Reasons why the 95% of future traders lose all of their money

[hugeblack]

Is there a person who consistently profits in futures trading? I used to think that the end result is profit, but the continuity of profit is something close to impossible, and 5% is considered very high.
What is the source of this data or the closest analysis to reality?
So the majority will lose their money even if you are experienced.

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[justdimin]

Is there a person who consistently profits in futures trading? I used to think that the end result is profit, but the continuity of profit is something close to impossible, and 5% is considered very high.
What is the source of this data or the closest analysis to reality?
So the majority will lose their money even if you are experienced.

There is none, I can guarantee you that. I do not mean that the overall result wouldn't be a profit, there are people who make money from this on the long run, like let’s say they make 3000 profits then lose 2500 and then make 4000 profit and lose 3000.

Those type of people do exist, the overall results if you look at them yearly would be a profit, not a common thing and very rarely found because most people lose money obviously but the long term profitable ones do exist. But there are NO futures traders who make money consistently, they all profit some and lose some, there are none that profit all the time. That’s why you need to be ready for the loss while making a profit.

[DevilSlayer]

Is there a person who consistently profits in futures trading? I used to think that the end result is profit, but the continuity of profit is something close to impossible, and 5% is considered very high.
What is the source of this data or the closest analysis to reality?
So the majority will lose their money even if you are experienced.

Yes there are traders like that, that's why I said that only 5% who are consistently making profit in futures. I met them personally so I saw their portfolio and their trading journal and their trading system. They have high win rate with good risk and reward ratio that makes them profitable. For me it what's impossible is a trader who never lose. There is no trader who consistently trade without incurring loses. Losing is part of the process to become a better trader, it's up to you on how will you handle it with risk management and trading psychology.

Is there a person who consistently profits in futures trading? I used to think that the end result is profit, but the continuity of profit is something close to impossible, and 5% is considered very high.
What is the source of this data or the closest analysis to reality?
So the majority will lose their money even if you are experienced.

There is none, I can guarantee you that. I do not mean that the overall result wouldn't be a profit, there are people who make money from this on the long run, like let’s say they make 3000 profits then lose 2500 and then make 4000 profit and lose 3000.

Those type of people do exist, the overall results if you look at them yearly would be a profit, not a common thing and very rarely found because most people lose money obviously but the long term profitable ones do exist. But there are NO futures traders who make money consistently, they all profit some and lose some, there are none that profit all the time. That’s why you need to be ready for the loss while making a profit.

I can't agree with you. There are people who consistently making money wherein, I can guarantee it but don't be confuse because those traders are also losing because like what I said; it is all about probabilities so incurring losses is normal in trading. The example that you gave is a trader who don't have good risk management because the trader giving back the profits to the market that he/she made.

[tvplus006]

I have a doubt that there are such 5% of traders who consistently earn on futures. It is impossible to get 100% profit trades, so most likely we are talking about such traders who have a higher percentage of profit trades than unprofitable ones.

[FanEagle]

I have a doubt that there are such 5% of traders who consistently earn on futures. It is impossible to get 100% profit trades, so most likely we are talking about such traders who have a higher percentage of profit trades than unprofitable ones.

That is the key factor here, I mean we are talking about just the people who have overall profit in the end, this means that when you look at like from 1st of January 2022 to December 31st of 2022, there must be at least 5% people who made a profit overall.

Do not look at the market going down and assume that everyone lost money, there are still a ton of places and people who made a profit from shorting the market and that means there are more than 5% people who made a profit. Doesn't mean that’s the whole market, most people did lose money and that’s understandable but that doesn't change the fact that no matter which direction we go, there are some people who make a profit.

[Rengga Jati]

Are you guys aware that only 5% of futures traders are consistently earning money in the market? The 95% is traders like everyone else that keeps blowing their account and losing their money.

I'm not sure whether the percentage figures are appropriate or not, that big or not. But it is certain, not all traders are able to survive in future trading which does have a very high risk. In futures trading, we don't only have to have sufficient capital and basic knowledge, but more than that. We must have a good level of market and fundamental analysis, think broadly and logically, be able to pay attention and analyze each market condition more precisely and be able to make the most appropriate strategy when experiencing losses. Here, we are required to learn more and understand more, we cannot just rely on luck or coincidence. Because this is futures trading, not spot trading where we can still hold if the price drops rapidly at any time. Because of this, many futures traders eventually give up when the market is under certain conditions, some may continue when the market has improved slightly and some may stop considering the plus and minus sides.

