Topic: Why do traders lose money in trading? - page 3. (Read 800 times)
Trading considered already had a risk and if you get knowledge and experience you can lessen this risk to become your strength to avoid too much losses or even make a decision to not enter the position you are keeping an eye. Also other factor consist too like trader becomes more greedy with his action even though they gain profit because of too much confident the market is volatile and it makes a reversal move, also we can consider the market volatility we know how institution and whales makes a manipulation so people get liquidated unexpectedly still that's the reason why most of the exchange platform offering a SL/TP features to have an option to the trader to protect their money.
I guess for me, the very basic reason why a lot of traders lose money in trading simply because they fail to execute the most basic trading strategy, sell at a price higher than the buying price. Probably because not all traders are real traders in the market, some are just self-acclaimed and just own the title without having proofs. This boils down to the realization that some traders are not well educated and not well aware how trading works. But mostly, only greed and fear matter to them.
Once we call it trading, it means we are talking about finding profits in the short term (intraday). What would you do if you bought bitcoin at $65k and you expected to sell it when it reached $68k , but things didn't go as you expected and bitcoin suddenly dropped in price to $60k or less? In this case, if you don't cut loss and are determined to hold until bitcoin recovers (which could take months) , is it called trading or are you holding ?
We all know that bitcoin is very volatile in the short term and almost impossible to predict, but many people like to make money quickly and that is why so many people lose money when trading . Even if you have complete knowledge and experience , there is no guarantee that you will always accurately predict the short-term trend of bitcoin.
When we trade in something, we must first gain enough knowledge about the trade. If we do not gain enough knowledge about the trade, then we cannot trade properly. There are many investors who invest too hastily without having enough knowledge about investing and end up with more losses than gains. Therefore, before investing, we must acquire enough knowledge about investment and be patient. If we can invest with long-term planning, we will certainly earn enough profit through this investment, which will make us more interested in investing in the future. But experience is very important in investment if we can't invest with experience then we will keep losing money in our investment than we hope to invest.
It's a skill issue, like others have said, it's about minimizing risk/managing it.
I think poker is very similar to trading, you have rake "fees" the odds are already against everyone, there's going to be winners and losers.
The ones with more knowledge are still going to lose no matter what, but it's a numbers game, you don't put everything you have on a single bet.
And over time, making marginally better decisions than others will be profitable.
And just like poker, with trading you need a winning strategy.
I think poker is very similar to trading, you have rake "fees" the odds are already against everyone, there's going to be winners and losers.
The ones with more knowledge are still going to lose no matter what, but it's a numbers game, you don't put everything you have on a single bet.
And over time, making marginally better decisions than others will be profitable.
And just like poker, with trading you need a winning strategy.
I guess for me, the very basic reason why a lot of traders lose money in trading simply because they fail to execute the most basic trading strategy, sell at a price higher than the buying price. Probably because not all traders are real traders in the market, some are just self-acclaimed and just own the title without having proofs. This boils down to the realization that some traders are not well educated and not well aware how trading works. But mostly, only greed and fear matter to them.
From my experience, here are 4 reasons I discovered:
1/ Lack of Discipline— a) Not sticking to one strategy, b) not respecting your trading rules, c) not sticking to your plan.
2/ Lack of knowledge—Inadequate understanding of the market, trading strategy, financial instruments, and fundamentals can lead to poor decision-making.
3/ Not having a mechanical trading system—This leads to emotional trading. Decisions driven by emotions like fear and greed rather than rational analysis result in significant losses.
4/ Overtrading—Taking many trades will affect your decision-making ability and lead to poor decisions.
If there are other reasons why traders lose money, share them with me.
1/ Lack of Discipline— a) Not sticking to one strategy, b) not respecting your trading rules, c) not sticking to your plan.
2/ Lack of knowledge—Inadequate understanding of the market, trading strategy, financial instruments, and fundamentals can lead to poor decision-making.
3/ Not having a mechanical trading system—This leads to emotional trading. Decisions driven by emotions like fear and greed rather than rational analysis result in significant losses.
