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

[jossiel]

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.

When you do something that you don't know of, you can't expect to be productive with it and that's why lack of knowledge is one of major reason.

Trading carelessly without any plans of learning from it is throwing money to the exchange and you expect nothing in return. But if you have plans of doing yourself a favor and you want to learn with the futures, you'll do something about it.

[Silberman]

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.

When you do something that you don't know of, you can't expect to be productive with it and that's why lack of knowledge is one of major reason.

Trading carelessly without any plans of learning from it is throwing money to the exchange and you expect nothing in return. But if you have plans of doing yourself a favor and you want to learn with the futures, you'll do something about it.

While this is true and we have examples of this almost every day in the forum when there is a bull market, this does not mean that it is easy to understand as it makes no sense, if a person tried to practice law without the necessary knowledge everyone would think that such a person is wasting their time, and in many cases committing a criminal offense, however when it comes to trading someone can try it without any idea of what they are doing and yet this is considered to be normal and even a profitable strategy.

[LUCKMCFLY]

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.

Well, there is a lot of publicity that I have seen on social networks that always have the illusion that they always win, and they win with exorbitant percentages, something like taking a trade with a very large pump with 130%, something like that, so that for me already indicates which is all a lie, apart from when they say that you have to pay for membership, it is something that does not add up much, so being profitable in trading is something very difficult, I think those who achieve it would be very oppos and this also means that in bitcoin things can be done well, but those who do it well do not make this kind of offers, because they simply do not have the need to live from it but from trading.

[Cling18]

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.

When you do something that you don't know of, you can't expect to be productive with it and that's why lack of knowledge is one of major reason.

Trading carelessly without any plans of learning from it is throwing money to the exchange and you expect nothing in return. But if you have plans of doing yourself a favor and you want to learn with the futures, you'll do something about it.

While this is true and we have examples of this almost every day in the forum when there is a bull market, this does not mean that it is easy to understand as it makes no sense, if a person tried to practice law without the necessary knowledge everyone would think that such a person is wasting their time, and in many cases committing a criminal offense, however when it comes to trading someone can try it without any idea of what they are doing and yet this is considered to be normal and even a profitable strategy.

Learning about the futures needs commitment and determination since it's too broad and there will be confusing things that you need to understand. You have to be sure that you like doing it and that you are willing to face the risks. Futures is different from the basic trading that we know so we can't apply the basic stragies that we know about it. If we'll do it without complete knowledge, it's like we're fighting a battle without complete gear.

[kamvreto]

Learning about the futures needs commitment and determination since it's too broad and there will be confusing things that you need to understand. You have to be sure that you like doing it and that you are willing to face the risks. Futures is different from the basic trading that we know so we can't apply the basic stragies that we know about it. If we'll do it without complete knowledge, it's like we're fighting a battle without complete gear.

Fighting without complete armor will result in injury and even death on the battlefield. Like Futures Trading which has a higher risk than spot trading or regular trading. Basic knowledge is indeed not enough for futures trading, it takes sufficient knowledge to be able to manage futures trading. Especially psychology is also a problem for all traders even though they are already professionals. Psychology is influenced by many factors, starting from poor risk management which will result in the strategy not working properly.
As you said, Futures trading requires commitment and determination to master it, so as not to lose everything. and what is also important is the use of leverage which must be wise, and adjusted to the circumstances and risks that can occur. Liquidation will obliterate everything.

[Falconer]

Fighting without complete armor will result in injury and even death on the battlefield. Like Futures Trading which has a higher risk than spot trading or regular trading. Basic knowledge is indeed not enough for futures trading, it takes sufficient knowledge to be able to manage futures trading. Especially psychology is also a problem for all traders even though they are already professionals. Psychology is influenced by many factors, starting from poor risk management which will result in the strategy not working properly.
As you said, Futures trading requires commitment and determination to master it, so as not to lose everything. and what is also important is the use of leverage which must be wise, and adjusted to the circumstances and risks that can occur. Liquidation will obliterate everything.

You've said something true about futures trading, but really one can never escape being greedy in trading. They may learn from their own experience, have emotional control and wise use of laverge, but things will not be as easy as we imagine and the practice will be very different.

I had to avoid futures trading because it's so hard to control my urges and emotions not to get greedy, so in the end I tended towards spot trading instead of futures trading so far. I can learn it, but I'd rather avoid something I don't understand properly.

[pawanjain]

All your points are valid especially the risk management one is the key reason why many people lose money.
To eradicate this issue we must predefine a risk to reward ratio which coincides with our risk management strategy.
The most important aspect here is to make sure we don't get our funds liquidated in futures trading.
In exchanges like binance we have an option to keep our futures trades segregated so that if one of our trades is liquidated then it won't effect our overall balance.

