Data suggesting more than 95% traders are losing

[ven7net]

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/

Personally, I find it difficult to agree with the statement that 95% of traders lose money. The fact is that quite recently I decided to try trading on one little-known exchange. After several days of studying trading pairs and strategies, I was able to start making money trading one asset against USDT and BTC. Next, I shared my vision of trading with two more acquaintances, and they, like me, were able to make money. This example showed that if you find an opportunity to make money on trading and educate others correctly, then these traders will not lose money. Yes, this does not mean that everyone will succeed, but nevertheless this part of the work can help many to make money on trading, and not lose. This will probably be able to reduce the% of those traders who lose money on cryptocurrency trading.

[dunfida]

How can this much percentage of ppl be losing when you hear about those who daytrade crypto for a living? 

Okay, then tell how many day traders you do know that do make out a living with trading? There's no specific numbers or you cant really see it anywhere or not really that common.
It might that they are just making out themselves private or anonymous or just simply they are just few in numbers, no one really knows but one things for sure that
there are only just a few who could withstand this market on sustainable manner without relying into any job in real life but just pure trades.
Doesnt matter if it would be on 95% as long you do know the risk behind it or the possible outcome then thats already a good indication.

[Ridwan Fauzi]

Indeed, I have lost while I'm trading. Future market is poison me to lose my money. And the first factor that I lose money is I don't have a lot of knowledge against techincal analyst. Yeah, I suggest you or anyone here before you have an intention to trade in the future market then you have to overcome first the technical analyst strategy.

And I just guessing most of future market trader just choosing short term strategy like day trader that use 15 minutes until 1 hour time frame. Previously, I always use high time frame to trade like one day time frame to trade but I'm not ready when I see I got a huge lose and I got panic until I close my entry. Whilst in the high time frame the market will go as my prediction, this is why I lose my money than I get profit from my trading.

[South Park]

Being a old trader and still it's hard to be positive in trades. Can't believe that someone new can figure it out fast. So the numbers seem right. But still not everyone trades. There are people who just hold and at the end I think they have biggest gains at the end.

That is the thing, it may seem incredibly easy to figure out the markets but once people really begin to try to trade them they realize they were mistaken in their assessment, now on most activities making such mistake is not a big deal but here means losing so much capital that you do not have enough capital to keep trying, this means that those people never get another shot which increases the number of loser traders to levels that most people never suspect unless they look for that information by themselves.

[tygeade]

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.

I am confused how only 5% of users are profiting when the bull run is going on because when the market experiences a bull run usually everyone, even the worst traders manage to earn some easy profits.

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.

Yes, I have gained from trading but I had also been among losers at times in the past. Overall, I must say that I am in profit but that is only because I have traded more in BTC than in altcoins and since the price jumped, I didn't had to do much.

I think the biggest factor behind such devastating stats is the bogus strategies people use and sometimes being too greedy, especially in the altcoins market when they hold tokens which are slowly dying.

[taufik123]

-snip-
Yes, I have gained from trading but I had also been among losers at times in the past. Overall, I must say that I am in profit but that is only because I have traded more in BTC than in altcoins and since the price jumped, I didn't had to do much.

I think the biggest factor behind such devastating stats is the bogus strategies people use and sometimes being too greedy, especially in the altcoins market when they hold tokens which are slowly dying.

when the BTC price spike continues to reach new ATH, there will be many people who benefit from every BTC transaction made including you and me. Although not 100% entered into BTC, I got a profit of more than 2x my capital and of course this year will be the best year for me.

People who experience losses during a bull market run like this are usually newbies who are just entering the market, are too greedy or buy shitcoin which is also the cause of quite a lot of losses.

Profits and losses are common, this is free trade. All risks are at our own responsibility.

[lalabotax]

I think the article isn't specifically talking about crypto trading. That's why I see the result of the poll is different from the statistic in the article. In crypto trading, most people now already mature enough and aware of the proper way (strategy) to use. So, most of us can gain profits during the bullish season in crypto nowadays. It is a bit different from the common trading in the article.

[zanezane]

I think the article isn't specifically talking about crypto trading. That's why I see the result of the poll is different from the statistic in the article. In crypto trading, most people now already mature enough and aware of the proper way (strategy) to use. So, most of us can gain profits during the bullish season in crypto nowadays. It is a bit different from the common trading in the article.

But will these be enough to defeat the statistics considering that the people entering crypto trading is steadily increasing and we all know that majority of this are total newbies that is definitely going to lose a lot of money trading, I think that in a way, stock trading and crypto trading have some similarities that isn't easy to pinpoint but really are uncanny when spotted. Hopefully we can defeat the statistics that there are more losers than winners in crypto trading.

