The day traders who lose money in the market are losing because of a failure to either choose the right stocks, manage risk, find proper entries, or follow the rules of a proven strategy.

 

Traders have to manage risk even in highly volatile markets which can  cause huge loss

 

You can mitigate risks by holding positions for very short periods of time (Swing/scalp or day trading). Holding Losers Too Long is not worth the risk & time.

 

Nobody wants to lose, but the best traders are great losers. They accept their losses with grace and move on to the next trade. They never allow one trade the ability to destroy their account or their career. This characteristic will keep them in business as a day trader for a long time.

 

Most traders fail because they are unable to follow simple rules of risk management. they haven't found their edge in the market. Some might be frustrated, and start to overtrade/not managing risk well, and might believe they have a psychological problem, when really the psychological problem stems from not having the edge.