90% of traders are not long-term profitable. According to some more recent studies, the failure rate could be as high as 95 percent. What are Reasons Most Traders Don’t Make Money?
Reasons Most Traders Don’t Make Money
- There is a lack of research into what works.
- The inability to cope with stress.
- Allowing large losses in your trading account is a bad idea.
- When they realize that trading isn’t easy money, they quit.
- Inability to trade markets that are volatile.
- Inability to manage equity curves emotionally.
- Trading without a positive expectancy model is a risky proposition.
- Never stick to a single trading strategy.
- Trading systems are evolving.
- They did not manage Position Sizing.
- Not being able to manage the risk of ruin.
- Instead of looking for a winning system, they’re looking for the Holy Grail.
- They over-consider the trades,
- Internalizing emotions drive reactive trading decisions.
- Trying to choose tops and bottoms while ignoring trends.
- Trading with leverage without fully understanding the risks is a recipe for disaster.
- Trading on margin without knowing what you’re doing is a recipe for disaster.
- Too small account.
- Trading without a strategy is risky.
- They did not use stop losses.
- Not understanding what it takes to be a trader mentally.
- They set stop loss very closely.
- Placing stops in obvious locations.
- Having a small number of winners.
- Purchasing what appears to be inexpensive.
- Discipline is lacking.
These all for Reasons Most Traders Don’t Make Money.