Why do traders lose money in trading?

[Coin fairyXx]

Its very simple. Most people do not know about the stop loss order, this stop loss order is a directive that is submitted to a broker to purchase or sell a particular stock at a predetermined price. It is intended to mitigate an investor's loss on a security position. This stop loss orders are an important part of managing risk in the stock market. Traders who don't set and follow stop loss or who take on too much risk can lose a lot of money when the market goes against them. So be careful

[Mame89]

Lack of patience, once you see any trader loss money in the cryptocurrency trading, show that the trader lack patience because that is the easiest way some people use to lose in the trading because they will not be bold to continue holding than to listen to some information that will make them to rush to trade for loss,  yes, lack of knowledge can cause many losses to traders because some traders don't have the knowledge of trading cryptocurrency which you can notice it from their trading, because they like to trade when the red candle light is on in the market which is a sign of loss in the market.

Lack of patience in trading is the main factor due to not having knowledge about correct trading. Trading must have a strategy and goals. If it's like this, maybe you can slowly hone your patience in trading. People who don't have patience in trading are usually those who don't want to process trading and always panic when prices fall.

Because basically if they have a good and structured trading plan it will help us stay focused and objective in looking at the market. Apart from that, we can also avoid impulsive decisions based on emotions. The point is that in order not to experience frequent losses in trading, apart from knowledge and patience in controlling, it is also important to remain consistent with our plan in trading and not deviate from the strategy that has been established from the start.

[Olatundespo]

Tendency to get high profit in short period of time which can cause financial loss for most traders.

[JeffBrad12]

Tendency to get high profit in short period of time which can cause financial loss for most traders.

hit it right on the nail.

most of the people that losing money are people that did future, out of the hope that they gonna multiply the profit and also the impatient holder.

take for example, had people BTC had been dumping quite few times this bullrun alone and at some point prices reach sub $60k level, if any impatient holder is holding BTC, they'd be selling their BTC almost immediately after figuring out that the market dumped so dramatically, yet the logical holders definitely know that with the presence of ETF that brings hundred millions of capital into the market and that big institutions still holding BTC faithfully, the market won't dump that far.



see this BTC plunging price chart, the price recovers back but there definitely are massive selling pressure from the panic seller or impatient holders.

[GigaBit]

A trader must set stop loss to avoid risk. It will be difficult to find traders who trade but don't know about it if they have any idea about trading. But not only this, a trader should follow several other things to reduce the losses.

Many people come to trading platforms just hoping to make profit, but it doesn't work the same way for everyone. Also, this is not a get-rich-quick scheme where investment can be profitable. As traders start trading with interest, after some time that interest tends to wane especially when they start making losses. They cannot control their emotions. Moreover, some do not have the ability to bear his loss. I think a trader must be patient. He has to move away from the thought of taking profit in a quick time. Greed must be controlled.

[CageMabok]

Tendency to get high profit in short period of time which can cause financial loss for most traders.

Actually it is not a tendency, but only a hope that can be achieved in an easier way, even though in reality it is clear that nothing is easy in any case. Trading is a way to make money that must involve more techniques and basic knowledge so that any trader must learn first before they have such high profit expectations in certain conditions. Because now market conditions are still often changing and positive trends are also starting to be difficult to see when there is turmoil through important news in the media.

[Fredomago]

Tendency to get high profit in short period of time which can cause financial loss for most traders.

Actually it is not a tendency, but only a hope that can be achieved in an easier way, even though in reality it is clear that nothing is easy in any case. Trading is a way to make money that must involve more techniques and basic knowledge so that any trader must learn first before they have such high profit expectations in certain conditions. Because now market conditions are still often changing and positive trends are also starting to be difficult to see when there is turmoil through important news in the media.

Fluctuation is something that traders needs to work it's easy in the sense of watching someone who have that full understand in placing and exiting their position, but for beginners and those who are thinking that it's easy they become obsess that they can make money,

things that leads them to lose as they don't know how to work with market movements especially that fluctuation that have the big factors in losing your money.

[BankyCrypt65]

Based on my experience I lose in trading due to my emotions I am afraid of losing much and I consistently trade without analyzing the market which makes me lose on every trade I make.

Right now patience is the key in trading based on what I experienced if you don't wait for a biased position you won't make a good profit in trading you should wait for long even it is 1 week you should wait until you see a signal and a good position this is what I learned during these months of trading  because if you consistently trade you will lose than making a profit and your win rate is pretty low compared when you wait for a biased position.

Losing money is part of trading life. Professional traders lost money. However, one must be learning from those mistakes which makes one better. If it's emotion, one should get oneself discipline and makes it work.
For saying that one should wait for certain time, and trade when there is ear signal, that's one of good ideas to improve. I really love that point. You are profound solutions to the problems.
Another solution is believing than small but consistent profits are better than big but inconsistent profits. Even if its 10% profit per trade, take it.

