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

[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.

This is one aspect of trading that can't be over emphasized because of its importance. No matter how one might be in trading, without a proper risk management technique, such trader wouldn't definitely stay long in the market.
Just as OP stated that it's not about how much profit a trader makes but how much money we don't lose really touch a great spot in me and if I'm to explain, it simply means that, no matter how much money or profit you make, never run out of your trading capital.

Another area I want to contribute is the fact that, demo accounts shouldn't be related to a real money account.
This is because in my few months of trading, there is one thing I've noticed which is the fact that most newbie traders after practicing with a demo account for some time and feel they're good, then to jump into the market and when they start making loss in a row, start thinking their broker is bias and frustration starts creeping in.
So I will always advice people to take a better lesson on trading while making practice with demo accounts.

[Ararbermas]

Risk management and skills is the most important things specially in futures trading, wherein reason mostly fails and blown their money because they take all the risk on their own way not the real way of trading.

[Oshosondy]

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.

This sounds more like you are talking about gambling. Newbie traders are not traders though if they do not follow the rules and strategies and if they are full of emotion without no risk management. What is most important in trading that newbie traders fails to understand is that risk management is very important, traders have to reduce their risk, looking for less profit rather than focusing on higher leverage.

Do you think trading bots are 100 percent correct or right?

There is nothing that is 100% correct in trading, only a strategy that bring patience and low risky trading is what is more correct. Even indicators can fail.

Risk management and skills is the most important things specially in futures trading, wherein reason mostly fails and blown their money because they take all the risk on their own way not the real way of trading.

Exactly, risk management is very important, but it is easily said than done.

[OcTradism]

This sounds more like you are talking about gambling. Newbie traders are not traders though if they do not follow the rules and strategies and if they are full of emotion without no risk management. What is most important in trading that newbie traders fails to understand is that risk management is very important, traders have to reduce their risk, looking for less profit rather than focusing on higher leverage.

Most of newbies including traders and investors are gamblers.

Why are they gamblers but they think they are traders or investors? Because they spend money to invest or to trade without knowledge, without their own research.

They invest because they read or heard someone wrote or said that Bitcoin is a good investment. They don't know market cycles, prices and psychology. They don't know effects of Bitcoin halvings, fud and massacres to clean up the market before each new bull run.

They trade because they receive signals, entry price and exit price from a signal group. They don't know how to use Stop loss, Stop limit orders and over use leverages.

With serious lack of knowledge, experience and risk management, they will be very easily to panic sell by themselves or be liquidated forcefully by exchanges.

[Falconer]

Most of newbies including traders and investors are gamblers.

Why are they gamblers but they think they are traders or investors? Because they spend money to invest or to trade without knowledge, without their own research.

Don't be in a hurry to come to a conclusion because it is very possible that what you think is actually not what is the fact.
Indeed, there are some traders or investors who are unable to do analysis or research before investing, but by having basic knowledge about trading and investing, they are also said to have something to strive for. Buy low and sell high is the foundation of successful trading and investing, especially if they are confident and willing to invest in bitcoin instead of altcoin.

My one thought on investing and trading, investors and traders just need to know how the market works and how they can make a profit. One fact is that if they want to be long-term holders then maybe a really detailed analysis is not really needed, especially if the asset of choice is bitcoin.

[rozak]

My one thought on investing and trading, investors and traders just need to know how the market works and how they can make a profit. One fact is that if they want to be long-term holders then maybe a really detailed analysis is not really needed, especially if the asset of choice is bitcoin.

for futures trading, it will be more complicated than you say. it may look like reading the direction the market is moving. but in reality, many futures traders experience losses. they don't do any research or pretend they know how to analyze the market. but actually, only predictions are used. isn't that the same as gambling?
I will not say all of them. most of the beginners who trade futures must be like that.

[Subbir]

The reason for losing money in trading is that most traders are new to the crypto market and expect to make more profits in a short period of time, in which case they face more losses. To determine risk tolerance, start trading with a virtual account and analyze the market well. If you have limited risk capacity and cannot handle large losses then it is better to close the trade.

[Adbitco]

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.

This sounds more like you are talking about gambling. Newbie traders are not traders though if they do not follow the rules and strategies and if they are full of emotion without no risk management. What is most important in trading that newbie traders fails to understand is that risk management is very important, traders have to reduce their risk, looking for less profit rather than focusing on higher leverage.

Do you think trading bots are 100 percent correct or right?

There is nothing that is 100% correct in trading, only a strategy that bring patience and low risky trading is what is more correct. Even indicators can fail.

Risk management and skills is the most important things specially in futures trading, wherein reason mostly fails and blown their money because they take all the risk on their own way not the real way of trading.

Exactly, risk management is very important, but it is easily said than done.

