97% of day traders lose money

[Ayers]

It quite strange, I don't think it possible for 97% traders to lose, if that is the case then alot of people would have stop trading immediately they realise that it is more riskier than they thought. The fact about trading is that you will lose in as much as you win, and nothing can change that, When we try to measure the parameters of trading, you will realize that this is how it works. No one is going to deny the fact that gambling is risky, and there's a possibility for someone to lose at any moment, but it is still not stable to make judgement that 97% traders are losing. The problem that some people have is that they never share their success with others, but if they lose or the market didn't go well for them, they will tell all the world about it.

hardly anyone can make money from gambling, and very few people make money investing in memecoin or shitcoin. so why do they keep gambling and continue throwing money into shitcoin? i guess it is because they still hope that luck will eventually be on their side.

the same applies to trading. many trader believe that losing money is just a stage they have to go through before becoming successful trader. they believe that if they just keep trying a little longer, things will eventually change and their effort will pay off.
that mindset keeps them trading despite the huge losses they have already suffered.

i think most people prefer to show off their profit rather than admit their losses. very few people are willing to publicly acknowledge their failures because it hurts their pride.

[Compromise me]

It is possible that 97% of daily traders are losing, yet they still continue trading. People hardly give up easily.Let's take, for example, the rate of people who lose money and become addicted to gambling. They never stop gambling. In fact, there are some people who, since they started gambling a long time ago, have never won even once, yet they keep believing that one day they will definitely win.The same applies to trading. There are people who hardly make profits from their daily trading but still continue trading despite losing money. They may even lose all their capital, but they still do not give up.

Losses in readings occur repeatedly only when we do not stop trading after a loss. When we lose, we should take a break for a while instead of immediately making the next trade, because at that time the person is already worried and emotional. Decisions made in such a situation often turn out to be wrong and the loss can increase further. Therefore, it is important that we first control our emotions and then calmly analyze our previous trade to see why the loss occurred and always remember this mistake so that it is not repeated again. At the same time, we should also see how much this loss has affected our financial planning and how much risk it is appropriate to trade in the future. If we always keep these small things in mind and stick to our principles before each trade, then surely our unnecessary risks can be reduced to a considerable extent and we will be able to make better decisions.

[Halifat]

It is possible that 97% of daily traders are losing, yet they still continue trading. People hardly give up easily.Let's take, for example, the rate of people who lose money and become addicted to gambling. They never stop gambling. In fact, there are some people who, since they started gambling a long time ago, have never won even once, yet they keep believing that one day they will definitely win.The same applies to trading. There are people who hardly make profits from their daily trading but still continue trading despite losing money. They may even lose all their capital, but they still do not give up.

If you have not forgotten, gambling is very dangerous and a lot of people are still going into it, almost everyday people are learning on how gambling bring down a lot of people, but despite that they still went in thinking that the luck will be for them and that is how they continue to lose more and more. I consider daily traders as gambler also, if not because of that mindset that they have, they should have put more sense to their head to stop it, they always have the same belief with a gambler, because they always believe that luck will come to them. Majority of people lose when it comes to daily trading, the same thing when it comes to a gambling too.

[GeorgeJohn]

If you have not forgotten, gambling is very dangerous and a lot of people are still going into it, almost everyday people are learning on how gambling bring down a lot of people,

actually their no process you can make money with is the easiest process,  every process use to make money is dangerous..the only thing I can advice us is that we should understand that before gambling will bring us down that means we dont gamble with precaution, if we gamble with target or trade with targeted budget, we shall not lost out and even though we no lose, we shall not think otherwise.....

[Barikui1]

If you have not forgotten, gambling is very dangerous and a lot of people are still going into it, almost everyday people are learning on how gambling bring down a lot of people, but despite that they still went in thinking that the luck will be for them and that is how they continue to lose more and more. I consider daily traders as gambler also, if not because of that mindset that they have, they should have put more sense to their head to stop it, they always have the same belief with a gambler, because they always believe that luck will come to them.

First of all, you guys are gradually going off topic by turning this discussion into gambling discussion instead of trading.
But talking about the highlighted statement in your write up where you said that "you consider daily traders as gamblers". What makes you think or reason such way?

