Data suggesting more than 95% traders are losing

[Rengga Jati]

I believe that maybe 95% of traders are losing when trading. But, many traders are also getting profits.
I mean here, I believe that parts of those 95% people also ever took profits when trading. So, there is losing and also taking profits from a similar person. I am also a trader (although not a professional trader), I am trading on spot and also futures. Losing (cutting losses) always happens, but I can recover my funds by doing another trading and taking profits.
And this often happens, but in fact, I can recover more profits than what I am losing.
This may also happen to most traders outthere.

[nelson4lov]

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.

Yes, someone has to give for others to take. That happens because there's always a difference in opinions in the market. There's usually a turk of war between buyers and sellers and whoever (traders I mean) place a trade on the losing team losses money to the winning team. It's not rocket science. The prime focus isn't to win all the time but for our wins to outweigh our losses.

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.

Sorry for your losses. Futures trading comes with increased add-on risk that makes it super easy to win or lose. That's why it isn't recommended for people who aren't acquainted with trading tools and concepts or at the very least, using low leverages for trades are recommended.

[Oilacris]

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.

Well thats the basic side of things, if someone gains then someone do losses knowing that this market is really just composed of buyers and seller.If the other side is profiting then

expect that the other side is losing thats why people do really make their best to be included on the profiting side and this cycle would continue as long there are people who do
play the tug of war.

95%? I dont really believe that much about fail percentage because if people or traders are losing then we wont really see much that of liquidity.

[Distinctin]

95%? I dont really believe that much about fail percentage because if people or traders are losing then we wont really see much that of liquidity.

Perhaps, we are seeing more traders had come and enjoyed the market. That 95% probably during the time when the market is going to bearish season, not in the current situation we have now. Coz I feel that the majority are good and in profit.

We know that there are a lot of new traders now and might they lose. But I'm not sure if this will include the percentage that OP is saying because these traders aren't yet quitting(unless they do).

95% is not realistic for me, maybe 60% is quite acceptable, IMO.

[trigger1975]

95%? I dont really believe that much about fail percentage because if people or traders are losing then we wont really see much that of liquidity.

I don't know, if the 95% apply for crypto trading. I know this rough number from Forex trading and there I believe it's true.

But liquidity has nothing to do if 50%, 60% or 95% lose on trading in long term. Liquidity is a matter of ask and bid and the amount of people and capital accessing the market.

I strongly believe it's more than 80%.

[jack05]

If 95% traders are losing then this clearly means that 95% are amature trader while only 5% are genuine traders. if you are long term investor and ready to HODL then you can never be at loss. Those who bought BTC at 19k in 2017, were also able to sell in profit just after 4 years.

[South Park]

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.

By definition this is impossible, trading is a zero sum game, what this means is that if you win a dollar then that dollar must come from the pockets of someone else, so if you see big institutional investors and other whales making huge profits with their bitcoin then all of that money needs to come from the pockets of retail investors that made mistakes or that sold their coins too early, I know this is not a pretty picture but it is the reality of all markets not only this one.

[LUCKMCFLY]

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.

By definition this is impossible, trading is a zero sum game, what this means is that if you win a dollar then that dollar must come from the pockets of someone else, so if you see big institutional investors and other whales making huge profits with their bitcoin then all of that money needs to come from the pockets of retail investors that made mistakes or that sold their coins too early, I know this is not a pretty picture but it is the reality of all markets not only this one.

What he says is the truth, that is why Exchanges are a very profitable business, in addition to this I have a friend who is a YouTuber who says that you should trade following the movements of the whales, and trade with the money of others , this translates into: Buy when millionaires or whales buy and sell when millionaires sell, that is why I have learned when there is bad news = buy, good news = sell.

Of course everything is learning, now with a tweet from Elon Musk he makes a good pump, of course this is strongly attached to emotions, emotions apart from Strong Hands are what move the market.

[Myleschetty]

I believe the calculations are true but cryptocurrency is not something a trader must do 24/7 because it has affected the relationship for some people and the last time I checked trading is not for everybody. After all, traders who can't control their emotions will always be among the 95% of trader that makes lost.

[Kelvinid]

I believe the calculations are true but cryptocurrency is not something a trader must do 24/7 because it has affected the relationship for some people and the last time I checked trading is not for everybody. After all, traders who can't control their emotions will always be among the 95% of trader that makes lost.

Even they lost control of their emotion but couldn't imagine those numbers, 95% is really high to think that only a few traders just succeed.
I think this 95% is not only in crypto trading alone or that possibly it is in the stock market where it is highly affected during the pandemic. The stock market dumps which means traders and investors had lost a lot, not in crypto where it keeps moving high making trader earn more.

[stomachgrowls]

I believe the calculations are true but cryptocurrency is not something a trader must do 24/7 because it has affected the relationship for some people and the last time I checked trading is not for everybody. After all, traders who can't control their emotions will always be among the 95% of trader that makes lost.

Even they lost control of their emotion but couldn't imagine those numbers, 95% is really high to think that only a few traders just succeed.
I think this 95% is not only in crypto trading alone or that possibly it is in the stock market where it is highly affected during the pandemic. The stock market dumps which means traders and investors had lost a lot, not in crypto where it keeps moving high making trader earn more.

95% was indeed realistic and if you do compare it out it on traditional markets then it is just actually the same.They do only differ in talks of volatility but with success rate
then it would really be just the same.

Somehow even with small percentage of success, we can still see on how big the market is when it comes to liquidity which does show that lots been trading off which would really
result into this very big volume.Wether these doesnt show precise numbers of successful traders but assuming with those high volume and liquidity then there is really much
interest into this one.Losing then its part of this career and if you cant bare with it then trading isnt really for you.

