Why day traders lose

[AGogi2003]

Correct learning never stops in trading and the more we pursue learning and increasing our knowledge about the market then the more we start making responsible decisions and make profits too. New traders always face this over confidence when trading is making high profits for them, but as a new traders they shouldn’t let themselves fall into this ocean of overconfidence instead they could help themselves out by not risking to much and if possible I’ll advice them not to increase their lot size and focus on the minimal one and make much profits first before thinking of taking high risks carelessly.

Traders won’t stop learning, because the moment you stop learning about trading, that is when you start losing more funds when trading. Knowledge and experience make you achieve profits in trading. Nothing always comes easy. If you really want to achieve your goal, you need to face some real challenges. And when you start chasing your capital in trading after you lose, that is the moment you start to fail. Because they don’t chase losses in trading if you really know what you’re actually doing. Taking high risk in trading is the worst thing someone can do when he has not become professional yet.

[Donk1]

​Well not all traders have the right amount of capital to hold the market for days. Still I understand your points because most folks chase daily profits in trading to an extent that they start seeing it as a job, whereby they will start having the wrong psychology of trading. Instead of entering the market with proper precision they start getting addicted, which leads to revenge trading because they need the daily profits for their expenses. That said what a trader needs to understand is that the market will not always be in your favor.On days whereby the market is consolidating or being unpredictable, the best move to take isn't to look for an entry level, but to study the market. Most times over consistency can even be an issue especially when you are too focused on the market with no rest. And while stop losses help minimize risks, it doesn't entirely fix the fact that the market is unpredictable. If your strategy as a trader often makes you to enter bad trades every day, the stop losses will just minimize the time as to which the market will blow your account that's all....

[pawanjain]

The thing is, when a trader starts trading and making money he gets overwhelmed with the easy money that he's initially got.
So he starts making bigger trades and end up losing money, then he gets impatient and starts throwing money on his trades.
In the process to recover, he loses more until the point of self realization hits and then he starts learning.
This is the learning process that most traders go through and it never stops. Some times we make money, some times we learn something.

How sure you are that it's easy money for the trader? Who knows? He might've held that trade for days, and being patient is hard especially when it comes to trading don't forget about that.

Based on what you're sharing, TBH that's me back then when I was starting to learn trading. Losing consecutive times, making bigger trades to recover those losses, being impatient that it came to a point where I feel that I want to recover it as quickly as possible, and in the end, I lost so much money and got liquidated at one point as well. During that time, I was looking at something and I haven't blinked for around 5-10 minutes I think.

At that time, I'm disappointed on myself because of what I did, but after 5-10 minutes, I took a bath, taught of my mistake, learned from it, and move on as well. Moving on is very hard to do especially if its hard-earned money, but if you want to be successful, you should learn how to do it. I stopped trading for weeks after getting liquidated BTW.
For me, there are way, way to many reasons why day traders lose, but let's not think that all of them are losing. There are still many out there that are making buckos off of day trading. Those are the ones who took years before they find a strategy that works for them and made consecutive profits on a monthly basis.

There's no one strategy that works every time. The markets changes and so does the outcome of our strategy every time the market changes.
Yes, not all traders might be losing money, some might be really good at what they are doing but there are many traders who do lose money.
It's the same story for me as well and I guess for many others too. Coming to the easy money part, some people do think trading is easy money initially when they make profits.
Just some clicks here and there and in some time you just made nice profits.

[Supreme Donvic]

The thing is, when a trader starts trading and making money he gets overwhelmed with the easy money that he's initially got.
So he starts making bigger trades and end up losing money, then he gets impatient and starts throwing money on his trades.
In the process to recover, he loses more until the point of self realization hits and then he starts learning.
This is the learning process that most traders go through and it never stops. Some times we make money, some times we learn something.

How sure you are that it's easy money for the trader? Who knows? He might've held that trade for days, and being patient is hard especially when it comes to trading don't forget about that.

Based on what you're sharing, TBH that's me back then when I was starting to learn trading. Losing consecutive times, making bigger trades to recover those losses, being impatient that it came to a point where I feel that I want to recover it as quickly as possible, and in the end, I lost so much money and got liquidated at one point as well. During that time, I was looking at something and I haven't blinked for around 5-10 minutes I think.

