--- title: 'EP-2: Showing Him the Dark Reality of Trading | Why 90% of Traders Lose Money' source: 'https://youtube.com/watch?v=e0Tml1RCBzo' video_id: 'e0Tml1RCBzo' date: 2026-07-31 duration_sec: 1523 --- # EP-2: Showing Him the Dark Reality of Trading | Why 90% of Traders Lose Money > Source: [EP-2: Showing Him the Dark Reality of Trading | Why 90% of Traders Lose Money](https://youtube.com/watch?v=e0Tml1RCBzo) ## Summary In the second episode of his trading series, Dinesh Kela (Stock Bundler) breaks down the dark reality of trading, revealing why 90% of traders lose money. Through a conversation with his brother Arjun, a beginner eager to learn, Dinesh explains that trading seems easy but is actually a game of decisions, and that emotions, beginner mistakes, and wrong expectations are the main culprits. The video contrasts these pitfalls with the disciplined mindset of professional traders, emphasizing risk control, patience, and discipline. ### Key Points - **Series Intro and Brother's Ambition** [00:05] — Dinesh introduces his younger brother Arjun, who wants to become a trader. He plans to teach Arjun trading over 6 months and aims to make him a profitable trader within a year, using this series to educate all beginners for free. - **The 90% Statistic and SEBI Data** [01:54] — Dinesh reveals that 90% of traders lose money, but real data from SEBI is worse: 93% of traders are loss-making. Only 7% are profitable, and that minority includes big institutions, prop desks, and hedge funds, leaving very few retail traders. - **Why Trading Seems Easy** [04:53] — Trading looks easy because anyone can open a chart, deposit money, and buy/sell without a degree or test. There's no barrier to entry, unlike professions that require education and internships, so people think profits are instant. - **Trading is a Game of Decisions** [06:20] — Trading is not about charts; it's about decisions—when to buy or sell, whether to hold or exit. On the same chart, one person profits and another loses based purely on the decisions they make. Beginners focus on charts instead of decision-making. - **Emotions: Fear and Greed** [07:33] — Two emotions destroy traders: fear and greed. Fear arises when losing, causing traders to exit prematurely or remove stop losses. Greed arises when profiting, leading to overtrading or holding too long expecting more gains. - **Beginner Mistake 1: No Stop Loss** [10:45] — Beginners avoid placing stop losses out of fear that it will be hit. They think not setting a stop loss prevents the loss, but it actually increases the risk of a bigger loss. - **Beginner Mistake 2: No Strategy** [12:20] — Many beginners trade randomly without a defined strategy. They rely on feelings, support/resistance, or tips from others. A strategy means having specific conditions that must be met before entering a trade, otherwise you get confused and make random trades. - **Beginner Mistake 3: Overtrading** [13:58] — Overtrading means taking 5-6 trades or more in a single day. Beginners believe more trades equal more profit, but the opposite is true—more trades lead to more mistakes and losses. - **Wrong Expectations: Profit is Not Guaranteed** [14:42] — Every beginner expects to profit and ignores the possibility of loss. They ignore stop losses and only see the potential gains. This wrong expectation is the biggest beginner mistake, causing 90% of traders to lose. - **Trading is a Long-Term Skill** [16:52] — People have wrong expectations about making money in 1-3 months. Trading is a long-term skill that takes 1.5 to 2 years of dedicated work to master. It is not a get-rich-quick scheme. - **Professional Trader: Control Risk First** [17:45] — A professional trader's first priority is risk control, not reading charts. Before entering a trade, they ask: Is the stop loss acceptable? Can I sleep peacefully with this loss? Only if the risk is bearable do they take the trade. - **Professional Trader: Trade Less, Better Trades** [18:56] — Professionals take fewer trades (2-3 per day) to focus on quality. Fewer decisions mean more time for research and analysis, reducing mistakes. Overtrading leads to random decision-making and spoiled results. - **Professional Trader: Patience** [20:05] — Professionals wait for their setup to form before entering, even in a trending market. They don't chase momentum; they patiently wait until their strategy's conditions are met, only then they place a stop loss and take the trade. - **Professional Trader: Discipline** [21:15] — Discipline means following all the rules you set for yourself. A professional trader trades only Monday to Friday, takes only a set number of trades, and risks only a certain amount. Without discipline, risk control, patience, and trade management don't matter. ### Conclusion The video drives home that trading is a serious skill, not a quick moneymaker. To be in the profitable minority, one must treat trading as a long-term learning process, manage