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The core reason is that the amount of loss per trade is far greater than the amount of profit per trade, meaning the profit-loss ratio is too low. Even if 90% of trades are profitable, as long as there is 1 significant loss, it can wipe out all previous small profits and even completely deplete the capital.
For example: with a capital of 1000 yuan for trading, 9 profitable trades earning 10 yuan each (total profit of 90 yuan), 1 loss losing 200 yuan, resulting in a net loss of 110 yuan—winning rate as high as 90%, but still losing.

Winning rate is the ratio of profitable trades to total trades, and the profit-loss ratio is the average profit per trade ÷ average loss per trade; together, they determine the long-term profitability of the trading system.