97% of day traders lose money

[BitMaxz]

Can this be true?

In most markets the simple answer is Maybe, the number is on the high side looking at short-term results. Long-term studies have shown up to 97% of day traders do lose money. Never forget: That leaves a ton of profits for the rare winners.

Those true winners are those who understand the market and indicator correctly. Most of us here who trade are trading with no rules or conditions; they think they know the market already, but the fact is almost all strategies out there will work if you know the rules and conditions that you must follow.

Those statistics are just predictions, I guess, and most of us here are doing scalping; they trade in short-term 1m, 3m, 5m, 15m, and 30m. For me, those time frames are pretty risky and prone to manipulation.
Everyone should start trading with a higher time frame instead; it's just a suggestion. Focus much on one time frame, but don't forget the wider view because that is what you can use to check the strong or biased trend.

New traders don't listen; experience is the one that could lead them to be profitable traders, so those statistics, I guess, are pointing to newbies, and since the topic talks about day trading for me, if you do day trading, you are forcing yourself to trade on that day even if there is no potential good entry.
It does not work for me, maybe because I still don't have a proven strategy, conditions, and rules that work on a daily basis. But I have a good strategy that works for me; I already filtered out all my bad trades and created my own conditions and rules. I focus on a 1-hour time frame and use a 4-hour time frame for momentum. I only made 1 to 2 trades a week, holding a position sometimes a day, but it doesn't mean I am a day trader because for me, I only trade if I see a potentially high-probability trade or quality trades based on my past experience.

I hope anyone here would be able to focus on one strategy, study it, and then filter out all bad trades. It would be much better if they journaled their trades and did backtesting. The replays on TradingView are very useful. If you have a visa/debit card, you can take the trial, but don't waste it. Spend much more time studying your strategy until you filter them out. Risk management is also very important; always keep your risk low. I know those who keep losing end up overtrading because I experience the same thing. So having risk management will keep you stay alive and risking low.

[jossiel]

Can this be true?

In most markets the simple answer is Maybe, the number is on the high side looking at short-term results. Long-term studies have shown up to 97% of day traders do lose money. Never forget: That leaves a ton of profits for the rare winners.

And those rare winners aren't really trading at all.

Those are the holders that have been so patient for so many years leaving the day traders losses when they're about to take some profits.

It is a statistic or study but as someone who has been an active trader long time ago, it's fair to say that there can be some truth in it.

[Powerjumboo]

I have not seen a huge percentage of people long money up to this before, the highest that I have seen is 85% of traders. But while making research, all traders are including which I think swing traders will be included. This article is about scalpers and day traders. I did not have premium subscription on the site which makes me not to read the December 11 2025 article finish.

What the article is just saying is that trading risk is the same as gambling risk if only 3% of traders are making money while 97% of are losing.

https://medium.com/illumination/97-of-day-traders-lose-money-18e5d89bfe83

Can this be true?

I would have created a poll about this but I know many people on this forum are lying. Some do not even know how to trade but they will speak good of trading like it is a business that someone can make money from.

Trading is very risky and it is not easy to make money from here. I think those who think that trading platforms are an easy way to make money are always in the wrong decision. You are right that 97% of people lose money on trading platforms because they think that trading platforms are an easy way to make money, due to which they do not need any experience to trade, they trade whenever they want, due to which they lose a lot. I myself am not very experienced in trading, I cannot analyze the market well and I cannot analyze every candle correctly, due to which I am not successful in trading platforms. For me, trading is like a complete gamble because here I completely depend on luck.

[_act_]

Those true winners are those who understand the market and indicator correctly. Most of us here who trade are trading with no rules or conditions; they think they know the market already, but the fact is almost all strategies out there will work if you know the rules and conditions that you must follow.

