Why Do 80–90% of New Traders Lose Money? A Valuable Lesson for Beginners Entering the Market

A new trader is very brave and wants to "place an order right away" to make money, but in reality, statistics show that 80-90% of new traders will lose money within the first few months. The reason is not that the market is "too difficult" or "unbeatable," but rather that they overlook important foundational knowledge.

1. Impatience – The Illness of Newcomers When first entering trading, most people think that they just need to learn a few indicators, watch a few clips online to make money. But in reality, trading is a game of struggle and expression. Newcomers often jump into orders too quickly without understanding which direction the market is trending. Seeing the price move strongly is falling into the FOMO trap ( fearing to miss the opportunity ). Result: Burned accounts, lost trust, and fixing errors for the market.
2. Basic Knowledge – The Overlooked Step A trader who wants to survive must know: Read the symbols to understand the market's mindset. Trend structure ( trend, peak - trough ) to identify reasonable buy and sell points. Support – Resistance to determine risk. Manage capital to avoid "dying" after just a few orders. But most new traders overlook this; they rush to learn about "the secrets to winning 100%" or follow signals from KOLs, instead of building a platform for themselves.
3. Capital and Risk Management – The Secret of Survivors In trading, no one wins forever. Even the best traders make wrong orders. One difference lies in how they manage their capital: There is no risk of an error exceeding 3-5% of the account for an order. Know how to set a stop-loss level to protect capital. Almost gradually, not greedy "eating fruits and waves". Newcomers often overlook this. Just one all-in order can clear the account.
4. Psychology – The Biggest Enemy Research shows that over 70% of a trader's erroneous decisions come from emotions rather than techniques. Error → urgent order to remove. Apology → Regret, not closing → returning to the error. Reading the news → losing calm, trading based on emotions. New traders often fall into this spiral, and that is the reason for a 90% failure rate.
5. The Right Path for New Traders If they want to survive and grow, new traders need: Learn foundational knowledge (, trends, capital management ). Practice with a small or demo account before increasing capital. Write a trading diary to learn from each order. Maintain discipline and a strong mindset, treating trading as a dangerous job, not a game of chance. 📌 Conclusion Trading is not so hard that success is impossible, but it is also not as easy as the advertisements claiming "x10 your account in 1 month". The biggest trap is impatience and a lack of foundation. Those who know to slow down, learn, and practice discipline will be the ones who endure in the long run.