[Fara Chan]

Lack of patience in trading is the main factor due to not having knowledge about correct trading. Trading must have a strategy and goals. If it's like this, maybe you can slowly hone your patience in trading. People who don't have patience in trading are usually those who don't want to process trading and always panic when prices fall.

It is not wrong if you say it like that because knowledge, goals and strategies are things that must be prioritized in trading, while patience is a technical thing that can be considered as support from ourselves because doing it without any patience of course the results will be worse so that things like patience are also needed in jobs like trading.

Because basically if they have a good and structured trading plan it will help us stay focused and objective in looking at the market. Apart from that, we can also avoid impulsive decisions based on emotions. The point is that in order not to experience frequent losses in trading, apart from knowledge and patience in controlling, it is also important to remain consistent with our plan in trading and not deviate from the strategy that has been established from the start.

Consistency is part of getting used to continuing to trade routinely in any condition, but we also need to see market conditions in order to be able to produce a more appropriate plan because there are times for us to wait a moment before making a new decision when we see market conditions that have changed. This means that from each different condition there must be a different plan because a trader also needs to know when he should buy and when he should sell it again and when for him not to buy and sell anything he already has.

[goldkingcoiner]

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.

All of the above except the mechanical trading system. I prefer not to trust a machine over myself. But I do use machines to verify.

Traders severely underestimate trading fees.

[AYOBA]

From my experience, here are 4 reasons I discovered:

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

Yeah actually the lack of knowledge is the first thing that is leading so many people’s to lose their money in trading and instead of them to go and seek for knowledge before making decisions into trading they will not, but have a fundamental understanding about the trading and the inadequate market strategy will make you gain much profits when ever you trade.

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.

Anyone that is very emotional in terms of trading he will always results in ending of losing so much of their mom money in gambling, some people fear and greed is very strong when they come to trading and no none can what he want of he put the greed and fear in front, because what ever you comes to do your mind will be telling you that it will end of losing, and everything in this life start with the decision to try .

[Sakanwa]

Generally,I think everyone can lose money in trading,but when someone loses money on daily basis or regularly,it is either the person is a novice,or he in experienced and doest learn from the experienced people.In trading,in other to be on top of your game by winning,you must have a mentor that teaches you how the business is,how trading is done,and the best way to go about it without losing money.
Trading can be complicated when you lack the ability to ask questions on the type of project you want to invest in.Therefore,for any trader to be successful,he must ask questions,make enquires about the project,have a mentor,and be ready to take risk.

[pusaka]

Tendency to get high profit in short period of time which can cause financial loss for most traders.

Actually it is not a tendency, but only a hope that can be achieved in an easier way, even though in reality it is clear that nothing is easy in any case. Trading is a way to make money that must involve more techniques and basic knowledge so that any trader must learn first before they have such high profit expectations in certain conditions. Because now market conditions are still often changing and positive trends are also starting to be difficult to see when there is turmoil through important news in the media.

It is undeniable that if we follow our ambitions, we will always want to get high profits in a short time. Well, this is what we should actually avoid, because if we have that mindset, it will actually make our risk even greater, because we will rush into making decisions and it is based on wanting to quickly see and take advantage. If so, instead of the profits we get, losses will come to us. The market is not something that is easy to analyze, it definitely takes time to find the right point for us to enter. Sometimes when we have found the right time there are other factors that can suddenly change market conditions, that is also something we must be aware of.

[TastyChillySauce00]

Many people come to trading platforms just hoping to make profit, but it doesn't work the same way for everyone. Also, this is not a get-rich-quick scheme where investment can be profitable. As traders start trading with interest, after some time that interest tends to wane especially when they start making losses. They cannot control their emotions. Moreover, some do not have the ability to bear his loss. I think a trader must be patient. He has to move away from the thought of taking profit in a quick time. Greed must be controlled.

the dream of getting rich quick to trading is the most mind numbing motivation that actually drive people into making the worst decision ever, not even the seasoned experienced veteran in trading could always make profit yet some random newbie that just tried trading not too long ago already dreaming if turning their 1k into 1 million is always something that causes 80% of people just gonna outright losing it all.

I mean we always can multiple our money through trading and even in faster manner like leveraging it up to 125x but know that these kind of high risk investment or trades only have very small chance of success. there's bigger chance that we might be among the 80% of people that lost in trading and quit in the future with that kind of trading strategy.

so honestly to not lose in trading, just know our capability and do proper strategy instead of going all in.

