The reason why a lot of trades come short in the long run is because a lot of them think crypto is just a means to get rich quick and are impatient to see their plans and trades play out.
But I do agree with this point - the main reason why so many people eventually lose.
We always refer to the whales or big boys who have millions of dollars to spend in the market in order to manipulate and influence how the market moves at their will, but that isn't always the reason for people who can't make profits, it is more about intelligence and strategy to predict the market.
Whoever can survive and last longer in the trading battlefield obviously have a great methodology and strategy to achieve the goal.
The question is what do 1,6% of traders do differently?
Yes, I totally agree. So what in your opinion makes those 1.6% different? - it can be either institutionals or retail traders like everyone here.
The top 1% are those who don't trade at all IMHO. These traders trade when it is required - when the markets are going to make a move which is so big that it can make a huge difference when happened. These traders are from the big names who trade to make profits 'only' of any range.
Lol, yeah good point - as there was a quote in Chinese, about you don't need to join a battle to win - wait and see how your enemies kill each other and themselves
This is why many says trading is not profitable at all, well I guess based on the numbers its all about the risk and of course the skills of the traders. Looking at the long term time frame, if you still losing big money then trading is not for you or you just need to improve yourself and learn more. Traders must also know delayed gratification and don’t just think that you’ll get rich easily on this market.
But skills can be learned, aren't they? I know that many people are too stupid or too lazy to actually sit and learn something, but I think it's greater than 1.6% of those who actually learned / mastered the skill, but still keep losing?
For sure these numbers are really pertaining with Forex/Stocks trading since this crypto market is just a decade year old then we cant really say that only 1% is making profits
on this entire market.We might not have those precise percentage but for sure it would be more than 1% because if we do saw that there are only a few been making profits
in long run then we wont really be seeing much of liquidity.Just try to observe the entire market when it comes to moving price or volume then its hard to believe on such
claims.For forex then i might believe but for this market? No, i would really be more than that..
What you refer to is the small sample of history for cryptos. And you might be correct with the current market - it's too new, too small, thus too many arbitrage opportunities (like few years ago even some technical analysis would make you decent money - like with stocks many years ago). But once you increase the sample, more people enter the market, more people try new / old strategies - the numbers will average themselves to 1-2% same with other markets, be it FOREX, stocks or other assets.
People in trading just come and go, there will be newcomers or old traders who survive in the crypto trading industry. I don't know who are those in 1% but probably they are those people who are willing to risk and spend more time in trading. In trading failed, not all become successful, if there's a winner there could be a loser and that's how trading will work.
It might be the reason that there are always new beginners in trading that hoping they will earn money and thought that it is easy to trade and gain profit. But the fact, that isn't, it is required skills and strategies before you will become a successful trader and probably those who failed can't able to survive and the choose quitting than to survive.
Yeah valid point also, but just "keep trying and you will succeed" might not be very feasible for everyone due to personal capital limitations. I believe if you have $1m ready to go wasted, and you keep trying with $100 only, eventually you will master the skill (if it's about that). But those who succeed rarely waste so much money on just trial-and-error experiments. There must bee some other factor?
These are the most experienced traders. They have a different source of income that helps them to sustain their trades. I'm not one of them but how I wish that I can be part of that very small percentage that managed to continue trading all of their lives.
As a holder, I only trade when it's the right time, and probably this 1% have done day trading before to master the market for a long time. And after that, they've chosen to manage and become stable through holding certain stocks and cryptos that they rely on someday.
You refer to market timing strategies - they are well documented also and well researched. No need to invent new things there, just study quant approaches to market timing and you will get what you aim for with "right entry" points. But that's also not for everyone I guess, and not that sustainable. Once every guy around the corner knows how to time the market based on advanced strategies, - it will stop working.
Probably people who have successful or profitable trading strategies. Better to develop or use something that works consistently for you. If you find a strategy that works for you most time , you automatically become part of the few successful traders. I think they are few people who are consistently profitable in trading but am not really sure about the percentage
Once you find the amazing winning strategy - there's short period of time you have to make money, because advanced funds track inconsistencies and other funds, and can analyze what you do differently and quickly replicate your strategy. So eventually this strategy will be known to everyone and will stop making money.
they were definitely extraordinary people. It is even possible that a token maker or a person who is able to launch his own token is able to make all long-term tax payments in his trading. And I feel that maybe I'm not included in that part because I'm still a very beginner in trading.
That's the common misconception about traders. We are all special and extraordinary in own ways. What can be done by one human - can be done by another human also with enough patience, time and efforts. I believe it's not just about skills or being extraordinary.