risk first, trade less with patience, and above all, stay disciplined. ## Transcript what exactly is trading? So that video made many people want to become traders or want to become traders. Like my brother wants to be. But I'm going to give this one a reality check. That means in today's video I am going to tell you why 90% of the traders lose in the market. Right? [Music] And if you watch today's video, I'm sure you'll be able to make an informed decision about whether you want to become a trader or not. Whoever clear [music] about how they should start trading in the market so that they do not become one of those 90% loss making traders. Well for those who don't know let me introduce myself to you. My name is Dinesh Kela. You know me stock bundler. This is my younger brother's name Arjun Kela and he wants to become a trader. So I thought why not teach him trading and upload this series on YouTube for you guys so that you guys can also learn trading [music] because I know the way I will teach trading to my younger brother, within 6 months I will teach complete trading and within a year I am going to make him a profitable trader with the help of which he is going to buy his dream car i.e. Port 911, he will buy it, yes he is confident, yes come on brother you are confident and if you guys are also confident, you are also beginners and you guys also want to see the complete details of this series with him, want to learn, then comment beginner. Subscribe to the rest of the channels. Press the bell notification button so that you do not miss any upcoming video of this series. Because understand carefully, I am providing this education free of cost here because I will not compromise at all in whatever I teach my brother. teach my brother, all those things should reach you also and you too should be able to learn trading in the right way and become a good trader. Ok? So what is our video about today? Our video today is about why 90% of traders lose money in the market. That is, today we are going to talk about the reality of trading. Today I will tell my brother the reality. If 90% of the traders lose, how much money will they be making lose, how much money will they be making ? 10% people know 10% but the reality is worse than that. That means, not in 10%, if you take out the data of SEBI then you will find 93% loss making traders here. Only 7% and in that 7%, the number of retailers, traders like you and me is very small and in that 7%, big hatch funds, big institutions, okay prop desks all together come in that 7%. Just think how much that is. Right? So why is this reality so tough? Why is it so difficult? Why are 90% of traders losing money? How will we understand this ? First we will understand why trading seems easy? You found the last video very easy, right? So let us understand why it feels easy exactly? Then we will understand why emotions destroy traders? I know about the emotions, but I might not know it yet because it hasn't come yet when I will spend the money from my own pocket, right now it seems like it's my brother's. When you apply it yourself, then you will know what emotions are? So why do emotions destroy traders here? Then we will understand beginner mistakes i.e. being a beginner. Does it make mistakes? Do beginners make mistakes? You are also a beginner. What mistakes happen? So that you can know what mistakes are? Then we will understand professional thinking i.e. how I as a professional trader work thoughtfully. That means I am recording this video for you Kamli. I am also teaching my brother. And behind this I also have a trade going on. But when I said that 90% of the traders lose. So what I'm trying to tell you is if Here you are making profit within the trade. Although I have taken the trade. I you will find in the description box. And here your account will be opened free of cost. Here you can trade crypto futures and options i.e. crypto derivatives in IAR where you neither have to pay 30% tax nor income. FAO of Same Age Indian Market. So you can capture all the momentum of cryptos here. And is a FIO vested platform. The link is in the description box. Where I if you have opened my referral links account. So I share all these trades you can see, all the trades we have shared have performed quite well. There are even loss making trades. But it depends on what our risk join the community, open an account and fill up the Google form. You will get community access free of cost. Where you can learn from my trades how to execute trades. Right? So now, are you excited. Now why am I saying that after the reality, when we go to open the PNL completely, then many things become clear to us here that when we are trading, it is not just about profit. What is there here? There is loss also. There is loss also. See there is loss also. So there is loss in trading also. And it is not possible for everyone to do this loss bear. lose money in the market. What are the reasons? We