97% of day traders lose money

[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.

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.

Yes, they're included to that. So if there are loser traders, there are winner traders and aside from them, there goes the exchanges. So, there are two of them at least that are winning when someone is losing. We have an idea on how exchanges are earning from the commissions that they're taking, from the fees and all other stuff that they're getting also like from the listing fees, etc.

[Italian Panic]

Being a trader is not a hobby being a trader is a job. You need to know which charts to cross-reference, what to overlay, and be trained in timeliness. Of course, a little luck always helps.
97% of traders lose because most of them jump into trading without knowing the basics, thinking they will pick the winning asset on their first move.

[IjawMan]

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,

Are the 97% of the traders in loss all new and non-experienced traders? Not possible, cause even with those that have experience the losing rate are still high. The truth can be agreed on that lots of traders are losing more than what they making in profit but concluding that 97% are losing is excessive, making trading to be not just risky but scary too.  

if you do day trading, you are forcing yourself to trade on that day even if there is no potential good entry.

It is not by the type of trader, you can be a swing trader, scalper or position trader without being a day trader and yet force yourself to trade when indicators are showing elsewise. Is about patience and emotional maturity of the trader and not by the type of trading.

[SamReomo]

So if there are loser traders, there are winner traders and aside from them, there goes the exchanges. So, there are two of them at least that are winning when someone is losing. We have an idea on how exchanges are earning from the commissions that they're taking, from the fees and all other stuff that they're getting also like from the listing fees, etc.

Well, in most cases the winners aren't actually the users but exchanges themselves because sometimes exchanges manipulate some coins by pumping those coins and many greedy traders fall in that trap and lose money by trading useless coins. The main factor that makes a trader a winner or a loser is the greed. If a trader can control his/her greed and other emotions then there's less chance of losing. Exchanges mostly make money by the fees and from future trading liquidations.

[Wind_FURY]

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.

? Too much?

OK, then what would be your percentage of losing traders of the total? 97% is actually close to the statistical FACT based on current data because merely 1% to 4% of total traders could make actual profit from trading after trading fees and other costs.

PLEBS like US, even if we know "how to trade", CAN'T out-trade the traders who are well-capitalized, more technically skilled, and who are SMARTER.

[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.

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.

I have just noticed that I have missed letter T in one word, but it does not change much. If there would be 50/50 ratio between losers and gainers the market would be still. Anyway, 97% losers in daily trading is unreal. If it was really like that, then it would be easier and more profitable to do gambling. I think that 10-15% among all daily traders end day with profit looks more realistic. I just though about following, if this is day trading, then people dont usually earn much, not a monthly salary. Individuals maybe can do that, but majority earn little. Otherwise everyone would risk in day trading. If only 3% of traders gain little by daily trading, then what is the point to do that at all. Better find regular job then.

[Pandu Geddon]

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.

The lack of understanding of trading is what causes beginner traders to ultimately exit trading with losses and possibly never return. After several initial trades with significant capital without profit, all that happens is a distrust of crypto trading. Those who persevere will certainly see what needs to be learned, but those who give up are those who are not strong enough to handle the mistakes made.

[shawonngp]

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.

Many traders lose in day trading. It’s undoubtedly true. It is mentally stressful because opening a trade within 24 hours and closing it with a profit is very difficult; even experienced traders cannot guarantee profit in day trading. But I did not find this article credible. On what basis did they make the claim that 97% of day traders lose? It seems very unrealistic to me. If so many traders lose, then everyone would quit trading permanently. Do you think 97% of traders trade with paid buy signals? It's a totally wrong concept. Newbies who start trading mostly rely on paid trading signal groups, while experienced traders base their trades on their own research and strategies.

[Webetcoins]

Be careful, the topic says "day traders". It's not that "all" traders lose money, just the day traders, as in someone who buys and sells within the same day. So maybe this could be true, I mean even leverage ones and futures margins etc all that still be day trading too.

So all in all I would say that we are talking about a niche group of people and I would say that could be a possibility, and maybe it is not as high as this but could be very high. Obviously we do not know which one is true.

[Byebyebtc]

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.

