Why do 90% of day traders lose in stocks and FX? Day trading is an investment method that aims to make a profit by repeatedly buying and selling in a short period of time, but in reality, many people lose. We will list some of the main reasons and consider how to reduce losses.
Why do 90% of day traders lose?
Why do 90% of day traders lose? The reasons can be summarized as follows. Can day traders win every day? Are they winning or losing? We will explain the truth. If you do it wrong, you could end up being a sucker. When entering stock, stock price, or currency charts, whether buying or selling, you need to analyze the market. This is what makes a winning investor. It all depends on how you find the trend and invest your money. This is the secret to winning without losing in stock investment.
Emotional trading
Day trading requires instantaneous decisions, so emotions have a big impact on the results. When losses occur, impatience or fear can lead to unplanned trades, which can lead to even greater losses. Conversely, when profits are being made, people can become overconfident and make reckless trades. To avoid this, it is important to stay calm, not be swayed by emotions, and trade as planned. It is recommended that you keep a firm grip on your emotions.
Excessive risk taking
Day traders often use excessive leverage in the hope of high profits. However, if you use too much leverage, you run the risk of suffering large losses even with small price movements. Repeated leverage trading without adequate risk management increases the chances of losing funds in a short period of time. It is important to manage risk appropriately and trade within your own tolerance.
Excessive trading (overtrading)
Day trading aims to make profits in a short period of time, so it is possible to make multiple trades in one day. However, frequent trading can lead to accumulated fees and spreads, which can put a strain on profits. There is also the risk of making low-confirmation trades in an attempt to force a trade opportunity. It is important to focus on quality rather than the number of trades.
Lack of understanding of the market
Day trading requires the ability to quickly grasp market movements and the impact of news in real time. However, many beginner traders trade without fully understanding the market mechanism and the characteristics of the stocks, and as a result, they incur losses. In order to be successful in day trading, it is necessary to gain sufficient knowledge and experience and develop the ability to read market movements.
Lack of trading strategy
Day trading without a clear strategy or plan can lead to unplanned trading. In order to keep winning, it is important to set and follow specific trading rules, such as entry and exit criteria, stop-loss points, and profit-taking timing. Without a strategy, you will often end up trading haphazardly and losing money. If you lose too much, you may need to make changes or improvements afterwards.
Lack of experience and gap in expectations
Day trading is a difficult trading method, so it is important to gain experience. However, many beginners expect big profits in a short period of time and set unrealistic goals. As a result, they often suffer from the gap between expectations and reality and suffer unexpected losses. In order to succeed in day trading, it is important to gain experience over time and accumulate small successes. This is always the case when you start working on sports content. It’s all the same.
Inadequate trading environment
Day trading requires quick decisions and execution, so it is important to have a good trading environment. If your internet connection is unstable or if the trading platform you are using is inappropriate, you may not only miss an opportunity, but also incur a loss. The key to success is to have high-performance trading tools and an environment that allows for quick execution. It is important to think of the basics, ways of thinking, and methods simply, rather than as skills or tricks. Those who are able to create a situation where they can earn a stable income after that think very simply.
Not taking proper rest
Day trading is very stressful. If you continue to concentrate on trading for a long time, fatigue can accumulate and your judgment can become impaired. If you do not take proper rest, you will not be able to make calm decisions and will be more likely to lose as a result. It is important to maintain concentration by taking appropriate rest and refreshing both your body and mind. Depending on the category and style, it is important to study patterns well, learn about big ups and downs, and take a break when it is time to rest. Once you enter, professionals take a long-term view until it is confirmed.
Introducing overseas FX with high contract power
Now, let’s introduce some overseas FX companies with high contract power. We have selected some very popular and reliable brokers and compiled them into a list, so we hope you will find it useful. Use your assets effectively and win every day. To make it easier to continue, it is also important to be emotionally strong. Use the full range of functions to grasp the rising and falling market trends and perform technical analysis.