Actually it most not be gambling before they could lose money, from my understanding trading is more or less of a gambling because one thing for sure is that you must lost money most especially future trading. Just of few days ago a friend of mine whom i know too well lost money and he claims to be too good with trading and yet i have been warning him not to trade, though he makes profits but the risk over it is more than his profits.

[virasisog]

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.

This sounds more like you are talking about gambling. Newbie traders are not traders though if they do not follow the rules and strategies and if they are full of emotion without no risk management. What is most important in trading that newbie traders fails to understand is that risk management is very important, traders have to reduce their risk, looking for less profit rather than focusing on higher leverage.

Do you think trading bots are 100 percent correct or right?

There is nothing that is 100% correct in trading, only a strategy that bring patience and low risky trading is what is more correct. Even indicators can fail.

Risk management and skills is the most important things specially in futures trading, wherein reason mostly fails and blown their money because they take all the risk on their own way not the real way of trading.

Exactly, risk management is very important, but it is easily said than done.

Actually it most not be gambling before they could lose money, from my understanding trading is more or less of a gambling because one thing for sure is that you must lost money most especially future trading. Just of few days ago a friend of mine whom i know too well lost money and he claims to be too good with trading and yet i have been warning him not to trade, though he makes profits but the risk over it is more than his profits.

The risks in trading are manageable and bearable if we understand how the market moves and we're fully aware of how to deal with the volatility of cryptocurrency. Trading in futures is a challenging thing and it will surely be more like gambling if you aren't familiar with it. Honestly, it will take time for you to learn everything and for you to you fully understand it. If you're a beginner, you'll surely end up having big losses if you couldn't apply any effective strategy to succeed futures. It requires knowledge and a series of research.

[Issa56]

Risk management and skills is the most important things specially in futures trading, wherein reason mostly fails and blown their money because they take all the risk on their own way not the real way of trading.

Seriously I will be glad if you can explain more about the statement which you made above, what do you mean by people take all the risk on their own way and not the real way of trading? I don't know what you mean by risk in trading way.

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.

From what I think, I believe the first thing you should do as a trader is to make sure your analysis is correct. I have seen someone trading with stop loss before and he keeps on losing money, let's assume he enters a trade and he set his stop loss at - 10% of his capital immediately the stop lose as being triggered, he will enter another trade again and he will set stop loss at - 10% of his capital, the stop lose was triggered again, that was how he was losing his money gradually, am not saying stop lose is bad but we should always make sure we do our analysis well first. whenever am trading I don't really use stop loss but am always online to monitor my trade myself, I don't really believe in stop loss but I don't discourage people from using it.

[sulendra12]

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.

Sometimes trading is just a psychological and mental game for the most of part. It's including me that some of the crashes event in past years actually affect my mental and make my decision become worse and ended up in losses. But good thing is that every time I experience same thing again and you know what to do as the experience develops overtime for every trade and fails you make.

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.

This is like double-edged sword. It could give you big profit if done correctly but otherwise it's a trap for most people.

[doomloop]

From what I think, I believe the first thing you should do as a trader is to make sure your analysis is correct. I have seen someone trading with stop loss before and he keeps on losing money, let's assume he enters a trade and he set his stop loss at - 10% of his capital immediately the stop lose as being triggered, he will enter another trade again and he will set stop loss at - 10% of his capital, the stop lose was triggered again, that was how he was losing his money gradually, am not saying stop lose is bad but we should always make sure we do our analysis well first. whenever am trading I don't really use stop loss but am always online to monitor my trade myself, I don't really believe in stop loss but I don't discourage people from using it.

I think what he mean by taking risk on our own way is we go on our own and we don't follow what is commonly suggested. If we are a starter and have less experience then we shouldn't be hard headed but we must follow what the elders are saying because they already have an adequate experience on this market.

Analysis is essential in trading but I think this isn't the first thing that we should learn as a beginner. There are more important things than this. The reason why is because analysis can still fail no matter how sure you are. Stop loss on the other hand, is not a magical tool to help us prevent from losing but it can work like a charm as long as you already know how to use it the proper way.

[layoutph]

Hi guys, I am a breakout trader. I only trade if theres a breakout or breakdown of a certain coin in a trendline. Can you share what type of future trader you are? I am currently trading $ADA and $BTC. I am not an expert but still learning.

[stomachgrowls]

Hi guys, I am a breakout trader. I only trade if theres a breakout or breakdown of a certain coin in a trendline. Can you share what type of future trader you are? I am currently trading $ADA and $BTC. I am not an expert but still learning.

There are lots of types of traders but they do share up on the common target or signal which neither those breakouts and possible bear/bull traps which is something that you do really need to look upon.

Doesnt matter whether you are a swing,breakout or typical support and resistance type then it would do, as long you would really be making out profits then thats what matter the most.

It just really turns out that people do really love to touch up with those 50-120x leverage which is something i do consider to be already a gamble.
I cant just take up that certain risk even how rewarding it would be.

