Why Traders keep losing despite all the skills and strategies

[Hetha.io]

I think a lot of traders lose because they underestimate risk and think they have more control than they actually do.

Even with experience, it’s easy to get overconfident or take trades that just look good at first. And small mistakes, especially with leverage, can turn into losses very quickly.

[YOSHIE]

Why Traders keep losing despite all the skills and strategies

My experience is in crypto trading and I see those who have strategies or skills but they cannot avoid losses. In my opinion, strategies or skills do not guarantee that someone can always make a profit in trading on the crypto market.

But for those who have strategies or skills in crypto trading, at least they can reduce the risk of continued losses, meaning that trading is really determined by other factors, apart from the two skills in question, it could be luck and so on.

[irhact]

This make me to ask this question, and being someone who have experience some loses also, what exactly draw loses to traders regardless of their experience, skills and strategies, sometimes I use to think that exchange do manipulate the market but I also give up since I have no prove on that assumption.

Everything is involved right here, both the exchange are guilty the traders too are guilty and the market itself is just impossible to predict accurately all the time what is going to happen. It does not matter the experience that you have as a trader they are going to be times that you will lose and also times that you win what you just have to do is to make sure that you don't lose more than you win and always try to be in profit regardless of how the market is moving. Having all the skills of a good trader only won't make you become profitable without having a little bit of luck on your side.

[SquallLeonhart]

I remember the words (thoughts) of Poptop (an authoritative Bitcointalk forum member in 2017): "Traders typically remain effective for no more than one market cycle. As soon as a new cycle begins, the trader dies. What remains is human." 🙋

I find his words very wise... Indeed, each new market cycle is a complete reversal of all trends in the cryptocurrency market. That is, a trader has learned something, gained experience and knowledge, but as time goes on, all their skills and experience not only become completely useless but also begin to work against them.

What is experience? It's effective and efficient behavior patterns... However, when the market changes, old patterns cease to work. Where a trader once made a profit, they will now suffer losses. A novice will be more effective than an experienced trader. That's the paradox...

That is a good way of understanding how the market is working. I like that sentence, he was apparently a smart person who really understood the market. If you really do make a lot of money during one cycle, it's really hard to get out of that cycle and see the bigger picture.

Like in the bull period, if you are making a lot of money, then when you go into bear market period, you are not going to be able to adjust easily and most people end up losing, whereas they should have realize the market has changed instead. This is not easy and it's very "human" to not understand this type of situation and think that what we are doing, like what we achieve, will stay forever and will not change, when in reality, change is all around us.