Those statistics are just predictions, I guess, and most of us here are doing scalping; they trade in short-term 1m, 3m, 5m, 15m, and 30m. For me, those time frames are pretty risky and prone to manipulation.
Everyone should start trading with a higher time frame instead; it's just a suggestion. Focus much on one time frame, but don't forget the wider view because that is what you can use to check the strong or biased trend.

And do you know what, many people on this forum will say that they are profitable traders but in reality they are lying. This is one thing I have known about many traders. They will say they are trading profitably but the success is not translating into anything in their life. So where is the success if you are not seeing it in their lives?

Yes, many of the traders are just not patient, they prefer to scalp, they use high leverage, they want to make money fast. Making money fast is the reason they move towards trading than holding but they continue to lose.

The most deceiving part are traders that will making small amount of money for days but lose all the money within a short period of time. Short term trading is very risky. People that are patient will be the ones that will earn the money of impatient traders.

[Finebone]

What the article is just saying is that trading risk is the same as gambling risk if only 3% of traders are making money while 97% of are losing.

https://medium.com/illumination/97-of-day-traders-lose-money-18e5d89bfe83

Can this be true?

Short answer, yes it's true.
Trading is not as easy as most traders are speaking, it's one of the most difficult skills ever. I am a trader, but I can confirm to you that it's more easier to make money from gambling as a newbie, than as a trader.
And one thing that makes people to lose uncontrollably im trading is the inability for them to control their emotions.

I would have created a poll about this but I know many people on this forum are lying. Some do not even know how to trade but they will speak good of trading like it is a business that someone can make money from.

You should have done that regardless, because I believe that some genuine response will be made known.
Almost all veterans traders know that it's one of the most difficult craft, so relying on it means that you are now a profitable trader, which is very difficult.

[bakasabo]

I am not fully sure that 97% lose money in trading, but majority does. For sure that it can be 50/50 ratio, otherwise nobody would earn and lose. Since some people manage to earn millions in trading, this means that a lot of people lose during trading (I dont think that everyone deposit millions, this means only 1 win and 10000 lose). I dont think also that a lot of people are ready to wait. People are quick on taking decisions, plus many are impatient, plus there are way more inexperienced traders than experienced, plus nobody wants to take crumbs as profit. I think all that tell us that only little number daily traders end with profit.

[goldkingcoiner]

I have not seen a huge percentage of people long money up to this before, the highest that I have seen is 85% of traders. But while making research, all traders are including which I think swing traders will be included. This article is about scalpers and day traders. I did not have premium subscription on the site which makes me not to read the December 11 2025 article finish.

What the article is just saying is that trading risk is the same as gambling risk if only 3% of traders are making money while 97% of are losing.

https://medium.com/illumination/97-of-day-traders-lose-money-18e5d89bfe83

Can this be true?

I would have created a poll about this but I know many people on this forum are lying. Some do not even know how to trade but they will speak good of trading like it is a business that someone can make money from.

We really need a new study. These statistics seem off to me because calling yourself a day trader requires absolutely no qualifications, skills or knowledge.

So that is like saying 99% of (self-proclaimed) scientists can't do math and give up on science. But this only works if you claim anyone who calls himself or herself a scientist is actually one, regardless of whether they are or not.

Becoming a daytrader without the knowledge or experience will obviously lead to loss and eventually the "daytrader" will give up after a few weeks. So why put him into the statistics?

I think 97% of real daytraders do not make only losses.

 

[Cryptmuster]

I am not fully sure that 97% lose money in trading, but majority does. For sure that it can be 50/50 ratio, otherwise nobody would earn and lose. Since some people manage to earn millions in trading, this means that a lot of people lose during trading (I dont think that everyone deposit millions, this means only 1 win and 10000 lose). I dont think also that a lot of people are ready to wait. People are quick on taking decisions, plus many are impatient, plus there are way more inexperienced traders than experienced, plus nobody wants to take crumbs as profit. I think all that tell us that only little number daily traders end with profit.