Because it makes no sense that because a trader trades everyday, you are now seeing such person as a trader that is gambling in the market, thinking that he might be lucky, but sorry to break this news to you bro, it's not every day trader that trades with a mindset of being lucky. Trading is not about being lucky, but it's by knowing what you are doing, because if you are lucky to win a trade now, just because you do not know what you are doing, you are definitely going to lose back everything, including your trading capital. So in essence of what am trying to say is that, it's wrong to proclaim that every day trader is gambling with the market, that's not true.

[OsaiEmma]

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.

Most retail traders can't help but be scalpers because they don't have the funds to make a long standing trade in a higher timeframe. If they try to do that, the stop loss will be too much for a single trade which will drastically reduce their capital if the trade goes against them.

I think trading should be done with good enough capital, like from $5k and above with a little leverage, that way, you can be somewhat profitable in the long run. That's just my take though not a financial advice (NFA).

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 ffrom.

Of course, it is very possible to make money from trading. As I said earlier, with a good capital and patience, one can for a surety make good profit from trading.

[BRINIRHA]

It quite strange, I don't think it possible for 97% traders to lose, if that is the case then alot of people would have stop trading immediately they realise that it is more riskier than they thought. The fact about trading is that you will lose in as much as you win, and nothing can change that, When we try to measure the parameters of trading, you will realize that this is how it works. No one is going to deny the fact that gambling is risky, and there's a possibility for someone to lose at any moment, but it is still not stable to make judgement that 97% traders are losing. The problem that some people have is that they never share their success with others, but if they lose or the market didn't go well for them, they will tell all the world about it.

Looking at some related articles on this subject the average losing trader is a day trader but that is understandable because the daily emotions and pressures will be much greater.

Only ~1%-1.6% are consistently profitable
97% of persistent traders lose money in some markets
80% of traders quit within 2 years
Only 7% are still trading after 5 years
~70% of retail FX traders lose money every quarter
Active traders underperform the market by ~6.5% annually

From this article we can even see how the performance of the trader although not explained the original source from which to research and percentage problems but 1 for sure that the trader is not a solution if indeed we are not really ready with it.
This also makes me careful not to be in a trader because for me it is beyond the capacity of my ability.

[CoinFoxs]

so from my perspective even though the market is compromised or manipulated that shouldn't give you the negative mindset that you will lose, losing in trading is depends on the strategies you use for your trading..

I think there’s little that’s more frustrating than seeing major players brazenly manipulate the price of a particular asset. However, an experienced trader will, of course, handle various market manipulations with greater composure. At the same time, inexperienced beginners are more likely to make emotional trading decisions in such situations, which inevitably lead to financial losses.

The big fishes invest their amounts in the coin and the coin start pumping by this daily traders also wants to earn profit and they also invested in that coin after volume increases the big fishes suddenly take safe or profitable exit from that coin by this act price drops suddenly and many panic traders sold their coins on loss. If they wait for few days the price will again reach that point from where the price start dropping. Trading is totally a mind game!

[Rubuchi]

actually their no process you can make money with is the easiest process,  every process use to make money is dangerous..the only thing I can advice us is that we should understand that before gambling will bring us down that means we dont gamble with precaution, if we gamble with target or trade with targeted budget, we shall not lost out and even though we no lose, we shall not think otherwise.....

that’s why there is this adage from our country that says “No food for lazy man” and it typically means that there is no way money is gotten easily and before wealth is made, however tiny it is, you have to work hard for it to come and not just sit there expecting some money to come into your pocket or account. Being it gambling, investment or trading, before you can make money, you have to work hard or work very smartly for it. If anybody out there thinks they can become rich with a single bet or single trade, they may be living in their bubbles as such things only happen once in a while.

[WatChe]

that’s why there is this adage from our country that says “No food for lazy man” and it typically means that there is no way money is gotten easily and before wealth is made, however tiny it is, you have to work hard for it to come and not just sit there expecting some money to come into your pocket or account. Being it gambling, investment or trading, before you can make money, you have to work hard or work very smartly for it. If anybody out there thinks they can become rich with a single bet or single trade, they may be living in their bubbles as such things only happen once in a while.

