97% of day traders lose money

[DanWalker]

Overtrade is what makes things go wrong because trader aim on only one thing which is profit. They take every setup available whether it’s good or bad setup and they will hope the market will move the way they want. So It’s no wonder many day traders lose money because they become too greedy and overconfidence with their strategy. Taking breaks is important just like you said, because not every day is a good time to trade for example weekend, when the market sometimes moves slowly and rekt traders.

I agree that one of the reason many trader lose money is due to greed, the desire to make quick profit, and tend to overtrade. However, what guarantees that if we choose the right time to trade and get enough rest, we will make a profit?

The nature of trading is inherently risky because it is based on probability. Therefore, trading less or being more disciplined doesnt guarantee you'll win. It only helps you minimize mistakes and risk, while increasing your chances of winning.

[michellee]

The fact remains that a lot of day traders lose money in the market because they tend to overtrade, there is nothing wrong in day trading as long as you are doing it correctly and not overtrading. Day traders always chase profits and that's actually a problem, you cannot always expect the market to go in the same direction everyday. Another reason why I think day traders lose is because they don't give themselves periods to recover mentally or rest after making profits or incurring losses, and doing this consistently isn't right.

Overtrade is what makes things go wrong because trader aim on only one thing which is profit. They take every setup available whether it’s good or bad setup and they will hope the market will move the way they want. So It’s no wonder many day traders lose money because they become too greedy and overconfidence with their strategy. Taking breaks is important just like you said, because not every day is a good time to trade for example weekend, when the market sometimes moves slowly and rekt traders.

Becoming greedy is something that traders will face but if they can controls it, they will not fall into the trap. They can do day trading and still learn as trading needs continuous learning since the market will always moves anywhere.

If they profits, they want to chase more without thinking that is enough. But if they already trade for some hours, they need to take a break and rest their minds. They can enters the market in the next few hours. Crypto trading doesn't have exact time to start so you can start anytime, the important thing is that you analyzing the market to determine the enter and exit from the markets.

[Y3shot]

It is not as if day trading is not profitable; that is why there is a high rate of traders who lose. I think the reason why the rate of losses is high in day trading is that most traders want to make money by all means.

They do not understand trading, but they go into it because they feel that the more they trade, the more experience they will gain, not knowing that trading doesn't work that way. The first thing, and the most important thing, in trading is to learn first; this is the only way one can be able to trade effectively and make some profit. Trading is not just about having ideas, but about having a deep understanding.

[Cgrexp]

Yea, that's true, the person can either stop and then go learn more of how to become profitable, they can learn proper risk management or learn a good strategy if that's what's making them unprofitable. So many traders have the reason for their unprofitable trading career, some people lacks risk management, some lacks the psychology to bear losses, so they chase losses until their account is zero, and many other problems that causes them to lose, they should work on fixing those challenges first before going back to trading.

They should pause to reflect, correct shortcoming, or find a better trading strategy...If they still want to trade, they should fix those problems first. But there is nothing wrong if they decide to stop and stay away from trading completely. Because once you realize it is really not right for you, stopping is perfectly reasonable. The more stubbornly you pursue something that is not right for you, the more money, time and the more disappointment you will face.

Day traders could be in high profit if they are good learners because learning is essential for everyone to be successful in trading. Many  day traders are learning from different platforms and they invested their money on books and that is reason they are successful to be an entrepreneur and they are Investing their money on different businesses. Many people are losing their money as they are at risk as they have no idea who to start any trade and they have zero knowledge but they have courage to lose their money and that is reason they are losing their money day by day which is weak point for these people. You can invest your mom with low risk which is better option for you at that time.

Your words are very close to reality. Many people take this issue lightly, especially since 97% of day traders lose, but it is actually a big warning. I think that not just learning, but learning properly and applying it with discipline makes the real difference. Many people think that trading is easy after watching YouTube/posts, but after entering the market, understanding it without a plan means risking their own money. If you don't know the basic things like where to enter, where to exit, how much loss you will get out of it, it is natural to lose. Another thing I have noticed is that many people make the same mistakes again and again without trying to learn even after losing. This is where they fall behind. The market never teaches anyone, so showing courage without learning is actually stupid. What you are saying is investing with low risk. This is a good option for many, especially those who are new. In my opinion, you should fix your mindset and risk management first, then trading. Otherwise, there is a high chance of falling into the 97% range.

[Big Dirams]

It is not as if day trading is not profitable; that is why there is a high rate of traders who lose. I think the reason why the rate of losses is high in day trading is that most traders want to make money by all means.