4/ Overtrading—Taking many trades will affect your decision-making ability and lead to poor decisions.
If there are other reasons why traders lose money, share them with me.
Once you're considering trading, there are many ways traders can lose their money while on any trade, there is risk in it and anything that has the potencies for generating income must also have some level of risk being involved in them, we can't void making mistakes and through this as well, many are still missing out on their trades when they realized making a mistake, we are to only ensure that we are trading base on what we can afford to lose and base on the level of our understanding of it, as another thing to consider, obviously not all traders will like to risk their money on trades and loose it, but in some circumstance, it becomes unfavorable and things can't be avoided.
Take up the risks and act accordingly on which you would really be making out those kind of adjustments and you would really be able to point out on how you would really be that making yourself
that able to sustain if ever you would be experiencing those conditions. It all matters about into your plans and approach on how you would really be making yourself that versatile
and wary about on such condition.
From my experience, here are 4 reasons I discovered:
1/ Lack of Discipline— a) Not sticking to one strategy, b) not respecting your trading rules, c) not sticking to your plan.
2/ Lack of knowledge—Inadequate understanding of the market, trading strategy, financial instruments, and fundamentals can lead to poor decision-making.
3/ Not having a mechanical trading system—This leads to emotional trading. Decisions driven by emotions like fear and greed rather than rational analysis result in significant losses.
4/ Overtrading—Taking many trades will affect your decision-making ability and lead to poor decisions.
If there are other reasons why traders lose money, share them with me.
1/ Lack of Discipline— a) Not sticking to one strategy, b) not respecting your trading rules, c) not sticking to your plan.
2/ Lack of knowledge—Inadequate understanding of the market, trading strategy, financial instruments, and fundamentals can lead to poor decision-making.
3/ Not having a mechanical trading system—This leads to emotional trading. Decisions driven by emotions like fear and greed rather than rational analysis result in significant losses.
4/ Overtrading—Taking many trades will affect your decision-making ability and lead to poor decisions.
If there are other reasons why traders lose money, share them with me.
Once you're considering trading, there are many ways traders can lose their money while on any trade, there is risk in it and anything that has the potencies for generating income must also have some level of risk being involved in them, we can't void making mistakes and through this as well, many are still missing out on their trades when they realized making a mistake, we are to only ensure that we are trading base on what we can afford to lose and base on the level of our understanding of it, as another thing to consider, obviously not all traders will like to risk their money on trades and loose it, but in some circumstance, it becomes unfavorable and things can't be avoided.
It's funny how most people can't admit that making money from trading is very, very difficult that most people are losing and only in rare cases where they are making money and even in those rare cases it is temporary because then they give up on trading because It's a very stressful activity and particularly when I research the biggest successful trades and look at their stories, it gives me the impression that they are investors and not traders, but as the guys who write the articles want to give importance to the trade, so they say that they are trades, for example these guys in this article:
10 of the World's Most Famous Traders of All Time
They are people who became very rich, but in my opinion it was thanks to long-term investments, but in the article it says that they became rich with trading. So I wonder how many people in this section are trading and making steady profits?
If we do this research we will see that out of 50 people who are trading, maybe only 1 has some profit, but not constant profit, the remaining 49 people are making losses, even following all this advice that is here. I have seen in my country some lying people who operate in the financial market, forex, have more than 5 years of experience as a trader and have consistent profits, but these people in my country do not post proof, they keep posting luxury cars and houses and are I always talk about how there are vacancies for trade courses and that the cost is $250 for each person, I don't fall for this scam, but there are people who are still mistaken that you can make money with trade, you just need to have knowledge. man, even with this knowledge the person would lose
10 of the World's Most Famous Traders of All Time
They are people who became very rich, but in my opinion it was thanks to long-term investments, but in the article it says that they became rich with trading. So I wonder how many people in this section are trading and making steady profits?
