using this, losses can be minimized so that losses are not too big, and profits can be controlled.

Losing money in trading cannot be avoided but can only be managed to avoid plenty of losses. Even the most profitable traders today come across losses and its natural which they cannot also avoid. This proves that no one can be 100% perfect in whatever they do in this life. Years of perfection and consistent trading can make your skill great and be a profitable one, and once you are perfect, you will be more profitable and will have more gains than losses. That is to say, one win can cover all of your losses you’ve accumulated several times.

In fact, even long-time traders or professional traders can still experience losses, because trading is not always profitable and we have to be prepared for the losses we will experience. If profits were all we could get, I think we would all be very rich here.
However, the difference is that when traders are old or professional traders, they will remain calm when they feel a loss, because they already have experience. This is different from new traders, where they might become very panicked if they experience a loss and they need time to recover their mentality to return to trading.
However, the most important thing is that both professionals and beginners must continue to learn to develop their knowledge and make the strategies they have even better.

well of course everyone want to sell at price higher than the buying price but things doesn't always go like expected you know sometime market just turning bearish out of the blue and caught many people off guard.
there's reason why there are billions of dollars liquidated in the perpetual market because doesn't matter how good you are, you can't predict the future, at best you just bet on something that makes more sense such as shorting when bitcoin is reaching all time high or longing when bitcoin reached RSI index of oversold.

trading is just more of risk managing, knowledge can help but really the market doesn't really follow textbook guide or whatever theory is available out there.

That's the logic.
They won't be able to make profit if they don't sell at the right price and that's because they haven't met yet the price that they should sell and have a margin with.

You boiled them down mate and that's true, not every trader in the market is a real trader but thanks to them. The real traders are making profit off them.

Not all losses in trading are as a result of the trader's mistakes, some factors that are beyond the control of the trader like technical issues or systems malfunction can influence the losses of the trader. In most cases,  market volatility can be so unpredictable thereby giving room for losses. In all this, a good trader is not expected to feel discouraged or take decisions that might end up worsening the whole situation. Losses are inevitable in trading therefore, traders should learn to accept this fact so they can handle whatever comes their way in the course of trading.

Lack of patience can make many traders to lose their money, because they will be an hurry to trade without considering the season in the market before trading, and it can lead some traders to loss their money.

Yes, lack of knowledge can make you to lose money which I agree with you, because you will make a wrong choice to invest in a wrong investment that will not going to bring out the capital you use to invest in the investment, because you lack the knowledge of the investment which is what some traders are experiencing right now in the industry.

If you want to stop losing money in decentralized trading, try to create a good time to learn some basic skills of decentralized trading, and it will help you to put an end to losing of money in the decentralized trading.

I totally agree to all the the point you listed here, and to me they are all valid, but I think that their are some other things that also needs to be corrected in other to be successful in trading, and one major things that was excluded in your post was;

Proper risk management: bro, as long as trading is concerned, if you don't know how to manage your risk properly, you can never be successful in trading, because technical, fundamental analysis, knowledge, plus discipline makes you money, but proper risk management protect your money.

And lastly, another thing that mostly makes traders lose money in trading is lack of patience, most traders don't have the required patience to wait and trade only the right set- up, they just enter the market believing that they would be making money that time they should be waiting, and because they can't wait for the set - up they are sure of, they lose money in the process.

Trading is hard and newbies that are entering it needs to understand that it's not a get rich quick scheme like some influencers will hype it on social media. Crypto trading is something that someone needs to diligently learn before putting their funds into it otherwise there's a very high chance that they will lose their money in trading. Experienced and professional traders will be able to minimize loses because of their years of experience of how the crypto market works, they understand the fundamentals and technicalities of how to analyze trades, therefore they'll not fall prey to many mistakes that will make them to have loses.

So it's important for inexperienced traders to start with demo trading and when they've gained knowledge, they should trade with the amount that they can afford to loose.

Well, in the end it all depends on what abilities we have. If the person has often traded, then it is a matter of ability. Meanwhile, if he is new, then it is a matter of ability and knowledge. Many new traders experience losses, so I think it is normal. However, if he has been around for a long time, then he needs to develop a better strategy to avoid losses occurring.

It's not possible to trade without losses but we can always prevent increasing the chances of losing by sticking to our goal price, that is not buying and selling until our set goal price is achieved. And this can only be done if we eliminate our greed of money, and instill discipline in all that we think and do.

However, I'm aware that everything will not be easy as it is. But with good experience trading in the market, all these things will get done slowly until mastered.

By experimenting with a little capital, this will make us more alert to our emotions in the trading we do and we will be able to easily make decisions when choosing coins that have the potential to make a profit and with a little capital, of course this will not happen. makes us mentally fall when we experience failure in trading so that we will be able to easily find out where we made mistakes and continue trading again to be able to do it carefully, yes you are right of course we have to continue to increase our knowledge in the field of trading considering that some people Even those who have experience may still experience losses, so it is important for anyone when trading to continue to update their knowledge about trading so that they can continue to trade well and of course make a profit.