Have you ever experienced to lose money in day trading?
No wonder the list of failed day traders is relatively large. Indecisive situations induced by fear and anxiety, insufficient market knowledge, etc. are the pitfalls.
Moreover, after reading the previous three blogs on the Success in day trading, day trading risk ratio, and binary vs. day trading, I think you have a fair assumption of what’s going on in reality.
If you feel the same consequences, then it’s a RED Alert. But no worry as today, I am in a good mood to share the reasons behind the massive failure associated with day trading.
No more gobbledygook. Let’s get straight to the points to determine the 5 striking objectives on why traders mostly lose money in day trading.
Indeed, it is very true that only 10% of day traders can get ultimate success. Rest 90% of traders fail to get what they expect. So they just quit.
Similarly, it is also correct that winners go through many difficulties just as the rest. So, the difference here is the thought between the winners and losers.
On the other hand, novice traders already have inner anxiety that they will walk into the same path that makes them lose more money.
So, for you, who thinks a similar way, have a quick look at the statistics below.
Do you need any more such statistics?
All of these are true. You can even check it out on google. But the question is, does that mean that you’re not going to go to the gym or play guitar, or try to lose weight?
I agree that you have already gained the fundamental trading skills. But do you know, it is still the market that will dictate price action at the end of the day?
Therefore, traders who can not see what the market is whispering to them always struggle. Your skills alone will not generate your desired profits if you cannot apply these in the proper context.
Hopefully, you have heard Mike Bellafiore saying,
The market has rules. When one disobeys the rules, the Mother market reaches into your pocket and takes what is hers. And she doesn’t give it back.
Wow, so perfectly told!
Many studies showed that people who have the job they enjoy the most have a 99% higher chance of success. One would hardly be motivated to pursue deliberate practice and skill development with no curiosity and enjoyment for the craft.
That is why most people continue day trading until they have temporary curiosity. Then they got bored and just quit and pursue something else.
Believe it or not, success in day trading will take tons of time and ego-crushing losses. Those beginners who expect it will make him rich within a short time, give up as soon as they realize it will not meet their expectations.
However, a trader’s unrealistic profit expectations might harm them, even if they have a method based on an excellent set of tools.
It may lead a trader to commit inevitable mistakes that those with more excellent experience and realistic expectations may not.
It’s also a crucial fact behind the colossal failure of day trading.
Successful traders tend to move slowly and steadily based on their plan and market analysis. They do not anticipate and move without market confirmation.
Also, traders invest time in learning new things regarding the market to be ready for any unwanted situations. It also helps them clarify all the misapprehensions, scams, and fake information about trading.
Moreover, all these factors also allow them to make the right decisions afterward. At the same time, they continue to practice what they have learned.
Undoubtedly, even experienced traders also face losses. But they move forward with their failures as a lesson.
Experts make plans for losses and win as there is a risk in all kinds of financial investment. Their goal is to make the best trades; making money is secondary.
So, Don’t hesitate to step forward!
This post was last modified on October 12, 2020 1:53 pm