It is often said that 90% of traders lose money in the market. However, this number is not entirely accurate some say 95%, others claim 99%. The key point remains the same: most beginners end up losing their money.

However, statistics do not reflect the full picture. If we look at those who have chosen trading as their primary profession and have fully committed to the process, their success becomes almost inevitable.

Why Do Beginners Fail?

Official data suggests that most traders lose money, but there is an important detail to consider: how many newcomers truly understand what trading is when they first enter the market? The number is likely very small.

Most people come to the market hoping to make quick profits, often drawn in by the appeal of a funded account, without realizing that they are competing against highly experienced participants. These are traders who have spent years analyzing charts, testing strategies, and experiencing both market crashes and rallies. They have read dozens, if not hundreds, of books, only to discover that there is no universal formula for success.

Comparing a beginner to a professional trader is like comparing someone who just opened a trading platform after watching a few videos and reading a couple of books to someone who has been actively trading every day for a decade. Whether using personal capital or a funded account, the chances of the beginner succeeding in such a scenario are close to zero.

Losing money in the early stages is almost inevitable—it is only a question of how much will be lost and how quickly.

The Three Stages of a Trader’s Journey

Step 1: The First Attempt

After making a few trades and losing some money, most beginners leave the market without truly understanding the reasons for their failure. By doing so, they only reinforce the statistics on trader losses.

Many fall into the trap of so-called “market gurus” who claim to have a foolproof trading strategy and answers to every question. However, these individuals often do not trade themselves, or if they do, there is no real proof of their success. New traders go through these courses, deposit funds, and inevitably lose everything. As this cycle repeats, frustration grows, leading many to abandon trading entirely.

The problem is not with the trader’s efforts—they followed the steps: opened an account, paid for training, completed the course. Everything should have worked. However, those who excel at explaining trading concepts are rarely skilled traders themselves, while experienced traders often struggle to articulate their decision-making process.

Many consistently profitable traders rely on an intuitive understanding of the market, developed through thousands of executed trades and even more missed opportunities. Their approach cannot be fully explained through patterns or trendlines it is a personal perception of market behavior that cannot be easily transferred to others. Finding a mentor who actively trades and is willing to share their knowledge significantly increases the chances of success, but such individuals are rare. Most traders see no reason to train others when they can make money without doing so.

Insider Insight

Many successful traders who conduct training programs and build an online presence are actually looking to form teams of like-minded individuals. Training is not just about teaching it is about building a network of traders who can trade together, leveraging collective knowledge for better results.

Step 2: The Struggle to Understand

Those who persist beyond the initial stage begin to differentiate between useful knowledge and empty promises. It becomes clear that no amount of money can buy guaranteed success, and that true understanding is still far away. This realization marks the first major step into serious trading.

At this point, traders seek access to the “inner circle” of professionals, a community where the rules are unclear and entry points are difficult to find. If someone leaves the market before reaching this phase, their experience is barely worth counting in the statistics. Such individuals make up around 80% of failed traders.

However, those who continue have effectively left their comfort zones entirely. Surviving in this stage means facing psychological challenges, internal dialogues, and continuous problem-solving. Technical skills improve – traders learn about key levels, test strategies on historical data, analyze profit and loss, and refine their methods.

If a trader reaches the point where the market finally starts making sense, if they manage to stay disciplined and focused, their chances of long-term success rise to 80-90%. The final step before consistent profitability is within reach. The goal is not millions—initially, even breaking even while covering broker fees is a significant achievement.

Insider Tip

Traders who find themselves breaking even should analyze their position sizes. Risk management, partial exits, and strategic scaling often determine whether a trader remains stagnant or starts generating consistent profits. Many training programs fail to cover this aspect, leaving traders to figure it out on their own.

Step 3: Exhaustion

Reaching profitability – or even breaking even does not guarantee long-term success. Many traders stop progressing because they lack the energy to push further. After months of effort, some find themselves earning only a small percentage of their capital, often realizing that their returns do not justify the time and stress involved.

This stage can be overwhelming. The psychological toll of constantly hitting roadblocks causes many traders to quit, believing the rewards are not worth the effort. However, overcoming this phase means entering the elite 5% of consistently profitable traders.

Unfortunately, this is still not the final step. The journey continues, with increasing challenges such as scaling profits, handling higher stress levels, and refining strategies to improve returns from 1% per month to 5% and beyond.

The key to long-term success in trading lies in brutal honesty with oneself and with the market. Hiding failures only leads to further setbacks. A trader’s ability to acknowledge mistakes and adapt accordingly is what ultimately determines success.

Wrap Up

A trader’s intuition should never be ignored. Many who leave trading early may have subconsciously realized that the market is not for them, and that is perfectly fine. Interestingly, despite the risks, trading can be one of the least risky ways to make money when approached correctly.

For those who choose to continue, the path ahead is difficult but rewarding. The first steps are the hardest, and each stage of progress brings new challenges. However, those who persevere and adapt will find themselves among the few who truly understand and profit from the markets.