I think in trading a slightly higher percentage of earners, but when it comes to making large amounts of money, that’s achieved by just 1–3% of traders. The rest of the profitable traders operate with small profits, which often aren’t even their main source of income. The market is structured very simply, for someone to make money, someone else has to lose. It’s clear that the majority of traders here are the ones losing money.

[tvplus006]

...Making money fast is the reason they move towards trading than holding but they continue to lose..

I think that the reason is not trading, but the desire to make a big profit, they repeatedly increase their risks, which ultimately lead to liquidation. Almost all beginners, as well as those who consider themselves traders, but at the same time trade at a loss, ignore risk management.

[maydna]

It is true if 97% of traders losing money as they don't learn much about trading and just follow others suggestion. They enter to the market because temptation to make a profit as what they see. That makes them difficult to finds the entry and exit way from the market.

Some traders rely on trading signal from groups that sharing their coin list to buy. If they don't learns more about trading, just rely on others, they will just fail and lose money and they will gets more risks. That will be similar to gambling.

[masulum]

I am not fully sure that 97% lose money in trading, but majority does. For sure that it can be 50/50 ratio, otherwise nobody would earn and lose. Since some people manage to earn millions in trading, this means that a lot of people lose during trading (I dont think that everyone deposit millions, this means only 1 win and 10000 lose). I dont think also that a lot of people are ready to wait. People are quick on taking decisions, plus many are impatient, plus there are way more inexperienced traders than experienced, plus nobody wants to take crumbs as profit. I think all that tell us that only little number daily traders end with profit.

I agree with you, 97% day trader in losses i think it is illogical. to make sure about that, the blog writer needs to do some independent research to confirm this percentage. While day traders are prone to panic selling or FOMO, which can increase losses, that doesn't mean nearly all day traders experience losses all the time. Your 50/50 ratio is more reasonable than the 97% mentioned in the blog.

[Wind_FURY]

OP, use A.I. and research the actual data. Ask it the percentage of the total traders could make a "job" out of trading over a long-term time horizon. It will tell you that merely 1% to 4% of total traders will make money after fees and transaction costs.

Therefore be careful when a person in BitcoinTalk gives you their unsolicited "trading" advice.

[AakZaki]

Most of the Speculation Boards always talk about DCA, I'm sure they are not really a trader, but rather a Long-term Investor. If they were really a trader, wouldn't they be enthusiastic when there was a competition held by the b1ack platform with a large prize. I don't see that enthusiasm there, so I think most of it is just investors.

Regarding the 97% that the OP said was too much, only a person who doesn't know how to trade will say that he lost money.

Even if it was according to a survey, I think the survey was asked to someone who didn't know the correct way to trade. If it were asked to me or to TryNinja, maybe I'd call it Nonsense.

[Franctoshi]

I have not seen a huge percentage of people long money up to this before, the highest that I have seen is 85% of traders. But while making research, all traders are including which I think swing traders will be included. This article is about scalpers and day traders. I did not have premium subscription on the site which makes me not to read the December 11 2025 article finish.

What the article is just saying is that trading risk is the same as gambling risk if only 3% of traders are making money while 97% of are losing.

https://medium.com/illumination/97-of-day-traders-lose-money-18e5d89bfe83

Can this be true?

I would have created a poll about this but I know many people on this forum are lying. Some do not even know how to trade but they will speak good of trading like it is a business that someone can make money from.

A high percentage of traders lose money, but I doubt that it's up to 97%, meaning only 3 percent profit. If it is true that 97% lose money,then it means that retail traders don't make profit off trading at all because this 3% would be the institutional traders (market makers) and hedge fund managers. But I know some of my friends who are profitable. One thing that's certain about trading is that trading is not an all-day profit business. However, however another thing we should note is that someone might actually lose 3 trades out of 5 entries and still come out profitable at the end because of therisk-to reward ratio. Sometimes it isn't basically about how many losses but the percentage profit/loss side. I don't know how they come up with this data.