[kamvreto]

You've said something true about futures trading, but really one can never escape being greedy in trading. They may learn from their own experience, have emotional control and wise use of laverge, but things will not be as easy as we imagine and the practice will be very different.

I had to avoid futures trading because it's so hard to control my urges and emotions not to get greedy, so in the end I tended towards spot trading instead of futures trading so far. I can learn it, but I'd rather avoid something I don't understand properly.

Greed is a natural trait that humans have and the level of greed also differs from person to person. It is very difficult to regulate psychology if we are not used to it, greed will arise when we are faced with a choice that is a win-win.
I also even stay away from futures trading because the risks are indeed higher, but some people who are able to control futures trading, can take advantage of every movement to make a profit. Futures trading is not for beginners because the risks are greater and also psychological control will determine profits.

[Viscore]

Fighting without complete armor will result in injury and even death on the battlefield. Like Futures Trading which has a higher risk than spot trading or regular trading. Basic knowledge is indeed not enough for futures trading, it takes sufficient knowledge to be able to manage futures trading. Especially psychology is also a problem for all traders even though they are already professionals. Psychology is influenced by many factors, starting from poor risk management which will result in the strategy not working properly.
As you said, Futures trading requires commitment and determination to master it, so as not to lose everything. and what is also important is the use of leverage which must be wise, and adjusted to the circumstances and risks that can occur. Liquidation will obliterate everything.

You've said something true about futures trading, but really one can never escape being greedy in trading. They may learn from their own experience, have emotional control and wise use of laverge, but things will not be as easy as we imagine and the practice will be very different.

I had to avoid futures trading because it's so hard to control my urges and emotions not to get greedy, so in the end I tended towards spot trading instead of futures trading so far. I can learn it, but I'd rather avoid something I don't understand properly.

Having emotional control when trading and being in control of your greed is something that a successful trader should obtained. Even if the focus and determination is there, patience is there, but if you end up being greedy in all your trades, you will never be successful in all your future trades. Just learn not to live with your greed, but I guess it’s hardly impossible.

[Rufsilf]

You've said something true about futures trading, but really one can never escape being greedy in trading. They may learn from their own experience, have emotional control and wise use of laverge, but things will not be as easy as we imagine and the practice will be very different.

I had to avoid futures trading because it's so hard to control my urges and emotions not to get greedy, so in the end I tended towards spot trading instead of futures trading so far. I can learn it, but I'd rather avoid something I don't understand properly.

Greed is a natural trait that humans have and the level of greed also differs from person to person. It is very difficult to regulate psychology if we are not used to it, greed will arise when we are faced with a choice that is a win-win.
I also even stay away from futures trading because the risks are indeed higher, but some people who are able to control futures trading, can take advantage of every movement to make a profit. Futures trading is not for beginners because the risks are greater and also psychological control will determine profits.

Those traders who found themselves in a better position in trading will succeed whether it was futures trading or spot trading. Greediness can be found in everybody but I don't think that was really the problem in futures trading because what I see is that it is our decision-making. And if we talk about strategies, I think most of us are using the same but what it went wrong is how it was been implemented.
Whether it was futures trading or not, many traders will often lose rather than make a profit.

[Ryker1]

Well in trading --risk management is very important because it manages your losses like doing stop-loss.
This high leverage on future trading will make traders out of control, it could be their emotions will become greedy seeing the market movement. The rapid fluctuations of futures prices and no one can tell the future price since it has fluctuated. On my own, I rather hold my coin in a long term than trust a custodial exchange in a long term, in that way, I have control of my fund and I have a right when I seel my coins.

[kamvreto]

~snip~reediness can be found in everybody but I don't think that was really the problem in futures trading because what I see is that it is our decision-making. And if we talk about strategies, I think most of us are using the same but what it went wrong is how it was been implemented.

Keep in mind that decision-making depends on how a person's psychology. Wrong decision-making is usually influenced by unstable psychology, as well as greed which makes traders unable to be consistent with the main targets that have been achieved. About the strategy of every trader will not be the same, only a few indicators that they use are the same. Concerning capital management, risk management and others can be combined so that the strategies to be made are not the same.

Whether it was futures trading or not, many traders will often lose rather than make a profit.

Those who often lose money rather than gain are of course those who are beginners and don't understand. For professionals, the percentage of profits will be greater.

