Why do traders lose money in trading?

[Pandu Geddon]

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.

that's want to achieve. because no professional trader can guarantee that his trade will be profitable. However, experienced traders have their way of managing trading finances in such a way as to minimize the risk of large losses.

most traders will be happy and quick to make decisions when their trades are profitable. However, when losses increase, traders will experience panic. It can even lead to making wrong decisions, resulting in greater losses.

[SamReomo]

most traders will be happy and quick to make decisions when their trades are profitable. However, when losses increase, traders will experience panic. It can even lead to making wrong decisions, resulting in greater losses.

Yes, majority of traders aren't good at trading and sometimes they make wrong decisions as traders. When those type of traders see profits then they become happy and start considering themselves as good traders, however they actually aren't good at trading but got lucky to have some profits.

Such traders often end up losing the profits and their initial capital and then they start thinking that there's something wrong in market or it's just a Ponzi scheme and nothing else. Such traders often make small profits in their trades and big losses in their other trades. I will consider them as newbies not traders at all.

A good trader is the one who can control his/her emotions when trading and such type of traders often make huge profits from their trades because they know when to open a position and they study the market and pairs before making any trades.

[FanEagle]

I believe one of the most common reasons for it is because they do not know anything about trading. You may think "why would anyone start trading when they know nothing about it", but that is the reality. They read a few things and think that they know everything they need to know, and some people fool them by showing how some silly token has "amazing potential as can be seen here" and they think "oh I see this chart and it looks good for sure" and invest, when in reality that was nothing at all and they were fooled.

All in all, it is not people who don't know anything, it is people who do not know anything and think that they know something that ends up losing so much money, be aware of how little you know and you won't make a mistake.

[Mahanton]

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.

that's want to achieve. because no professional trader can guarantee that his trade will be profitable. However, experienced traders have their way of managing trading finances in such a way as to minimize the risk of large losses.

most traders will be happy and quick to make decisions when their trades are profitable. However, when losses increase, traders will experience panic. It can even lead to making wrong decisions, resulting in greater losses.

No matter how professional your are
No matter how veteran
No matter how old
No matter how long you've been dealing into this market

There's no such thing about guarantees that you wont really be able to lose money. This is why on the moment that you do find yourself having that
kind of issue about those emotional approach or reactions on the time that you do end up on being impulsive with trading then its not something a good thing for you
to deal up with this space. Why? losing money is never been that appealing and never been that gives out that good emotions.
If you are someone whose not good on emotion handling then you would be facing up such issues.

[kawetsriyanto]

I believe one of the most common reasons for it is because they do not know anything about trading. You may think "why would anyone start trading when they know nothing about it", but that is the reality.

OP already stated this matter on the thread, (2) lack of knowledge.
Of course, people probably will fail in trading if they don't have proper knowledge in trading or even no knowledge at all. I admit it that there are type of people who begin something without thinking a lot, they think they can learn it easily. Unfortunately, trading is surely not a simple matter, it requires specific ability/skills and certain knowledge. It is not a common thing that we can easily learn it while doing it. Many people have false assumption about trading, because they think it is as simple as buying and selling coins only.

[ShowOff]

Before trade. You need to lean about the training. Trading is not easy to start. Important the knowledge then start the training. Without knowledge you lose the money in trading. So lean the training then start the training process.

In fact, traders don't lose money in trading, but they make wrong decisions that cause them to lose and lose their own money, so we shouldn't be careless in making decisions where we take risks for ourselves, even if it's a profit it's still good, if Loss is what causes ourselves to be frustrated.

Who dares to guarantee that traders never lose?
Even an experienced trader will experience losses when the market does not move according to his expectations. Price trends can reverse at any time, even when you get prices rising several percent in one day. Analysis can certainly help traders, but nothing can guarantee that traders will not lose in a market that is constantly fluctuating.

In trading, we must first learn the science and techniques for us to start trading, not just trade with our filings, before starting, sometimes we have to learn from scientists and apply it to ourselves, so that we are ready for all the decisions we make ourselves. all risks, so learn first before starting trading.

Of course every trader will learn and is must to learn. There is a lot of knowledge based on experience shared in forums and other places, but not all of this knowledge can guarantee that you will become an accomplished trader. It requires consistency and learning, it requires a process and maybe it also requires sacrifice, which in this case is time and money. But you don't need to be an expert before trading, I mean, you can learn while trading and hone your skills with a low nominal budget.

[Sky_T]

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

I strongly agreed to this. It's clear that so many people are not satisfied with what the have. They end up losing everything due to overtrade.

[Questat]

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.

that's want to achieve. because no professional trader can guarantee that his trade will be profitable. However, experienced traders have their way of managing trading finances in such a way as to minimize the risk of large losses.

most traders will be happy and quick to make decisions when their trades are profitable. However, when losses increase, traders will experience panic. It can even lead to making wrong decisions, resulting in greater losses.