[xSkylarx]

Hi guys, I am a breakout trader. I only trade if theres a breakout or breakdown of a certain coin in a trendline. Can you share what type of future trader you are? I am currently trading $ADA and $BTC. I am not an expert but still learning.

This strategy is very profitable but takes time though doesn't not a lot of screen time as you are waiting for breakout. I usually trade with the trend (as always follow the trend and don't counter it) as my strategy really works in this kind of market but when the market is on sideways usually I don't trade as I am losing that time. I am still learning to trade to improve my strategy so that we could gain more profit or can find decent strategy.

[Chato1977]

Hi guys, I am a breakout trader. I only trade if theres a breakout or breakdown of a certain coin in a trendline. Can you share what type of future trader you are? I am currently trading $ADA and $BTC. I am not an expert but still learning.

Am not a trader at all but a Hodler , I want a secure and safe investment and I find this in Holding , for couple of years I successfully managed to earn from this so I wont have to try others.
best to not use BTC for trading because this is a hard to bounce coin short term.

[Ayers]

Hi guys, I am a breakout trader. I only trade if theres a breakout or breakdown of a certain coin in a trendline. Can you share what type of future trader you are? I am currently trading $ADA and $BTC. I am not an expert but still learning.

Am not a trader at all but a Hodler , I want a secure and safe investment and I find this in Holding , for couple of years I successfully managed to earn from this so I wont have to try others.
best to not use BTC for trading because this is a hard to bounce coin short term.

I am also a holder because I don't have too much time to trade and feel I am not fit to trade, they pressure me to the point where I lose more than win in trades. Holding or trading can be profitable and it is important that we choose which one is right for us to achieve the best results. Neither is better than the other, but choose the one that works best for you. In my opinion, trades in bitcoin are more secure than altcoins.

[Quidat]

Hi guys, I am a breakout trader. I only trade if theres a breakout or breakdown of a certain coin in a trendline. Can you share what type of future trader you are? I am currently trading $ADA and $BTC. I am not an expert but still learning.

Am not a trader at all but a Hodler , I want a secure and safe investment and I find this in Holding , for couple of years I successfully managed to earn from this so I wont have to try others.
best to not use BTC for trading because this is a hard to bounce coin short term.

I am also a holder because I don't have too much time to trade and feel I am not fit to trade, they pressure me to the point where I lose more than win in trades. Holding or trading can be profitable and it is important that we choose which one is right for us to achieve the best results. Neither is better than the other, but choose the one that works best for you. In my opinion, trades in bitcoin are more secure than altcoins.

When you do find yourself not really that good nor effective on trading then you would really be opting in holding instead and wont tend to grasp or deal with the risk on dealing with those volatile movements which it is really just that wise and sensible act to be done by someone.Although there are some who cant just take up the risk and not able to try out on doing trading but instead
they do wait up for long term.It isnt really bad since we know the potential of Bitcoin when it comes to its future prices.It is really just that not an assure thing to happen
this is why risk management is really that important on touching or dealing up with these things.

[wxa7115]

The risks in trading are manageable and bearable if we understand how the market moves and we're fully aware of how to deal with the volatility of cryptocurrency. Trading in futures is a challenging thing and it will surely be more like gambling if you aren't familiar with it. Honestly, it will take time for you to learn everything and for you to you fully understand it. If you're a beginner, you'll surely end up having big losses if you couldn't apply any effective strategy to succeed futures. It requires knowledge and a series of research.

The majority of those losing their money with futures were not ready for it, one thing I find surprising when it comes to the markets is that somehow traders expect to become proficient at it in a matter of weeks and this is not possible.

Becoming a good trader is a long process in which a series of steps needs to be taken, and if you try to skip those steps then your trading skill will not be as high as it should be and it will be incomplete as well, so when you face adverse market conditions you will make several mistakes which will cost you a lot of money, and those huge mistakes are the ones that end up destroying your account and your capital.

[Inspiron14]

Hi guys, I am a breakout trader. I only trade if theres a breakout or breakdown of a certain coin in a trendline. Can you share what type of future trader you are? I am currently trading $ADA and $BTC. I am not an expert but still learning.

Am not a trader at all but a Hodler , I want a secure and safe investment and I find this in Holding , for couple of years I successfully managed to earn from this so I wont have to try others.
best to not use BTC for trading because this is a hard to bounce coin short term.

I am also a holder because I don't have too much time to trade and feel I am not fit to trade, they pressure me to the point where I lose more than win in trades. Holding or trading can be profitable and it is important that we choose which one is right for us to achieve the best results. Neither is better than the other, but choose the one that works best for you. In my opinion, trades in bitcoin are more secure than altcoins.

It's true that the key is to choose the most suitable for ourselves and sometimes for some people they don't know either.
safer does not mean there is no risk and indeed with Bitcoin trading at least the risk is not as big as altcoins,
however top altcoins like Ethereum and BNB are also good