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

[mindrust]

It is because trading is a zero sum game. Exchanges are like casinos and currency spread is the house edge. As long as no new money enters to the crypto space, people will try to win against each other. Exchanges will be the winners no matter what other people do because of currency spread.

Traders need to be patient and have a clear mind. Remember the quote: "Bears make money, bulls make money, pigs get slaughtered."

[Wolfblood200$]

  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.

If this above statement is proven true then I guess crypto trading is no different from gambling.

[Bhig Daddy]

A trader who intends to control their trading psyche is expected to have a well-structured trading plan. Trading often has a high risk to reward ratio, whether it be with futures or spot. Future traders' losses cannot be controlled by any risk management or trading plan. A trading strategy outlines the trader's expectations for each deal, highlights strategies, and expressly states the risk management strategies that the trader intends to use in the future. Many traders have forgotten their trading plans; even those who do make them don't care to refer to them before each trade. Most of the time, the reasons that prevent traders from producing a steady profit are not as complicated as they are made out to be; instead, they frequently stem from basic elements.

[LUCKMCFLY]

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.

Well, I think that the meaning of everything is that when Bitcoin goes up, all the altcoins do, and here at that very moment is when it is good to buy the altocins, because if bitcoin remains in a bullish trend, the altcoins go up like foam, I think that at that moment the people who see the movement will stop belonging to that 95% of losers, what happens I know that the crypto market is quite hard, it has many traps and has many things that you have to know how to read, you don't have a consolidated volume, which makes its analysis more difficult, these are the things that should be seen before operating.

[BossTrack]

It's brutal for most people, I think outcasts tend to cope better. I remember watching a reality show called "Million Dollar Traders" - it should be on YouTube, it took regular joes and taught them the basics of stock trading and held a contest to see who could make the most - long story short over half of them had a mental breakdown and quit before it ended.

[Mahanton]

It's brutal for most people, I think outcasts tend to cope better. I remember watching a reality show called "Million Dollar Traders" - it should be on YouTube, it took regular joes and taught them the basics of stock trading and held a contest to see who could make the most - long story short over half of them had a mental breakdown and quit before it ended.

There might be things which had been introduced by someone and it do looks interesting since it do really involves huge money or possible income but on the time that you do make out such engagement
then it isnt something that simple you could able to bare or deal with and this is why you should really be sensible on making yourself that able to adjust basing up on the situation.
If you arent really that versatile when it comes to those unexpected and sudden changes of those scenarios or conditions then you would be finding yourself to be that impulsive
or something that you wont really be that to make out some good decisions just because you are already panicking.

[freedomgo]

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.

People lose money in trading for different reasons,  some maybe  because of not having good understanding about trading but they force their self in trading just to make money. Some people come into trading having a mindset to become rich without making good research to know the essence of trading. Lack of knowledge is the reason why people lose all of their money in trading. If traders should consider learning and having patience their wont be to much lose of money.

Remember that losing is still a part of trading, so even if traders tend to be more knowledgeable and skilled, there are still unavoidable losses that are hard to resist. What makes more difference in trading is that traders should have the right mindset, why they are in trading and what will make them survive in trading despite of their imperfections as traders.

[Taskford]

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.

People lose money in trading for different reasons,  some maybe  because of not having good understanding about trading but they force their self in trading just to make money. Some people come into trading having a mindset to become rich without making good research to know the essence of trading. Lack of knowledge is the reason why people lose all of their money in trading. If traders should consider learning and having patience their wont be to much lose of money.

Remember that losing is still a part of trading, so even if traders tend to be more knowledgeable and skilled, there are still unavoidable losses that are hard to resist. What makes more difference in trading is that traders should have the right mindset, why they are in trading and what will make them survive in trading despite of their imperfections as traders.

That's right because even experience people miscalculate things which cause them for losing and there's no total assurance of getting profit with it that's why for newbies they should not believe that someone is earning a passive income with it since trading is somehow gives unexpected scenarios which can cause a lot to everyone.  Maybe the least we can do is to avoid losing big and how to discipline ourselves to not getting more greedy to want more if we are already winning.

[Reatim]

you cannot be a trader if did not spend too much time for this area because Trading needs skills , time and effort and of course Knowledge that is very important in this part.
I must admit that for how many times that I tried to trade but losing is what I got so maybe better to understand this strongly before dealing with more money .

This is the real factor for a trader to understand. If you jump into trading then you will also jump out of it. It is better learning the rudiment of trading than going in like that as novice. Trading is like farming, with farming you have to be ready with your hoes and cutlass likewise in trading, you have to know how to use your indicators and how to do a proper analysis of them.

The hardest part of investing is that understanding that you will lose insignificantly if you don't pay attention to the investment place meaning if you don't have that knowledge then you will surely lose everything from your funds.
this is how many of people here crying for years because they tend to blame the market when the true stupid is them seeking for profit in something they don't fully understand .

It's brutal for most people, I think outcasts tend to cope better. I remember watching a reality show called "Million Dollar Traders" - it should be on YouTube, it took regular joes and taught them the basics of stock trading and held a contest to see who could make the most - long story short over half of them had a mental breakdown and quit before it ended.

Have watched this as well and indeed that Trading isn't that easy to understand specially for average people .

[stomachgrowls]

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.

People lose money in trading for different reasons,  some maybe  because of not having good understanding about trading but they force their self in trading just to make money. Some people come into trading having a mindset to become rich without making good research to know the essence of trading. Lack of knowledge is the reason why people lose all of their money in trading. If traders should consider learning and having patience their wont be to much lose of money.