Yes some don't know how to trade.
But just to correct you, trading is actually a business that someone can make money from, trading is very risky but it has a higher probability of success more that gambling, If you learn and master the skill, your success is guaranteed, but in gambling what skill is there to learn?
Even if there is your success can never be guaranteed, because it's always based on luck.

[Danica22]

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.

Yes some don't know how to trade.
But just to correct you, trading is actually a business that someone can make money from, trading is very risky but it has a higher probability of success more that gambling, If you learn and master the skill, your success is guaranteed, but in gambling what skill is there to learn?
Even if there is your success can never be guaranteed, because it's always based on luck.

Yes, trading and gambling are different, and trading is more like business. Because it is based on analysis, strategy, risk management. Unlike gambling, which is largely based on luck.

However, trading still involve many risks, and knowledge and skills alone are not enough to guarantee success. You need experience, discipline, the ability to control your emotion and sometimes a little luck. Because the market always hold unexpected elements that no one can predict accurately. That is why even expert or seasoned trader never dare to make any guarantees.

Knowledge and experience only help us minimize losses and increase our chances of winning, they do not guarantee anything.

[Wind_FURY]

Be careful, the topic says "day traders". It's not that "all" traders lose money, just the day traders, as in someone who buys and sells within the same day. So maybe this could be true, I mean even leverage ones and futures margins etc all that still be day trading too.

So all in all I would say that we are talking about a niche group of people and I would say that could be a possibility, and maybe it is not as high as this but could be very high. Obviously we do not know which one is true.

You should be careful as well, because it's a statistical FACT that merely 1% to 4% of "traders", including day-traders, swing-traders, and/or other sorts of medium/long-term traders make actual money after fees and trading costs.

There's a high probability that that means, there are NO profitable traders in BitcoinTalk. Or there's probably only ONE or TWO.

 

[BitMaxz]

Are the 97% of the traders in loss all new and non-experienced traders? Not possible, cause even with those that have experience the losing rate are still high. The truth can be agreed on that lots of traders are losing more than what they making in profit but concluding that 97% are losing is excessive, making trading to be not just risky but scary too.  

Do you have the data to prove that 97% of those people are the ones who lose excessively?
If that's your mindset to be scared, then trading isn't yours because it always gives you emotional stress, and to become a trader, you should need to control those emotions and not let them control your decision.

If you can have some data that only 3% of traders are profitable, I'll follow you, but honestly I already looked for it; no data exists. Those articles you read or the source where you heard them are just for an article or vlog.
Look at those prop firms. Why are most of the companies looking for profitable traders who do have discipline and strict rules about risk management?
Are they losing or profitable? Meaning there are still many traders who are actually profitable; you will never be able to be one of them because to apply to prop firms, you need to pass the challenge. Once you pass, you have a chance to access a huge capital.

Meaning there are many good traders that are profitable. Thinking about the company, why do they take these risks with these people?

[JeffBrad12]

Be careful, the topic says "day traders". It's not that "all" traders lose money, just the day traders, as in someone who buys and sells within the same day. So maybe this could be true, I mean even leverage ones and futures margins etc all that still be day trading too.

So all in all I would say that we are talking about a niche group of people and I would say that could be a possibility, and maybe it is not as high as this but could be very high. Obviously we do not know which one is true.

Day traders doesn't necessarily means people who buy and sell at the same day but it's also the very definition of people who open their trading app everyday and monitor their position and doing it for a living though.

If trading is someone's main source of income and they need to do it otherwise they'd have no income for the month, that's pretty much day trader. In a nutshell its just a frequent trader.

[Bitcoin_people]

We all know that trading is risky and there is a high chance of losing money, especially those who cannot control themselves lose a lot of money. However, according to my experience, there are some traders who are very experienced and they face very little loss while trading. Those who trade by choosing good coins lose less and those who come to trade with great excitement hoping for quick profits lose most. Research shows that about 90% of people can win very little, everyone loses mainly because of their experience and mistakes in analyzing the market. To make money, you must be patient at the beginning, guide yourself with knowledge and later start trading, the risk will be less.

[Wind_FURY]

Are the 97% of the traders in loss all new and non-experienced traders? Not possible, cause even with those that have experience the losing rate are still high. The truth can be agreed on that lots of traders are losing more than what they making in profit but concluding that 97% are losing is excessive, making trading to be not just risky but scary too.  