[CageMabok]

It is undeniable that if we follow our ambitions, we will always want to get high profits in a short time. Well, this is what we should actually avoid, because if we have that mindset, it will actually make our risk even greater, because we will rush into making decisions and it is based on wanting to quickly see and take advantage. If so, instead of the profits we get, losses will come to us. The market is not something that is easy to analyze, it definitely takes time to find the right point for us to enter. Sometimes when we have found the right time there are other factors that can suddenly change market conditions, that is also something we must be aware of.

In addition to being able to analyze when is the right time to enter the market for trading purposes, every trader must also be able to determine the time to exit when they have made a profit from trading. Because market trends that always change differently will force every trader to monitor and also learn new things that happen through unexpected conditions in order to be saved from losses. Because in a job like trading which is always close to risk, of course we should not make hasty decisions if we can still wait and hope for better market conditions.

[KeenanEl19]

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

losing money is a natural thing to happen but it can be minimized by ourselves if we have good enough knowledge. in my opinion many people lose money in trading because it is caused by a lack of knowledge. besides that there are indeed many people who trade just to follow the trend but they do not have reasonable knowledge and I think this happens a lot.

besides that the second is because of the lack of discipline in finance. when they trade and there is no discipline in trading they can lose self-control so they spend quite a lot of money in trading.
besides that no one can predict market movements with certainty, so I think trading also involves luck even though good knowledge can help.

[TastyChillySauce00]

Generally,I think everyone can lose money in trading,but when someone loses money on daily basis or regularly,it is either the person is a novice,or he in experienced and doest learn from the experienced people.

I've seen enough experienced trading losing their money in the market and losing many times in a row too.
sometimes the market is just so volatile you don't know what path you should be taking, there are also many pro traders doing copy trading service in many exchanges that are losing so much money within the sudden dump or sudden pump and i've witnessed it from my eyes.

it's either the narrative of the market align with your bullish or bearish idea or you won't make profit at all.
but the one that are down bad are the people who trades future and take too much of a risk trying to take shortest path to profit which is by over leveraging.

[Farma]

It is undeniable that if we follow our ambitions, we will always want to get high profits in a short time. Well, this is what we should actually avoid, because if we have that mindset, it will actually make our risk even greater, because we will rush into making decisions and it is based on wanting to quickly see and take advantage. If so, instead of the profits we get, losses will come to us. The market is not something that is easy to analyze, it definitely takes time to find the right point for us to enter. Sometimes when we have found the right time there are other factors that can suddenly change market conditions, that is also something we must be aware of.

In addition to being able to analyze when is the right time to enter the market for trading purposes, every trader must also be able to determine the time to exit when they have made a profit from trading. Because market trends that always change differently will force every trader to monitor and also learn new things that happen through unexpected conditions in order to be saved from losses. Because in a job like trading which is always close to risk, of course we should not make hasty decisions if we can still wait and hope for better market conditions.

Of course this will be very important to be able to make a profit on the trading that we do because if someone cannot analyze or does not analyze before entering the market, it will be difficult to make a profit on trading and still learn about trading of course this will help us a lot in analyzing market conditions and of course this will make it easier for us to make decisions when analyzing the market and remain careful in making decisions on trading of course this will be able to avoid us from experiencing losses when trading, so it is very important for us to keep controlling ourselves both when we want to enter the market or exit and continue to analyze before deciding something.

[Fredomago]

It is undeniable that if we follow our ambitions, we will always want to get high profits in a short time. Well, this is what we should actually avoid, because if we have that mindset, it will actually make our risk even greater, because we will rush into making decisions and it is based on wanting to quickly see and take advantage. If so, instead of the profits we get, losses will come to us. The market is not something that is easy to analyze, it definitely takes time to find the right point for us to enter. Sometimes when we have found the right time there are other factors that can suddenly change market conditions, that is also something we must be aware of.

In addition to being able to analyze when is the right time to enter the market for trading purposes, every trader must also be able to determine the time to exit when they have made a profit from trading. Because market trends that always change differently will force every trader to monitor and also learn new things that happen through unexpected conditions in order to be saved from losses. Because in a job like trading which is always close to risk, of course we should not make hasty decisions if we can still wait and hope for better market conditions.

Indeed, both side should be learned not just your entry but more on the exit side, where both profits and loses are being determined, you need to continue learning the process if you want to succeed from this venue of business, the industry most of the time change its directions whether you already have a good glampse of potentials but in some reason changes can be done.

With good grasp of every knowledge that you learned you'll be able to work on it and keep improving your strategy, you need to established your own patterns to anticipate how the market works for you to make some decent benefits.

[Yeesha]

Loosing is unpreventable, but it can be minimize, there are certain things that need to be done to be a successful trader, sticking to one strategy, don't be greedy and be contented with every little profit that you make. It is very important to make risk management your priority when it comes to trading, some trader will be aware that a particular action that they want to engage themselves in may cause them serious loses and damages, but they will still ignore it because of greediness, when they carry on with it and they lose, they started regretting at the end of the day.