They do not understand trading, but they go into it because they feel that the more they trade, the more experience they will gain, not knowing that trading doesn't work that way. The first thing, and the most important thing, in trading is to learn first; this is the only way one can be able to trade effectively and make some profit. Trading is not just about having ideas, but about having a deep understanding.

You do have a point though.
In addition the mindset which many traders goes into trading with always lead them to excess loss and most it the new traders. Most new traders goes for day trading because they have the mindset of making money each day and very early so that reason boost the rate of day traders and also this new traders are here to make quick money and such approach towards trading will only result into regrets and excess loss because a trader will loss control of their emotions and chase after making money.
 As a trader let set boundaries and apply control towards each decisions we make in trading. Let focus on getting better and gaining more experience it not just about the profits.

[tygeade]

It is not as if day trading is not profitable; that is why there is a high rate of traders who lose. I think the reason why the rate of losses is high in day trading is that most traders want to make money by all means.

They do not understand trading, but they go into it because they feel that the more they trade, the more experience they will gain, not knowing that trading doesn't work that way. The first thing, and the most important thing, in trading is to learn first; this is the only way one can be able to trade effectively and make some profit. Trading is not just about having ideas, but about having a deep understanding.

You're right. Day trading can be profitable for those who do it properly, because there are so many traders in this market who are constantly making money from it, even when market conditions are not very favourable, they still don't lose a lot of money because they know when they should and when they shouldn't be making trades, unlike newbies who don't understand much but are always eager to make money, and because of this, they lose money. You can't expect to make money from trading when you don't even know anything about it.

Whether it's trading or any other investment sector, you can only make profits from it if you are knowledgeable about what you are getting into. Even someone who starts a business will only be able to make it successful if they understand the niche and the market they are starting a business in, otherwise, their business won't stay profitable and they will eventually have to close it down. This is why, any person who decides to become a day trader should first equip themselves with enough knowledge before they get financially involved.

[Issa56]

Overtrade is what makes things go wrong because trader aim on only one thing which is profit.

People trade because they want to make money, but as a trader you are suppose to know when to stop, you don’t have to be greedy. If you are a trader, and you choose to be greedy, then you just going to be losing more whenever you are trading, because you not going to stop trading even when you are suppose to stop, so if you are a trader, always learn not to be so greedy, if you have made little profits, learn to be satisfied whenever you notice that the market isn’t favorable.

They take every setup available whether it’s good or bad setup and they will hope the market will move the way they want.

If you are trading you shouldn’t rely on luck alone, make sure you do your analysis properly before you enter a trade, and when you notice that the market isn’t favorable at the moment, make sure you don’t enter a trade, you can take a break.

[gabbie2010]

Truly the number of traders who incurred losses in trading outweighs those that are profitable, however I think  the percentage of profitable traders should be more than 3% because there are lot of profitable traders who prefers to trade anonymously  not revealing or showing their winning streaks perhaps they don't want to reveal profitable trading model,  more so what account for high rate of non profitable traders is because alot of newbies traders who started trading with the hope of becoming rich quickly unfortunately ended up getting liquidated and to become a consistent profit earner as a trader isn't an easy task it requires a lot of commitment.

[juttsab@]

It is true and maybe it is more than 97 percent . When new people enter in crypto they learn from their gurus they only see fake green PNL on socials. Thousand of retail trader lost their capital in that then after 10 or 15 consecutive losses finally they got some profit and then upload on their socials . Day trading is almost about psychology .Not everyone can handle pressure in live trade. Most of the people just over leverage trying to get rich instead managing their risk. If we don't have strict set of rules , dead emotions you can't trade . The one's who make profit are actually real traders they know how to control their emotions , how to use consequences in their favor.

[boyptc]

When new people enter in crypto they learn from their gurus they only see fake green PNL on socials.

That is the mistake of many newbies. They are believing these fake gurus that are showing them fake PnL because that's attractive for them.

The screenshots that they're showing to their fans could be misleading because they're not real traders.

They sell courses and other online stuff for them to earn commission from their fans and for them to be convincing, they have to create fake PnLs.

[Obari]

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.

Anybody can come online and give his or her presumed statistics of successful and non successful traders and it all depends on the parameters they used for this classification

I'm also glad you know a lot of people lie on the forum especially to earn merit and that's why you'll see alot of people buying into ideas on the forum that naturally or physically they wouldn't accept.


It is true that we can have upto that percentage of traders who are losing but I think they should also give their statistics for such rating for more clarity.

[Jaweria parveen]

They are believing these fake gurus that are showing them fake PnL because that's attractive for them.

