Why do traders lose money in trading?

[Gaza13]

I guess for me, the very basic reason why a lot of traders lose money in trading simply because they fail to execute the most basic trading strategy, sell at a price higher than the buying price. Probably because not all traders are real traders in the market, some are just self-acclaimed and just own the title without having proofs. This boils down to the realization that some traders are not well educated and not well aware how trading works. But mostly, only greed and fear matter to them.

It's not just beginners who experience losses, traders who are experienced or often trade can experience mistakes or losses in analyzing the market. It is best that before entering the world of trading we have to learn about it first. In cases like this, knowledge about trading, in my opinion, is very important as our basic foundation for learning to analyze a very wild market in the market. From this knowledge we can form our skills from the failures we experienced previously. At least if you want to trade, you should use Stop Loss. By using this, losses can be minimized so that losses are not too big, and profits can be controlled.

[Rabata]

Losing money on trading platforms is a very common thing but if one thinks that there is no loss if one acquires enough knowledge then it is not credible. No matter how much knowledge a trader acquires, he can make loss in trading. Certainly no one can make money from this platform. However, if one tries to trade as a result of various factors, then the risk can be reduced a lot. A trader is exposed to profit or loss due to various strategic reasons. Some can't hold emotions and some can lose because of too much greed and some can lose because of lack of knowledge. If a trader trades after observing these things well, the chances of losing there will be reduced. Trading is an uncertain platform where even after thorough research, many times it is not possible to avoid losses.

[lixer]

I guess for me, the very basic reason why a lot of traders lose money in trading simply because they fail to execute the most basic trading strategy, sell at a price higher than the buying price. Probably because not all traders are real traders in the market, some are just self-acclaimed and just own the title without having proofs. This boils down to the realization that some traders are not well educated and not well aware how trading works. But mostly, only greed and fear matter to them.

Yeah, trading is not as easy as some people might think it is, and most traders these days aren't actual traders but are newbies who hear about trading and how much profit it can potentially provide and they get into it without any knowledge or doing any research and end up losing money.

Such traders don't follow the right approach for trading which is to first gain enough knowledge about trading and the market, do practice your knowledge with demo modes to see if your strategies and knowledge you've got are working well, and then get into real trading using a small portion of the capital so that in case things don't work out, not a lot of money is wasted and then the trader should reevaluate the process and improve what's causing issues.

[stomachgrowls]

I guess for me, the very basic reason why a lot of traders lose money in trading simply because they fail to execute the most basic trading strategy, sell at a price higher than the buying price. Probably because not all traders are real traders in the market, some are just self-acclaimed and just own the title without having proofs. This boils down to the realization that some traders are not well educated and not well aware how trading works. But mostly, only greed and fear matter to them.

Yeah, trading is not as easy as some people might think it is, and most traders these days aren't actual traders but are newbies who hear about trading and how much profit it can potentially provide and they get into it without any knowledge or doing any research and end up losing money.

Such traders don't follow the right approach for trading which is to first gain enough knowledge about trading and the market, do practice your knowledge with demo modes to see if your strategies and knowledge you've got are working well, and then get into real trading using a small portion of the capital so that in case things don't work out, not a lot of money is wasted and then the trader should reevaluate the process and improve what's causing issues.

Majority of those people who do really expect or anticipate that trading is really just that easy are to those newbies who do able to see and watch those big profits in internet and having those kind of molded up
emotions that they could really be able to make money on the moment that they would really doing trading. On the moment or time that they will really be making up those trades then they would really be that definitely be having those kind of realizations or slap into their faces that trading is never been easy and it would never be. This is why on the moment that they do experience hardship then they would really be
tending to make those adjustments accordingly.

Losing money is normal, the key on here is on how you would really be that making yourself that be able to adjust accordingly for you to be able to make yourself that sustain or
able to make yourself that survive despite of such conditions.

[Dewi Aries]

I guess for me, the very basic reason why a lot of traders lose money in trading simply because they fail to execute the most basic trading strategy, sell at a price higher than the buying price. Probably because not all traders are real traders in the market, some are just self-acclaimed and just own the title without having proofs. This boils down to the realization that some traders are not well educated and not well aware how trading works. But mostly, only greed and fear matter to them.

It's not just beginners who experience losses, traders who are experienced or often trade can experience mistakes or losses in analyzing the market. It is best that before entering the world of trading we have to learn about it first. In cases like this, knowledge about trading, in my opinion, is very important as our basic foundation for learning to analyze a very wild market in the market. From this knowledge we can form our skills from the failures we experienced previously. At least if you want to trade, you should use Stop Loss. By using this, losses can be minimized so that losses are not too big, and profits can be controlled.