[EdenHazard]

Those 5% might be getting profit accumulatively , yet they are in losing phase multiple time but do comeback with bigger amount as well so ... yeah the number looks too good for most of us as beside it was all about statistics ... we have experienced it too right? A personal experience become a witness.

Either the future trader have no sufficient bankroll to keep it back to green after a loss or it's just the game of math odds.

[Silberman]

I have a doubt that there are such 5% of traders who consistently earn on futures. It is impossible to get 100% profit trades, so most likely we are talking about such traders who have a higher percentage of profit trades than unprofitable ones.

That is most likely the point of the OP, those which are in the 5% of traders which earn money with futures trading could win just 60% of the time but with a solid money management strategy that can be more than enough to make good profits out of the markets, personally I am not surprised the percentage of winning traders is so low, as in most markets profits are concentrated in just a few hands while the rest of the market participants lose their money.

[palle11]

I have a doubt that there are such 5% of traders who consistently earn on futures. It is impossible to get 100% profit trades, so most likely we are talking about such traders who have a higher percentage of profit trades than unprofitable ones.

That is most likely the point of the OP, those which are in the 5% of traders which earn money with futures trading could win just 60% of the time but with a solid money management strategy that can be more than enough to make good profits out of the markets, personally I am not surprised the percentage of winning traders is so low, as in most markets profits are concentrated in just a few hands while the rest of the market participants lose their money.

If a trader is taking 60% winning from the market that is good, such trader is doing good trading because that also means the trader is taking 60% profit from the market as well. 100% is the stand point and it is not always so that a student will score a 100% mark in an examination especially in analytical work. The traders that are losing is suppose to be higher no doubt so if we get a 5% doing a 60% profit this is very resourceful because the trader has covered the loses of 40%.

[Taljichi]

We are humans and we get emotional very fast and this factor that makes us do bad decisions. In begining I had many trades that made Me really nervous and just stop the trades too early and got Into losses , then sudenly market just went Into full dump or pump that I had bought and just screamed in my head why I STOP the trade.
 Started to learn more of indicators, how they work and so on , how to remove those feelings when trading so I set up  and indicator in TradingView and connected with bot for auto-trading . That fully removed all my worries and problems, all I see each week the profits I grew with it, rsearching more and updating Custom indicator with more knowledge and so on .
Showcasing how it looks, this just shows Me when to long and when to short.

https://ibb.co/NNmzxzf

https://ibb.co/JtNCTVG

https://ibb.co/3mKHcS0

[Obari]

3.   Risk management – The reason why people blow their futures account in less than a year is that they have poor risk management. Always remember that it is not about how much money you make, but it is about how much money you don’t lose. Risk management helps us trader's accounts from losing all of our money. Through risk management, we can know if the trade is worth it or not.

Risk management is one factor that should be greatly delt with in future trading because most of this traders you classified under the every other, avoid using the stop loss indicator because they always focus on how much will be lost when the trade hits the stop loss but rather believe that no matter how much the trade goes down, it will definitely move to their favour which makes them end up trading with emotions and blowing up accounts.

One other aspect that can't be over emphasized is the over leveraging most traders do just to maximize profit forgetting the high risk involved .

Psychology is one thing that one should deal with and always count every penny as a win rather than being greedy

[Finestream]

There's a reason why a lot of successful traders use algorithms/bots/scripts to execute their trades — it's to take as much emotion as possible out of the picture.

I get a good point, you are correct on this. Basically, uncontrolled emotions can make traders lose money in the market, whether it's in futures or spot trading. Emotion management is a must have for every trader, but if they use tools like bots then it will be very helpful.

Watching market volatility during trading will allow anyone to lose control of their emotions, especially if the market is undergoing a sharp correction.

Trading is not as easy as it is, and fighting your own emotions is one of the biggest struggles that a trader should learn to deal. However, with different tools available, we can lessen the stress in trading but we should also realize that if we aim for successful trading in the future, then we should be more confident traders and we should always do our best to learn trading on our own.

[Wakate]

There are many reasons that cam make one to lose money in trading which is cam be as a result of greed. Greed had make many traders to end up being a big losers. Not understanding the market very well is also another reasons why people loses money. There are some newbies that do not learn about the well in the right way, they just jump into the market with adequate understanding and started trading. This alone can make one become a bad trader and whatever is used in trading will always lead to loses. Eager to make bigger profits without strong understanding of the market can become a problem.

