ITU Insight: Why Losing Trades Are Universal—And What Winners Do Differently

ITUProfessor
Aug 16
4 min read

By ITUProfessor

The Truth Behind the Numbers

Studies show an astonishing 90–96% of day traders lose money, especially within their first year.
Around 1% of the adult U.S. population trades actively each month, which equates to roughly 140,000 individuals. Even within this group, consistently profitable traders are rare.
One study found that only 4% of trainee traders, with access to mentors and resources, were able to make a living at trading; about 10–15% turned small profits, but not enough for a career.
Across studies, 90–97% of day traders lose money, with FINRA-backed research showing about 72% end the year in the red
Only 13% remain actively profitable over six months, and a slim 1% sustain profitability beyond five years.
In a Taiwanese study, less than 1%, or 1,000 out of 360,000 day traders, reliably outperformed net of fees and maintained leadership into the next year.
Proprietary trading firms equipped with capital, training, and mentorship see just 4% of trainees become profitable full-time traders.

What this tells us: Real trading success is not just hard—it’s statistically rare. Are you rare?

🌟 For the Committed — It’s Still Possible, But Only If...

Yes—the numbers are sobering. The path is narrow. But here’s the truth most won’t tell you:

The odds mean nothing if you refuse to quit.

Most people lose because they don’t show up long enough to win. They never master themselves. They trade based on emotion, not edge. They skip the journal. They avoid accountability. They want the lifestyle, not the grind.

But you… you’re here reading this. That already sets you apart.

Success isn’t guaranteed to anyone but it becomes inevitable for those who:

Show up daily.
Study their losses like professionals.
Reflect, journal, and apply.
Trade their plan, not their feelings.
Seek mentorship and community over ego.

Trading is a mirror. It reflects who you are. But if you keep refining what you see, you will become unrecognizable a year from now.

Putting It in Perspective: Population & Percentages

Let’s ground the numbers:

U.S. adult population: ~250 million
Active day traders (1%): ~2.5 million
Profitable, career traders (1% of that): ~25,000 individuals
Consistently successful, elite performers: closer to 2–4% of that, meaning just a few thousand

This means out of 2.5 million adults, only a tiny fraction make it consistently.

Why Losses are Normal and Essential

It’s the same with elite athletes:

Michael Jordan missed thousands of shots, lost Finals games, but those losses sharpened his greatness.
Average MLB batters fail (strike out) 18–25% of the time, yet are still considered elite because they succeed more than they fail.
Pitchers in baseball: Many top prospects never make the majors, despite their potential.

Trading is no different. The greatest traders embrace failure as a training ground—pressure makes diamonds.

🧠 Failure is the Filter — Just Like in the Majors

To understand trading success, look to baseball.

In Major League Baseball (MLB), even the most promising young players face massive attrition. According to MLB stats, only about 10% of drafted players ever make it to the majors, and for high school players, that number drops dramatically to less than 1 in 200.
For hitters specifically, the odds are brutal. A batter who hits successfully 30% of the time (a .300 average) is considered elite, even Hall of Fame worthy. That means failure is built into the system.
It’s not uncommon for the most disciplined and talented hitters to strike out or miss 7 out of every 10 at-bats. And still, they rise because of their ability to adjust, reflect, and stay consistent in pursuit of long-term results.

(Parents spend thousands over years for their children to potentially get in the league in their 20s even with such a small percentage that make it.)

Now take that insight into your trading desk. You may lose 6 trades in a row—but that 7th trade, done correctly, could define your week. It’s not about being perfect. It’s about staying committed and emotionally disciplined, especially during the downswings.

The Highest Costs You Pay Are Mental

To succeed, you must:

Feel the pain of loss—yet keep showing up.
Align your psychology with performance. If you’re not in that mindset, step away until you are.
Know more than strategies—know yourself. Technical knowledge from books or YouTube means nothing without daily application and self-awareness.
Develop “killer instinct” through reflection and execution. The mindset Kobe Bryant and Jordan harnessed mid-game is built in practice.

What’s Your Mamba Mentality?

In trading, and in life you become.

Ask yourself:

Are you aware of your internal battles?
Are your screens and setups just reflecting your behaviors?
How do you compare value your trades, your decisions?
When the market’s chaos hits, are you reshaping or resisting reality?

Because trading forces growth, success means healing your inner world while mastering the outer one.

Final Words from ITUProfessor

Trading is not about being right. It's about being resilient. Knowledge is useless without the will to act. Self-mastery trumps strategy. The market mirrors your inner state.

So, what are you becoming? Your journey starts with loss, reflection, and relentless self-growth.

— ITUProfessor