Of course it is true that losses are not only for beginners but for all traders, including those who are professionals or who already have a lot of experience in the world of trading. But maybe if we talk about the risk of loss then there is a difference between the losses experienced by beginners and the losses experienced by professional traders, which means that it is clear that those who are professionals already have enough experience and knowledge so that the possibility of losses they won't be very significant.

But if we are talking about beginners who are just getting involved, it is very likely the opposite, in the sense that the amount of their losses could be quite large because they don't know many things, especially they don't have good risk management. On the other hand, of course learning is the main thing that must be prepared before you enter a real trading session, you can study on a demo account for several weeks or months, each person has different capacities and abilities so of course their learning process is also different. in terms of time. One of the reasons why learning is a top priority for a trader is because every trader must make decisions based on clear foundations and reasons from what they know while studying, which can increase their chances of profit. Lastly, yes, you said a good thing by advising beginners to always install stop stops.

[Fredomago]

I guess for me, the very basic reason why a lot of traders lose money in trading simply because they fail to execute the most basic trading strategy, sell at a price higher than the buying price. Probably because not all traders are real traders in the market, some are just self-acclaimed and just own the title without having proofs. This boils down to the realization that some traders are not well educated and not well aware how trading works. But mostly, only greed and fear matter to them.

Yeah, trading is not as easy as some people might think it is, and most traders these days aren't actual traders but are newbies who hear about trading and how much profit it can potentially provide and they get into it without any knowledge or doing any research and end up losing money.

Such traders don't follow the right approach for trading which is to first gain enough knowledge about trading and the market, do practice your knowledge with demo modes to see if your strategies and knowledge you've got are working well, and then get into real trading using a small portion of the capital so that in case things don't work out, not a lot of money is wasted and then the trader should reevaluate the process and improve what's causing issues.

A step by step pocess to make yourself familiar with how the market works, that kind of practice will help you to established good strategy and not just to step inside and throw your money, getting your point it's best to have that deeper inderstanding with how trading works before inveting your money.

It helps you to pevent making big mistake and lose what you can't afford to let go, most traders who quickly decide to trade without investing with their knowledge ends  up losing a lot.

[goaldigger]

Losing in money is normal in trading because what we are doing here is we are trying to outsmart each other and trade against the market which is very volatile to deal with. If you are a trader, you have to equip yourself with the right knowledge so you can be more profitable and of course expect losses along the way. What we can do is to minimize the number of our losses and have a good and realistic target profit.

[bitvestorhacked]

All traders lose money like it or not, in the beginning i was all hyped and i always say ahh the next trade is gonna be it, Binance futures was my addiction,  but in time i got to understand that it is an unpredictable market, you are in, just like a coin flip, you might get the head or the tail but only thing you can do is minimize losses. So instead of focusing on not losing money which you will defiantly lose, just concentrate on how to minimize losses  and don't let your emotion determine your trade.

[Scarlett_23]

From my experience, here are 4 reasons I discovered:

1/ Lack of Discipline— a) Not sticking to one strategy, b) not respecting your trading rules, c) not sticking to your plan.

2/ Lack of knowledge—Inadequate understanding of the market, trading strategy, financial instruments, and fundamentals can lead to poor decision-making.

3/ Not having a mechanical trading system—This leads to emotional trading. Decisions driven by emotions like fear and greed rather than rational analysis result in significant losses.

4/ Overtrading—Taking many trades will affect your decision-making ability and lead to poor decisions.

Apart from these reasons mentioned above, a person can lose money due to other reasons.  For example, there may be a sudden global collapse while trading or there may be some natural cause. As an example, I can share my experience.  Ukraine and Russia went to war while I was trading.  I also lose profit from my potential field.  Again, during the Corona period, there is a collapse in investment. Apart from people like me, many experienced people will also fall victim to this collapse.

[justdimin]

Trading is hard and newbies that are entering it needs to understand that it's not a get rich quick scheme like some influencers will hype it on social media. Crypto trading is something that someone needs to diligently learn before putting their funds into it otherwise there's a very high chance that they will lose their money in trading. Experienced and professional traders will be able to minimize loses because of their years of experience of how the crypto market works, they understand the fundamentals and technicalities of how to analyze trades, therefore they'll not fall prey to many mistakes that will make them to have loses.

So it's important for inexperienced traders to start with demo trading and when they've gained knowledge, they should trade with the amount that they can afford to loose.

Demo trading definitely could be a great way to start for them, because at the very end they would learn how to trade and what to trade. I ended up using demo trading way too late into my trading, but even I had fun and learned a few new things because I got to use demo trading as a testing place and I made some money from it whenever I want to.

That doesn't mean that we are going to end up with anything that would benefit anyone, it just doesn't really make that much sense if we lose all the time but still demo trading could give us the benefit of the doubt. So all in all I believe that we are going to end up with a great return one way or another, so we should just consider how to grow stronger with it for sure.

