Why do 90% of traders lose money? If you have ever researched trading, you must have heard the statistic '90% of traders lose money, only 10% make money.' This is not a fictional number, but the harsh reality of the market. But why is that? What causes most traders to fail? Today, I will share with you the core reasons why 90% of traders cannot survive long-term in this market. --- 1. Lack of knowledge and unrealistic expectations. Many people enter trading with the hope of getting rich quickly, thinking that just a few clicks can make money. They are attracted by advertisements 'earn thousands in a day', but do not realize that trading is a skill that takes time to hone. The market is not as easy as what you see online. If you do not equip yourself with enough knowledge about technical analysis, capital management, and trading psychology, then losses are inevitable. --- 2. Trading based on emotions, without a plan. A classic mistake of new traders is trading based on emotions:
Seeing the price rise sharply → FOMO jumps into the tradeSeeing the price drop slightly → Panic cuts lossesJust won a few trades → Overconfidence, entering large volumesJust incurred a loss → Want to recover immediately. When you let emotions lead, you will fall into a spiral of losing control. Trading is not a casino, and if you don't have a clear plan, sooner or later the market will punish you. --- 3. Overtrade - Trading too much. A new trader often thinks that the more trades they enter, the more chances they have to make money. But the truth is: The more you trade, the easier it is to lose money. Each trade has costs (spread fees, commission), and each time you hit the trade button, you are putting your account at risk. Professional traders know how to be patient, only entering trades when there are clear opportunities. Amateur traders keep jumping into the market continuously, leading to quickly evaporating accounts. --- 4. No capital management - Account blowout is just a matter of time. This is the main reason why most traders fail. A person may have a good strategy, but without a proper capital management plan, they will soon be eliminated by the market. Common mistakes include:
Placing trade volumes too large compared to the accountNot placing stop loss, or placing it too farPutting the entire account into a single trade. Losses are unavoidable in trading, but if you know how to manage capital, you can survive long enough to learn and grow. --- 5. No long-term mindset. New traders often want to 'eat right away', but professional traders focus on long-term profits. They understand that trading is an ongoing process, and maintaining the account is more important than making quick profits. If you want to become a professional trader, you must change your mindset: Do not seek immediate victories, but focus on building a sustainable trading system. --- Conclusion: How to avoid becoming part of the 90%?
Learn structured trading knowledge, do not chase 'get rich quick' coursesAlways have a clear trading plan before entering a trade?
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Limit overtrading, only trade when there are quality signalsTightly manage capital, set stop loss and only risk a small portion of the accountCultivate a long-term mindset, be patient with the process. If you have read this far, you have an advantage over many traders out there. Success in trading does not come from luck, but from discipline, patience, and continuous learning.
Have you ever made any of these mistakes? Please share to learn together!