[TastyChillySauce00]

I think the article isn't specifically talking about crypto trading. That's why I see the result of the poll is different from the statistic in the article. In crypto trading, most people now already mature enough and aware of the proper way (strategy) to use. So, most of us can gain profits during the bullish season in crypto nowadays. It is a bit different from the common trading in the article.

I think crypto trading also suffers the same fate but on smaller scale since the low capital traders are being given more opportunity than in stock market where it's manipulated by the big players and their cronies. What I like about crypto is that if you don't succeed in making profits from trading you can try out some different things like running your node and stake etc, the opportunity is there.

[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.

I am confused how only 5% of users are profiting when the bull run is going on because when the market experiences a bull run usually everyone, even the worst traders manage to earn some easy profits.

There are many explanations for this, to begin with many people have no sold their coins which means their profits are unrealized and it is not until you sell that you can tell if you won money or not, second a great deal of that money is invested in altcoins and we know that a great deal of those coins are scams which means that most people that think they are earning money in theory have in fact have lost all their money, they just do not know it yet, and third most of the profits are concentrated in a few hands and this explains why we have such a small number of winners in the market.

[matchi2011]

Being a old trader and still it's hard to be positive in trades. Can't believe that someone new can figure it out fast. So the numbers seem right. But still not everyone trades. There are people who just hold and at the end I think they have biggest gains at the end.

That is the thing, it may seem incredibly easy to figure out the markets but once people really begin to try to trade them they realize they were mistaken in their assessment, now on most activities making such mistake is not a big deal but here means losing so much capital that you do not have enough capital to keep trying, this means that those people never get another shot which increases the number of loser traders to levels that most people never suspect unless they look for that information by themselves.

trading is smething that you needed to prepare yourself before taking your steps, there are lots of newbies who been eaten alive
after the first try, thinking that things is just easy and they can earn and go.

It's a venue where people are all aiming to earn, every results that you've got have an impact to other traders around, your earn
is the loses of someone and the opposite results is the profits of another traders.

[isaac_clarke22]

~

when the BTC price spike continues to reach new ATH, there will be many people who benefit from every BTC transaction made including you and me. Although not 100% entered into BTC, I got a profit of more than 2x my capital and of course this year will be the best year for me.

People who experience losses during a bull market run like this are usually newbies who are just entering the market, are too greedy or buy shitcoin which is also the cause of quite a lot of losses.

Profits and losses are common, this is free trade. All risks are at our own responsibility.

Yes. Those newbies that tend to still search out those coins that are way too below the rankings and still expect something out of them in a day.
That I would advise not to.
What's worse is that these newbies don't even think of going back to the market now after the long losses that they incur in the market.
They either get too emotional or just think that trading doesn't really just work for them.

[SacriFries11]

I can't argue with this data because it's certain that 95% of traders end up losing because of a lack of training...
the exercises that I mean are patience exercises and analytical exercises. I personally still continuing to practice strengthen my analysis and also my patience. Trading is not easy, difficult to master but can be learned.

I think about most 95% of losers in trading are newbies. They are lack of proper orientation and not to establish the right way to trade. Some of them not follow the risk management that they need to follow and they already gamble their money rather than trade it properly but I'm sure that 95% of the data said, some traders already learned about their mistakes and realized the right way to trade. I'm one of those people that follow the trading plans and set the right entry and exits.

[milewilda]

I can't argue with this data because it's certain that 95% of traders end up losing because of a lack of training...
the exercises that I mean are patience exercises and analytical exercises. I personally still continuing to practice strengthen my analysis and also my patience. Trading is not easy, difficult to master but can be learned.

I think about most 95% of losers in trading are newbies. They are lack of proper orientation and not to establish the right way to trade. Some of them not follow the risk management that they need to follow and they already gamble their money rather than trade it properly but I'm sure that 95% of the data said, some traders already learned about their mistakes and realized the right way to trade. I'm one of those people that follow the trading plans and set the right entry and exits.

So you say that 95% of people in trading world are newbies? I highly disagree with that because even veterans or professionals on this trading market do commit out mistake.
You cant call yourself to be on the profiting group if you wont able to sustain yourself on ending up on gains when you do deal with the market.Lossing is inevitable but
it isnt enough for people to be driven down to quit totally with trading but instead they are pursuing to acheive their targets or goals even though it would really be giving
out such no guarantees. Data's show or given isnt something surprising and due to unpredictability then you can expect these percentage.

