"The rule of 90." Have you heard of it in trading?

[Call_Me_Guru]

The rule of 90 or 90% rule is a gloomy statistics that was suppose to serve as a reminder or caution newbies traders. The rule states that "90% of traders lose 90% of their funds in their first 90 days of trading."

Do you believe that? I hope this caution new traders that are opportune to read it.

Useful piece: https://trendspider.com/learning-center/the-rule-of-90/

[Oshosondy]

I believe. But my trading experience when I was a newbie is different. I lost money more than 90 days. It was some months ago that I fully understood what trading actually is.

Also know that most traders are losing. They need to understand what trading actually and how to make money with it. Most traders failed to understand how to make money from trading is when they risk less.

[Davidvictorson]

Do you believe that? I hope this caution new traders that are opportune to read it.

This is nothing but the truth and anyone who disagrees isn't a trader. Losing is part of the learning curve and if you didn't experience any loss in the first 90 days , you must be doing something else and not trading.

I think the other side of this rule is that on 20% of traders who trade are actually profitable. The remaining 80% are not. The remaining 80% are the ones selling trading courses or signals on YouTube, X, Telegram or other social media.

[K_vin]

This is as true as it sounds, this is the curve of every trader unfortunately only few traders survive long enough to make it out of the curve and finally become profitable,.

[Botnake]

My experience says it’s definitely true. If you trade having no experience, less knowledge and even skills undeveloped, losses will certainly become more visible. Note that trading itself is risky, so it becomes even more risky if you enter trading without good preparation on it. That’s why newbies are not advisable to trade, but I don’t think majority of newbies are aware or understand this rule in trading, otherwise they could have prepared theirselves to trade from long term planning so they can limit their losses and mistakes when trading.

[tvplus006]

The rule of 90 or 90% rule is a gloomy statistics that was suppose to serve as a reminder or caution newbies traders. The rule states that "90% of traders lose 90% of their funds in their first 90 days of trading."

The only useful thing a beginner can learn from this rule is that it will be easier for him to survive his losses in trading, since almost all beginners lose them when they start trading. And as a rule, after losing money, a beginner starts learning the basics of trading so that this does not happen again.

[Menerever]

The rule states that "90% of traders lose 90% of their funds in their first 90 days of trading."

What do you expect from newbies? That's why they called newbies. Their first 90 days of trading is a period of building learning experience.

Aside from that, 90 days is not even enough to know all trading fundamentals.

Yes, we can learned trading basics and able to form a strategy within 90 days but no one can avoid the wrath of volatility especially in crypto. What matter is, as long as traders will just continue to move forward, those losses can be minimized as they progress.

[Strongkored]

I don't know whether to believe it or not because my experience as a newbie in trading is very different, because at that time I was able to make quite a lot of money, maybe because I learned from someone whose experience I could trust and because I first traded in crypto, in my opinion what makes it different now is that 10 years ago or more because the choice of coins is not as much as this and the growing crypto world is making more and more speculators influence the market so it is quite difficult to predict.

[Freepips]

The rule of 90 or 90% rule is a gloomy statistics that was suppose to serve as a reminder or caution newbies traders. The rule states that "90% of traders lose 90% of their funds in their first 90 days of trading."

Do you believe that? I hope this caution new traders that are opportune to read it.

Useful piece: https://trendspider.com/learning-center/the-rule-of-90/

Yes the rule is correct, 90% of newbie traders lose money in their first 90 days in trading but it does not stop there. They will continue to lose money if they didn't acquire the right knowledge on their journey to become a successful and profitable trader to be among  the 10% profitable traders in the trading industry.

[FortuneFollower]

Yes the rule is correct, 90% of newbie traders lose money in their first 90 days in trading but it does not stop there. They will continue to lose money if they didn't acquire the right knowledge on their journey to become a successful and profitable trader to be among  the 10% profitable traders in the trading industry.

The market works that way, it's a predator, not a prey like many think.
For those wise and experienced enough to profit, many others lose their depos due to different reasons.
So I do believe the rule of 90%, albeit the percentage may vary in reality.

[Ararbermas]

I believe as well but it depends if the new trader found the good strategy within 90 days because mostly good traders nowadays become so profitable in the market after how many years.  Not just a short of time . . unless if you buy some courses. And for a newbie in the market , IMO not just 90% but the100% of the capital will be burn if they don't know how to handle risk management.

[passwordnow]

I thought that this is just all about rules of 90 in retirement but I didn't know that this also exists with trading. So learning the brief meaning of it, I do believe that most of the traders are losing a lot of money so if that's lot, then it means 90% for the first 90 days or even more. That's a normal and expected thing for long term traders. And this is not being considered by the new ones because they think of trading as something they can do easily and take as much profit as they can be. It is not like that so, I believe on it and everyone who trades really has to go through with series of losing before earning good.

[mrkhan90]

I believe. But my trading experience when I was a newbie is different. I lost money more than 90 days. It was some months ago that I fully understood what trading actually is.

Also know that most traders are losing. They need to understand what trading actually and how to make money with it. Most traders failed to understand how to make money from trading is when they risk less.

Actually, I believe that you could explain a best opinion in your comment. I also believe that it will be a best opinion for developing in trading system. Because I am also believe that in 90 days is also very risky moment for a new traders. I think that in this time he fill and face very risky in cryptocurrency trading.