Efforts in right direction are essentials to get good results because if you are doing efforts in wrong direction then they won't be fruitful at all. If you are determined to make money and willing to do effort for that purpose then better go for trading instead of gambling. This is because if you invest your time and efforts in learning skills and techniques of trading then with time you will learn it or at least have some idea of it. Gambling on the other hand is just a matter of luck and you need to be lucky all the time to get profit from gambling, which is not possible.

[Adiljutt156]

Losses in readings occur repeatedly only when we do not stop trading after a loss. When we lose, we should take a break for a while instead of immediately making the next trade, because at that time the person is already worried and emotional. Decisions made in such a situation often turn out to be wrong and the loss can increase further. Therefore, it is important that we first control our emotions and then calmly analyze our previous trade to see why the loss occurred and always remember this mistake so that it is not repeated again. At the same time, we should also see how much this loss has affected our financial planning and how much risk it is appropriate to trade in the future. If we always keep these small things in mind and stick to our principles before each trade, then surely our unnecessary risks can be reduced to a considerable extent and we will be able to make better decisions.

Yes, you said it right in day trading there is so much pressure, stress, anxiety and emotion are involved which makes it hard. This is kind of self awareness we all need, smart move man . Don't assume market is 50/50 fair environment. Retail traders are actually fighting against the institutional algorithms that are designed to hunt their stop losses. Your statistics are right 99% of retail traders are just gambling using technical analysis charts, reading patterns, etc. Don't try to be smart and think you are 1% of the traders if you think so nobody can stop you. If someone understand and still chooses to do that, it is free will. We can simply present facts and rest is up to them. They can do what they want.

[WilliamCarter]

that 97% stat sounds wild af but honestly it ain't even cap. most ppl just glued to charts chasing pumps and panic dumping end up tasting the exact same dust.

[Ayers]

that 97% stat sounds wild af but honestly it ain't even cap. most ppl just glued to charts chasing pumps and panic dumping end up tasting the exact same dust.

the 97% figure may or may not be accurate, but one reality doesnt change, very few people make money from trading.
there is one fact we have to accept, trading is a game that very few people can win, whether in the short term or the long term. anyone who wants to become a trader should accept that before entering the market.

if there were actually a poll on this and everyone answered honestly, I would not be surprised if less than 1% were actually making money from trading 

[Don Pedro Dinero]

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?

Of course it could be true. A bet between you and me came about because of that – because I claimed that around 95 per cent of people lost, and if you add leverage into the mix, for example, or you have a high frequency of trades, the figure is much higher.

the 97% figure may or may not be accurate, but one reality doesnt change, very few people make money from trading.
there is one fact we have to accept, trading is a game that very few people can win, whether in the short term or the long term. anyone who wants to become a trader should accept that before entering the market.

if there were actually a poll on this and everyone answered honestly, I would not be surprised if less than 1% were actually making money from trading 

On this forum, for sure. Not even 1 per cent, and especially not those who usually post in this section.

[Bushdark]

It is possible that 97% of daily traders are losing, yet they still continue trading. People hardly give up easily.Let's take, for example, the rate of people who lose money and become addicted to gambling. They never stop gambling. In fact, there are some people who, since they started gambling a long time ago, have never won even once, yet they keep believing that one day they will definitely win.The same applies to trading. There are people who hardly make profits from their daily trading but still continue trading despite losing money. They may even lose all their capital, but they still do not give up.

If you have not forgotten, gambling is very dangerous and a lot of people are still going into it, almost everyday people are learning on how gambling bring down a lot of people, but despite that they still went in thinking that the luck will be for them and that is how they continue to lose more and more. I consider daily traders as gambler also, if not because of that mindset that they have, they should have put more sense to their head to stop it, they always have the same belief with a gambler, because they always believe that luck will come to them. Majority of people lose when it comes to daily trading, the same thing when it comes to a gambling too.

