The most common reason for failure in trading is the lack of discipline. Most traders trade without a proper strategic approach to the market. Successful trading depends on three practices. First, investors need a guidebook/mentor/course to help or guide them in daily trading.
Based on several brokers' studies, as many as 90% of traders are estimated to lose money in the markets. This can be an even higher failure rate if you look at day traders, forex traders, or options traders.
Over trading is a scenario where one tries to take too many trades in a single day. Traders want to take advantage of every dip and fall. This is a psychological trait that people don't want to lose. And in order to recover those previous losses, young traders take another shot to break even.
On any given day, 97% of day traders lose money net of trading fees. This data suggests that new investors decide to begin day trading only because they are overconfident in their ability to be profitable at it.
Another reason why day traders tend to lose money is that it's very different from long-term investing. While traders take advantage of price swings (which means they have to make specific predictions), investors tend to buy a diversified basket of assets for the long haul.
A study of eToro day traders found nearly 80% of them had lost money over a 12-month period, and the median loss was 36%.
Studies have shown that more than 97% of day traders lose money over time, and less than 1% of day traders are actually profitable. One percent! But of course, nobody thinks they will be the one losing out.