Why Do 99.9% of Traders Lose Money? Understanding Your Opponent Is Key

Most traders lose money because they don't know who their adversaries are. When you're trading contracts, do you know who’s on the other side of your trades? Often, it's the market makers. They sit on the opposite end of your orders, shaping the market dynamics.

🎯 Who Are Market Makers and How Powerful Are They?

Market makers are well-capitalized teams that operate strategically. Many projects enlist these specialized teams to help sell their issued tokens to traders like you. Essentially, they're your counterpart in the market.

Recently, the U.S. Securities and Exchange Commission (SEC) sued Binance, and a critical player in that lawsuit was a market maker named Sigma Chain. It turns out the actual controller of Sigma Chain is tied to a major exchange, which means trading on the exchange could feel like you're gambling against the house.

🤔 How Can You Profit Despite These Challenges?

It’s not impossible to make money, but success requires understanding and respecting the market. Here are key principles:

1️⃣ Focus on Stability and Managing Drawdowns: Ask yourself, what is your real goal? Are you aiming to double or triple your capital quickly, or are you seeking steady, long-term gains? Rational planning, avoiding big losses, and progressing step by step is critical for consistent profits.

2️⃣ Technical vs. Fundamental Analysis: For most traders, technical analysis is more relevant. Your holding period is likely between 4 hours and 7 days, and during this window, price movements are largely driven by battles between market makers and intraday traders.

3️⃣ Think in Probabilities, Not Predictions: No one can predict the future. But by thinking in probabilities, you can make smarter decisions and manage risk more effectively.

Trading Requires Specialized Knowledge, Discipline, and a Clear Strategy

Trading is a profession, not a get-rich-quick scheme. It demands specialized knowledge, clear strategies, patience, and determination. Always approach the market with humility and caution, but don’t be afraid to face challenges boldly.

Despite the influence of market makers, news, and shifting dynamics, being prepared with a clear plan gives you the potential to succeed. Trading isn't a sprint—it's a marathon. Success comes to those who stay patient and persistent.