understand it one by one, step by step. Ok? First of all we will talk about why trading seems easy? Why do you find trading easy? What does trading look like? Why is it very easy? You have to open the chart in on and buy and sell. Money will be made. Yes, exactly everyone feels the same that I have to open the chart. You have to open the chart and after opening the chart you have to open the chart and after opening the chart you have to buy or sell. At the end I will have profit in my hands. That means I will make money in the market. That is why people find trading very easy. The reason is to look at the chart. Now that you have to trade, did anyone ask you for a degree? No. Did anyone take any test of you? No. No one asked you anything before opening the account. No one asked anything before depositing the money. yours. So now imagine if he had to go to college. He then has to clear the exams. All the competitive exams that take place. Then its ranking and number comes. some internship. Then he would have got some salary. Then he goes and covers up all these things. Then I could go and earn money. But here you just have to open your phone, look at the chart, buy and sell, and you will earn money. With this thinking, people work in the market and people find trading very easy. If you also feel the same, please comment. Yes. Now let me tell you. Trading is tell you. Trading is not a game of charts. Trading is a game of decisions. Decision about what? After looking at the chart, should I buy or sell here? Once I have taken the trade, after buying it, should I hold it or exit it? All of you, all the beginners, focus on understanding the chart, I have to see the chart, I will work after seeing the chart, I do not have to run after the chart, trading is a game of decision making, not a game of charts, everything looks the same on the chart but who is profitable and loss making, who wants to take the right decision at the right time, then trading seems easy because people work after seeing the chart and brother also thought after seeing the chart. But because you work only by looking at the charts. You don't even know that it is a game of decision making. Everything depends on decision making. There is no loss making. Someone is making a loss because his decisions were wrong. Someone is making profit on the same chart because his decisions were right. So that is why trading seems easy to everyone because people think that what is trading a game about? Decision. Of decision making. Ok? Now let us come to the next point here. Why Emotions Destroy Traders? Do you know the meaning of emotion? Feelings Happy Set. Yes. Meaning that the feeling comes from within. Sometimes he becomes happy. Sometimes I feel sad, sometimes I get angry, sometimes I feel frustrated. Sometimes it happens that brother, why am I in this world? What am I doing? I should do this, I But it comes because of something or the other. Even in trading, two emotions We will understand more about emotions in the upcoming episodes. So you will not miss this series at all. Will subscribe. Press the bell notification so that you don't miss the series. Ok? The first is fear. Second grid. Fear means fear. An atmosphere of fear. Ok? Greed means greed. Greed. Now how does fear and greed come about? That means when will you feel scared? When you took the trade. When will you be afraid? When there will be loss. There will be loss. When we incur loss in trading , we place a trade and incur loss, then an emotion of fear arises within us that we should exit this trade before time or exit this trade before time or remove the stop loss. Does it come or not? Ever feel like placing a stop loss? He doesn't do it, right? It also wants to remove the stop loss. They think that if I place a stop loss, it will be a hit. But brother, I have placed a stop loss here. I have my stop loss here and I am my money will be enough and I am mentally prepared for it. But I will leave you as a trader at this level. If you watch the entire series, how do you become a trader at this level ? So when fear comes into you, you either want to exit the trade as quickly as possible thinking that brother, I have made a loss. No no no no, cut it or do you remove the stop loss thinking that you will see what happens? If I place a stop loss, it will be hit. If I don't try it then it won't be a hit. This one also thinks the same. This is what he thinks. But you think wrong. The second emotion that comes up here is greed. What does Greed mean? Greed. Greed. How can greed arise now? When there is profit , when there is profit. When greed comes, you make profit, what does your mind do ? To hold. Are you able to hold it? No. Meaning, the trade happens. The reverse happens. The reverse happens. Brother thinks so. Everyone feels like this. Dude, I made a profit. Profit was made. I hope this profit doesn't slip out of my hands. So somewhere it can be reversed. So what do I do? Exit