[tbterryboy]

On the other hand I would really like to know if there is some statistic available somewhere on how much are exchanges earning by the huge volume of money traded everyday : anyone knows if there is some site with such information?

Not sure if that data is present but I guess it's easy to calculate as we can multiple the fees they charge per trade by the total volume. For an exchange that charges 0.01% trading fees on each trade a user completes, and has a total volume of around 1000 BTC in a day, which almost all decent exchanges have at the minimum then they are earning 1000 multiplied by 0.01% which comes out to be 0.1 BTC if my calculation is still working right.

The real winner in all trading are the exchanges actually but all the money doesn't go to their pocket as they have to pay the operational charges and security costs are there along with the high taxes they must be operating with. By the way, 95% of traders in loss is a scary stat because I was under the impression that because BTC has continued to see a bull run, most traders should be in profit.

[XZERO1]

And I'm sure if they did a study on why they lost money, the reason for 90% of those cases would be because they risked too much and put the money they need into trading, which if happens to result in short-term loss they would easily panic and sell in loss, well because they need the money, while if they could wait they had the chance to get out of the trade with a good profit or at the worst case on break even.

That is exactly why I think trading is not something most people should do, and investing in my opinion is way better for someone that is not a whale or someone that can move the market with its trades, my suggestion is to just set aside some of your capital every money aside for investment and do not buy anything till the next bear market which eventually comes and when everyone is panicking and selling cheap, you should start slowly accumulating and laddering buys all the way down on something you believe in whether it's Bitcoin, Ethereum or anything else.

[blckhawk]

I can't argue with this data because it's certain that 95% of traders end up losing because of a lack of training...
the exercises that I mean are patience exercises and analytical exercises. I personally still continuing to practice strengthen my analysis and also my patience. Trading is not easy, difficult to master but can be learned.

I think about most 95% of losers in trading are newbies. They are lack of proper orientation and not to establish the right way to trade. Some of them not follow the risk management that they need to follow and they already gamble their money rather than trade it properly but I'm sure that 95% of the data said, some traders already learned about their mistakes and realized the right way to trade. I'm one of those people that follow the trading plans and set the right entry and exits.

I don't think that 95% of people are newbies because even those who have experienced enough or we called "professional traders" are still committing a mistake resulting in their loss. You should know that in trading you cannot 100% guarantee to earn a profit because there will be a time that it will not work on your side. Yes, you can mitigate the risk of losing by making out a plan but this will not enough for you to give a certain result. That is why I strongly agree on what OP has shared because no matter how skillful you are there will be times that your call will not work out especially in this kind of market where everything is almost unpredictable.

[tvplus006]

On the other hand I would really like to know if there is some statistic available somewhere on how much are exchanges earning by the huge volume of money traded everyday : anyone knows if there is some site with such information?

Not sure if that data is present but I guess it's easy to calculate as we can multiple the fees they charge per trade by the total volume. For an exchange that charges 0.01% trading fees on each trade a user completes, and has a total volume of around 1000 BTC in a day, which almost all decent exchanges have at the minimum then they are earning 1000 multiplied by 0.01% which comes out to be 0.1 BTC if my calculation is still working right...

Your calculations are incorrect, as you have indicated too low a level of the commission charged by the exchange. So on the Binance, the size of the trading commission is 10 times higher than you indicated in your calculations. According to the data https://coinmarketcap.com/rankings/exchanges/ the volume of trading on the Binance over the past day is $22,180,899,224, which means that the exchange's piblizitelny income for the commission alone is about $ 22 million. In reality, this figure will be lower, as many have a discount on the commission there if they hold BNB.

[darewaller]

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.

The question is how many people were able to hold Bitcoin for a long time as you have said? It’s just like saying that there are people who bought Bitcoin in 2010 and are still holding it till now in 2021, there might be, but it might just be 1% or 2% of the entire traders in the market.

First of all, anyone that bought Bitcoin as early would be scared around that time, that’s why a lot of them even abandoned it in their wallet and lost it, the ones that discovered their hardware or wallet where they stored it can’t even remember their passwords, because they never believed it will grow to this extent. With the way things were going then they will be selling at the slightest opportunities that they get. And sure, a lot of traders do lose money.

[trigger1975]

Not really a thing to believe because I was thinking that the majority of the traders are in good and profiting.

It is basically impossible that the majority is profiting long term.  If I put on a trade with the 1:2 Risk-Reward-Ratio and win the trade, somebody must have lost 2 to me. And if my strategy gives me an edge and I'm making 4 × my risk per month, somebody must lose this amount.