Data suggesting more than 95% traders are losing

[Charles-Tim]

It is surprising what I saw about trading, that 95% of traders are losing, this was not what I even thought before, I was considering 75% of traders, but no research paper exists that proves this number right while some suggesting that the actual figure is much, much higher.



This poll are strictly for traders, it is clear that holding bitcoin and some other strong altcoins in the past did not later result to loss, unless the people that sold out of panic, because the price of these crypto assets increased back. So, this poll are only for traders, for us to know how trading is risky.

This is not about what you feel about trading, it is about what has happened to you, maybe you have lost to trading, or you are gaining from trading.

https://tradeciety.com/24-statistics-why-most-traders-lose-money/

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[GreatArkansas]

The data shows how important for a trader to stay longer. In short, preserving capital will result of staying on the run longer.
The chart is extremely true, that's why some successful traders keep saying how important risk management is and preserving the capital.
The game is likely how you will survive in the long term.

[tranthidung]

The data shows how important for a trader to stay longer. In short, preserving capital will result of staying on the run longer.

Here’s Why 99% of People Fail to Replicate Warren Buffett’s Strategy When Investing. They fail with their strategies and don't have clear intention on what they're doing and will do. Flips between investment and tradings as they want to get rich very quickly.

One day, Jeff Bezos, the founder of Amazon, asked Warren Buffett in person about this point:
“Warren, your investment thesis is so simple, and yet so brilliant. Why doesn’t everyone just copy you?”
The question asked by Jeff Bezos is the question everyone is asking. So the answer is important to many people.
Warren Buffett simply replied:
“Because nobody wants to get rich slow”.

The chart is extremely true, that's why some successful traders keep saying how important risk management is and preserving the capital.
The game is likely how you will survive in the long term.

In crypto market, you can get rich quickly, double, tripple, x10, x20 but you will face with quick losses as well. Everyone who enjoyed the bull market in 2017 and early 2018 and witnessed the bear market from 2018 to very late of 2019 do know how it goes.

A trader will not have a happy ending if don't know how to protect capital. How?

• Exit positions with a draw or even minor losses
• Split these parts for initial capital and temporary earned profits. The second part can be used with more risky taste but the first part should be kept as much safely as possible.

[Darker45]

The data shows how important for a trader to stay longer. In short, preserving capital will result of staying on the run longer.
The chart is extremely true, that's why some successful traders keep saying how important risk management is and preserving the capital.
The game is likely how you will survive in the long term.

It's funny but somehow I realized that the earlier you quit trading, the smaller your loss is. I'm referring at least to day trading. I guess it is easy to find data that prove many hodlers end up more profitable than active traders.

Trading is oftentimes overhyped and even presented oversimplified as if it is the secret for easy money. The moment they begin to get into it and realized that it is hard and complicated as it is stressful, they quit.

Lucky for those who stayed on and just shifted to hodling. Those who quit altogether, especially during the most bearish of days, will face regret in the end.

[South Park]

It is surprising what I saw about trading, that 95% of traders are losing, this was not what I even thought before, I was considering 75% of traders, but no research paper exists that proves this number right while some suggesting that the actual figure is much, much higher.



This poll are strictly for traders, it is clear that holding bitcoin and some other strong altcoins in the past did not later result to loss, unless the people that sold out of panic, because the price of these crypto assets increased back. So, this poll are only for traders, for us to know how trading is risky.

This is not about what you feel about trading, it is about what has happened to you, maybe you have lost to trading, or you are gaining from trading.

https://tradeciety.com/24-statistics-why-most-traders-lose-money/

I traded for a time, now I am just a holder and I earned some money back then, not much but it is better than losing, however I think that what happens is that this market is even harder than other markets, the volatility is greater and while it can play in your favour that is only true if you know what you are doing, another factor is that newbies tend to want to become day traders which is by far the most difficult way to trade and finally when we add leverage to the mix I think this explains why trading is producing such a high number of losing traders.

[CryptopreneurBrainboss]

This is not about what you feel about trading, it is about what has happened to you, maybe you have lost to trading, or you are gaining from trading.