means early exit. E A R L O I Yes, early exit means you exit early so that the greed you want to let that profit go or what do you do? You made a profit. What do you think now? This is a profit. Let's do something. Overtrade and make another trade. Why? Because one trade made a profit. Let's take another one next. Then let's take another one. Then let's take another one. That means profit is made in the market. Let's keep taking trades. The more trades you take, the more profit you will make. So what is this because of? This thinking is that brother, we should remove the stop loss or exit early or book the profit in time or keep trading. Profit will definitely come. Do you know what causes this? know what causes this? Because of emotions. And these emotions kick out 90% of the traders from the market. And among those emotions, there are two biggest emotions. Fear and Great. Now let us talk about the third point i.e. the mistakes of beginners. Come on brother, tell me what mistakes happen? What do you think? Is it a beginner's mistake? What mistakes do you make when you think of trading? I What mistakes do you make when you think of trading? I hold the trade. When does Hum and Hold do it? When there is profit. Holds it for profit. Yes, I mean I expect that it will give more, it will give more, it will give more and I do not put stop loss and what other mistakes are made? And I exit as soon as I make profit. loss, I exit. Yes. That means, overall, this is still a bit new for you people. You may feel that brother, he is not speaking so openly. Brother, he is a beginner. He has n't faced the camera that much. He is as beginner as you. That's why I have brought him on screen in front of you so that he is presented to you as a beginner. He should not have to act. If he had to act, he would have he doesn't know how to do it, he won't be able to do it. So that's why you should understand what he is trying to say ? Whatever he does, you must be doing the same things. Comment, yes, know what are the mistakes of a beginner? The first one is no stop loss. That means no stop loss is placed. Why is stop loss not applied? Fear, fear, fear that it might become a hit. Brother, if it becomes a hit then there will be a loss. If there is a loss, the money in the account will be reduced. It is better not to place a stop loss. First mistake, second no strategy. Do you have any trading strategy? No. Not there. I am just trading with the thought that it will go up from here. Well, I feel it will go up. Okay, let me say bye. I feel it will go down. Let me sell it. I have seen a little bit of support and resistance. Took a trade on his behalf. Not if you want to trade. You must have some strategy. What does strategy mean? What do you think? See what strategy is? what strategy is? Strategy means that if the trade comes to this position of mine then I will take the trade from here. chart is visible to everyone. The chart is the same. But what will you look for before entering? What will you see? What exactly do you want to see? Because the market will go up as well as down formed. Support and resistance will be formed everywhere, trend line breakouts and breakdowns will happen everywhere. Now if you take trades on everything, there will be trouble. You won't be able to do it. What exactly do you have to see after seeing which you have to take the trade, that is, when that is formed, that pattern is formed, that setup is formed, you will see that thing and you will trade after seeing that, otherwise you will not see anything else, otherwise you will get confused as to how to take the trade, okay so people do not have any strategy, what do people do, all the beginners do random trading without thinking, if it is going up then buy, if it is going down then sell, if there is negative news then sell, if there is positive news then buy, someone said it will go up, who said it will go down, they waste all their money on call tiply advisory. That means random trading is not a strategy. Third and biggest mistake is over trading. What does over trading mean ? This means taking five to six trades or more in a single day. We mean unnecessary indiscriminate trading at the same time in the same day or in the same hour. That is, the more trades I make, the more profit I will make. If you think like this, you are an overtrader. That means you take too many trades. What happens to you when you take too many trades ? Mistakes also happen. It happens a lot and it happens the most. This means that the more trades you make, the more think? What beginners think is that the more trades I make, the more happens to it? Opposite is opposite. Right? Then we come to the fourth point. Wrong expectation. What are your expectations from the market? What are your expectations regarding trading brother? If I have bought it then I will definitely get profit. There can be no loss. If I have bought it then I will definitely get profit. There can