97% of day traders lose money

[DanWalker]

I see many conflicting opinions in this discussion and most people dont believe that 90-97% of traders are losing money.

I think we do not need to argue about that anymore. Instead, my question is: how many of us actually make a consistent profit from trading? Is there anyone making a profit from trading? What I mean is, after a long period of trading, the overall result is still a profit.
Im not a full time trader, but to be honest, I have been in the market for many years. but I have never met anyone who has been able to make a consistent profit from trading.

[icoprofits]

The number is probably inflated but the point is real. What makes trading different from gambling isn't just the risk, it's that you're actively making decisions. A gambler at a blackjack table has zero control over outcomes. A trader can exit, reduce position size, hedge, or wait.

The problem is most people approach trading with a gambler's mindset. They want action, excitement, quick profits. That's why leverage kills them. They're not treating it as a skill to develop, they're treating it as entertainment that costs money.

The 3% who make it aren't necessarily smarter than everyone else. They're just more patient and treat risk management as the actual job rather than a hobby that pays them.

[Tungbulu]

I see many conflicting opinions in this discussion and most people dont believe that 90-97% of traders are losing money.

I think we do not need to argue about that anymore. Instead, my question is: how many of us actually make a consistent profit from trading? Is there anyone making a profit from trading? What I mean is, after a long period of trading, the overall result is still a profit.
Im not a full time trader, but to be honest, I have been in the market for many years. but I have never met anyone who has been able to make a consistent profit from trading.

I think there are traders who are actually making a consistent profit from trading. Not that they don’t experience losses or they don’t have bad days but even in the midst of those losses, they still manage to record more profits at the end of the day. Although I haven’t seen such a person but I just have that belief that they exist, cos why would they still remain consistent in trading if they’re not making profits in the long run??

[jostorres]

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.

Very true. It's kind of similar to how it's never the gamblers winning money but the house. Similarly I feel these exchanges control so much volume that they manipulate the market often to liquidate the small traders. It's very easy for them because they can see the trades and sometimes they even freeze the market, such that you can't close your trades because the services are suspended. That small window is enough to force them into liquidation.

Oh and hey, I don't agree with the theory suggested in the Medium article that 97% day traders lose money. Nope, that can't be true unless we are actually living in a simulation world, as Elon suggested.

It's better to stay away from daytrading if you are not sure how it works and just trading on emotions. Then it's better to play the longer game so you have more time to recover if trades turn red.

[Wind_FURY]

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.

That's probably there are more and MORE people in BitcoinTalk who have become DCA buyers and/or Buy the Bitcoin DIP, and HODL investors.

 

Trading is NOT easy, because if it was easy, we plebs would already be RICH. We plebs probably wouldn't need to join signature campaigns anymore.

[WatChe]

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.

Without proper strategy you won't get success in day trading nor in long term investment. If someone is coming to trading with intention that he will load money in his trading account, open a trade and he will get profit straight away then nothing can stop him from getting losses. This is a reality that in start every trader face loses, those who remain consistent despite initial loses and keep learning from mistakes are the one who become successful in the long run.     

[Asuspawer09]

I'll say that 97% was pretty high for sure, it is already evident that a lot of traders are losing money for sure we can't dinied that but there are for sure some people that get lucky that is able to make some profit on it for sure, I mean if this is a research they have the factors on it or metrics, I wasn't able to access that full research on the link but if they have the numbers there it still have the limitation of the scope of the research, So I wouldn't say that this was a pretty accurate research but 97% was a pretty high number, so we can easily just say that they are more losers than winners in the market.

In the end this we can just say that this is a warning because there are more losers in the market and it's a huge warning for us to be careful, Crypto trading or daily trading is just not for everyone, I've done it for a long time and I got to the point where I think that the stress was just wasn't worth it, So for me stick to your risk tolerance, and make sure that you know what you are doing.

[Iranus]

Without proper strategy you won't get success in day trading nor in long term investment. If someone is coming to trading with intention that he will load money in his trading account, open a trade and he will get profit straight away then nothing can stop him from getting losses. This is a reality that in start every trader face loses, those who remain consistent despite initial loses and keep learning from mistakes are the one who become successful in the long run.     

But even with the right strategy, that does not guarantee you will succeed in trading. Trading is different from long term investing, and it is much more difficult.

Strategy alone is not enough, you need discipline, the ability to control your emotions...In particular, emotional control is not easy because the temptation of the market is very strong. Aside from those lacking knowledge, I think remaining traders who lose money do so because they can not control their emotion.

Easier said than done. Controlling emotions and maintaining discipline are not things everyone can do, as we think. This is why many traders with 5 or 7 year of experience, or even more still lose money and decide to leave the market.

