Why Do 90% of Traders Lose Their Funds? Just Because They Don't Know These 6 Things

The crypto futures market is always attractive due to its high profitability, but it is also a place where many investors pay the price with their own capital. Most mistakes don’t come from technical skills, but from psychology: greed, fear, and lack of discipline. The 6 principles below are compiled from the real-life experiences of those who have survived the most turbulent periods of the market. This is not a “get rich quick” secret, but a “Lifebuoy” for long-term survival and trading with a clearer mind.

① Discipline in Stop Loss – Take Profit: The “Safety Valve” for Your Account Most losses in futures stem from one thing: not setting stop loss and take profit. Taking profit is not about exiting too early, but about locking in gains before the market reverses. Stop loss is not about admitting defeat, but about protecting your account before being liquidated. The crypto market can reverse in just a few minutes, and a single strong move can ruin your entire plan. No one can control the market, but you can always control your maximum loss. As long as you have capital, you still have opportunities; once your capital is gone, all strategies are meaningless.

② Limit Continuous Trading: “Less But Quality” Opening many positions may seem like “increasing chances,” but in reality, it only leads to: Higher trading fees Eroded psychology Less accurate decisions The most consistent traders always maintain a low frequency, but every trade has a clear reason and a complete setup. The market doesn’t reward hard work, it rewards precision. One good trade is worth more than ten impulsive ones.

③ If the Trend Is Unclear, Stay Out: “No Loss of Account, No Broken Spirit” The market does not always give clear signals. When the trend is vague, volatility is high, or patterns are incomplete, staying out is always the wise choice. The fear of missing out (FOMO) leads many to enter trades without any basis. But “missing out” is just a mild discomfort, whereas “losing money” is real pain. The market operates 24/7; opportunities are never lacking. There’s no reason to force yourself to trade when you’re not ready.

④ Patience – Accumulate Gradually: “Slow and Steady Goes Far” Futures trading is not suitable for the “quick win” mindset. Small capital, high leverage, and big expectations are the trio most likely to burn accounts. Instead: Start with small capital, low leverage Focus on increasing your win rate instead of chasing “big trades” Accumulate profits step by step Trading is a marathon. Sustainable profits come from consistency, not lucky shots.

⑤ Never Go All-in: Keep “Room to Breathe” Using 70–90% of your capital for one trade is highly risky, no matter how strong the signal. The crypto market always has: Sudden news Strong volatility Market “shakeouts” A single surprise can wipe out your account. Safe rule: each trade should use less than 10% of total capital. Trading lightly helps keep your psychology steady, decisions clear, and allows you to recover.

⑥ Turn Knowledge into Action: “Knowing” Is Not the Same as “Doing” Many people understand the principles very well, but don’t follow them when the market gets volatile: Know you should stop loss → but hesitate Know you should use less capital → but increase leverage Know you should stay out → but FOMO kicks in The gap between theory and execution is the main reason many accounts evaporate. Only when discipline becomes a habit do traders truly improve.

Conclusion Futures trading is a high-risk playground, but it’s not a place where survival is impossible. Just follow these 6 principles: Preserve capital Preserve psychology Preserve discipline … and limiting losses is already a big achievement. When you can be consistent and avoid losing money, profits will gradually appear – at the right time, with the right opportunity. If you want to survive long-term in the crypto market, let discipline lead you instead of emotions. Only then can a trader truly move from being “led by the market” to “actively creating their own edge.”