be no loss. See, every beginner has the same expectation that I must make a profit. There can be no loss. The expectation itself is wrong. The expectations in the market are wrong. If I have taken a trade here then I have set a stop loss right? Why is it set? Because I know that here I can lose $2400 i.e. $2 lakh and $6000 i.e. profit, if the trade goes in my favor then I will make that much but I can also lose that much. What does a butt beginner do? Ignores this portion. That means he only sees that if it is being built here , if it is going up, then it will go up and make big money from the market. I will fulfill all my dreams from the market. I get all my dreams from the market, my dream car for example is his dream car, he also thought that brother, if I have to get something then I will get it from trading, but you cannot get it like this without learning and understanding and without spending time in the market, without knowing the reality, otherwise the wrong expectations of the people, that wrong expectation is the biggest mistake of a beginner due to which 90% of the traders incur loss in the market. Another thing that comes in long expectation is that people think that what did you think, when will you become a trader, in how much time will you become a trader, he thought in 6 months, ... ? So think about 3 months, now it will take 3 months for brother to learn things. In 3 months I will be able to clear only some basic things and people waste their money in the market in 3 months. That means people have wrong expectations that I will become a trader in the market in 1 month, 3 months, 6 months. While trading know what is it? What is trading? Trading is a long term skill. Yes. That means if you want to make money through trading then you will have to give time to trading. Trading is a long term skill. You will have to give one and a half year or two years if you work with dedication. Ok? That means trading is not a get rich quick scheme at all. Now let us understand trader incurs loss. Why do we lose 90%? You might have understood this much. Now, a professional trader, that is, me or any trader whom you things, how exactly does he work ? Look, let me explain this a little. You will come again to the other board brother. Now let us understand this a little here. For example, he is a professional trader or let us take him as Dinesh. Right? I exactly how I will work in the market. Look, first of all my job is to control my risk. That means the first focus is that I do not have to read the charts in the market. I do n't have to predict the chart. I don't chase charts. I have to see that when I am trading in the market, is my capital allowing me to trade. The amount of money I am investing in a single trade and the stop loss I have placed on that money, can I accept that stop loss ? Can I sleep peacefully in the evening after taking that stop loss ? I can move around. I will not be stressed. Will I be stressed? I will not be scared at all. I won't be bothered. If I'm not going to feel anything like that with that stop loss. That stop loss is acceptable for me. And that much stop loss is bearable for me. And that capital allows me to put it there. Then I will take the trade. Only then will I enter the market at that place, at that position where I feel that the market will go up or down. Right? The second is the thinking of a professional trader. The tradesman always takes less. That is, what do we beginners think? The profit you make. But a professional trader thinks that fewer trades are better trades. That means trading is all about decision making. When we take decisions, now think that you take 100 decisions in a day. Random random that you take 100 decisions in a day. Random random random and I made only two decisions a day. Took three decisions. So who will make the most mistakes? I will do it, right? Now you don't know this because you will not be able to give time to take a decision. You wo n't be able to give yourself the time to research that decision. You will not be able to analyze. You thought I will say goodbye here. You will try to juggle with sales in the market. Will gamble. But I have to take only two decisions within the day. Like I only took two trades today. So I have plenty of time to take two trades. I have a stop loss moved on one trade. The I have plenty of time if I want to take another trade. I have a research. I will do a lot of analysis. So what is my job? Trade less but focus on quality. When I trade less , I trade less, I focus on quality. But wherever I start trading too much, you can understand that my trading will become random and my decision making will get completely spoiled. Ok? Now let's talk about the next point. The next point is patience. What does patience mean? Patience. Everyone please be patient. Look, a beginner trader is impatient. This is very impatient. He will I have to do this here. No, a professional trader has patience. That