[SOKO-DEKE]

People are really losing in trading, especially daily traders. I will not even argue with the assumption that they lose more than the percentage people often claim. The point is that it is really very hard for traders who are losing to tell the truth about their experience in daily trading.But the fact is, the reason why some traders are lying is because they want to gain the attention of others and be respected as one of the great traders. They do this to gain followers and get people to buy their courses, sign up for their signals, or subscribe to their channels.Someone will hardly find the truth, even from some so-called big traders on social media or certain platforms, until someone actually starts working with them. So for now, I hardly believe most traders, because even most of the money they spend is not gotten from trading but from other sources, yet they always claim it is from trading.

[tbterryboy]

I mean, it does sound ridiculous and incorrect that only 3% people are earning money from day trading and 97% are losing. I understand there are massive whales and institutions that basically earn their profits from the poor and inexperienced traders, but surely it can't be that lopsided.

I tried to check the article but it requires an account to read the full piece and I'm too lazy to do that LOL. But I'm very certain they just throw the numbers out there without any survey or solid evidence. For sure, more people lose money in day trading than people who earn but it would be more like 75%-25% or 80-20 at best.

If you blindly trade, you still have a 50-50% chance to make the right trade .

[slaman29]

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

That's probably there are more and MORE people in BitcoinTalk who have become DCA buyers and/or Buy the Bitcoin DIP, and HODL investors.

 

Trading is NOT easy, because if it was easy, we plebs would already be RICH. We plebs probably wouldn't need to join signature campaigns anymore.

I hope so, I still think trading is enjoyable for people, and I think its good to understand and try for yourself, but just like gambling, with an initial assumption that its only for fun, and that you can't make money from it, or at least its very difficult to do, very very very much so!

My fellow signature campaign pleb, you said it so right

[Peanutswar]

There are many factors on how does a trader losses their trade, possible because of making a position but not in a prepared trade or not according to play some of them make an over trades and make a panic sold with their assets, if you know how does the market move and possible outcome of the market you will not get carried away with your emotions and you will stick with your trading plan. Again market is not only a strategic way to earn profit but also a psychological. For me for a higher time frame has a good for a swing trades because this could make a market confirmation first about the coin before make a movement then in the lower time frames. Well depends on the trader where they are confident to make a trade.

[Wind_FURY]

I'll say that 97% was pretty high for sure, it is already evident that a lot of traders are losing money for sure we can't dinied that but there are for sure some people that get lucky that is able to make some profit on it for sure, I mean if this is a research they have the factors on it or metrics, I wasn't able to access that full research on the link but if they have the numbers there it still have the limitation of the scope of the research, So I wouldn't say that this was a pretty accurate research but 97% was a pretty high number, so we can easily just say that they are more losers than winners in the market.

In the end this we can just say that this is a warning because there are more losers in the market and it's a huge warning for us to be careful, Crypto trading or daily trading is just not for everyone, I've done it for a long time and I got to the point where I think that the stress was just wasn't worth it, So for me stick to your risk tolerance, and make sure that you know what you are doing.

I believe it could actually not be "very high". Because for instance in BitcoinTalk, how many users in the forum actually tried to trade properly but could never actually claim that they could trade professionally as their main job?

It's probably close to 100%, no? OR 100%.

   👀

[dunfida]

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.

Without proper strategy you won't get success in day trading nor in long term investment. If someone is coming to trading with intention that he will load money in his trading account, open a trade and he will get profit straight away then nothing can stop him from getting losses. This is a reality that in start every trader face loses, those who remain consistent despite initial loses and keep learning from mistakes are the one who become successful in the long run.     

Doesnt matter on what kind of trading way or method you would be dealing on but on the moment that you wont be having some application of some strategy or in together with risks management then it would be that the most important thing is that whenever you do decide to dive in with trading is that you should make it sure that you are wary into the things that you've been that dealing into. Never ever make yourself that think up  that you can easily that deal up with this market because its always been that unpredictable and volatile on which you would be needing up to know on what you are dealing with. Trading skills is never been that easy and never been that predictable in the first place. If it was easy then there would be tons of traders who do make money within this market. We are all that thriving to become profitable with trading no matter what and to those who do easily give up then its normal that they would be seeing that trading isnt for them.

There are actually those conditions or situations on which you would be having that kind of disappointment on which you would be that trying out to quit up after you have that experienced up some loses.

[DanWalker]

I think there are traders who are actually making a consistent profit from trading. Not that they don’t experience losses or they don’t have bad days but even in the midst of those losses, they still manage to record more profits at the end of the day. Although I haven’t seen such a person but I just have that belief that they exist, cos why would they still remain consistent in trading if they’re not making profits in the long run??

