Why day traders lose

[WhoYouCantKill]

Actually day trading is getting more and more tougher ever since Donald Trump gets into the white house, I think most day traders are losing money with all the unstable events around the world created by Donald Trump with his massive tariffs war and also the Iran war. Analyzing candlestick chart patterns does not seems to work well anymore for day trading, as just a single tweet from Donald Trump on Truth Social are more than enough to create a huge impact in the stock market.

I hate Trump and the current US admin for the instability they have caused around the world. But blaming him for every problem we face in life, including trading losses isn't fair.

The truth is trading is one of the hardest thing to do, and the percentage of trader who actually make money has been extremely low for years. This is nothing new. Even when the market were more stable, most trader still couldnt stay consistently profitable.

No one would be wrong for criticizing D Trump and his administration for the policies they made that have potentially created several uncertainties, but you’re right that we’ll be missing the bigger picture if we also pin every trading losses we experience on them too. Right from time, trading has always been very difficult and this has absolutely nothing to do with trump or his admins, and that’s why those who are actually profitable in trading are always the minority and the majority are those who lose more often. It’s true that political events can affect the market in some ways, but the truth is that, even in calmer periods, the markets will still be volatile, our fate in the market is usually based on our own decisions and analysis.

[Dareo]

-snip-

The problem with day trading is not only changing strategies but also the habit of over trading. Even though the market creates new situations every day, if you try to adopt new strategies every day your decisions can become more random. However I do not agree that luck is necessary in trading. In the short term, luck will have an effect but in the long term, risk control and following your strategy are more important, rather than confidently expanding your position after seeing a few profitable trades, the real skill is to be able to maintain capital even in bad times.

[shawonngp]

Aside from sudden market fluctuations, most losses result from mistakes made by day traders whether due to carelessness, emotions, or other factors and in reality, being a day trader is a very demanding task because you face a market full of temptations every day.

Some people who claim they are day trader, don’t even have proper knowledge about trading, they don’t know the things which they are suppose to put in place as a day trader. Some newbies rush to start trading because they are desperate to make money, people like that will just end up losing money instead of making profits.

Day trading is not something we are suppose to rush into, we are suppose to take our time to learn about it, we will always take our time to properly analyze the market before entering a trade, and we know bitcoin price is just kind of difficult to predict, so after some analysis we might still be wrong sometimes, that’s why even professional day traders do lose often.

Most newbie traders claim to be day traders. But their trading knowledge is insufficient, and they also think of trading as very profitable, starting trading in a rush without any research. But at the end of the day, they end up losing. So I believe anyone can start day trading, but it is very complex and risky, requiring a lot of research before starting; I have even seen many experienced traders fail here. Therefore, if someone claims to be a day trader, there is no benefit if they cannot make successful trades. The more someone rushes to start trading, the quicker they will lose, because trading is very much a psychological matter, and decisions must be made after a lot of analysis. Any coin prediction is too difficult, but BTC is a long-term holding coin; you don’t need more analysis to invest in Bitcoin.
 

[Arenga pinnata]

The problem with day trading is not only changing strategies but also the habit of over trading. Even though the market creates new situations every day, if you try to adopt new strategies every day your decisions can become more random. However I do not agree that luck is necessary in trading. In the short term, luck will have an effect but in the long term, risk control and following your strategy are more important, rather than confidently expanding your position after seeing a few profitable trades, the real skill is to be able to maintain capital even in bad times.

Over trading can indeed lead to mental exhaustion for the trader. As a result, they may succeed in their initial trades because their analysis is still grounded in a stable mindset. however, as they continue to repeat this process, their mental state begins to wear down without them realizing it. And typically, the longer someone stays in the market, the more their emotions will influence every decision and analysis they make. This is where we need consistent time management and risk management. Staying disciplined is certainly difficult, but avoiding overtrading is a necessary step to maintain emotional stability and preserve a trader’s mental well-being. Greed is also sometimes triggered by overtrading.

[Supreme Donvic]

Aside from sudden market fluctuations, most losses result from mistakes made by day traders whether due to carelessness, emotions, or other factors and in reality, being a day trader is a very demanding task because you face a market full of temptations every day.

Some people who claim they are day trader, don’t even have proper knowledge about trading, they don’t know the things which they are suppose to put in place as a day trader. Some newbies rush to start trading because they are desperate to make money, people like that will just end up losing money instead of making profits.

Day trading is not something we are suppose to rush into, we are suppose to take our time to learn about it, we will always take our time to properly analyze the market before entering a trade, and we know bitcoin price is just kind of difficult to predict, so after some analysis we might still be wrong sometimes, that’s why even professional day traders do lose often.

but BTC is a long-term holding coin; you don’t need more analysis to invest in Bitcoin.
 