[TastyChillySauce00]

I believe the calculations are true but cryptocurrency is not something a trader must do 24/7 because it has affected the relationship for some people and the last time I checked trading is not for everybody. After all, traders who can't control their emotions will always be among the 95% of trader that makes lost.

Even they lost control of their emotion but couldn't imagine those numbers, 95% is really high to think that only a few traders just succeed.
I think this 95% is not only in crypto trading alone or that possibly it is in the stock market where it is highly affected during the pandemic. The stock market dumps which means traders and investors had lost a lot, not in crypto where it keeps moving high making trader earn more.

You underestimated the amount of newbies that trying to make quick bucks in trading within a year, they are those people who said to buy high sell low mainly because they are still heavily influenced by their emotion which is fear than quit trading after failing a few times. I've seen so many people like that and even some of them go back to trading just to fail again since they are not really good at emotion management and I think they are the one that makes up those 95% number of traders who are losing.

[worle1bm]

Whenever the market is down the new traders get panicked and start dumping their coins in the market which negativity contributes to price drops.The ones who are holding from long are the ones sitting on top without any loss because in the long run the prices surge.So this correction and dips cause most of the day traders to losse more than long term holders in the market.So the traders need to understand the market conditions and control his emotions if want to gain profits in the long run.

[trigger1975]

You underestimated the amount of newbies that trying to make quick bucks in trading within a year, they are those people who said to buy high sell low mainly because they are still heavily influenced by their emotion which is fear than quit trading after failing a few times. I've seen so many people like that and even some of them go back to trading just to fail again since they are not really good at emotion management and I think they are the one that makes up those 95% number of traders who are losing.

Which indeed is true … Starters are focusing on strategies which never lose and and have this get-rich-quick ideology in their head. And once they have three, four losers, they dump the strategy and try the next one and either stop trading or never stop searching for the holy grail strategy which will never come.

Rather learning and sticking to a strategy, focusing on trade management and their own psychology, development of realistic expectations and the knowledge, that losing is part of the game. Instead it's always the markets fault or the pump&dump guys or the moon phase or … Learning to trade requires hard work and a patience for a very, very long time.  But that's what no beginner wants to hear. 

[matchi2011]

Whenever the market is down the new traders get panicked and start dumping their coins in the market which negativity contributes to price drops.

It impacts the entire market as dumped take place whenever there's panic that take place, it's really
hard for those new investors to keep holding.

The ones who are holding from long are the ones sitting on top without any loss because in the long run the prices surge.

If you have the right understanding and you are willing to wait for the target value to achieved then
it will happen favorable to your position.

So this correction and dips cause most of the day traders to losse more than long term holders in the market.

This corrections are cause of different factors, though behind this most of the time it cause by whales who
holds huge numbers of assets.

So the traders need to understand the market conditions and control his emotions if want to gain profits in the long run.

Very well said, it's your knowledge that saves your investment. Both long or short as long as you know what to do
then it safe for your invested money.

[trigger1975]

It impacts the entire market as dumped take place whenever there's panic that take place, it's really
hard for those new investors to keep holding.

I'd say you have to distinguish between investing and trading.

I'm never trading without a stop-loss and if that stop-loss is triggered I'm out of the market and I would never advise anybody otherwise.  That's part of being a trader with a strategy and a plan to follow the plan to the t.  Holding on to a bullish trade no matter what during a downturn or even doubling down is gambling and not trading. This behavior has wiped out enough accounts already.

If investing (long term), it might be allowed to hold even through a crash – depending on the investment strategy and future outlook.

[Anrix2036]

If you call the "trader" every people that "invested" 50-500 dollars. Then yes, i think it's true. But put some thought into the term "trader" and then you realize that someone is the trader when he trading for some time, and don't lose his money. The other "traders" needs to be called strangers, gamblers, begginers or losers. So, in essence i don't agree that 95% of true traders are losing. If you have your strategy that keeps working for you, it will make you the trader.

[isaac_clarke22]

~

Even they lost control of their emotion but couldn't imagine those numbers, 95% is really high to think that only a few traders just succeed.
I think this 95% is not only in crypto trading alone or that possibly it is in the stock market where it is highly affected during the pandemic. The stock market dumps which means traders and investors had lost a lot, not in crypto where it keeps moving high making trader earn more.

Well 95% is really really a huge percentage to sum up all the traders here in crypto.
It could be 5% are the people successful, at the same time 95% could be the people that are still earning but not as rich as the 5% because mostly that's how people define success already in trading. All about their net worth sometimes.

[Strongkored]

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.

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

I read the article that the OP included because there would be more information obtained, and from the 24 points in the article, there were several times mentioning day trades, and from what I understand from the article that day trades will be more likely to experience losses and eventually traders choose to quit from trading.
It could be that the 95% figure is dominated by traders who do day trade, while for those who do long-term they can choose not to quit from losing market and wait for their choice to be in green.
My conclusion, long-term is more profitable than day trades but only traders who have a high level of patience can change theirs trading activity into investments.

[Oshosondy]

My conclusion, long-term is more profitable than day trades but only traders who have a high level of patience can change theirs trading activity into investments.

That is the good point, the traders lost a lot of funds because they panic and thought they got no option again than to just sell their coins, but cryptocurrencies can be so unpredictable at times, most the the traders lost in 2017, and sold in losses, but had it been they hold, they would have gained back all the losses and even gain more than expected in profit, but it takes years which makes patience to be the key reason for the holders to gain.