If we do this research we will see that out of 50 people who are trading, maybe only 1 has some profit, but not constant profit, the remaining 49 people are making losses, even following all this advice that is here. I have seen in my country some lying people who operate in the financial market, forex, have more than 5 years of experience as a trader and have consistent profits, but these people in my country do not post proof, they keep posting luxury cars and houses and are I always talk about how there are vacancies for trade courses and that the cost is $250 for each person, I don't fall for this scam, but there are people who are still mistaken that you can make money with trade, you just need to have knowledge. man, even with this knowledge the person would lose
If there are other reasons why traders lose money, share them with me.
In fact, the main reason for those who continue to lose money in trading activities has many reasons that must be taken into consideration, for example: analytical skills and also the knowledge of the crypto market that they have, it can boil down to the psychology and mentality of traders who always make biased decisions which allows them to act emotionally and can cause losses in their own trading, that's as simple as the main and real reason.I have brilliant motivation for me to guide myself in carrying out trading activities, this advice makes me better when trading.
@paul pratt, said.
Quote
They jump in too soon with no risk management. Med school students take years of their lives before they become surgeons. They practice on cadavers first, and only the best survive. Not so in futures trading. There is no training requirements at all, and most people perceive themselves as being smarter than everyone else. They jump in with no knowledge or training thinking they will be rich in a year. They even tell their friends about every good trade they make. Not a peep about the losing trades is ever heard, and when they quit or go broke they pretend it never happened. They say the market is rigged, or some other untrue excuse. Enough pessimism. It is possible to be a winning trader though. It’s gonna take time, and it’s gonna take money. If you learn from mistakes and keep trying you can get there. When I first started I would scare myself on a regular basis and say “I gotta de-risk my strategy. I can’t handle the drawdown!!” Learn risk management first. Then learn to build a strategy. Learn to test it the right way. This is a biggie here. Most new traders fall into the trap of over optimization during testing. Determine worst case scenario to determine account size requirements. Never take more risk if the reward isn’t there. Weed out the bad stuff. Throw away your hard work and move to another strategy if need be. Then test your group of strategies. Do they correlate? If so you’ll be compounding risk. Better try something else. The more time to put in the more good results you’ll end up with. It’s a lot more work than people think. I’m not sitting at the beach all day and driving my Lamborghini. It’s a full time job. Maybe more. But if you work hard you can make it to the finish line. Happy trading.
This motivation became the basic basis for me when I first started trading crypto and until now, I have considered this advice, therefore I want to share the motivation here.
I don't believe traders can completely avoid losses; it's all about having strategies to minimize them. Human psychology, particularly greed and the desire for more profit, is a significant factor. Controlling these emotions is challenging unless you have strong emotional management around money. Experience benefits everyone in business, regardless of the field
Yes no one can avoid loss in trading it is guaranteed. Because no one has the power to know the future of a second. We can only make one prediction. But no one can guarantee anyone's prediction. No coin's price is fixed and since millions of traders buy and sell a coin in the market, no one can guarantee when the coin's price will move in which direction. to trade for this, you have to trade with risk. And the trading budget should have the ability to lose up to 50% and if someone is doing futures trading then he should have the ability to lose the entire budget. Future trading is risky like gambling and spot trading is risky but not 100% risky. 
Trading is similar to gamble which is either you win or lose. Risk management is very important when trading and also don't allow greed take over you and be in control of your emotions. I don't think that there is anyone that will say he has never lost in trading since he started trading because even the so called professional traders run at loss if the market goes against their direction. This is why when trading only use a little amount of money to trade and has time goes on, you will be able to come up with a strategy that will favor you.
No one always makes a profit in trading and has certainly experienced losses when they do it.
Apart from risk management, controlling our emotions we also need to study related to the coins we want to trade.
If our trading knowledge is not perfect then use small money first to train our skills to get better, so that when we master the method we can improve it slowly.
Trading requires knowledge because the market may change and we must be able to analyze this, so that when the market changes we can minimize unnecessary losses.