XMTrading
XM actually has three companies. When you search online, you will find three hits: XM.com, XMtrading.com, and XMGlobal. Among them, XMTrading offers a comfortable environment for Japanese users, and is highly recommended as it has KIWAMI and Zero accounts.
| Brand name | XM | XMTrading | XMGlobal |
| Operating company | Trading Point Holdings LTD | Tradexfin Limited | XM Global Limited |
| URL | www.xm.com | xmtrading.com | xmglobal.com |
| location | Cyprus | Seychelles | Belize |
| license | FCA、ASIC、CySEC | FSA | IFSC、DFSA、ASIC、CySEC |
| Service Countries | Europe | Asia | others |
FXGT
FXGT is a relatively new FX company established in 2019. The operating company is 360 Degrees Markets Ltd., with a registered address in the Republic of Seychelles. Originally, they also offered services called Global GT and Crypto GT, but they were merged into FXGT in 2023. Of course, they also have a financial license, so you can rest assured that they have a high reputation among people. In the past, they have added many bonuses, and they are a good deal as they are a top-ranked broker.
| Operating company | 360 Degrees Markets Ltd. |
| Registered address | セーシェル共和国 Room 12, First Floor, Kingsgate House, Victoria, Mahe, Seychelles |
| Financial License | FSA: Seychelles Financial Services Authority |
| Established | 2019 |
Axiory
Axiory is an overseas FX broker established in 2015 by Axiory Global Ltd. Axiory is headquartered in Belize and incorporated as a “tax haven”. It has obtained the IFSC license from the Financial Services Agency of the Belize International Financial Services Commission, making it a very reliable and safe FX broker.
| Operating company | Axiory Global Ltd. |
| Established | 2015 |
| location | No. 1 Corner of Hutson Street andMarine Parade Belize City, Belize |
| Financial License | IFSC: Belize International Financial Services Commission |
Bigboss
BigBoss is an FX company established in 2013. It is based in Saint Vincent and the Grenadines and is operated by Prime Point LLC. It has a good reputation among traders and has not experienced any major problems or withdrawal refusals, so it can be said to be a very reliable company.
| Company | Prime Point LLC |
| Found | 2013 |
| Address | 1/F, First St Vincent Bank Ltd Building James Street Kingstown St. Vincent and the Grenadines |
| License | SVG FSA |
easyMarkets
easyMarkets was founded in 2001, making it by far the oldest company among overseas FX brokers. It is operated by EF Worldwide Limited, and is an FX broker based in the Marshall Islands. The Marshall Islands are a tax haven, so they tend to be the base of FX brokers.
| Operation Company | EF Worldwide Limited |
| Address | Ajeltake Road, Trust Company Complex, MH 96960, Ajeltake Island, Majuro, Marshall Islands. |
| License | CySEC,ASIC,FSA,FSC |
| Found | 2001 |
| URL | Click here |
Exness
Exness is a world-famous FX brand founded in 2008 with global expansion. It is a multinational corporate group that has obtained official financial licenses in multiple countries, including European and overseas subsidiaries and affiliates. As of April 2022, it boasts a trading volume of over 2105 trillion dollars.
| Operating company | Exness Limited |
| Registration number | 8423606-1 |
| Country of registration | Japan-Seychelles Relations |
| Company Address | 9A CT House, 2nd floor, Providence, Mahe, Seychelles |
| Established | 2008 |
| Number of Employees | 1054 |
| URL | Home Page |
| telephone number | (+248) 4346767 |
| email address | support@exness.com |
| Financial License | Seychelles Financial Services Authority |
FBS
FBS is an FX broker based in Vanuatu. Founded in 2009, it is a FX broker with a long history of operation. It has successfully expanded globally and has branches all over the world. It also has a financial license. It is well-known among overseas FX brokers, and deposits and withdrawals are safe.
| Operation Company | Mitsui Markets Ltd. |
| Established | 2009 |
| Address | 133 Santina Parade, Elluk, Port Vila, Efale, Vanuatu |
| License | VFSC、IFSC、CySEC |
HFM
The company profile of HF Markets is as follows. The company name has always been Hot Forex, but it changed to HFM in 2022. HFM is a very popular company, especially in Europe, and has won more than 60 awards, so it is very popular and well-known.
| Company Name | HF Markets(SV)Ltd |
| CEO | – |
| Found | 2010 |
| Address | Suite 305, Griffith Corporate Centre, P.O. Box 1510, Beachmont Kingstown, St. Vincent and the Grenadines. |
| Capital Stock | ? |
| Number of employees | 250 |
| support@hfm.com | |
| Licence | IBC No: 22747 IBC 2015 St. Vincent and the Grenadines |
| URL | Home Page |
iForex
iForex is a very long-established FX company, and this alone makes it trustworthy. The operating company is Formula Investment House Ltd, which was established in 1996, so it has a history of 30 years. It is based in the British Virgin Islands and has a financial license registered with the Financial Services Commission of the British Virgin Islands (BVI FSC).
