Why do more than 90% of traders lose?

Almost everyone that works knows how much they will take home at end of day
there's a lot of peace of mind with that
. As a waiter have no idea what that will be...but I do know i'll be net positive.can't lose money at work.
that's stresssful too

trading for $ is uncertain because i can lose money while working, Or i a may make a little $ but see how much i might have made.

the uncertainty of result is why it's so hard.

Could be down 4 days of week make it all back on the 5th and more..i don't think i could handle that

i need to see something anything every day

you ask why trading is so hard?

 

I think the main reason why investors lose money is because they are lazy.

 

i can imagine that trading is easier if you don't really need the $?

do you need the $?

 

I need money. Everybody wants more money.

I like this quote from Jesse Livermore.

Livermore: There is nothing like losing all you have in the world for teaching you what not to do. And When You know what's not to in order not to lose money, you begin to learn what to do in order to win. Did you get that? You begin to learn!

 

It is more important not to lose. Because there are many opportunities to make money in the market. And when there are opportunities, we can not be afraid. This is what I think.

But it is not easy. When we think it will be easy, we start to lose money.

 

"Do or do not..there is no try"
-Yoda

How about that one?

 

I like it. I think the same.

 

Here is an interesting article:



An Analysis of Public Day Trading at a Retail Day
Trading Firm



http://clem.mscd.edu/~mayest/FIN360...ding at a Retail Day Trading Firm.pdf?ptid=16

 

The question is, how are u going to win this game SMALL TRADERS?

how?

small traders are LOWER educated and poor (ghettos). Moreover, some of u are trading your RETIREMENT funds (STUPID).




http://www.sec.gov/investor/pubs/daytips.htm

 

The reason why more than 90% traders lose is because trading is simple and yet complex at the same time--just like a card game.

Any newbie traders enter into the market could taste temporary victory by having luck on their side. I know some traders who don’t use stop loss at all. They risk everything on every single trade until they blow up. Some of the less lucky traders discover the average down strategy to bring luck their way, but in the end, they found out that they were just delaying their bad luck, and have blew up their accounts.

Some of the more senior newbie trader became “expert” in technical analysis. They use combination of MA, Volume, RSI, Bollinger Bands to make their trade, but yet they still don’t know why it works or why it doesn’t. What’s worst is that some get into the Technical Analysis versus Fundamental Analysis mentality, and decided to dismiss everything related to fundamental, and use price alone.

Once they blow up their accounts, they then realized that trading is not for them.

Some of them may further their research and look more deeply into books like Reminiscences of a Stock Operator, and Market Wizards, but at this stage, they are still too new to trading to get anything meaningful from these books.

They started to get more serious about trading by “treating it like a business”, but little did they know that the word, business, is referred to the gambling business. They are still too early at this stage to believe trading is gambling, and would probably argue with anyone all day to prove trading is not gambling.

They learn about risk control and started using stop loss. They now focus on money management which keep them in the game longer, but eventually they blow up their accounts, and realized that trading is not for them. Who would blame them? They have dedicated so much time and efforts into trading, and yet all they received in return are an onslaught of punishments. The normal peoples will get jobs and move on with their lives. Some of them became “trading guru” and started to teach others “how to trade”.

The remaining masochistic traders learn more about stop loss. They read books like Trading in the Zone and The Secrets of Professional Turf Betting. They dig up their dust-covered math textbook on probability from high school. They now realized that trading is gambling. They try out this new acquired knowledge. Some blow up again and some decided that it will take too long to reach their financial goals.

The masochistic traders who continue this journey have graduated to the next level of Hell on Earth. They have acquired a solid understanding of strategies like average down and building pyramid, and they know the “why” of various trading concepts. They looked back at their mistakes and realize how the vig and ATR may be the major contributors to their past failures. They are at this point in their mid to late 30s and are living with their parents.

Some started to incorporate statistical concept like correlation into their trade to diversify their risk, but yet they still trying to figure out the appropriate percentage of capital to risk per trade or per hypothesis. They don’t have much capital anymore, but they are still trying.

Some realized that the edge is really in the bulls and bears.

to be continue……….. (stay tuned)