Traders are just humans who are highly emotional and are prone to wrong decisions in life. With that, there's no doubt that they can't be trading perfectly in the market and are still susceptible to losses. So the reason why traders still lose money in trading, because their trading decisions sometimes do not fit the market condition, probably because of greed for money that they tend to neglect thinking that trading will still be profitable without considering first the market condition.

[Fredomago]

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.

that's want to achieve. because no professional trader can guarantee that his trade will be profitable. However, experienced traders have their way of managing trading finances in such a way as to minimize the risk of large losses.

most traders will be happy and quick to make decisions when their trades are profitable. However, when losses increase, traders will experience panic. It can even lead to making wrong decisions, resulting in greater losses.

Yes, they quickly make that decision thinking that it will help them to stop the bleeding  but most of the time those kinds of market movements are just a fluctuations that easily bouncing back causing those quick decisions leads to a huge loss,  there's always proper adjustments that you can do if you have the right sets of knowledge to use, better understanding and focus with details will helps you to avoid losing or making wrong decisions while still have position trades.

[Strongkored]

Before trade. You need to lean about the training. Trading is not easy to start. Important the knowledge then start the training. Without knowledge you lose the money in trading. So lean the training then start the training process.

Even though you always do training, you can still lose money in the trading, why? because there is money at risk and also because trading is not only about profit but also the certainty of losing, the impossible thing in trading is always making a profit even though you feel you are an expert but if you keep losing then it's time to stop because that means trading is not suitable for you, even though you have studied and continue to learn because there is something that doesn't suit your character, for example regarding patience and so on.

[Dewi Aries]

Before trade. You need to lean about the training. Trading is not easy to start. Important the knowledge then start the training. Without knowledge you lose the money in trading. So lean the training then start the training process.

Even though you always do training, you can still lose money in the trading, why? because there is money at risk and also because trading is not only about profit but also the certainty of losing, the impossible thing in trading is always making a profit even though you feel you are an expert but if you keep losing then it's time to stop because that means trading is not suitable for you, even though you have studied and continue to learn because there is something that doesn't suit your character, for example regarding patience and so on.

That's right, whoever you are and even if, for example, you already have a lot of experience in the world of trading or you are very experienced, it is still not something that can prevent you from possible losses. As we often hear that trading is an activity that can generate profits but can also cause losses, this is a risky activity, and if only a trader was able to always avoid losses in the sense that they always managed to make a profit then I am sure there would be no People who want to work, of course they will try to follow other people who have already succeeded in trading (no losses at all).

As we know that one way to gain profits in trading is by utilizing knowledge which will be the basis for decision making each time you run a session, I have never found or heard that there is a professional trader who stops learning because they are already at the point top in the sense that you already know everything about trading and in return always make a profit without experiencing losses. As I said, to make a profit we have to have a lot of knowledge, otherwise it is clear that you will suffer more losses, and this knowledge is obtained only when someone is willing to learn, while the market will continue to move and create various new characters and traits that has never been discovered by a trader before, meaning there is no end to the learning process as long as the market is still moving.

This is quite difficult to explain in detail, but what is certain is that as people often say, trading is an activity that cannot be predicted 100% accurately, meaning that there will always be certain times for a trader to experience losses. . I would say that one of the reasons that traders experience more losses than profits is because they are lazy about learning.

[macson]

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.

a beginner in trading is like a small child who still has to crawl slowly, has to try slowly so as not to fall and really needs someone to supervise so that no mistakes happen, for this reason it is very important to prepare yourself very thoroughly before starting trading, don't until we end up making a loss when trading instead of making a profit.
There are lots of online and offline training ^{(paid or free)} that can be used as a guide to get good knowledge and skills in trading, but you have to remember to continue joining a community so that losses can be minimized as low as possible.

[sulendra12]

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.

Even though all of those are true. But even some of the experienced traders out there are still going to have a bad day even though they don't have all of those. I don't think you can completely free from losses even though you "master" the technique from fundamentals and advanced stuff, you can still get thrown away by unexpected events thanks to the nature of cryptocurrency. Just do your best.

[josgandosbro]

Before trade. Frist check the market prices. Then choose the best coin for investment. Then check and follow that coin market prices. Trading is not easy for everyone. So wait and Lear the training process. It easy to trade and get more profit.

[WatChe]

a beginner in trading is like a small child who still has to crawl slowly, has to try slowly so as not to fall and really needs someone to supervise so that no mistakes happen, for this reason it is very important to prepare yourself very thoroughly before starting trading, don't until we end up making a loss when trading instead of making a profit.
There are lots of online and offline training ^{(paid or free)} that can be used as a guide to get good knowledge and skills in trading, but you have to remember to continue joining a community so that losses can be minimized as low as possible.

