Why most traders fail is a taboo subject, after all you never see a trader on social media with a zero balance, driving a beat up old car do you?
The reality is that statics show that 90% of retail traders will lose 90% of their account in 90 days.
There’s the notion in trading financial instruments that you can pick it up in 24 hours and be driving that lambo by the end of the week. I really don’t understand how ANYONE can even think this is possible. Trading the financial markets and becoming consistently profitable is one of the hardest jobs on planet earth. It’s the biggest mind game of them all.
Why Most Traders Fail
There are a number of reasons why most traders fail.
1. Instant gratification. Many people simply do not want to invest time into educating themselves. They are looking for the easy buck with minimal effort. Unfortunately, this doesn’t exist. You need to get educated first, back test strategies to see if there’s a positive expectancy, then conservatively built up time in the market.
2. Shiny object syndrome. What I mean by this is traders moving from system to system looking for that 100% success rate. I can assure you, this doesn’t exist. This approach also hampers your progression by giving you conflicting ideas around how to trade.
3. Backtesting. The notion of backtesting is a stumbling block for most traders. Why? Because they want to jump straight into trading live capital. The excitement of the live markets is more appealing than scouring past market activity. This needs to be taken seriously as
4. Mind. There’s a saying – master your mind, master the markets. For me, market psychology is THE biggest aspect to manage get a hold of. If the mind isn’t mastered, your emotions will take over – fear and greed will take hold and, well, chances are you will blow your account.
If you’re struggling with any of the above and you think I maybe able to help you in any way, please get in touch and lets have a chat.