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

[Oilacris]

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.

Mistakes are learning curves an this is something inevitable to happen and with those mistakes and errors then this is where learning would be acquired.
It not im saying that we should tolerate mistakes but these are indeed things which would help you to be molded as a better trader/investor.

Dont know about that 95% of people do fail on futures but i do somewhat agree that on general sense where lots is really that losing money.
Only a few could able to pull off and make profits in short time.

Futures isnt something that a noob could easily touched on.

[1715340596]

1715340596

[1715340596]

1715340596

[1715340596]

1715340596

[ShowOff]

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.

In fact it is true as you say because traders are not able to be consistent with their strategy due to market volatility.
After all, failing to control emotions is also a factor that causes many traders to fail to make good profits during trading. Panic is another reason, whereas if they are able to do something consistently then I'm sure they will too. But we could just say, out there they are a lot harder to take because they are the ones doing the trading.

[Woodie]

I have always seen people on YouTube and other platforms showing off what they have been able to own through trading.... But truth be told, trading is never easy but does put unnecessary pressure on the trader as this could leave one in revenge trading, no trading styles applied and bad risk management.

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.

Trading is said to be some kind of gambling because we can't be 100% certain about what will happen in the future...and no its not the safest when risk is high.

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.

This is something I need to venture in as my price action has really improved to give me the edge over the competition. And fyi I think futures trading is still young and people are still experimenting with it hence the losses.

[AmoreJaz]

I have always seen people on YouTube and other platforms showing off what they have been able to own through trading.... But truth be told, trading is never easy but does put unnecessary pressure on themselves belive you can change

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.

Trading is said to be some kind of gambling because we can't be 100% certain about what will happen in the future.

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.

This is something I need to venture in as my price action has really improved to give me the edge over the competition.

most people who are showing their profits via social media channels are not showing the whole picture. they may be showing only their profits but the losses they are not reporting it. who knows, their losses are much bigger than their profits? so don't be naive about these tempting videos.
spot trading is also good for new traders. don't go in futures if you don't know what you're doing.

[Issa56]

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.

Considering the little trading experience I have, I believe risk management is one of the main reasons why most future traders consistently lose money. Since most of them are constantly seeking for higher profits, they always use high leverage when entering trades simply because doing so will increase their profits (the higher the leverage, the higher the profits), but they don't really about the risk, immediately the trade goes against them since they are using high laverage, they easily gets liquidated. when you are using low laverage, then you chances of losing money is less, but also your profits will be kind of small compared to if you use high laverage, but your chances of losing money will be less even if the trade goes against you.

[so98nn]

Though there is no source for this study but yes I believe it because market has become way way competitive than before. With digital era resources are becoming more prominent and tech behind every trade takes a footprint which needs to be analysed before anyone could move an inch in the system. One wrong move and one can end up in the bankruptcy. The factors like psychological and emotional is all about that greed which one takes up Once they loose.

[Xinarae*]

I hope the first thing needed is the fixed mentality, I think second you need to decide how you will determine the profit and loss share then you need to decide how to manage future trading. Because here most of the people make mistakes in management due to which they lose their money. The main problem here is that they do not have detailed experience in futures trading, they invest only for profit, I think if you have experience in trading so that futures trading is possible to make some profit.

[GreatArkansas]

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.
(....)

Exactly. Trading is a difficult job to make money, it's like a PVP battle game (Player versus Player) which always has losers and winners.
If you want to be in 5%, there's a lot of work to do and experience to happen.
3 parts of what OP said are precisely exact, especially the risk management, why? Because most of the traders started to trade but later on, they stopped. It is because of the lack of capital anymore. Capital preservation is always part of risk management, so that's why having always the capital is always important, it's not always a good time to trade and you must have proper risk management to mange your capital properly on your every trade.

[Questat]

The trading system is at failure if you are an emotional trader. Let us say that 95% are losing their trades but I think they still do their best, however, it was not enough to catch the momentum, and ended up losing their money. But despite this negative view of future trading, many were still trying to look for their luck there. And I have no gut to discourage them either but to let them do what they want so they will find themselves what this future trading is all about if compared to spot trading.