Remember that losing is still a part of trading, so even if traders tend to be more knowledgeable and skilled, there are still unavoidable losses that are hard to resist. What makes more difference in trading is that traders should have the right mindset, why they are in trading and what will make them survive in trading despite of their imperfections as traders.

That's right because even experience people miscalculate things which cause them for losing and there's no total assurance of getting profit with it that's why for newbies they should not believe that someone is earning a passive income with it since trading is somehow gives unexpected scenarios which can cause a lot to everyone.  Maybe the least we can do is to avoid losing big and how to discipline ourselves to not getting more greedy to want more if we are already winning.

When you are just new on trading then you shouldnt touch up futures or derivatives trading which it would really be totally a risky move for you to do so.You should stick with spot trading for some long time
and trying out to make yourself that sustainable on this way and never ever tend to jump directly in futures.Its true that even experienced or old traders could really mess up with touching up this area.
Why? Liquidation duration and probabilities is on high chance but of course it is also the same on how you do make profits and this is where people do really get interested on which they would really be
seeing that it would be something that would make them rich in no time but sooner or later they would really be realizing that it wont really be that just simple.

[Shinpako09]

They are losing because some thinks trading is simply buy low, sell high. They got carried away by the hype from the videos they watched. They don't realize that trading takes time before they honed their skills or too lazy to take one step at a time. Trading isn't for someone who is eager to make a fortune quickly. Some are only buying when the market or coins is being hyped or at peak thinking they can ride but the thing is. They have come at the wrong time when traders reach their selling point.

[Pandu Geddon]

They are losing because some thinks trading is simply buy low, sell high. They got carried away by the hype from the videos they watched. They don't realize that trading takes time before they honed their skills or too lazy to take one step at a time. Trading isn't for someone who is eager to make a fortune quickly. Some are only buying when the market or coins is being hyped or at peak thinking they can ride but the thing is. They have come at the wrong time when traders reach their selling point.

that's what makes most novice traders who want to quickly profit receive a lot of losses. they do not prepare themselves with good knowledge and skills. what's more, beginners only follow trading signals from telegram groups. not a group thing, but applying their trade takes some skill too.
maybe indeed more futures traders receive losses than gains.

[blockman]

Most often, traders choose the wrong strategy, or simply do not know how to work correctly. As a result, most often this leads to a negative result.

Everyone believes has got a good start by having any strategy that they know would be good as they test it. But sooner or later, after testing it, there goes the result, and will depend on its outcome. If it's not worth it at all then that means that strategy really has failed and they've chosen the wrong one but if it works, then they're the geniuses and that strategy works for them perfectly and makes money for them. But the reality in trading, no matter what strategy you've got, everyone has the high chance of just losing from it.

[Sanitough]

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.

People lose money in trading for different reasons,  some maybe  because of not having good understanding about trading but they force their self in trading just to make money. Some people come into trading having a mindset to become rich without making good research to know the essence of trading. Lack of knowledge is the reason why people lose all of their money in trading. If traders should consider learning and having patience their wont be to much lose of money.

But the sad fact nowadays is that traders are more on earning for quick profits, and if they see the market is not cooperating, they end up panicking and lost their patience along the way, so they turned out to be losers instead of profiting. As long as people trade with emotions and greed, they will never be successful from trading and will continue to waste their money from trading.

[WalkerIVIV]

investing and trading honestly is more than what's written in technical analysis books, there are so many emotion involved and that could influence your decision in trading and investing, so if you happened to lose your money in your trading maybe you're getting too carried away emotionally and make some haste decision, moreover the fact that so many coins out there don't follow technical analysis pattern is enough reason that you could be losing your trading and investments since sometimes it's all about luck.

[Jensen Guttenberg]

"The only way to avoid mistakes is to gain experience, and the only way to gain experience is to make mistakes." - Robert Kiyosaki

Well, unfortunately, there are many scams and sharp schemes in the world of cryptocurrencies... And sadly, some investors may fall victim to these. It's important for investors to do their due diligence and be cautious of any investment opportunities that seem too good to be true.

[Golfler]

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.

To control emotions, you must first control your heart and subconscious mind. You must put your subconscious mind back into a state of positive energy, and make the trading decision you want to make most in your heart. Then don’t have any expectations. There is no absolute right or wrong, and some wrong decisions will last for a long time. It might be good to see too.

[lixer]

investing and trading honestly is more than what's written in technical analysis books, there are so many emotion involved and that could influence your decision in trading and investing, so if you happened to lose your money in your trading maybe you're getting too carried away emotionally and make some haste decision, moreover the fact that so many coins out there don't follow technical analysis pattern is enough reason that you could be losing your trading and investments since sometimes it's all about luck.

If the book is only about analysis then that is the only thing that you will learn there but other things are not yet tackled there. Investing is so wide but there might be books who are complete already. Trading mainly uses technical analysis but in investing, it's more on fundamental.

It's still up to us if we think learning both can be more beneficial to us then why not? If there is one thing that have in common for both investors and trading then that would be the emotions. It can messed you up pretty badly no matter what you do so we should learn how to control it to be able to be successful in our journey. Losing is sometimes inevitable but this should discourage us totally. Just carry on.

[Fondarchand]

Losing is common and every person experience failure in his life time but i think that future trading is  not good and it can never make you rich as there is great hazardous related to future trading so i will suggest that instead of future trading just buy some coins that you know that is the best coin and will become enhanced, so hold these coins for further enhancement in  cost, it will boost your money and success chances.

[mvdheuvel1983]

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.

I know why I lost some time ago- greed that made me increase the size of my position beyond my capacity.
The thing was I understood that I wasn't supposed to over increase my size and position. I couldn't control the risk with the position size, and I did lost a huge chunk of my portfolio.