means, until his strategy and setup are ready, he will not take a trade in the market. he will not take a trade in the market. And to do this, to become like this, Understand that for example, if the market is moving in a one-way momentum, then what will it do? I will say bye. I will say bye. Right? Because you can see that the market is going up. But a professional trader maintains patience here. He doesn't enter with such great momentum. He waits for my setup to be done. Because when his setup is formed then he will place a stop loss. Then its logic will make sense. Then he will be a little confident. Then he will deposit the money. Only then will he be able to ride the trade. One will not engage in unnecessary trading in such a rising or falling market. So here a professional trader plays a very important role. That is patience. Ok? Now let's talk about the That is patience. Ok? Now let's talk about the next and most important point which probably does not occur to people. That is discipline. A disciplined trader is a trader is a professional trader and only a disciplined trader can survive and make money in the long term in trading. No matter how much you have controlled the risk. You cut trades. You have developed patience but you are not disciplined. What does discipline mean ? What is the meaning of discipline ? What is the meaning of discipline ? Do what discipline means in trading ? Discipline means all the rules you make. Ok ? Follow him. Do you follow rules in your life? does not. Now imagine if he had made his own rules in his life. He wake up at 6:00 in the morning. It's been 8:00. He said I will have a breakfast between 8:00 and 9:00. He's doing this at 11:00. He said I will not look at the phone. I will read books. He is looking at his phone all day long. So he made rules but did not follow them. so what does that mean? There is lack of discipline in it. He knows the rules. He knows what to do, how to do it , what to do. But when it comes to following them, he does not follow them. This means there is lack of discipline in him. So a professional trader has a discipline within him. He knows that will trade from Monday to Friday only. He knows not to trade anything on the weekend. He won't do it. only two trades in a day, only then will he take the trade. He knows that if I have to take this much trade risk then I will take only that much. No matter what momentum comes in the market, what scenario develops, whatever happens, he will not take unnecessary trades, unnecessary risks, unnecessary decisions. He will follow the rules that have been made. Ok? So these four points are risk control, tradeless, patience and discipline. This is the thinking of a professional trader. This is how a professional trader works. So did I mention the pay chart here? No. No. No. Because trading is more important than the charts because everyone sees the same charts. Isn't it ? All these things are more important than the charts, that is why a professional trader is different from a loss making trader. So I hope guys you have understood things quite Now I have told you so many things. I told you that 90% of the traders lose. Brother, now tell me when I have explained so many things to you. Told the reality. You still have to trade. I am feeling scared but I would like to learn and do it. I would like to learn and do it. So if you are also a beginner like this, after knowing the reality you have also understood what is the reality of trading and still you want to continue, then comment yes. And those who are beginners, please comment if you are the same beginner as this. I am a beginner so I will know how many beginners have seen this video. And with the help of this video I am able to help so many beginners in Ok? And this will motivate me as well as build up confidence in my brother how many traders he is helping along with himself. Right? So I hope you have understood things till now. Isn't it? Now any question, any doubt. So how does this chart work ? How does an end candle work? Good. So brother, now it has been noticed on the chart. I feel like there's a bit of Riocity in there. So we need to know how this chart works. Exactly how the chart works is that we people also have the same doubt. So if you guys want to learn how chart works then comment how chart works. In the next video we will explain exactly how the chart works. How to read this chart and how you can read this chart like a professional trader. Right? So I hope you like the video and subscribe to the channel. And yes, this series is going to continue. So press the bell notification button. Please share this video wants to enter into trading and wants to learn it so that he gets help in learning trading in the right way for free. wants to open an account to trade, can start with Delta trade futures and options of cryptos. The link is available in the description box. See you in the next video. Till then by-b see you. Jai Hind.