The screenshots that they're showing to their fans could be misleading because they're not real traders.

They sell courses and other online stuff for them to earn commission from their fans and for them to be convincing, they have to create fake PnLs.

This is the reason why new people are not told properly and are cheated by seeing such activity and this is the reason why many people hate trading. If they are told properly that there are these things in trading and the market is understood in this way, then new people will never put themselves in such a loss. They have to know about some expert people and they see the same evidence in the people ahead and they quickly accept their words to improve their situation and go into loss. For this few prizes they spoil other people's money, if they are taught properly in this trading they will also believe it and take advantage and they will also get a better prize.

[colinistheman]

It is not as if day trading is not profitable; that is why there is a high rate of traders who lose. I think the reason why the rate of losses is high in day trading is that most traders want to make money by all means.

They do not understand trading, but they go into it because they feel that the more they trade, the more experience they will gain, not knowing that trading doesn't work that way. The first thing, and the most important thing, in trading is to learn first; this is the only way one can be able to trade effectively and make some profit. Trading is not just about having ideas, but about having a deep understanding.

Yes, trader want to make quick money at all cost, which is one of the main reasons why most end up losing. However, I disagree with the view that they do not understand trading, because not only newbies but even experienced traders can face prolonged losses.

In my view, the main reason is that trading is inherently difficult, and it becomes even harder in the crypto market. A market with a high degree of speculation and manipulation makes analysis almost useless.
No strategy or trader can guarantee consistent wins in such an environment, not even those who call themselves experts.

[ZAINmalik75]

Truly the number of traders who incurred losses in trading outweighs those that are profitable, however I think  the percentage of profitable traders should be more than 3% because there are lot of profitable traders who prefers to trade anonymously  not revealing or showing their winning streaks perhaps they don't want to reveal profitable trading model,  more so what account for high rate of non profitable traders is because alot of newbies traders who started trading with the hope of becoming rich quickly unfortunately ended up getting liquidated and to become a consistent profit earner as a trader isn't an easy task it requires a lot of commitment.

The stats are obviously not accurate, because even if it's true that mostly day traders aren't profitable, there is definitely a higher number of profitable traders available out there. 3% is a very low number, I totally agree with you on that, it should at least be 15% or something, or maybe even more.

I believe the biggest reason why traders mostly lose money in day trading is because of a lack of patience, and a bit of greed, of course. I'm pretty sure that if all the traders start taking profit as soon as their trades become profitable instead of waiting for better profits, a larger percentage of them will be profitable traders, but unfortunately, they don't do it, because when they see the market going in their favour, they start to think that if they wait a bit longer, they might actually get more profits, and this thought makes them lose money later as the market takes a hard U-turn.

[Tungbulu]

This is the reason why new people are not told properly and are cheated by seeing such activity and this is the reason why many people hate trading. If they are told properly that there are these things in trading and the market is understood in this way, then new people will never put themselves in such a loss. They have to know about some expert people and they see the same evidence in the people ahead and they quickly accept their words to improve their situation and go into loss. For this few prizes they spoil other people's money, if they are taught properly in this trading they will also believe it and take advantage and they will also get a better prize.

The problem is that, many traders, especially the newbie traders come into trading with lots of unrealistic expectations, and this is mostly due to the fact that they see a lot of people flaunting and showing off the profits alone and hiding the risks involved. When new traders get the right information about trading, by that I mean a proper risk tolerance/management, emotion control and proper education about market manipulation, they’ll put themselves in a better position to make better decisions.

[boyptc]

They are believing these fake gurus that are showing them fake PnL because that's attractive for them.

The screenshots that they're showing to their fans could be misleading because they're not real traders.

They sell courses and other online stuff for them to earn commission from their fans and for them to be convincing, they have to create fake PnLs.

This is the reason why new people are not told properly and are cheated by seeing such activity and this is the reason why many people hate trading. If they are told properly that there are these things in trading and the market is understood in this way, then new people will never put themselves in such a loss. They have to know about some expert people and they see the same evidence in the people ahead and they quickly accept their words to improve their situation and go into loss. For this few prizes they spoil other people's money, if they are taught properly in this trading they will also believe it and take advantage and they will also get a better prize.

It's bad that they are introduced the wrong way by these fake gurus. They're simplifying and making it look easy to trade even in the reality, it's not.

Being brutality honest will make them feel loved if they're telling the truth. But they're feeding people with information that the newbies would like to hear and not what they have to know.

I would say that there are real experts in trading but they're not so vocal unlike these gurus, they're making money out of clout and not with trading.