[Hamza2424]

That's the reality dear whatever you have mentioned I do agree and you have mentioned some of decent points too. I would say your post is informative and it might be more helpful to our upcoming and current future traders but bro no one can control the emotions and greed a strong emotion never underestimate this emotion because its the root of destruction in trading.

[DevilSlayer]

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.

That's true, that's why we have VAR in the 1st place. VAR means Value at Risk wherein it is the percentage of the your money that you can afford to lose. The ideal VAR for traders are usually 1%-2%, to make things clear. If you have $100,000 in your portfolio, then your VAR is 1%, it means that you will risk $1000 in a trade. In this case, you can preserve your capital and you cannot blowout your account through the use of VAR. I actually created a trading calculator in Excel that can compute my trading margin, VAR, and the leverage. Those people who keep losing are usually the traders who doesn't use or even aware to what is VAR.

[Emitdama]

The biggest reason is "brave ignorance" and that is something greatly troublesome in every part of the world as well about any topic in the world. People who know absolutely nothing about a thing, ends up reading something on twitter or facebook or wherever and thinks that it's fact and true and starts talking about how true it is.

When in reality what they read there is false and not a fact and wrong, which causes them to have amazing courage and confidence on a factually wrong thing. This causes them to bother the public in other things, but on this it causes them to lose a lot of money, because they simply wanted to believe in a thing just to believe it.

[valeneu]

1.   Psychological – Trading is inherently risky; futures traders should be aware that no trade has a guaranteed outcome. When you put a trade, you are correspondingly accepting the risk but that’s where the problem comes in. All of the traders are taking the risk but are they accepting that the trade has a non-guaranteed outcome? The answer is No. Consistent traders are aware that there is no sure profit or magic in trading. They embrace the risk where if they lose, it is okay for them because they know that there is no guaranteed outcome.

Trading psychology is an important factor affecting trading. Don't be overly greedy when trading, control your emotions and take due risks, use failure as a learning process and gain experience from it.  Slowly accumulate more trading experience, there will always be a profitable day.

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.

In trading, risk management is very important. Many traders are constantly seeking higher profits while ignoring the high risks involved. Don't pursue getting rich overnight, you must have proper risk management to stop losses in time and minimize losses as much as possible.

[Natalim]

The biggest reason is "brave ignorance" and that is something greatly troublesome in every part of the world as well about any topic in the world. People who know absolutely nothing about a thing, ends up reading something on twitter or facebook or wherever and thinks that it's fact and true and starts talking about how true it is.

When in reality what they read there is false and not a fact and wrong, which causes them to have amazing courage and confidence on a factually wrong thing. This causes them to bother the public in other things, but on this it causes them to lose a lot of money, because they simply wanted to believe in a thing just to believe it.

Many people believe that reading something on social media gives them an idea. Of course, yes but we should not just be reliant on it instead, we keep learning more and find another source of information. We never have to be confident of what we have learned online as it was more important to apply the learning we got in order to verify if it is true or false.
 - lack of knowledge and less experience are common reasons why traders lost their money

And they have to change the way they think about trading as this is not just simple as people think, it is risky and difficult to analyze.

[LastKiss]

~snip~

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.

In trading, risk management is very important. Many traders are constantly seeking higher profits while ignoring the high risks involved. Don't pursue getting rich overnight, you must have proper risk management to stop losses in time and minimize losses as much as possible.

Which mean we should be able to control our greed, our greed makes us can't choose correct decision when it comes to risk management. Even when we have our greed controlled we still can't guarantee our profit tho there are a lot of fundamentals we need before we enter futures trading since it really tempts us with its return or it's destroying us with its risk.

[Fullcoinese]

Which mean we should be able to control our greed, our greed makes us can't choose correct decision when it comes to risk management. Even when we have our greed controlled we still can't guarantee our profit tho there are a lot of fundamentals we need before we enter futures trading since it really tempts us with its return or it's destroying us with its risk.

I believe greed is not only a problem for futures trading. it is a mistake for all traders. even investors and also gamblers also have the same problem.
Self-control is indeed very important in determining our choices. Apart from our analytical skills, other factors can make us enter into a loss.

but I believe, more futures traders lose money than succeed with big wins.

[Adbitco]

Do i say they aren't yet prepared to trade on future because i believe that they only venture into it due to their friends are trading on future or possibly due to inflow of cash which they think could be generated from it. One thing they forget about is that before going into such decision of trading in future they should be ready to accept what may comes of it.

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.

Do you think trading bots are 100 percent correct or right?
I think i have heard of trading bots on whatsapp group i do join then when someone was lamenting about using the bots they introduced to him without proper research about the bots.