[CageMabok]

All traders lose money like it or not, in the beginning i was all hyped and i always say ahh the next trade is gonna be it, Binance futures was my addiction,  but in time i got to understand that it is an unpredictable market, you are in, just like a coin flip, you might get the head or the tail but only thing you can do is minimize losses. So instead of focusing on not losing money which you will defiantly lose, just concentrate on how to minimize losses  and don't let your emotion determine your trade.

Concentration on how to minimize losses can only be done in spot trading because in futures trading it is less suitable to do even though the profits can be much more than those in spot. And usually novice traders are advised to try it on spot, not on futures, which can generally lose money when predictions are not on target. And if you are too addicted to futures trading, of course you also have to train yourself not to regret it when you lose money because to be in futures trading you have to have a stronger mentality.

[naira]

1/ Lack of Discipline— a) Not sticking to one strategy, b) not respecting your trading rules, c) not sticking to your plan.

It's more like gambling than trading if the criteria are like this.

3/ Not having a mechanical trading system—This leads to emotional trading. Decisions driven by emotions like fear and greed rather than rational analysis result in significant losses.

Also more into gambling than trading

Is it possible that in essence the opposite of trading principles is gambling? naturally it's just a matter of guessing and letting it flow as it should, losses are faster and there is no definite return. Because when trading, of course there is a plan to take profits and determine losses or what is often called CL.

Trading ideally involves a strategy that includes (instruments, techniques, methods, and final decision making). If the element is missing that causes traders to take instant options on instinct you consider it still a trade?

[Gaza13]

Losing in money is normal in trading because what we are doing here is we are trying to outsmart each other and trade against the market which is very volatile to deal with. If you are a trader, you have to equip yourself with the right knowledge so you can be more profitable and of course expect losses along the way. What we can do is to minimize the number of our losses and have a good and realistic target profit.

It is true that knowledge is very important for us to analyze the market to get what we expect, but sometimes many novice traders do not use indicators available on the exchange such as SL or TP. In my opinion, this method is quite good if we use it to minimize quite large losses in this case, and it's best not to be too greedy if we get profits from trading, even though they are small, but if we do it regularly the results will certainly be big too.

[Silberman]

Trading is hard and newbies that are entering it needs to understand that it's not a get rich quick scheme like some influencers will hype it on social media. Crypto trading is something that someone needs to diligently learn before putting their funds into it otherwise there's a very high chance that they will lose their money in trading. Experienced and professional traders will be able to minimize loses because of their years of experience of how the crypto market works, they understand the fundamentals and technicalities of how to analyze trades, therefore they'll not fall prey to many mistakes that will make them to have loses.

So it's important for inexperienced traders to start with demo trading and when they've gained knowledge, they should trade with the amount that they can afford to loose.

Demo trading definitely could be a great way to start for them, because at the very end they would learn how to trade and what to trade. I ended up using demo trading way too late into my trading, but even I had fun and learned a few new things because I got to use demo trading as a testing place and I made some money from it whenever I want to.

That doesn't mean that we are going to end up with anything that would benefit anyone, it just doesn't really make that much sense if we lose all the time but still demo trading could give us the benefit of the doubt. So all in all I believe that we are going to end up with a great return one way or another, so we should just consider how to grow stronger with it for sure.

Unfortunately this is the last thing that most newbie traders want to do, since they believe the influencers they watch and they think about trading as an easy way to make a lot of money, so why bother taking their time and studying the markets when they can simply begin to trade and make profits anyway? Unfortunately for them, their understanding about trading and the markets in general is flawed, and it is only once they try to trade without any knowledge or skill when they realize how hard it actually is.

[Lida93]

From my experience, here are 4 reasons I discovered:

1/ Lack of Discipline— a) Not sticking to one strategy, b) not respecting your trading rules, c) not sticking to your plan.

2/ Lack of knowledge—Inadequate understanding of the market, trading strategy, financial instruments, and fundamentals can lead to poor decision-making.

3/ Not having a mechanical trading system—This leads to emotional trading. Decisions driven by emotions like fear and greed rather than rational analysis result in significant losses.

4/ Overtrading—Taking many trades will affect your decision-making ability and lead to poor decisions.

If there are other reasons why traders lose money, share them with me.

You have made an extensive and proper touch on very keys drawbacks traders are faced with leading to trading losses with, some little or no profit experiences.

I am mostly interested with the 4th reason, over-trading, as aside greed and impatient to wait for the right opportunity to showcase clearly before jumping in a position which has been one of many reasons traders lose out, there is something I refer to as responsibility-pressure that force some traders to overtrade. Finding oneself under many pressing demands that requires money to solve them had made traders overtrade making them vulnerable to series of losses due to how they get into the market based on emotions of the moment and with a pure lack of discipline and use of functional strategy.