Yes you are right BTC is actually a long-term holding cryptocurrency however there's still people who are trading BTC in a short term.
But the fact is that trading Bitcoin is actually very risky and should be avoided if you are new to cryptocurrency however if you are so desperate to trade Bitcoin you need to use only your discretionary income to do that.
But to make everything very clear long-term bitcoin investment is the best because it is less risky and it will give you a very good profit if you can be patient.

[cxtreenal]

-snip-

The problem with day trading is not only changing strategies but also the habit of over trading. Even though the market creates new situations every day, if you try to adopt new strategies every day your decisions can become more random. However I do not agree that luck is necessary in trading. In the short term, luck will have an effect but in the long term, risk control and following your strategy are more important, rather than confidently expanding your position after seeing a few profitable trades, the real skill is to be able to maintain capital even in bad times.

Some folk blame luck for profit or loss. Day trading strategy can be considered very simple but you have to take maximum risk. When the objective is to make profit through trading, you have to have the attitude to change the day trading strategy. The market will be volatile most of the time and you have to assume that your portfolio will not be profitable most of the time. In my experience, the situation is unfavorable for traders most of the time and the stop loss strategy cannot be implemented in most cases. When the expectation of profit withdrawal becomes less likely, the pressure to sell at a loss increases. If you want to continue to make profit on any position, you need to have a long term plan while trading.

[Popkon6]

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.

In terms of trading, I manage my money more carefully, because I know that day trading is very risky and there is no chance of making a lot of money. But if you use this day trading to make a small amount of money, then it is suitable for you, but whenever you expect to get a large amount of money, you will have a greater chance of losing. However, it will be identified as one of the strategies of trading according to percentage,
if a trader can create the ability to make a profit using his own strategy, then he will have more savings. Because he can definitely verify my process of trading the market daily through good research.

[Antotena]

Some folk blame luck for profit or loss. Day trading strategy can be considered very simple but you have to take maximum risk. When the objective is to make profit through trading, you have to have the attitude to change the day trading strategy. The market will be volatile most of the time and you have to assume that your portfolio will not be profitable most of the time. In my experience, the situation is unfavorable for traders most of the time and the stop loss strategy cannot be implemented in most cases. When the expectation of profit withdrawal becomes less likely, the pressure to sell at a loss increases. If you want to continue to make profit on any position, you need to have a long term plan while trading.

Well luck is part of trading but you can't even have the luck if you don't know how to make a trade. Trading isn't like gambling where you can just look at a game and say since I think a team is good and won their last match, you can pick a trade because you think they did well last time they will do the same the next time you tried them. You need to learn about technical analysis and fundamental analysis to understand how to make profits from trading.

This one is controversial but I believe that you need to learn how to understand how market manipulation work and I'm not even talking about how the market is manipulated across other forex exchanges, they are not the same with crypto. You need to understand how tokens are concentrated on wallet of exchange, the team, the market makers and a lot more who is capable of manipulating the market, mostly anyone who has large supply controls the coin pairs in the market.

[Swordsoffreedom]

No one would be wrong for criticizing D Trump and his administration for the policies they made that have potentially created several uncertainties, but you’re right that we’ll be missing the bigger picture if we also pin every trading losses we experience on them too. Right from time, trading has always been very difficult and this has absolutely nothing to do with trump or his admins, and that’s why those who are actually profitable in trading are always the minority and the majority are those who lose more often. It’s true that political events can affect the market in some ways, but the truth is that, even in calmer periods, the markets will still be volatile, our fate in the market is usually based on our own decisions and analysis.

Over the years, hundreds even thousands of studies have shown that most trader lose money.

There are not many traders who became successful during the Obama or Biden administrations either. So it is kind of funny to blame Trump for our losses.

Trading isn't an easy way to make money like many people think. The market is always going to be volatile, no matter who's president, and the outcome depends a lot on how you trade, how well you manage your risk, and the decisions you make.

[WhoYouCantKill]

Over the years, hundreds even thousands of studies have shown that most trader lose money.

There are not many traders who became successful during the Obama or Biden administrations either. So it is kind of funny to blame Trump for our losses.

Trading isn't an easy way to make money like many people think. The market is always going to be volatile, no matter who's president, and the outcome depends a lot on how you trade, how well you manage your risk, and the decisions you make.

