Why Traders Lose Money
It is a well known statistic that over 90% of traders do or eventually will lose some or all of their money. It is also interesting to note that many highly qualified and intelligent people come to the market and very surprised when they find out how difficult it is to make money. In this blog I will cover some of the reasons why this is so.
In order to simplify matters I have created a list of a reason which hamper peoples progress and is the reason why I believe most people lose money. Many of the reasons are the often sited and somewhat hackneyed ones; others are perhaps new to you.
1. Attachment to money.
2. No Trading Plan
3. Under capitalization.
4. Fear and Greed.
5. Excessive Leverage
6. Inadequate risk controls
7. Lack of market understanding
9. Lack of interest in Trading
10. Unwillingness to accept you are wrong
The cumulative result of the above problems is normally enough to finish most traders off as we discussed earlier, even our well qualified doctors and dentists cant handle all the above.
In subsequent blogs I will take each issue in turn and we will examine it in detail.
If you would like to talk trading then drop me a line.
This article has been published with permission. You can contact the author by emailing [email protected] if you need any help or have any questions regarding the articles.