Do you have the data to prove that 97% of those people are the ones who lose excessively?
If that's your mindset to be scared, then trading isn't yours because it always gives you emotional stress, and to become a trader, you should need to control those emotions and not let them control your decision.

If you can have some data that only 3% of traders are profitable, I'll follow you, but honestly I already looked for it; no data exists. Those articles you read or the source where you heard them are just for an article or vlog.
Look at those prop firms. Why are most of the companies looking for profitable traders who do have discipline and strict rules about risk management?
Are they losing or profitable? Meaning there are still many traders who are actually profitable; you will never be able to be one of them because to apply to prop firms, you need to pass the challenge. Once you pass, you have a chance to access a huge capital.

Meaning there are many good traders that are profitable. Thinking about the company, why do they take these risks with these people?

That percentage might not entirely be accurate, but it's a statistical fact that 90% of "traders" DON'T have an edge over the top traders in the market.

That's absolutely why plebs like us SHOULD QUESTION the people in BitcoinTalk who give "trading advice" as if they're long-term profitable traders.

 

[slaman29]

Yeah, also the highest stat I've seen but this is something I point out in all 'investment' schemes where you the individual make all the decisions, especially in trading, everywhere you go you see a high stat.

The other thing I point out is... this stat keeps going higher, because the period they inspect doesn't count future.

Example: After 1 year 70% lose money.
> After 2 years, maybe 50% of those remaining traders lose. So we are down to 15% success.

> After 3? 4? 5 years? I bet you it goes to 95% and more.

[Leahized]

But the fact that some people lose all their money on trading when they have no idea how trading works is the biggest problem we have in the crypto world today and that causes a lot of negative press about us. It's not our fault, I mean it's their fault and they shouldn't have done it, but because they do lose, they end up crying about it everywhere and act as if they lost because of something else and not entirely their fault.

As we all know, trading is risky business and it should not be done without any ignorance. In my opinion no one trades without experience, rather they have limited knowledge and enter the crypto market for that. I don't think, there's much news about losing money as a result of trading. And should not use too much money for trading. Better to invest as an alternative method, There will not be much loss here if held for long term, Rather it will be profitable. And the inexperienced trader who wants to trade should use signals.

[Big Dirams]

But the fact that some people lose all their money on trading when they have no idea how trading works is the biggest problem we have in the crypto world today and that causes a lot of negative press about us. It's not our fault, I mean it's their fault and they shouldn't have done it, but because they do lose, they end up crying about it everywhere and act as if they lost because of something else and not entirely their fault.

As we all know, trading is risky business and it should not be done without any ignorance. In my opinion no one trades without experience, rather they have limited knowledge and enter the crypto market for that. I don't think, there's much news about losing money as a result of trading. And should not use too much money for trading. Better to invest as an alternative method, There will not be much loss here if held for long term, Rather it will be profitable. And the inexperienced trader who wants to trade should use signals.

There are some traders that do trade without single knowledge of the market, they just feel the market is about selling and buying and they see alot of people are making good profits from it so they decide to just walk into the market and test out their luck not knowing that it not done that way.
Trading deserves knowledge and understanding before one can make profits from the market and trading is not something one need to rush into instead we stay patient and learn the market ways then we apply what we have learnt into practice with our demo account then if we see positive result then easily we can shift such strategies and knowledge into our real money account and apply risk management. Trading without knowledge will only results into losses and regrets so let avoid such.

[Nheer]

Be careful, the topic says "day traders". It's not that "all" traders lose money, just the day traders, as in someone who buys and sells within the same day. So maybe this could be true, I mean even leverage ones and futures margins etc all that still be day trading too.

So all in all I would say that we are talking about a niche group of people and I would say that could be a possibility, and maybe it is not as high as this but could be very high. Obviously we do not know which one is true.

Many have had it wrong they thought the post is referring to all traders but not it's specifically mentioned day traders. It's true swing traders are likely to have a different outcome.
Day trading is actually very risky although I am not about the stats in the op but I not new that a lot of day traders struggle. They probably struggle because they are probably overdoing it or not having a clear strategy and plan. Also use of high leverage and having high expectations is one of the reasons most day traders fail. Knowledge is also one of the most important things to have while trading and this is something most people skip and it tells on them later on.