[AicecreaME]

I agree.

Trading is indeed a very complicated way of earning money, especially if your mindset is to get rich overnight, or get big profits in every trade, that will just pressure yourself that will lead to big disappointments every time you will make a bad trade. The next thing that will happen is that your mental and emotional health would be affected and sooner it will be the one who is going to dictate you on what to do next, that mostly are bad trades.

The next would be chasing you losses because your pride said so, you'll never grow because your pride said so, you won't get back your losses because you will keep making mistakes, and that is because of yourself telling that you don't need more knowledge in order to gain back your losses.

[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.

So the more we learn the more we make mistakes in trading? ..

No, you misunderstood what I wrote about. I wrote that the more you know trading strategies, the more difficult it is to make a decision, since according to some we have to open a short, and according to others a long. A beginner, knowing only one trading strategy, acts according to it.

[xSkylarx]

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? ..

No, you misunderstood what I wrote about. I wrote that the more you know trading strategies, the more difficult it is to make a decision, since according to some we have to open a short, and according to others a long. A beginner, knowing only one trading strategy, acts according to it.

I am not a professional trader, but this is correct; however, while learning, you should observe all of the strategies that they use but do not imitate them. There are traders that want a lot of indicators in their charts, and others prefer the chart to be naked since that is their strategy. In the long run, if you already have a grasp on trading and have decided to create a demo account to try trading, that is the time you will formulate your own strategy and see if it is working or not; I am sure at first it will not be successful, but over time your strategy will have been tweaked and you will begin to earn profit from it. 

[jossiel]

The trading system is at failure if you are an emotional trader. Let us say that 95% are losing their trades but I think they still do their best, however, it was not enough to catch the momentum, and ended up losing their money. But despite this negative view of future trading, many were still trying to look for their luck there. And I have no gut to discourage them either but to let them do what they want so they will find themselves what this future trading is all about if compared to spot trading.

Everyone do their best to win with all trades that they do.

But being invested to your emotion is going to make you lose even more. That's not a good thing as a trader because you're going to overthink and that emotion you're feeling will make you want to be perfect with those trades that you do.

And you have to remember that no one's perfect even done with some strategies, it's just not enough and there will be days that you can't win against the market.

[crzy]

The trading system is at failure if you are an emotional trader. Let us say that 95% are losing their trades but I think they still do their best, however, it was not enough to catch the momentum, and ended up losing their money. But despite this negative view of future trading, many were still trying to look for their luck there. And I have no gut to discourage them either but to let them do what they want so they will find themselves what this future trading is all about if compared to spot trading.

Everyone do their best to win with all trades that they do.

But being invested to your emotion is going to make you lose even more. That's not a good thing as a trader because you're going to overthink and that emotion you're feeling will make you want to be perfect with those trades that you do.

And you have to remember that no one's perfect even done with some strategies, it's just not enough and there will be days that you can't win against the market.

Emotions and lack of knowledge are the top reason why many traders still suffer from a big losses and I see that as a normal scenario for every trader. We can be good sometimes with our few trades but remember, this is a risky way of making money so we can’t guarantee any profit. Expect for the worst when you trade carelessly but if you do it properly with good strategy, then you can be more profitable. Being a trader is not an easy job, do your best always to find the best entry and don’t focus with your emotion.

[Russlenat]

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.

If you jump in trading without even gaining knowledge and insights at first, then you will surely struggle in trading and find it hard to fight with your emotions. So if you keep on trading along with your emotions, you will never be successful and profitable in the end. The hardest part in trading is to trade while controlling your own emotions, and for me even pros in trading still fall on this which makes it very hard to fight.

[Slow death]

these data do not seem to correspond to reality, I see many people making videos on youtube to teach people how to trade and these people, most of them are people who consider themselves gurus and specialists with many years of experience but are making videos on youtube and giving trading courses, which shows that even they are not making money with trading, the truth is that maybe not even 3% of people do not make constant profits when day trading whether futures or even normal trading, you can do it live on trade? do you know at least 5 people who can make a living from day trading? the truth is that I still haven't seen anyone who says they make a living from day trading, in this cryptocurrency market the only way to profit is by doing hodl in the long term

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.

