Why do so many aspiring traders only lose money?

[angelnish]

They are not intelligent enough.
Their psychology is all wrong for trading.
They underestimate the skills required.
They overestimate their own abilities.
They risk money before they have learned how to trade.
They over-complicate their charts.
They over-simplify their charts.
Their heart is just not in it.
They lack the necessary patience and perseverance to succeed.
Their losses are too large in relation to their wins.
They have no tried and tested strategy.
They are not disciplined enough to stick to their strategy.
Because ultimately, trading is gambling, and sooner or later, all gamblers lose.


Most of the above are inter-linked, and I'm sure you have reasons of your own that I've omitted. What do you think?

 

[tamaa]

its safe to say that they were hasty and not READY yet

but what i'd like to share is, specially to those who encounter lots of loses,
you may lose half your money or even bblow your account, quitting wont help,
rather learn from your mistakes and do it right the second/third time around

 

[Tavnaz]

Fact:"More than 70 % traders are correct about the direction in which the market is headed."
Truth:"Still They Loose"

Secret:
1 They hold loosing trades forever.
2. They risk more then they can handle.
3. R:R is busted.

Considering August Volatility a 30 pip stop loss wud fair well in the market.

Clear Example.

Account balance=100

Risking no more then 3 % per trade.
my risk is 3 $
divided by 30 pips
my $ per pip value is .1 $ per pip.
The lot size i should trade=1 Micro lot=1000 units(PS,most traders would trade a mini lot here ie 10000 units that is why they will get busted
Just think 30 pips at 1 $ per pip, means a 30 $ loss on that trade.which is loosing 30 % of your account on that one trade,is that wise?)
Lets say my reward is 40 pips
See that my R:R ratio is more then 1

My reward is 4 $

What if you loose?
You loose 3 $ or 3 %
atleast you are not betting the farm on one lousy bet.

Its an endurance game.
It depends on how many punches you can take,and still be standing.

Continuing the example......
Let say my accuracy is no more then 50 %
So if i trade 4 trades i will loose 2 and win 2.

Trade 1: Loss.account balance is 97 $ now.
Trade 2: Loss,account balance is 94.09
Trade 3: Profit,account balance is 97.853
Trade 4: Profit,account balance is 101.76

End Profit 1.76 $

Question,Did you have to be a genius for this?
Answer: No,my accuracy in this case is no more then 50 %
I only managed my risk
made sure it was static
Made sure i dont loose my account over loosing trades.

Nuffff Said.

 

[amlearning]

They are not intelligent enough.
Their psychology is all wrong for trading.
They underestimate the skills required.
They overestimate their own abilities.
They risk money before they have learned how to trade.
They over-complicate their charts.
They over-simplify their charts.
Their heart is just not in it.
They lack the necessary patience and perseverance to succeed.
Their losses are too large in relation to their wins.
They have no tried and tested strategy.
They are not disciplined enough to stick to their strategy.
Because ultimately, trading is gambling, and sooner or later, all gamblers lose.
Most of the above are inter-linked, and I'm sure you have reasons of your own that I've omitted. What do you think?

They DO NOT understand the BUSINESS.​

 

[rmani84]

Well, all of us jump into markets knowing nothing ... Our education system does not have any chapter about stock market basics !

To be a successful trader, you still need to understand long term trend. Then you need to master short term trend and then intra-day if necessary ...

- Read Book on "Art of Stock Investing - Indian Stock Market"

 

[angelnish]

Thank you all for your reply. Happy Trading