Well people can really do and say crazy things out of ignorance or just because they hate the current administration and want to blame them for literally everything, even the smallest things that clearly isn’t their fault, or maybe they just heard people saying such things, and without even actually considering how true that is, they accept it and are equally spreading the same misinformation.

One of the reasons I don’t always like to trade is simply because of the complexities that comes with analyzing the market, not saying investment doesn’t come with its own complexities too, it does, but trading is just far more risky because there’s never a proven way of actually making it in trading, unlike investment.

[Pressurizedem]

Day traders lose most times because  they do not take calculative steps before trading, they do not make research on the coin they want to invest in, they do not stay the market before putting in money, these and many more are the reason day traders always fail while trading.  I am not saying if you do the opposite of all I mentioned, that there is guaranteed that you will not lose again, No, I am only dying before trading, you must learn certain trading skills that will help you know when the market is bad, when to trade and when not to trade.. I believe if you know this, there is tendency that you won't lose often in trading.

And for those who trades often, it is adviceable to reduce the amount of money you invest into trading because when you lose, you have yourself to blame and no one else.

[Big Dirams]

Yes you are right BTC is actually a long-term holding cryptocurrency however there's still people who are trading BTC in a short term.
But the fact is that trading Bitcoin is actually very risky and should be avoided if you are new to cryptocurrency however if you are so desperate to trade Bitcoin you need to use only your discretionary income to do that.
But to make everything very clear long-term bitcoin investment is the best because it is less risky and it will give you a very good profit if you can be patient.

Bitcoin is suitable for long term holdings because with long term the chances of profits and high returns increases. Trading bitcoin might sometimes looks risky to trade but with good strategy and the right knowledge then even new traders can find profits in trading bitcoin but holding bitcoin is less risky and can be quite profitable in long term holding for new investors even if profits isn’t guaranteed.
Some investors lacks the idea of being patient when they are holding and they just rushy take profits as soon as they see their holdings on greens and that mindset is not a long term mindset and the values of bitcoin won’t be seen properly on their holdings.

[Iranus]

Bitcoin is suitable for long term holdings because with long term the chances of profits and high returns increases. Trading bitcoin might sometimes looks risky to trade but with good strategy and the right knowledge then even new traders can find profits in trading bitcoin but holding bitcoin is less risky and can be quite profitable in long term holding for new investors even if profits isn’t guaranteed.
Some investors lacks the idea of being patient when they are holding and they just rushy take profits as soon as they see their holdings on greens and that mindset is not a long term mindset and the values of bitcoin won’t be seen properly on their holdings.

I don't think so. I believe that even if you have a good strategy and the right knowledge, you still may not be able to make a profit from trading.

If trading were that easy, if all you needed was strategy, knowledge and experience, there would not be so many losing traders.

Trading is very risky, not just seemingly risky, and especially with day trading, it's basically gambling, where you rely heavily on luck to win. Holding is still a better way to make money from Bitcoin.

[Big Dirams]

Bitcoin is suitable for long term holdings because with long term the chances of profits and high returns increases. Trading bitcoin might sometimes looks risky to trade but with good strategy and the right knowledge then even new traders can find profits in trading bitcoin but holding bitcoin is less risky and can be quite profitable in long term holding for new investors even if profits isn’t guaranteed.
Some investors lacks the idea of being patient when they are holding and they just rushy take profits as soon as they see their holdings on greens and that mindset is not a long term mindset and the values of bitcoin won’t be seen properly on their holdings.

I don't think so. I believe that even if you have a good strategy and the right knowledge, you still may not be able to make a profit from trading.

If trading were that easy, if all you needed was strategy, knowledge and experience, there would not be so many losing traders.

Trading is very risky, not just seemingly risky, and especially with day trading, it's basically gambling, where you rely heavily on luck to win. Holding is still a better way to make money from Bitcoin.

My bad I didn’t added more clarification and thanks for the correction. Knowledge alone and strategy can’t yield profits in trading but when some other source add to it like patient, Technical analysis, fundamental analysis and other tools too then profits can be made but not guaranteed also.


However I agree with you on the contrary of trading being risky but I disagree on your point on “day trading is basically gambling and luck is heavily what traders rely on”. I disagree on that, day trading can’t be considered as gambling and luck isn’t what traders totally rely on, if luck are what we rely on how do we explain the profitable and professional traders? Were they always lucky till they became profitable and professionals?
 Luck plays it role in trading but there are many things that are put into practice before luck plays it’s role and relying on luck alone in trading won’t take us anywhere so a trader we need substantial knowledge and a lot more than that before making profits in trading.
With luck profits can’t be made consistently. However there are traders making more of profits than losses, and this is base on their substantial knowledge and experience in the market.