The problem is that so far, none of us has done it, and we've never seen such a person. Most of it is just speculation and stories passed from person to person. So I’m really skeptical.
How many people do you think can make money from gambling? But why do they still gamble even though they know they are going to lose?

It would be great if someone open a thread and created a poll about this issue, but I’m afraid many people wouldnt dare to tell the truth

[Tungbulu]

The problem is that so far, none of us has done it, and we've never seen such a person. Most of it is just speculation and stories passed from person to person. So I’m really skeptical.
How many people do you think can make money from gambling? But why do they still gamble even though they know they are going to lose?

It would be great if someone open a thread and created a poll about this issue, but I’m afraid many people wouldnt dare to tell the truth

That’s true but I think we’re pretty much discussing trading here and not particularly gambling. But well trading is a form of gambling so I believe you’re still in line. 

Although I do see online traders living luxurious lifestyles and were made to believe such lifestyle is being funded by the profits from the trades, but everyone knows that people lie a lot online, and very few people are honest that’s why we can’t really fully trust everything we see online.

[Wind_FURY]

I think there are traders who are actually making a consistent profit from trading. Not that they don’t experience losses or they don’t have bad days but even in the midst of those losses, they still manage to record more profits at the end of the day. Although I haven’t seen such a person but I just have that belief that they exist, cos why would they still remain consistent in trading if they’re not making profits in the long run??

The problem is that so far, none of us has done it, and we've never seen such a person. Most of it is just speculation and stories passed from person to person. So I’m really skeptical.

How many people do you think can make money from gambling? But why do they still gamble even though they know they are going to lose?

It would be great if someone open a thread and created a poll about this issue, but I’m afraid many people wouldnt dare to tell the truth

After that bolded statement, try to think about what if those people who wasted their small capital in "trading" used that capital to Buy the Bitcoin DIP, and HODLed instead?

Pretend that those people started doing that last cycle, OR like many of us plebs of BitcoinTalk, started during the previous cycles.

 

[bitterguy28]

I see many conflicting opinions in this discussion and most people dont believe that 90-97% of traders are losing money.

I think we do not need to argue about that anymore. Instead, my question is: how many of us actually make a consistent profit from trading? Is there anyone making a profit from trading? What I mean is, after a long period of trading, the overall result is still a profit.
Im not a full time trader, but to be honest, I have been in the market for many years. but I have never met anyone who has been able to make a consistent profit from trading.

trading is also risky. it’s not all butterflies. it’s not an easy path. there will be times where things are a bit rocky but the times where it pays you? trust that those will be the best times even if it doesn’t come all the time.

[Arenga pinnata]

There are many factors on how does a trader losses their trade, possible because of making a position but not in a prepared trade or not according to play some of them make an over trades and make a panic sold with their assets, if you know how does the market move and possible outcome of the market you will not get carried away with your emotions and you will stick with your trading plan. Again market is not only a strategic way to earn profit but also a psychological. For me for a higher time frame has a good for a swing trades because this could make a market confirmation first about the coin before make a movement then in the lower time frames. Well depends on the trader where they are confident to make a trade.

Most traders who suffer significant losses are those who use capital they aren’t prepared to lose. In other words, they aren’t prepared for the risk of loss. And because of this, their mindset is often already compromised from the start. Their emotions become unstable. As a result, even after analyzing the market, their decision-making sometimes leads to poor outcomes.

And sometimes they become too hasty, so they end up neglecting thorough preparation. Yet in trading, there are many steps that must be prepared. Starting with technical and fundamental analysis, and then developing a well-thought-out plan tailored to the risk management strategy we employ. However, those who are in a hurry sometimes only think about risk management after they’ve already placed the trade. And sometimes they violate their own plans because of panic or something similar. So, in essence, as traders, we must be better prepared for the risks we’ll face.

[Jaweria parveen]

trading is also risky. it’s not all butterflies. it’s not an easy path. there will be times where things are a bit rocky but the times where it pays you? trust that those will be the best times even if it doesn’t come all the time.

There is a lot of truth in this but we have made many wrong steps about trading if we understand it properly and invest in it then it is not that dangerous. If we know that this price is not right for us then why do we invest in it and besides when we do not know much about it then why do we not trade after full research. Although it is quite right that time is not the same for everyone some of our foolishness puts us in loss. We should understand clearly how we will trade and how we will make profit from it and as long as we can hold on. Whoever understands this much about it and is patient then trading will not be very difficult for him and when it is easy then he will continue to make profit from it. We have to work about trading keeping in mind both loss and profit so that we do not lose heart in any position.