| 運営会社 | Formula Investment House Ltd |
| 設立 | 1996 |
| 所在地 | 1, Wickham’s Cay, Road Town,Tortola BVI VG1110 |
| 金融ライセンス | BVI FSC：英領バージン諸島金融サービス委員会 |
IronFX
IronFX is a globally expanding FX broker established in 2010. As service information is provided worldwide, there are many registered users in Europe, Asia, the Middle East, Africa, and Latin America, and awareness is increasing. IronFX is recognized as a fast-growing FX broker, and in 2012 it won the Best Trading Platform 2012 award.
| Broker | IronFX |
| Established | 2010 |
| Headquarter | Cypros |
| Service Area | Europe Asia Africa Oceania North America South America |
| License | CySEC FCA ASIC |
| Address | 2, Iapetou Str., Agios Athanasios, 4101 Limassol, Cyprus |
| Tel | +44(0) 203 282 7777 |
| Owner | Markos A. Kashiouris Peter G. Economides |
| Company Name | Notesco Limited |
| URL | Home |
LandPrime
Land-FX is an FX broker established in 2013 by the operating company Land Prime Ltd. It has been in operation for over 10 years, so it can be said to be a fairly established broker. Its greatest appeal is its narrow spreads and high contract power, and it has traders all over the world.
| Operation Company | Land Prime Ltd. |
| Established | 2013 |
| Address | ? |
| License | SVG FSA |
| URL | Home |
MILTON MARKETS
MILTON MARKETS is an FX company established in the Republic of Vanuatu in 2015. It is regulated by the Vanuatu Financial Services Commission and has a financial license from the VFSC, so it is a very reliable company.
| 運営会社 | Milton Markets Ltd. |
| 設立 | 2015 |
| 所在地 | バヌアツ共和国 2nd Floor, Transpacific Haus Lini Highway Port Vila, Vanuatu |
| 金融ライセンス | VFSC：バヌアツ金融サービス委員会 |
GeneTrade
GeneTrade is an FX service company established in 2018 by the operating company Genius Trading LTD. The company is headquartered in Belize and holds a financial license from the Belize International Financial Services Commission (IFSC), so it is operated under regulations.
| Operation Comapany | Genius Trading LTD |
| Found | 2018 |
| Address | 5 Cork Street, Belize City, Belize |
| License | IFSC |
TITANFX
TITANFX is an FX company established in the Republic of Vanuatu in 2014. It offers a wide range of services, including free VPS, free EA, and copy trading, and is highly recommended. The maximum leverage is 500x, so you can deposit and withdraw funds with peace of mind.
| Operation Company | Titan FX Limited |
| Establishment | 2014 |
| Address | Pot 564/100, Rue De Paris, Pot 5641, Centre Ville, Port Vila, Vanuatu |
| Financial license | VFSC |
TradersTrust
It is now TTCM TRADERS CAPITAL LIMITED, a group of companies that operate TradersTrust, and was founded in 2009. It is headquartered in Cyprus and is regulated by the Cyprus Securities and Exchange Commission (CySEC), which is difficult to obtain.
| Operation Compamy | TTCM Traders Trust Capital Markets Limited (ltd) |
| Found | 2009 |
| Address | 3 Thalia Street, Office Number 310-318, 3rd Floor, 3011, Limassol, Cyprus |
| License | CySEC |
Axi
We will explain the basic information of Axi. Axi is an FX broker established in Australia in 2007. Of course, it holds a license from the Financial Services Agency and is one of the famous brokers with many users. All account types offer up to 1,000 times leverage.
| Broker | Axi |
| Established | 2007 |
| Max Leverage | 1000x |
| License | SVG ASIC FSA |
| Trading Tool | MT4 |
FXPRIMUS
The basic information of FXPRIMUS is as follows. Naturally, it holds a financial license and is operated under strict regulations. It has bases in Vanuatu and Cyprus and has obtained licenses from the financial authorities of each country.
| Broker | Primus Markets INTL LTD(Cyprus) Primus Global LTD(Vanuatu) |
| Location | Cyprus Vanuatu |
| License | CySEC VFSC |
| Established | 2009 |
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