The odds are stacked against us as traders with some statistics quoting the up to 95% of traders fail.
I personally believe this is mainly due to a lack of trading education and a lack of wanting the education.
I see so any new traders come on this forum and announce that they have arrived and it’s going to be amazing. But I get the sense that they have no idea what they’re doing, or how difficult trading actually is. They seem to be looking for some quick money.
Hmmm. Surely a lot of reasons. But based on my experience, one is probably because a lot of people don’t want it enough. If that makes sense? Like, people understand the benefits and perks of trading, but are not ready to put in the work that’s needed to make it happen.
They lose money because they don’t have a consistently profitable strategy which they can run. They fail as traders because this is such a disappointment that they give up.
In my opinion, people in the beginning of their trading journey, are not conscious of the effort they need to put into the graphs to become good. That’s why I think a lot of people leave and don’t come back.
The “get rich quick” scheme doesn’t exist in trading and when people understand this, they just RUN AWAY! A big part of these “failed traders” actually didn’t even try to be good. That’s the truth.
I think that if you stick with it it’s because you truly love it. You love the markets, the price action, there’s joy. It’s not about the money.
i think most also lack the necessary math/probability/stats education to tell with any degree of confidence whether or not they have that, even if they believe and/or hope they have it, and hope is simply not a viable strategy
i agree with this, too
people are attracted by perceived/hoped-for results, but typically without analyzing or understanding or duplicating the processes that produce them (or even knowing how to)
If we think about the 80-95 percent that’s given, and undoubtedly accurate, and then look around in life at where else that level of failure shows up, it begins to make sense and not look so bad after all.
Being a successful trader, at least in my mind, is like being a pro athlete, a CEO of a big company, a successful writer, an entrepreneur, a top professional (think fighter pilot, astronaut, judge, pro racer, etc). All of these share a very similar level of failure rate, because they all require extreme desire, dedication, persistence, practice, etc.
Sadly, most people don’t have the dedication required to achieve any of those. They want the rewards those fields and levels of success bring, but they don’t want the work it took. They stand on the outside, look at the end result of the successful person and say, “That looks easy!” And they jump in, only to realize every single one of those people slaved and sacrificed and worked their fingers to the bone to achieve those results. Then they say, “Screw that!” Go buy a lotto ticket and plop down on the couch to watch more football.
People want results, not the work or time it took to get the results. That’s why it’s important to like the field you are in and enjoy the work. If you hate trading and the work it requires, stop wasting your time and go find something you enjoy.
Let me waste no time and tell you exactly what’s behind…
My shy opinions.
We fail cause we know the right thing but we keep doing the wrong ones each time.
We get into the market and wait for the market to do something for us, eventually it does the opposite but after some time it will be on your favor.
Most come to trade with big expectations, that’s why even small drawdowns can make one cry all night…
Patience… we fail cause we don’t have the courage to wait for perfect times… And please if you’re a day trader, it’s not a rule for you to go long/short once you log into your charts, wait there’s always a better setup later… Live to trade again tomorrow
Little knowledge + less experienced…
Feel comfortable to learn new ideas but don’t be dependent on others, you have to do the work yourself almost 70%. Take time in doing research
Why did this happen, what could have happened if this wasn’t at this point… Keep asking yourself you’ll reach at your financial freedom
Record everything, why are you going long/short at the moment? If you can’t answer yourself right to be satisfied get back to DEMO
Just few mistakes I’ve listed but they mean sth to me, feel free to criticize but losers win sometimes…they Generally are! So don’t afraid to lose just make note you understand why you failed for next time don’t repeat
Been saying this for years. It’s like they think when they start trading, they’ll have a job or something. It’s so strange. I feel like someone has sold them a different type of “trading.”
From the statistics, it is clear that only 20% maximum traders actually persevere I would suggest that any new trader should find careers in financial services companies - as I did - as their starting point.
At least they will find out how to trade properly.and whether it suits their lifestyle. Which is what tradertom.com found out. Well worth reading his book.
In my opinion, one reason could be this: there is virtually no or very low obstacle for a new trader to enter the market (you simpy open an account, put some money in - and that’s it); SO when you’re in, you think you’re a pro but you know nothing at all about trading, in fact the biggest obstacles come just now. Having entered so easily, one thinks that the journey is easy as well and they don’t expect any difficulties from now on. Only if they have taken responsibility to do a very well informed beginning and if they know that they must study a lot, can they go ahead and have a long trading life. My opinion of course
My opinion is this, most new traders start trading with big expectation of making much money without considering the side of loosing too, they rush to open live account without taking time to educate themselves and interact with charts so that they can have some experience, they also rush to make profits without having a clear and test trading plan and psychology which the market demand, the market is always right we all know, it can’t tolerate such mistakes, so they end up loosing their money which cause to quite for many traders
In my opinions i can give every trader especially new traders the following short advices:
Success doesn’t come by chance you have to work for it and it takes some sweats and time
Don’t rush things, take time to educate yourself and aquire enough knowledge and skills
Low your expectations from trading, be patient the market is not a place where money is raining in fact it’s very hard to make a pip and keep it than you think
Create a trading plan after testing it to be profitable obey it everytime before entering any market
Have a strong mindset to control your emotions.
Discipline is the powerful weapon to attack the market with, take your time put some energy after sometime success will come GOOD LUCK
I offer that the most common scenario in (short-term) trading is that a trade goes your way briefly, but then it doesn’t reach your profit goal and price reverses, so it becomes a losing trade. The trade either hits a stop, or else the trader “lets it ride”, hoping it will still make the profit goal, but it goes even more into the red. Short-term traders need to: have moderate expectations, to be in front of a computer, and be prepared to take profit when a retracement occurs. I recommend pivots and mid-levels for setting take-profits.
honestly, in my point of view; this has almost nothing with their strategy, I personally believe that the winning ration of a successful, experienced trader and someone who just knows the basics of trading is almost the same, maybe a little different; the big difference that there is which makes one win and the other lose, is their risk management strategy, not their trading strategy.
i disagree , i have seen so manay smart and hardworking traders ,but almost all of them still end up in losing .
the reason behind this ,it’s because the market is ever-changing ,everytime someone come up with new profit idea, it evolve ,so you will always end up losing .
of course there’s stably profit method ,but it only belongs to those 0.1% .learning only existing materials are hopeless im affraid.
Apologies for butting in, Chris. This is not ideal as humans are geared to be emotional creatures - even if some don’t appear to have any.
However, I agree you are on the right track, and I would recommend to all newbies to develop a ZEN mindset, which accepts emotional challenges without attempting to change track at what the market throws at us, as the only control we have is risk exposure management.
Try The Zen Trader book by Peter Castle. Highly recommended.
Surely a lot of reasons. 
But based on my experience, one is probably because a lot of people don’t want it enough. 
If that makes sense? Like, people understand the benefits and perks of trading, but are not ready to put in the work that’s needed to make it happen. 
A big part of these “failed traders” actually didn’t even try to be good. That’s the truth.