If you jump in trading without even gaining knowledge and insights at first, then you will surely struggle in trading and find it hard to fight with your emotions. So if you keep on trading along with your emotions, you will never be successful and profitable in the end. The hardest part in trading is to trade while controlling your own emotions, and for me even pros in trading still fall on this which makes it very hard to fight.

even if you study hard and for years, the truth is that no one can make a profit doing day trade and live on day trade, people lie and even create a telegram channel to give tips, they charge for these tips, others sell courses and others make money with youtube channel. why do you think people who have been day trading for years are giving courses and creating a telegram channel to charge money for the tips they give? if they were successful in the trade they wouldn't need it, it doesn't take a genius to realize that everyone doing day trades is losing money

[Bitstar_coin]

Price behaviour on crypto is very unpredictable and no person nor bot can catch up on that price data to open an accurate position. Futures trading is purely a gambling with an extra difficulty from exchange that liquidates open position at random basis. Even with a good risk management will not stand on a manipulative market. I stop futures long time ago and just focus on spot trading and sometimes margin trading with lower lev.

Since people already know this then why do traders think they can some how predict the price correctly and beat the system? Or like some member said above, continous practice will eventually make a trader perfect in the field when it is clearly untrue. If bot or nobody can catch up the price correctly then no strategy applied can completely zero the chances of losing money.

Future trading is high risk high reward kind of trade (if you are lucky) because the exchange will always have the upper hand since it was designed that way. You can manage your risk by not being greedy.

[Silberman]

Price behaviour on crypto is very unpredictable and no person nor bot can catch up on that price data to open an accurate position. Futures trading is purely a gambling with an extra difficulty from exchange that liquidates open position at random basis. Even with a good risk management will not stand on a manipulative market. I stop futures long time ago and just focus on spot trading and sometimes margin trading with lower lev.

Since people already know this then why do traders think they can some how predict the price correctly and beat the system? Or like some member said above, continous practice will eventually make a trader perfect in the field when it is clearly untrue. If bot or nobody can catch up the price correctly then no strategy applied can completely zero the chances of losing money.

Future trading is high risk high reward kind of trade (if you are lucky) because the exchange will always have the upper hand since it was designed that way. You can manage your risk by not being greedy.

To put it in simple terms some people despite knowing the very low chances they have of success they still decide to try their luck anyway, since they believe circumstances will turn favorable to them, one obvious example of this kind of thinking happens a lot with the people that want to become a movie star, the odds are probably 1 in 10000 or even worse than that, and yet that does not stop young people on their pursuit of fame and money.

[justdimin]

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? ..

No, you misunderstood what I wrote about. I wrote that the more you know trading strategies, the more difficult it is to make a decision, since according to some we have to open a short, and according to others a long. A beginner, knowing only one trading strategy, acts according to it.

That is the funniest thing about crypto and actually about most trading like stocks and forex and such as well. If you know more trading strategies, shouldn't they all confirm each other? Well very rarely they do, which usually means it is the right thing to do, but most of the time they show the opposite sides.

It means one is better than the other when that one is right, correct? Well, a week later the initially correct one becomes wrong and the other is right this time, so it is never the same strategy being correct neither. It is definitely a tough subject, and definitely causes a lot of question marks. Funny to me tbf because I just buy and hold, nothing questionable or complicated with mine.

[palle11]

but remember, this is a risky way of making money so we can’t guarantee any profit. Expect for the worst when you trade carelessly but if you do it properly with good strategy, then you can be more profitable.

The best guarantee to keep your fund is when you use stop loss and this is good trading strategy to adopt. Using it allows you to cut your losses before you get into the market and if you do a good analysis, you land in profit taking.

Being a trader is not an easy job, do your best always to find the best entry and don’t focus with your emotion.

Having that best entry price or time requires alot of time so we need to be patient about that. Some traders who are hasty do not allow for proper time for the trade they want and when you enter wrongly you see it with the loses coming immediately and might roll you out if you don't close the trade