There are so many types of traders in the market and their are some that are only after making money only without trying to improve their skills so that they can make money from the market. Trading is all about learning and when you don't improve yourself in trading, losing trades will be inevitable and that can worsen with time. I don't blame those people that are gambling in the name of trading, accumulating losess since they are not sure of how to accurately analyze the market in their favour do they will not be gambling in the name of gambling.

[BItcoin Guy@]

Losses in readings occur repeatedly only when we do not stop trading after a loss. When we lose, we should take a break for a while instead of immediately making the next trade, because at that time the person is already worried and emotional. Decisions made in such a situation often turn out to be wrong and the loss can increase further. Therefore, it is important that we first control our emotions and then calmly analyze our previous trade to see why the loss occurred and always remember this mistake so that it is not repeated again. At the same time, we should also see how much this loss has affected our financial planning and how much risk it is appropriate to trade in the future. If we always keep these small things in mind and stick to our principles before each trade, then surely our unnecessary risks can be reduced to a considerable extent and we will be able to make better decisions.

When you stop trading when you notice you’re losing massively, that will make you become too addicted and you can’t see the value of your funds. Losing in trading is something natural, because you must lose before you can get more experience about what you’re doing. Some traders don’t really like to take risks with their funds, and that is among what is making them lose. Because if you didn’t take risks in trading, I’m not really sure if anything can work well for you as a trader.

The more you’re losing in trading, that is when your knowledge and understanding will be increasing, except you try to give up and focus on other ways out, losing doesn’t means trading won’t favour. we just need to be patient and follow trade guidelines.

[RockBell]

The 97% is not too much because, if you look at it, a lot of traders have refused to acknowledge that trading is not always guarantyd and that you need to take your time to learn. This is one of the mistakes that novices are making because they want to make money and don't want to learn that trading comes with a lot of responsibility. Only then will you do better because there are better ways to enjoy trading when you know what you are doing because there are too many expensive mistakes that will cost you money.

yet there are those who are even intelligent enough for them to learn, and there are novices who even go so far as to hire a mentor who will help them improve their trading skills. With the correct guidance, there will be less worrisome problems.

[GeorgeJohn]

When it comes to forex or futures trading, I'm sure many people experience losses. Although the 97% figure is too high. I've tried forex and futures, but it's a nightmare, I've even spent more money trading than gambling. I've given up on forex and futures and will never try again.

They're people who is making surplus profit from forex trading, why some people do experience losses...so one of the reasons why some people experience losses why on forex trading are following.. Lacks of experience in forex trading..Inability to acquire adequate skills or knowledge of forex... most of the people that experience losses doesn't have the basic knowledge as I outlined above, but they joined forex due to others are in forex..If you don't have the idea and you venture into it, you're just trying to risks your capital, that's why it's needful to at least obtain the preambles of forex before been independent .

[nelson4lov]

A lot of people think strategy is the most important thing in trading but they don't realize it's probably around 15 to 20% of the entire work or process. Some of the other main work include Journaling and the discipline to execute set out rules even in extreme situations that may include drawdowns. Those are some of the most boring part of the game and most people don't want to put in that work because of how boring it is. I don't blame them honestly because as someone that trades too, I understand how demanding it can be.

In addition to keeping journals, you also have to backtest, review live trade and backtest data frequently to figure out what works and what doesn't in order to focus more on what works. Very easy to say in theory.

[dwyane36]

A lot of people think strategy is the most important thing in trading but they don't realize it's probably around 15 to 20% of the entire work or process. Some of the other main work include Journaling and the discipline to execute set out rules even in extreme situations that may include drawdowns. Those are some of the most boring part of the game and most people don't want to put in that work because of how boring it is. I don't blame them honestly because as someone that trades too, I understand how demanding it can be.

In addition to keeping journals, you also have to backtest, review live trade and backtest data frequently to figure out what works and what doesn't in order to focus more on what works. Very easy to say in theory.

In theory, it all sounds easy, but in practice, things can be different. When it comes to maintaining a trading journal and analyzing it, it’s best to automate the process. At the very least, you can automate the data entry by importing transaction data in CSV format from exchanges, fortunately, since some CEXs allow you to request detailed transaction information.