Why do 90% of traders lose money?
If you have ever researched trading, you have likely 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 in this market.
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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 earn them money. They are attracted by ads saying "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, losing money is inevitable.
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2. Trading based on emotions, without a plan
A classic mistake of new traders is trading based on emotions:
🔹 Seeing prices rise sharply → FOMO jumps into the trade
🔹 Seeing prices drop slightly → Panic cutting losses
🔹 Just won a few trades → Overconfident, entering a large position
🔹 Just lost → Want to recover immediately
When you let emotions lead, you will fall into a spiral of losing control. Trading is not gambling, and if you don't have a clear plan, sooner or later, the market will punish you.
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3. Overtrade – Trading too much
A new trader often thinks that the more trades they make, the more opportunities they have to earn money. But the truth is: The more you trade, the easier it is to lose money.
Every trade has costs (spread fee, commission), and each time you hit the button to trade, you are putting your account at risk. Professional traders know how to be patient, only entering trades when there is a clear opportunity. Meanwhile, amateur traders keep jumping into the market continuously, leading to their accounts evaporating quickly.
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4. Not managing capital – Account blow-up 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 reasonable capital management plan, they will soon be eliminated by the market. Common mistakes include:
🔸 Setting the trade size too large compared to the account
🔸 Not setting stop loss, or setting it too far
🔸 Putting 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.
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5. Lack of a long-term mindset
New traders often want to "eat immediately", but professional traders focus on long-term profit. 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: Don't seek immediate victories, but focus on building a sustainable trading system.
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Conclusion: How not to become part of the 90%?
✅ Learn structured trading knowledge, do not chase after "get-rich-quick" courses
✅ Always have a clear trading plan before entering a trade
✅ Limit overtrading, only trade when there are quality signals
✅ Strict capital management, set stop loss and only risk a small part of the account
✅ Cultivate 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? Share to learn together!