[GbitG]

Losing in money is normal in trading because what we are doing here is we are trying to outsmart each other and trade against the market which is very volatile to deal with. If you are a trader, you have to equip yourself with the right knowledge so you can be more profitable and of course expect losses along the way. What we can do is to minimize the number of our losses and have a good and realistic target profit.

It is true that knowledge is very important for us to analyze the market to get what we expect, but sometimes many novice traders do not use indicators available on the exchange such as SL or TP. In my opinion, this method is quite good if we use it to minimize quite large losses in this case, and it's best not to be too greedy if we get profits from trading, even though they are small, but if we do it regularly the results will certainly be big too.

Hmm, that's quite true but In my opinion, not only because of lack of knowledge, but also experience can be a key factor in trading because knowledge only educates you on how to do it, while experience teaches you how to use your knowledge at the right time. Therefore, if someone is very smart and wise in terms of knowledge and does not have experience, then according to me, neither person is at a high level of risk from a trading point of view. 
 
In trading, along with knowledge exploration, there should be an emphasis on experience because without experience, you have a much higher chance of losing. That is to say, like to become a successful trader you need to have 50% knowledge and 50% of experience. Everyone else has their own ideology, my perspective is based on experience, and I think it is impossible to trade without it.
 
DYOR!

[Mr.right85]

Unfortunately this is the last thing that most newbie traders want to do, since they believe the influencers they watch and they think about trading as an easy way to make a lot of money, so why bother taking their time and studying the markets when they can simply begin to trade and make profits anyway? Unfortunately for them, their understanding about trading and the markets in general is flawed, and it is only once they try to trade without any knowledge or skill when they realize how hard it actually is.

The advent of social media has made even the truth to be so hard to figure out. How do you not believe what is before your eyes when it’s been flashed to you. Not a day goes by without you having to see one influencer or the other, posing to have got some sports car or some other luxurious brand from the pips they generated from trading and how you should join this and that trading classes or follow their signal channel to get rich. They make it so hard not to believe meanwhile, they could be secretly growing their channel. That’s what you would find many memecoins doing in recent time, growing a channel and even referencing others as well as gaining referrers through some unique links as task.

The much easier thing to do since trading is portrayed to be this very difficult thing where you just come to loose money would be, following the self proclaimed best of the best.

[Egii Nna]

From my experience, here are 4 reasons I discovered:

1/ Lack of Discipline— a) Not sticking to one strategy, b) not respecting your trading rules, c) not sticking to your plan.

2/ Lack of knowledge—Inadequate understanding of the market, trading strategy, financial instruments, and fundamentals can lead to poor decision-making.

3/ Not having a mechanical trading system—This leads to emotional trading. Decisions driven by emotions like fear and greed rather than rational analysis result in significant losses.

4/ Overtrading—Taking many trades will affect your decision-making ability and lead to poor decisions.

If there are other reasons why traders lose money, share them with me.

I can't criticise you for saying all this that you mentioned can affect traders. I might say all this mostly affects the newbies who are very curious to make money in trading. These are people that will lose so much in trading, to be specific, because all this that you mentioned might trigger them because of their curiosity to make some huge profit, but if they can stay calm and learn, they will find it to have less losses. 
 
Moreover, as a trader, you are expected to have that potential by putting it in your mind that you can still lose, but that doesn’t mean you are going to lose everything that you have worked for, but you are just going to lose some. That is why, in trading, they Is always stop lost. Moreover, trading is always done by experienced people and people who are always doing different research, because without knowledge, research, experience, and patience, you are going nowhere in trading. 

[retreat]

Losing money is a normal thing in trading, even if you are a great trader there is no guarantee that 100% of your trades will always be successful, there will definitely be times when you will lose your money in the market. The reasons you say are just ways to reduce potential losses on your trades - practicing them will not make every trade successful. And if a trader can master these things, then he can have the opportunity to secure higher profits and also minimize potential losses in his trading.

[Fredomago]

Losing in money is normal in trading because what we are doing here is we are trying to outsmart each other and trade against the market which is very volatile to deal with. If you are a trader, you have to equip yourself with the right knowledge so you can be more profitable and of course expect losses along the way. What we can do is to minimize the number of our losses and have a good and realistic target profit.

It is true that knowledge is very important for us to analyze the market to get what we expect, but sometimes many novice traders do not use indicators available on the exchange such as SL or TP. In my opinion, this method is quite good if we use it to minimize quite large losses in this case, and it's best not to be too greedy if we get profits from trading, even though they are small, but if we do it regularly the results will certainly be big too.

Correct that balance between contentment and greediness is what we need to handle, even how small the profits if we continually doing it we might grow our balance positively, unlike with greediness where we keep aiming to earn big the backfall is instead of taking profits it will bounce back and let us lose our money.

There are people who use their knowledge to anticipate using patterns and indicators but they are mostly focus on how they control their own emotions while positioning their trades, it's very important to avoid losing a lot.