There is no harm in getting online and offline trainings or joining a community but the final decision must come from your own mind. There are traders who loss money just because they sign up to different signal group and follow there directions. This practise must be avoided because you are not using your own trading skills. On the other hand if you make decisions from your own mind, you are actually training yourself for future even if monetary are not positive at the moment. This is how traders become successful in the long run.

[Barikui1]

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.

Even though all of those are true. But even some of the experienced traders out there are still going to have a bad day even though they don't have all of those. I don't think you can completely free from losses even though you "master" the technique from fundamentals and advanced stuff, you can still get thrown away by unexpected events thanks to the nature of cryptocurrency. Just do your best.

Yes, you are very much correct on this, even though you are a master in trading, you will definitely encounter some losses at some point, but that doesn't change the fact that you actually knows the craft, just that some event in the market will just happen which you as a trader has no control of, something like news, so in such a situation the best is to just raise your head high in confidence because it was out of your control.

And as for most of the reasons traders loses money that the op of  this thread wrote down, I think they aren't complete without knowing how to control your emotions, if you have all what the op wrote down and you don't know how to control your emotions like fear and greed, you will still loss money, so emotional control is very much of a key when trading, just as every other components listed down.

Lastly, another component that I believe that makes most traders lose money is over leveraging, most traders don't actually knows how dangerous over leverage is, and that is one of the major reason they lose money, they forget to understand that, in the concept of trading, if you can make a whole lot of money very fast, you can also lose a whole lot of money very fast either, so over leverage should be avoided in other not to lose money in trading.

[mirakal]

a beginner in trading is like a small child who still has to crawl slowly, has to try slowly so as not to fall and really needs someone to supervise so that no mistakes happen, for this reason it is very important to prepare yourself very thoroughly before starting trading, don't until we end up making a loss when trading instead of making a profit.
There are lots of online and offline training ^{(paid or free)} that can be used as a guide to get good knowledge and skills in trading, but you have to remember to continue joining a community so that losses can be minimized as low as possible.

There is no harm in getting online and offline trainings or joining a community but the final decision must come from your own mind. There are traders who loss money just because they sign up to different signal group and follow there directions. This practise must be avoided because you are not using your own trading skills. On the other hand if you make decisions from your own mind, you are actually training yourself for future even if monetary are not positive at the moment. This is how traders become successful in the long run.

Joining a community affects your mindset, they will influence and drag you to nowhere, especially when joining signal groups. Which, I believe that doing it alone or having your friend learn together remains a good idea. In fact, these signal groups have nothing to do with their life but to attract new traders and milk them. Just to imagine putting our money into scammers, we couldn't really expect positive results from it aside from wasting our time.
More traders lose money because of,
  - trusting scammers
  - behavior
  - emotions

But above all, we could also think that trading is not for everyone. It might happen that we are one of those who are not destined to become traders that is why no matter how hard we try, we still never improve.

[ibuddy122505]

I've been quietly reading posts, and now I want to share my thoughts. There are always some errors and mistakes that lead us to unnecessarily lose money in trading. Don't get anxious; keep telling yourself to calm down.
The biggest reason we often lose money in trading is poor risk management. So I would suggest never rush into a trade out of fear of missing profits. You should never trade solely to recover losses. Most importantly never invest all your money in one coin. Never trade with money you've saved for other purposes.

[kingvirtus09]

It's simply, and that's just proof that there are no perfect traders, no matter how broad the understanding of trading is, you will experience and even experience a loss in trading. So especially those who are just starting out in the trading business industry.

That's why trading is called unpredictable because no one can determine whether the price of a crypto or bitcoin will go up or down. Because they are volatile assets, and here the traders have an idea where they can get a profit.

[Rockstarguy]

I believe one of the most common reasons for it is because they do not know anything about trading. You may think "why would anyone start trading when they know nothing about it", but that is the reality. They read a few things and think that they know everything they need to know, and some people fool them by showing how some silly token has "amazing potential as can be seen here" and they think "oh I see this chart and it looks good for sure" and invest, when in reality that was nothing at all and they were fooled.

All in all, it is not people who don't know anything, it is people who do not know anything and think that they know something that ends up losing so much money, be aware of how little you know and you won't make a mistake.

You are correct mate. The reason why people lose in trading is because they are not doing things right, it can also be lack of understanding. When it comes to trading people just focus their mindset on how money can be generated which they only try to get a slight understanding which make trading to become difficult to get profit.

Trading is all about learning and when a trader stop learning it can affect one to earn profit from trading . The reason why traders lose money in trading is because they do not have good understanding about trading and most young beginners feel trading is very simple to make good profit with the little understanding that one has.