I think, lack of knowledge can make traders to experience losses in their trading, because you will not know when to trade to achieve what other traders are achieving from the market, because there are some skill you will use to avoid losses when you have the knowledge of cryptocurrency. I know losing income in the cryptocurrency trading is very common among newbie, because they are in a hurry to make huge amount of income in a wrong direction that will make them to lose their capital at the end. When you make use of the simple strategy, purchase when the price is low and sell when the price is high which is the best strategy many traders are using to avoid losses in their cryptocurrency trading and they are enjoying the simple strategy in their cryptocurrency trading.
lack of knowledge in trading is the same as fighting without armor. However, before trading, everything needs to be prepared, whether it is scientific, mental, analysis, speculation, research, and others. Many people trade just because they follow someone else, and when the price falls, they blame that person. In fact, in trading you really need to have adequate knowledge and analysis. There are many factors that can cause people to lose money in trading. Therefore, before trading, we need to consider everything.But common problem of newbie trader is they expect a lot that trading is all about buying low and sell at high that's why when they come on real trades they lose because there's sudden changes happen and they don't know what counter actions needed to do. If these people didn't come having great expectations then became greedy for fast results for sure that they can avoid any potential lose that they might encounter.
If they already experience a defeat then I guess its not good to blame their mistakes to anyone. Since that's not really good attitude since its shows how immature that people and not ready to take risky decision in investment matters. If they want to learn and get valuable lessons from what they experience then they should come back on their research then learn technical things so they would know more information about what are other things that can help to increase their chances to win on their future trades.
Trading is similar to gamble which is either you win or lose. Risk management is very important when trading and also don't allow greed take over you and be in control of your emotions. I don't think that there is anyone that will say he has never lost in trading since he started trading because even the so called professional traders run at loss if the market goes against their direction. This is why when trading only use a little amount of money to trade and has time goes on, you will be able to come up with a strategy that will favor you.
I think, lack of knowledge can make traders to experience losses in their trading, because you will not know when to trade to achieve what other traders are achieving from the market, because there are some skill you will use to avoid losses when you have the knowledge of cryptocurrency. I know losing income in the cryptocurrency trading is very common among newbie, because they are in a hurry to make huge amount of income in a wrong direction that will make them to lose their capital at the end. When you make use of the simple strategy, purchase when the price is low and sell when the price is high which is the best strategy many traders are using to avoid losses in their cryptocurrency trading and they are enjoying the simple strategy in their cryptocurrency trading.
lack of knowledge in trading is the same as fighting without armor. However, before trading, everything needs to be prepared, whether it is scientific, mental, analysis, speculation, research, and others. Many people trade just because they follow someone else, and when the price falls, they blame that person. In fact, in trading you really need to have adequate knowledge and analysis. There are many factors that can cause people to lose money in trading. Therefore, before trading, we need to consider everything. 
I don't believe traders can completely avoid losses; it's all about having strategies to minimize them. Human psychology, particularly greed and the desire for more profit, is a significant factor. Controlling these emotions is challenging unless you have strong emotional management around money. Experience benefits everyone in business, regardless of the field
It baffles me today that some people online would be advocating a 100% winning strategy, what a heck!!! And to make matters worse, some gullible people would believe this and will invest massively in such, but in the end, they will lose all their money. This can only be possible with either the people lack trading knowledge and exposure or they are merely unwise. Because even if someone advertises a thing like that to you, why don't you use your brain to think whether it's possible or not?That said, though traders can't entirely avoid losses, they can put them under check to the extent that they may still have 95% winning. You might also be wondering if that is not too high, yes, to most, it is too high, but to some few, it is not. The beauty of their trading is to have a very good strategy and trade when all confirmation are checked. If such traders also have viable management and psychology, I am certain that trading will be too easy for them.
I think, lack of knowledge can make traders to experience losses in their trading, because you will not know when to trade to achieve what other traders are achieving from the market, because there are some skill you will use to avoid losses when you have the knowledge of cryptocurrency. I know losing income in the cryptocurrency trading is very common among newbie, because they are in a hurry to make huge amount of income in a wrong direction that will make them to lose their capital at the end. When you make use of the simple strategy, purchase when the price is low and sell when the price is high which is the best strategy many traders are using to avoid losses in their cryptocurrency trading and they are enjoying the simple strategy in their cryptocurrency trading.
