97% of day traders lose money

[puloweh555]

Very possible that up to 90% of people are losing money in trading, even though we cannot prove this by evidence the exact percentage but we know that it is very obvious than more people that are into trading are losing than winning trades, but we cannot also deny the fact that some are earning from it because they are making profits, but of what essence is it going to be when we have already lost more than we gain in trading.

Many statements on this forum and even those I've read outside of it, indicate that the majority of traders experience losses, especially those who trade daily. The risk of losing money far outweighs the potential profit. Yet, we all understand that trading is not the same as investing, as it requires skill years of experience a strong psychological foundation, and proven discipline. Unlike investing, especially in Bitcoin simply having a basic understanding of Bitcoin is enough to invest in it for the long term.

Essentially, trading can be very profitable for a few who approach it seriously and understand it well. However, for most traders it's more like gambling because trading is a risky activity, especially if their understanding of trading is limited. This awareness is the most important first step when entering the crypto world, allowing them to make a wiser choice between investing and trading. However, the best advice is to focus on long term investments in Bitcoin, which has historically been much more favorable and carries a lower risk of loss for most people.

[justdimin]

Many people are harmed and develop bad habits due to the wrong trading method that says that trading with a large amount of money will double the profit. The success of trading depends on the combination of correct knowledge, practical experience and risk management. You have to accept this reality that you will not be able to profit in every trade, so you have to make decisions by accepting losses without using excessive leverage. And you also have to have the mentality of losing money. This is not a short path to income.

This is why I always think that the idea of demo accounts or trading with virtual funds is underrated. People don't want to use a demo account because they feel like it's not fun. Trading will never be fun, and should only be stressful if you are pursuing trading as a serious source of income. For any education, you spend at least 3-4 years towards it, so why not spend 6 months trading with a demo account and learn everything about trading? Take it as seriously as real trading and that's important because that helps one deal with the emotional part of trading.

Pretty sure that if you trade sincerely with enough knowledge and experience, you will easily surpass 50% of the traders who are just blindly trading because they have the money and they want to get rich quick.

[Adiljutt156]

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.

I think millions of traders are fake traders because they are not real traders and they are gamblers because they know nothing about trading And they want to double their money. That kind of situation happens in betting and gambling but for trading people have no time to learn and Invest a small amount. They want to be rich too fast because they heard that cryptocurrency is making millionaires and they  got idea to invest the amount which is their saving And they are trusting on somebody who has no idea of trading but he want to scam with these people. You should be aware of the techniques of trading and should invest when market is stable And if any opportunity comes then leave the market when price is up and wait for the market to go down.

[ChocolateBitcoinK]

Very possible that up to 90% of people are losing money in trading, even though we cannot prove this by evidence the exact percentage but we know that it is very obvious than more people that are into trading are losing than winning trades, but we cannot also deny the fact that some are earning from it because they are making profits, but of what essence is it going to be when we have already lost more than we gain in trading.

Many statements on this forum and even those I've read outside of it, indicate that the majority of traders experience losses, especially those who trade daily. The risk of losing money far outweighs the potential profit. Yet, we all understand that trading is not the same as investing, as it requires skill years of experience a strong psychological foundation, and proven discipline. Unlike investing, especially in Bitcoin simply having a basic understanding of Bitcoin is enough to invest in it for the long term.

Essentially, trading can be very profitable for a few who approach it seriously and understand it well. However, for most traders it's more like gambling because trading is a risky activity, especially if their understanding of trading is limited. This awareness is the most important first step when entering the crypto world, allowing them to make a wiser choice between investing and trading. However, the best advice is to focus on long term investments in Bitcoin, which has historically been much more favorable and carries a lower risk of loss for most people.

It is natural to lose money because it is not easy to make decisions with the constantly changing market. Not everyone has the same knowledge, so not everyone can make the right decision. Again, due to lack of knowledge about trading, many people cannot manage and prepare for risks properly, due to which they take risks that are larger than their capabilities and suffer losses. In trading, you should be mentally prepared as well as financially prepared. You should make decisions by considering how much risk you can take. Everyone does trading to make a profit, but you should have realistic expectations without thinking about excessive profits. Because people make decisions beyond their capabilities due to unrealistic expectations and excessive greed.

[JeffBrad12]

Many people are harmed and develop bad habits due to the wrong trading method that says that trading with a large amount of money will double the profit. The success of trading depends on the combination of correct knowledge, practical experience and risk management. You have to accept this reality that you will not be able to profit in every trade, so you have to make decisions by accepting losses without using excessive leverage. And you also have to have the mentality of losing money. This is not a short path to income.

This is why I always think that the idea of demo accounts or trading with virtual funds is underrated. People don't want to use a demo account because they feel like it's not fun. Trading will never be fun, and should only be stressful if you are pursuing trading as a serious source of income. For any education, you spend at least 3-4 years towards it, so why not spend 6 months trading with a demo account and learn everything about trading? Take it as seriously as real trading and that's important because that helps one deal with the emotional part of trading.

