More than 90% of traders lose money. Why is that?

Why so many traders lose money
Why so many traders lose money

Key Takeaways🔑

90% of traders lose money due to inconsistency and lack of a solid trading plan.
The remaining 10% who profit from trading maintain a consistent approach and stick to their tested strategies.
Successful traders choose a select number of markets and assets, learn them thoroughly, and apply suitable strategies.


Why around 90% of all traders lose money at Olymp Trade and how to end up in the remaining 10%?

According to Olymp Trade statistics, around 90% of all traders lose money on the platform. This is only leaving 10% who are earning. Of course, this 90% were not planning to lose their funds. They may even occasionally open winning trades. But in the end, the profit is too small to cover a huge loss.

Why the percentage of traders who lose is so high?

Incoherence is the number one reason. These traders are familiar with various markets and strategies and they want to use it all. They think this is the way to maximize the profit. Trading on several markets, multiple assets,and different strategies. All at once.

Besides, they are not faithful to the previously created plan. Taken together, all this will ultimately generate massive losses.

More than 90 percent traders lose money
More than 90 percent of traders lose money

So the main reason behind losing money trading is using too many strategies at once. Imagine that you have come across a new trading strategy that seems to be flawless. You want to try it right away.

You open some transactions that end up successful. Encouraged, you invest bigger money. This time you lose. Annoyed and frustrated you cross the strategy off your list and search for the one.

Is the new one will be really better? You should check precisely what had caused your loss. Maybe this strategy is accurate only on the trending market? Or maybe just on ranging? This is what you should check before giving up on a particular strategy.

These are the reasons why so many traders lose their money. Now is the time to discover how the other 10% win.

How around 10% of traders generate profit at Olymp Trade?

The reason why 10% is actually making money at Olymp Trade is coherence. What coherence? In using trading strategies, to begin with.

This group of traders is using just a few strategies. They do not jump from one to another. They analyze them and choose what is working. And the thing is there are no better and worse strategies. What matters is when you use a particular strategy and on which market.

For instance, they have one strategy for currencies and they will apply it merely when the market is trending. They will use another one for commodities on the ranging market.

It is quite important to understand that a specific strategy may work excellent under some conditions (a certain type of asset, trending/ranging market), but you need to find a different one when the situation changes.

How to be successful trader on Olymp Trade
How to be a successful trader at Olymp Trade

A few steps to success on the Olymp Trade platform

Number one is to use the Olymp Trade practice account well. This is a place where you should try every new strategy. And not only once, but until you feel comfortable using it.

Number two is to decide where you wish to trade. Choose the markets that fit your trading style and apply appropriate strategies. The best would be to choose just a couple of markets that are related.

Let’s say you favor currencies. Good, choose two, maybe three pairs. Do you prefer commodities? Then pick silver and gold, for example. Why just a couple of markets is better? Because you have time and opportunity to get them to know well. With a little bit of practice, you will start to notice repeatable patterns and you will read the chart faster. And this puts you in a better position than 90% of users are.

The next step is to choose the period of the candles and the duration of the trade. So this point is about timing. I prefer 5-minute interval candles while the trades last from 15 up to 30 minutes. I think the technical analysis is much simpler like this.

Do not forget about the right choice of the indicators and the type of chart. My recommendation is the candlesticks chart as it is easy to follow.

The last step I want to describe here is the selection of the money management strategy. This will include measures you need to take to protect your money and the amount of your investment. Remember, that it is better to make a profit slowly but consistently than lose everything. Invest rather a small amount in a single transaction so you will not lose a lot when the trade fails. If you are a currency trader, set always stop loss to secure your funds.

Trading without strategy is pointless
Trading without a strategy is pointless

Your success depends on many things. The main is consistency in choosing the right trading strategy in the right market. Then there are other decisions you will need to make that I described above. Capital management, as well as emotional control, cannot be underrated.

Know the market of your choice

As I said before, you should focus just on a couple of markets.

To know the market you need to analyse the price movements. Look at the most recent period on the chart. It will provide clues as to whether the prices are ranging, going up or there is a downtrend. You will then, based on this piece of information, decide on your further actions. Is it a good moment to open a position or is it better to wait for the more encouraging situation on the market?

You need to know the market in order to be successful
You need to know the market to be successful

It is crucial to know when to enter the trade. But to know when not to open a position is no less important. When you understand the market and use the appropriate strategy, to distinguish the two above should not be a problem.

Pros and Cons of Trading on Olymp Trade👍👎

Pros: 👍

  • Access to a wide range of markets and assets.
  • Provides a practice account for strategy testing and training.
  • Offers educational resources to enhance trading knowledge.

Cons: 👎

  • A high percentage (90%) of traders lose money.
  • Requires time, patience, and consistency to become profitable.
  • Success largely depends on self-discipline and emotional control.

Comparison: Successful vs Unsuccessful Traders

Successful Traders Unsuccessful Traders
Maintain consistency in their approach. Inconsistent and frequently change strategies.
Focus on a select few markets and assets. Diversify too much, leading to lack of focus and understanding.
Invest time in market analysis and research. Often neglect thorough market research.
Have a sound money management strategy. Lack a proper money management plan.

Concentrate on one market only

It is good to focus on one market
It is good to focus on one market

Especially in the beginning, it would be wise to focus just on one market, preferably currencies. You want to become a trader who can increase your account balance. Switching from one asset to another will not help you to reach your goal. But trading only one instrument will allow you to know the market well and to apply the strategy that works.

When you understand the market and have some experience in it, you become faster, your decisions are more accurate and you feel comfortable trading. This is a good way to increase your likelihood of succeeding.

Although in this industry, the only guarantee is hard work! There is no magic formula, you will experience some losses and you just have to accept it sometimes.

I wish you an enjoyable experience!

Q&A: Common Queries About Trading on Olymp Trade🎯

  • Q: Why do 90% of traders lose money on Olymp Trade?
    A: Most traders lose money due to inconsistency, lack of a trading plan, and insufficient market analysis. They often jump between different strategies and assets without a clear understanding of them.
  • Q: What are the key characteristics of successful traders?
    A: Successful traders maintain a consistent approach, stick to a handful of tested strategies, focus on select markets and assets, and invest time in thorough market analysis. They also have a sound money management plan.
  • Q: How can I improve my trading skills on Olymp Trade?
    A: You can improve your trading skills by practicing on the Olymp Trade demo account, learning from educational resources, and developing a consistent trading and money management strategy. Analyzing the market and understanding the assets you trade is also crucial.
  • Q: Is Olymp Trade suitable for beginners?
    A: Yes, Olymp Trade is beginner-friendly. It offers a practice account and educational resources for beginners to learn and practice trading. However, like all trading platforms, there is a risk of losing money, so it’s important to trade wisely.
  • Q: How can I avoid losing money on Olymp Trade?
    A: While there’s no guaranteed way to avoid losses entirely, you can reduce the risk by maintaining a consistent trading approach, sticking to your tested strategies, thoroughly understanding the markets and assets you trade, and following a sound money management plan.

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Bart Bregman

Full time day trading, and helping out with Olymp Trade wiki in my spare time to create an awesome platform for beginners. I'm a digital nomad that travels the world while working from everywhere!

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