Traders often lose money in trading for several reasons, including lack of knowledge, poor risk management, emotional decision-making, and market volatility. Even experienced traders can face losses due to unforeseen market movements or overconfidence in their strategies. Just like Egle DiceGirl, a Slots Games Expert, who understands that every game has an element of risk and requires a strategic approach to maximize winnings, traders must also approach the market with a well-thought-out plan, disciplined execution, and an understanding of the inherent risks involved. Without these, the chances of making consistent profits diminish significantly.
No matter what you do OP, this won't give an excuse for losing, all traders commit mistakes.
You have all the points as to why traders lose their money but even how careful you are, losing is still possible. Therefore, don't assume we can avoid this because of the volatile situation of the market, you can't put everything in our hands and know what will happen next. In fact, even pro-traders still lost which means that there is no perfect trading strategy to be found and it never existed. The only thing we can do is to minimize losses but can't stop it.
If you are really a trader, you know the situation already. Losing is a part of trading but I don't see it in a negative way instead, it helps me think that trading is risky and hard to rely on.
Yes, being aware about the reality in trading before one decides to trade can be of great help. That way, a trader should learn a solid risk management instead, so that he can increase his profits and lessen the chances to be at loss. There's no certainty in trading, but as long as you follow all the basic requirements to be a safe trader, you will never be constantly trading at loss. You have all the points as to why traders lose their money but even how careful you are, losing is still possible. Therefore, don't assume we can avoid this because of the volatile situation of the market, you can't put everything in our hands and know what will happen next. In fact, even pro-traders still lost which means that there is no perfect trading strategy to be found and it never existed. The only thing we can do is to minimize losses but can't stop it.
If you are really a trader, you know the situation already. Losing is a part of trading but I don't see it in a negative way instead, it helps me think that trading is risky and hard to rely on.
I don't believe traders can completely avoid losses; it's all about having strategies to minimize them. Human psychology, particularly greed and the desire for more profit, is a significant factor. Controlling these emotions is challenging unless you have strong emotional management around money. Experience benefits everyone in business, regardless of the field
It's just that no matter how capable we are as traders, losses are still visible in trading. Maybe some strategies may stop working already that have turn our trades into wrong moves, and sometimes poor decision making and lack of discipline will lead into poor results.However, given the fact that traders still lose money in trading, then all we have to do is practice more in the market and gain more experience. Well-experienced traders have always an advantage over those others who have not. And by exposing yourself into a lot of better trading ideas, and applies solid risk management in trading, most certainly the outcome will be a lot better.
From my experience, here are 4 reasons I discovered:
1/ Lack of Discipline— a) Not sticking to one strategy, b) not respecting your trading rules, c) not sticking to your plan.
2/ Lack of knowledge—Inadequate understanding of the market, trading strategy, financial instruments, and fundamentals can lead to poor decision-making.
3/ Not having a mechanical trading system—This leads to emotional trading. Decisions driven by emotions like fear and greed rather than rational analysis result in significant losses.
4/ Overtrading—Taking many trades will affect your decision-making ability and lead to poor decisions.
If there are other reasons why traders lose money, share them with me.
All these reasons can be compiled in lack of proper knowledge and orientation about trading. I will also tell you that greed do have a positive impact on traders losing their money because some traders are very greedy and will prefer to wait for more profits instead of taking the little one they already have.1/ Lack of Discipline— a) Not sticking to one strategy, b) not respecting your trading rules, c) not sticking to your plan.
2/ Lack of knowledge—Inadequate understanding of the market, trading strategy, financial instruments, and fundamentals can lead to poor decision-making.
3/ Not having a mechanical trading system—This leads to emotional trading. Decisions driven by emotions like fear and greed rather than rational analysis result in significant losses.
4/ Overtrading—Taking many trades will affect your decision-making ability and lead to poor decisions.
If there are other reasons why traders lose money, share them with me.
Some new traders do rely on signals from people they don’t know, they prefer to wait and pay for trading signals instead of learning for themselves, they will rather pay so that they can make it quick and these are the reasons why new traders lose money easily.
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