Pretty sure that if you trade sincerely with enough knowledge and experience, you will easily surpass 50% of the traders who are just blindly trading because they have the money and they want to get rich quick.

A lot of folks find demo trading isn't fun because they don't have anything at stake which don't trigger adrenaline which is honestly the first mistake they need to overcome. Adrenaline isn't a factor that could determine whether a trade will be a good one or not. If they consistently learning through demo trading and track their profit i'm 100% sure they will find their flaws. Demo trading is a real data only with fake margin, the experience earned is still real minus the thrill.

[DanWalker]

A lot of folks find demo trading isn't fun because they don't have anything at stake which don't trigger adrenaline which is honestly the first mistake they need to overcome. Adrenaline isn't a factor that could determine whether a trade will be a good one or not. If they consistently learning through demo trading and track their profit i'm 100% sure they will find their flaws. Demo trading is a real data only with fake margin, the experience earned is still real minus the thrill.

But the key point is that controlling emotions plays an extremely important role in trading. In many cases, traders lose money not because of a lack of knowledge or experience, but because they control their own psychology. That is also why even traders who are considered expert can sometimes end up losing money.
Controlling emotions and greed is not as easy as memorizing knowledge about charts and candlesticks.

Trading is a combination of knowledge, experience, skills, risk management, and emotion. Meanwhile, demo accounts teach us almost nothing about managing emotions and risk. If you lack even one of these elements, dont expect to make a profit.

[Emitdama]

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.

Day trading is all about quick decisions because you don't really care about the price next week and you're focused on how the market will move today. To be successful, you need to keep your emotions out of your trades and simply react to what the market is telling you. If the market is signaling a bearish trend, you have to follow it, even if it goes against your own expectations or intuition.

I also don't think that 97% of day traders lose money, at least not in the long term or among people who take trading seriously. Maybe the ratio is closer to 60/40 or even 70/30, but I find it hard to believe that only 3% of day traders are profitable.

[Fredomago]

Many people are harmed and develop bad habits due to the wrong trading method that says that trading with a large amount of money will double the profit. The success of trading depends on the combination of correct knowledge, practical experience and risk management. You have to accept this reality that you will not be able to profit in every trade, so you have to make decisions by accepting losses without using excessive leverage. And you also have to have the mentality of losing money. This is not a short path to income.

This is why I always think that the idea of demo accounts or trading with virtual funds is underrated. People don't want to use a demo account because they feel like it's not fun. Trading will never be fun, and should only be stressful if you are pursuing trading as a serious source of income. For any education, you spend at least 3-4 years towards it, so why not spend 6 months trading with a demo account and learn everything about trading? Take it as seriously as real trading and that's important because that helps one deal with the emotional part of trading.

Pretty sure that if you trade sincerely with enough knowledge and experience, you will easily surpass 50% of the traders who are just blindly trading because they have the money and they want to get rich quick.

A lot of folks find demo trading isn't fun because they don't have anything at stake which don't trigger adrenaline which is honestly the first mistake they need to overcome. Adrenaline isn't a factor that could determine whether a trade will be a good one or not. If they consistently learning through demo trading and track their profit i'm 100% sure they will find their flaws. Demo trading is a real data only with fake margin, the experience earned is still real minus the thrill.

Yeah right, demo is useful if you take time to master your trade plans, though similar to what you've said there's no adrenaline as there's no real money that you'll going to gain, but in the learning side it is much better to have that kind of understanding as you'll be able to compensate with right sets of skills and good timing when you decide to put your hard earned money into a real trade after understanding having that good control over your emotions.

[Jatiluhung]

Many statements on this forum and even those I've read outside of it, indicate that the majority of traders experience losses, especially those who trade daily. The risk of losing money far outweighs the potential profit. Yet, we all understand that trading is not the same as investing, as it requires skill years of experience a strong psychological foundation, and proven discipline. Unlike investing, especially in Bitcoin simply having a basic understanding of Bitcoin is enough to invest in it for the long term.

Essentially, trading can be very profitable for a few who approach it seriously and understand it well. However, for most traders it's more like gambling because trading is a risky activity, especially if their understanding of trading is limited. This awareness is the most important first step when entering the crypto world, allowing them to make a wiser choice between investing and trading. However, the best advice is to focus on long term investments in Bitcoin, which has historically been much more favorable and carries a lower risk of loss for most people.

It’s actually quite common for those who trade every day to eventually suffer significant losses. This is because, typically, during the first three or four days, a trader still has good emotional control and can manage their emotions effectively while trading, allowing them to make consistent profits. However, most traders begin to experience losses on the fourth day, when their mental state makes it difficult to control their emotions. Sometimes they become overconfident and start trading with larger amounts of capital. and yes, they start to get greedy. Initially, they were patient enough to use modest capital and consistently made profits, but when they become mentally exhausted, they lose patience and try to make big profits faster. Usually, all their profits are wiped out when this happens, and they even end up in a losing position.

I’m sure many people have experienced this. And that’s why trading every day or even becoming a day trader is not recommended at all. Unless, perhaps, for those who are disciplined enough. But few people are capable of maintaining discipline consistently.