So I believe that if we want to be a best trader, we should trying to understand clearly some reason, which will be very helpful for us. We know that education or knowledge is one of the best important element for trading. So lack of education will be best harmful for any traders.
We also know that emotional control is also a very essential for best trading in cryptocurrency world. So we should trying to understand in this element.

[tbct_mt2]

The rule of 90 or 90% rule is a gloomy statistics that was suppose to serve as a reminder or caution newbies traders. The rule states that "90% of traders lose 90% of their funds in their first 90 days of trading."

Do you believe that? I hope this caution new traders that are opportune to read it.

Many warnings about risk of trading and very high percent of traders fail and lose money in a market. Believe it or not, you can try with trading and experience it, then you can understand the market, trading in chance and risk, and can come back with a conclusion, that I believe will be like "Trading is very risky, avoid it guys"

Some warnings
Don't day trade, you're going to lose your money
Why 90% of Stock Market Traders are in Loss?
Is day trading profitable? The success rate for making money from day trading is only around 5% to 20%.

[Finestream]

The rule of 90 or 90% rule is a gloomy statistics that was suppose to serve as a reminder or caution newbies traders. The rule states that "90% of traders lose 90% of their funds in their first 90 days of trading."

Do you believe that? I hope this caution new traders that are opportune to read it.

Useful piece: https://trendspider.com/learning-center/the-rule-of-90/

This is the fact with trading. Newbies are more exposed to losses because they are still trying to navigate their trading experience in the market. So it’s still acceptable for them to commit mistakes and create losses while trading because they are still in the observation and learning phase while trading. But if in the latter part they keep on committing losses without having chances to be in profits, there’s already wrong with it. It’s normal to lose at first, but doing it consistently only means you are not good and capable enough, or trading isn’t really meant for you.

[hugeblack]

This rule is considered the basis of what is known as the steep learning curve and inherent risks^[1], which means that there are factors that lead to failure in trading, such as emotional trading, lack of a trading strategy or risk control, or trading with borrowed or repayable money. In short, the rule is a description of the beginner's situation, and if the beginner can learn the basics before trading and try trading demos, will reduce the possibility of risks by a large percentage.

[1] https://www.itad.com/article/steep-learning-curves-evaluation-gamification/

[SquirrelJulietGarden]

This rule is considered the basis of what is known as the steep learning curve and inherent risks^[1], which means that there are factors that lead to failure in trading, such as emotional trading, lack of a trading strategy or risk control, or trading with borrowed or repayable money. In short, the rule is a description of the beginner's situation, and if the beginner can learn the basics before trading and try trading demos, will reduce the possibility of risks by a large percentage.

Learning is good, trading with demo account is good, and it's good preparation before trading with actual account and own pocket money. Like you said, it reduce risk of failure or severity of loss, but I'd like to emphasize that trading with demo account and with actual account and own money are very different.

You can have no emotion with demo trading, but with actual trading, you will have a lot of emotion that is always one of biggest factors to affect your decisions and trading results after all. So let's start with learning, then trading with demo account, then with actual account and own money, but make sure to split assigned trading capital to different parts. You can use different parts of trading capital as different chances to learn and correct your trading mistakes and losses previously.

If you use all trading capital for trading at once, you will lose it and no longer have second, third, fourth chances.

[lovesmayfamilis]

A good rule, and it should be in the top ten. In a good way, we can all attribute any undertaking to this rule. While new traders delve into the essence of trading, while they learn to restrain emotions, analyze correctly, and gain experience, some time should pass. Three months, I would call it a very good period, but it seems that learning and understanding can last longer. And yes, anyone who wants to take up trading should be ready to lose some funds. With their help, he will delve into the business that, as he planned, should bring him profit in the future.

[YOSHIE]

Do you believe that? I hope this caution new traders that are opportune to read it.

OP, I once read about the 90 rule that beginners did in the crypto trading, I took points about the rule, the article you posted also mentioned.
For example:

Reasons Behind the Rule
Several factors contribute to the high failure rate among new traders:
1. Lack of Education:
2. Emotional Trading:
3. Lack of a Solid Plan:
4. Overleveraging:
5. Unrealistic Expectations:

In my understanding, it is not a rule, the right language written is a factor or cause of losses for beginners who trade in the market without having understanding and knowledge as in the quote above.

But or maybe that's a cool language for newcomers who want to do trade, it is actually more directed to the warnings and risks that will occur in trading activities, basically: Whatever we do we must have a few points such as education/learn the risks that will occur from small to large, understand the risk of automatically understand the benefits in trade.

[goldkingcoiner]

The rule of 90 or 90% rule is a gloomy statistics that was suppose to serve as a reminder or caution newbies traders. The rule states that "90% of traders lose 90% of their funds in their first 90 days of trading."

Do you believe that? I hope this caution new traders that are opportune to read it.

Useful piece: https://trendspider.com/learning-center/the-rule-of-90/

I head about 90% of traders will lose money and ultimately give up but I have never heard about the ninety percent pertaining to anything else. Newbie traders tend to lose all their money rather quickly but usually not almost all their money... Most newbies are not that bad, I hope.