[tvplus006]

When a trader becomes more experienced and operates with many trading strategies, he becomes more uncertain when making a final decision, which eventually turns out to be wrong. At the same time, a beginner who is guided by one or two trading strategies has less doubts when making a decision and eventually gets a profit.

[Ziskinberg]

Well, I'm not sure about the figure but I'm going to agree that many future traders suffered more losses than those who earn a profit. It is really sad to say that this is the real life of a future trader which is why I don't advise taking this option if we are beginners but rather start and familiar with how this trading works through spot trading.

My brother has tried this one(future trading Binance) but never heard from him saying he is in profit. He is very quiet and probably he got in troubled.

[cheezcarls]

Despite that some of my Facebook friends are getting insane profits in futures trading, consider themselves lucky. Spot trading is the safest bet when it comes to day trading as futures is more of a gamble. Even if you are setting a stop loss, it’s still a loss.

Expect more losses in futures trading as a newbie or beginner. But experienced ones aren’t exempted, especially some of my friends who are doing futures trading in Binance. They might show off their gains, but refusing to show their losses.

[inthelongrun]

Good tips OP. You seem to be part of the 5% since you are giving advice on how to earn and how not to blow our trade positions. However, I prefer proofs and actions rather than words. I rather want to see signals from successful traders and see how it performs rather than words. I always encounter people that say do this and do that, yet after some months I can hear that they aren't trading anymore. It is always easier said than done. Discounting market analysis and intelligence as not defining factors to earn is not true. We cannot have a good trading system and set up risk management without intelligence. Market analysis is necessary in order to strategize effective trading systems. Psychology in trading can only work when someone has the experience and is trading amounts that it can afford without emotional change.

[gabbie2010]

Despite that some of my Facebook friends are getting insane profits in futures trading, consider themselves lucky. Spot trading is the safest bet when it comes to day trading as futures is more of a gamble. Even if you are setting a stop loss, it’s still a loss.

Expect more losses in futures trading as a newbie or beginner. But experienced ones aren’t exempted, especially some of my friends who are doing futures trading in Binance. They might show off their gains, but refusing to show their losses.

Honestly future trading is like gambling to me and those category of traders who trade it have a mindset of marking or earning huge profits quickly and consequently might lead to rekting of account swiftly due to high volatility in the prices of cryptocurrencies, meanwhile some future traders do post fake profits earned from trading in a bid to deceive unsuspecting investors to subscribe to their signal channel, the last time I tried future trading I got a margin call within 30 minutes and thereafter my account got liquidated, since then I switched over to cross margin and do trade whenever a step up is  formed or  a signal is generated by my trading strategy.

[justdimin]

Despite that some of my Facebook friends are getting insane profits in futures trading, consider themselves lucky. Spot trading is the safest bet when it comes to day trading as futures is more of a gamble. Even if you are setting a stop loss, it’s still a loss.

Expect more losses in futures trading as a newbie or beginner. But experienced ones aren’t exempted, especially some of my friends who are doing futures trading in Binance. They might show off their gains, but refusing to show their losses.

I do agree that it’s just pure luck to a point when we are talking about futures trading. I mean if you are trading with high leverage that means you are risking way too much, sure the rewards would be huge as well if you are right but that doesn't mean that it would be a low risk neither.

You could end up losing all of your money with just a 0.1% drop if you are stretched too thin. This is why always be careful about what you are doing, it could end up with a bad return in the long run. I personally agree that spot trading is safer, it could give you as much as 10x return if you buy and hold the right coin and it is not going to be 100% gone most of the time.

[goaldigger]

When a trader becomes more experienced and operates with many trading strategies, he becomes more uncertain when making a final decision, which eventually turns out to be wrong. At the same time, a beginner who is guided by one or two trading strategies has less doubts when making a decision and eventually gets a profit.

So the more we learn the more we make mistakes in trading?
I don’t think its correct since we should know already what to do once you have learned how trading works and its good to have different strategies depends on the market situation. The only problem I see here is about consistency and commitment, many trader tends to change their mind easily and focused too much with their emotion. Many says traders are not winning in long term, but once you have established a good trading system probably you will be part of those 5% trader who are winning at all.