At that time, I'm disappointed on myself because of what I did, but after 5-10 minutes, I took a bath, taught of my mistake, learned from it, and move on as well. Moving on is very hard to do especially if its hard-earned money, but if you want to be successful, you should learn how to do it. I stopped trading for weeks after getting liquidated BTW.
For me, there are way, way to many reasons why day traders lose, but let's not think that all of them are losing. There are still many out there that are making buckos off of day trading. Those are the ones who took years before they find a strategy that works for them and made consecutive profits on a monthly basis.

There's no one strategy that works every time. The markets changes and so does the outcome of our strategy every time the market changes.
Yes, not all traders might be losing money, some might be really good at what they are doing but there are many traders who do lose money.
It's the same story for me as well and I guess for many others too. Coming to the easy money part, some people do think trading is easy money initially when they make profits.
Just some clicks here and there and in some time you just made nice profits.

Yes I agree with you, there is no strategy that is perfect, the strategy may be very good today but may not be in the future or as Time goes on, no strategy will give you 100% profit always.
Talking about traders that are very good and not losing, I don't think there's any trader no matter how good you are that is always making profit in trading, some will not tell you that they are losing, they will pretend an act as a very good trader but they actually lose sometimes, no trader on this earth will tell me that he does not lose and that he constantly make profit from trading without losing.

[JimaGod]

Day trading is better and appropriate for scalpers because they're one responsible for day trading and keeping the movement of the market swift. There's always this mistakes that's usually common between day traders and other traders. They're too carried away with the profits expectations and they forget about the losses expectations. Perhaps not everyone should be negative but truth be told, we expect absolutely nothing but the good and worse from the market.

Risk management should be properly enacted and executed in one's trade because we might just never know how the market is making us do things it want us to do, more like manipulation. The market is just complex and we used our strategies and principles to deal with it.

[TheUltraElite]

Day trading is better and appropriate for scalpers because they're one responsible for day trading and keeping the movement of the market swift.

True but day traders will always lost sight of the profit that they plan to stop at. It might or might not get reached, but they fail to stop at the proper time. More so because the market is having a big chunk of bots who are running their algorithms to trade and you are a human trying to outpace them which is humanely not possible.

Risk management should be properly enacted and executed in one's trade because we might just never know how the market is making us do things it want us to do, more like manipulation. The market is just complex and we used our strategies and principles to deal with it.

Also a reason why day trading is less preferred over long term holding by majority of the traders who are doing this over years. They dont actively buy every day but only during the drops and continue to hold for years. It drains you mentally and physically.

[Hatchy]

A trader that does not plan for heavy price fluctuations in his analyses will always be a failed trader. Stop lose can be used, but good trading is beyond stop lose. The most important thing is that if bitcoin fall 20% in just 15 minutes which is huge, how much are you willing to be losing at that price point which will determine the amount of money that you will be using for the trading. Most traders do not think like this.

All kinds of traders lose money, whether they are day traders, scalpers, or swing traders. The market is not always easy, so anyone who expects it to always favour them will be shocked when they start facing losses. What traders need to understand is that no matter how good they become, there are times when they need to take a break and let the market be. Winning too much can build confidence, but it can also affect your psychology and make you feel superior. Unfortunately, this is often when the market catches you off guard..There is nothing wrong with taking a few wins and staying away from the market for a while. There will always be good setups waiting for you if you are patient and disciplined enough.

[GeorgeJohn]

All kinds of traders lose money, whether they are day traders, scalpers, or swing traders. The market is not always easy, so anyone who expects it to always favour them will be shocked when they start facing losses. What traders need to understand is that no matter how good they become, there are times when they need to take a break and let the market be.

No trader that doesn't experience losses, nobody is 100% perfect in trading, Every trader make profit by luck, even experience trader, do trade with caution...that's to let you know that nobody is above losses and nobody is perfect in trading....
 

Winning too much can build confidence, but it can also affect your psychology and make you feel superior.

It's obvious that if you always experience profit in trading with your derived strategy, you will feel superior over people who's their losses is higher than the profit they make, basically if you derived a good strategy that leads you to make profit in trading, you're going to be comfortable and dependent on your strategies. Because it never failed you or disappoint you....