I doubt there's a trader out there that haven't both lost and gained from trading, for you to call yourself a trader you must have experienced both as they help in building you in your trading profession. The reason the numbers are high is because we have noobs coming into the industry daily and jumps right into trading without having any prior knowledge and for those with the knowledge, they lack the experience of trading the crypto market.

The cryptocurency market is different, her volatility isn't like any other which is why many experience traders in other market still find it hard to cope here. Personally I have lost quite a huge amount of money from trading as well have many same too. You can be on one side although you should always make us your profits are higher than your losses, that's what makes you a successful trader.

[TheUltraElite]

It is a research paper? - so you have to take it with a grain of salt. Of course the motion is correct if they say that those who panic lose early than those who hold for long to sell at the right time.

I saw a lot of points that have been posted there but having been in trading for quite some time, the majority of the statements in that article seem to promote the idea of "keep going you will earn a lot" - a type of propaganda that such blogs run in order to get their referral commission from signups.

Thing is trading is not for everyone and in case you are a part of the lot that cannot cope with losses, you need to stop trading. This is tough when you are being brainwashed into continuing to trade. Not that I am discouraging people to read such articles on random blogs, but do their own research first and stop listening to opinions.

[goaldigger]

Traders are losing because that's normal and our goal is not to always make profit but of course to earn money and reach our target profit at the end of the day.

I personally have an excel file of my trades (journal), and I can say that I lose on many trades but I also make money on some of my trades. My result last year was great since I'm on a gain position. Many says that, long term investors are way more profitable than trading and less hassle of course which is true so if you're not into trading, then play long. 

[jrrsparkles]

Traders fail because they don't have patience, even warren Buffet told that people in the investment field never get rich like him because they wanted to be rich quickly so they are losing their money and giving up when there is no money left. Those 7% maybe denotes that ho are successfully living out of trading but the actual numbers will be lot higher for sure.

[pooya87]

I don't think the numbers are this extreme. If they were then trading would have stopped. Always losing will not only discourage that many people but also bankrupt them so they can't continue trading and the volumes would have dropped by 95% too!
The fact that volumes remain high suggests that a lot more than just 5% are making profit. It may not be massive profit and not on every trade but there must be a net profit at the end of the day.

Besides we have no way of actually studying the numbers and coming up with a percentage without getting ALL the trade history of at least one exchange for users not the trade history without the user ID attached. And no exchange would ever provide this information because it is an invasion of privacy.

[michellee]

I think the option should be adding more such as my percentage in gain and loss will be 50%-50%

I can profit from trading, but I am not always making a profit because sometimes, I miss analyzing the market. But I am not a daily trader as I do not think that I can analyze the market better than other people.

The trader will lose their money if they can not analyze the market because that is the key for them to have in trading. So if you want to become a trader, you should have that and learn more about trading.

[Distinctin]

Not really a thing to believe because I was thinking that the majority of the traders are in good and profiting. Because I believe that they are taking the advantages of using the trading tool available and works effectively, but somehow it just results like this? It never works great.

I'm not sure how reliable it was but that's it, the result is really bad and the more it discourages people to go in trading rather than to be a holder. I have the plan to become a full-time trader once I have enough capital but this gives me worries what if I just ended up nothing like this 95% of traders who suffered losses.

[orions.belt19]

Many traders fail because they are brought about by their emotion. Can't really blame them because to be human is to feel emotions. One's emotions can really sometimes hinder your ability to make intelligent decisions. Most are affected by their fear too much. As Warren Buffet said "Be greedy while others are fearful".

One thing to note though is that a trader will not always be profiting every single day. It's normal to see their PNL track record to have some red. What's important is the profit should outweigh the losses. I've learned over quite some time from trading that you can always gain back your losses. The market is always there and will recover even after experiencing a crash. Just this time last year, markets have crashed due to the corona virus outbreak but right now the scenario is very different and the sentiment for the markets is very positive as everyone is hoping for the economy to recover.

[Kasabus]

Many traders fail because they are brought about by their emotion. Can't really blame them because to be human is to feel emotions. One's emotions can really sometimes hinder your ability to make intelligent decisions. Most are affected by their fear too much. As Warren Buffet said "Be greedy while others are fearful".