[WatChe]

However, the influence of people who appear successful in trading can attract others to be interested in trading. Everything seems easy to make a profit, who wouldn't be interested in that? It's just that they try trading without knowing the risks, even without sufficient knowledge and skills. That is what causes many traders to lose. They start without knowing what they are actually doing.

The core thing is to first understand the underlying risks of crypto trading, specially by those who are new to trading. One risk is that if you start with huge capital then you will bear huge loss because in start its very difficult to handle wild fire of crypto trading. With time as we do trading, we learn from our mistakes that help is in developing strategies for long term. If you are starting crypto trading, then it's also very important to understand what you are doing otherwise it wont be a good experience.

[icebar]

It cannot be said that traders always make mistakes because there are sometimes when the market keeps going up continuously and at that time there is nothing for those who take short trades. We often get information that many traders get liquidated due to volatility. That is why I have no difficulty in believing that 97% of traders lose.  Though trading is considered easy, in reality it is different. Even those who are very experienced they also lose but they can recover the lose later. Those who trade without sufficient knowledge and consider trading as an opportunity will have a higher chance of losing.

[Hamza2424]

Trading is a risky stuff and we must not take it lightly. Those who come to crypto trading only after reading success stories of different traders and without any prior preparation end up losing money. Crypto trading can give you good profit only if you spend your time and energies in mastering the skills. This is true that majority of traders lose money in trading and reason I already mentioned. If someone is opting for crypto trading then he must fully understand the risk associated with crypto trading and also identify the steps required to mitigate them. 

Honestly, bro, it applies to any skill-based profession, not just trading. The difference is that in trading, you lose money, but in other professions, you lose time.

97% is still a huge number, bro, and such success stories are probably the biggest reason why a lot of people are jumping into day trading while knowing shit. Because day trading is the hardest form of trading, newbies should not practice it until they completely understand the risks.

In my honest opinion bro, most people are joining to make money alone, because trading is not all about making money, it is about losing money for years maybe, before you constantly start to make money and most of them are not ready either financially nor psychologically.

[Mpamaegbu]

I read through the illumination article expecting to see more stats drawn up for that frivolous claim but didn't find them. People just make up claims against what they don't like just for the fun of it, to ridicule it. It's the same way I read articles that claim cryptocurrencies are fueling global crimes more than fiat. All I see in stuff like that is someone who's begrudged. Quite alright, we may have more losers than winners as traders but to come up with a 97% loser figure can't be true.

[passwordnow]

It is true if 97% of traders losing money as they don't learn much about trading and just follow others suggestion. They enter to the market because temptation to make a profit as what they see. That makes them difficult to finds the entry and exit way from the market.

Not a temptation but a promising thought that they'll make so much money from the market if they enter. And that's why there's no way for them to get out when they've experienced losses already. Proven or not with the percentage of the losers, I also believe that there are more losers than winners in trading. Because based on the mechanics in trading, if someone has won then there's someone who has lost. But if many have lost, that doesn't mean that many are winners because the actual winners are the market makers which are the exchanges.

[MrB.Easy]

It is true if 97% of traders losing money as they don't learn much about trading and just follow others suggestion. They enter to the market because temptation to make a profit as what they see. That makes them difficult to finds the entry and exit way from the market.

Not a temptation but a promising thought that they'll make so much money from the market if they enter. And that's why there's no way for them to get out when they've experienced losses already. Proven or not with the percentage of the losers, I also believe that there are more losers than winners in trading. Because based on the mechanics in trading, if someone has won then there's someone who has lost. But if many have lost, that doesn't mean that many are winners because the actual winners are the market makers which are the exchanges.

While honest exchanges do not take risks similar to day traders, they are not the only "actual winners." Every losing trade has most of the money going somewhere, and it's not to the small % of exchange commissions. The profits are made when good traders actually buy low and sell higher.