Why Most Retail Traders Fail

[Shaf]

Majority of traders get attracted to it due to the possibility of gains that one can make, especially with the high volatility of crypto allowing huge profits inna short time. Along the way, most fail and low their capital.

One of the main problems is the initial perception of trading. The online community, particularly bloggers and vloggers have made it seem like a quick way to get rich. Some people are that lucky, but a lot of retail traders just end up being ''dumb money" for whales. New traders need to get into trading with the mindset that it is not easy and one can fail woefully without proper risk management.

Another reason, closely related to the first is the traders themselves. Trading makes one feel intense emotions like fear and greed. Unless there's a balance and control here, most traders go for revenge trading when they lose money, or they ignore profit taking in hopes of gaining more.
This effect is amplified by the knowledge that each single trade affects your capital, whichever the trade goes. This is one of the hardest things to manage as a retail trader and proper control can give the trader a powerful edge.

 

[Sotherefore]

Probably the reason why so many people may not be succeeding in cryptocurrency is not because they are afraid. Everyone when they are trading cryptocurrency will have some fear but how they can control this fear to a point that they take their profit on time is always what really matters..

I believe there are only two things that could make people to lose in cryptocurrency . The first one is agreed and the second one is lack of understanding . when These two things are being put together there is no way you can succeed in the crypto space without losing . .

I have seen so many traders that are trading cryptocurrency profitably without losing , all still lies on the fact that they are disciplined to take their profits on time . Its not just about learning how to trade cryptocurrency but learning the right time to take profit is very important

 

[moonchild]

Forex is like every other career out there that has an outsized returns where only the best make all the money and the remaining others only hang in there praying / hoping for a breakthrough that isn't going to come, think about singing, how many people are into music, a lot that they can fill a small island country and maybe they're even better than the contemporary ones.

But we only have few superstars, few Grammy winners, most people are not willing to do the work or go hard enough to transform themselves to the person they want to be, it's all talk.

 

[Suba]

As far as I know, most retail traders fail because they take too much leverage or are over leveraged compared to their abilities. Retail traders and beginners are better off focusing on protecting capital and only aiming for small consistent profits, leverage can increase as skill or ability also increases. Apart from that, generally retail traders also have low risk management, or they don't use stop orders so that if crypto prices fall they often get margin calls and their capital also runs out.

 

[ImamShaheb]

Because they are impatient! Imagine holding this from $10!!