There is no way about winning if we have been controlled by our emotions. It should be stopped in order to make a good decision that will results positive.

It can't deny that many traders had lost but many were also are profiting.
What brings us to losses is that because we wanted instant, we wanted to become rich in a day but we even don't know to work patiently to achieve our goal. That's something we commonly missed and that is why most traders will say that they are badly losing than profiting. They don't have the record to help track their traders either. So they never know exactly, IMO.

[Lucius]

Not surprising, because 95% of those who lose is the percentage that goes through many surveys that can be found online. If you look at this article from 2013, it also raises the question of whether it is possible that as many as 95% of Forex users also lose money. I also read somewhere that as many as 97% of people who bet on sporting events also do not make a profit, but it should be taken into account that some actually consider this form of investing as fun.

While we can't know the real number of those who make a profit from some kind of trading, I don't think it's more than 20% at best - although I'll agree with what's in the OP, and that number is actually much lower. One wonders how then is it possible that the internet is full of stories of those who have become so rich in this way? Let's say that such platforms attract fresh blood in this way, because it is easiest to sell a story about how you don't have to do anything, and you can gain a lot of wealth.

[el kaka22]

It is understandable that not all traders may not be making money but remember that most traders do not trade like it is full time job, even if it is not your full time job there are very few people who trade daily, like at nights after dinner start trading for 5-6 hours a day type of deal, that could be done and not many people do it. Most people just trade here and there rarely and end up losing money and leaving, that is the majority of people who lose money.

Any decent trader would know what to buy, wouldn't buy something horrible and shady, and would wait if it is on the down and buy even more to drop the purchasing average and would sell later on when it goes up, so basically anyone smart enough to do what they can would basically end up with a lot of money, that is why I do not believe that 95% would lose money, a "true trader" would be 70%+ profitable people with just 30% unlucky that's it.

[boyptc]

It is why I've always stayed as a holder. I trade sometimes but I make sure that I make profit instead of just losing my capital.

Many traders do really lose and in these times, there are more new traders that came and they added to that stats because they lack of experience.

But I think, knowing about how many percentage of traders make money, they're more than the remaining 5%.

[Lanatsa]

So, this is just the same on what are the percentage that we can look also in forex.
https://dailypriceaction.com/blog/successful-forex-traders/#:~:text=A%20well%2Dknown%20figure%20in,figures%20aren't%20far%20off.

How much more on cryptocurrency? I cant say if its lower or higher but basing off on profitability chances or opportunities then
I can say that there are somewhat higher successful traders out there.

[seleme]

The liquidity is provided by the %95 of losers and the losers feed the limit orders of the top 1% winners. The trading is a zero-sum game, someone has to lose more for winners to get the big fish. The more the short-term traders don't wanna learn the secrets of market patterns over the long term, the traders with long-term market vision will take all. Long-term goals are important to achieve the goal of top 1% winners.

So, this is just the same on what are the percentage that we can look also in forex.
https://dailypriceaction.com/blog/successful-forex-traders/#:~:text=A%20well%2Dknown%20figure%20in,figures%20aren't%20far%20off.

How much more on cryptocurrency? I cant say if its lower or higher but basing off on profitability chances or opportunities then
I can say that there are somewhat higher successful traders out there.

In forex markets, the situation is completely different. As the old spot forex trader, I confirm it is less than 5% winners in trading and the 95% lose the all balance in the long run. The long-term investing has better R:R compared to the short-term market movements, better to check the market sentiment before trading the majority of the market participants in such cases.

[ChrisPop]

First of all I think we must start by making a distinction between trading (which is basically speculating about the price movement of a certain asset in a set timeframe) and investing which is a more fundamental-based approach where you put your money to work for the long-time. Some will argue that investing is simply trading on longer timeframes. Well, that's not true. When you're doing intra-day trading or even swing trading you're basically betting on one part of the market forces being stronger than the other so you are exposed to the random players that enter and/or exit the markets. You've got to be extremely careful when you define your activity.

Holding or investing in Bitcoin has been proven to be profitable on the medium to long timeframes, but remember that past performance is not necessarily an indication of future results.