Many books teach how to trade which is good. but one thing is why do traders fail? American democracy was created from studying past states from the past and reason for state failure. 1. one man rule, one guy dies and the state fails and falls into chaos and war. The American constitution is working as it was intended to. to prevent a country to fall to martial law and fascism and where Trump declares himself emperor like napoleon and ceasar. who one man has total control the army, police, and big business and the mafia. and the crime syndicates ie street gangs. So to be a 'successful trader" don't do what make traders fail. 1. Don't gamble in the market and don't overleverage. 2. Never average down. 3. letting losses rise and not taking profits or exiting losers fast enough. 4. GREED. wanting to make 10,000% annual returns. 5. and no trading plan. I mean if you make 3 trades in a row and all are losers, you don't have a plan. or have 10 trades and all ten are losers.? worse than casino 100% chance of losing. 90% of the stocks are univestable and scams in the OTC market and Nasdaq. 90% of the losing investors buy the 90% worthless scam stock Traders trying to trade daily in an untradeable market or security or stock. ie no volume and no momentum, no catalyst. your trading against the AI 'machines' and market makers. no fish in a dead water to catch.
This statement is interesting : 90% of the stocks are univestable and scams in the OTC market and Nasdaq. 90% of the losing investors buy the 90% worthless scam stock It can be rephrased more positively as : 90% of the stocks are univestable and scams in the OTC market and Nasdaq. 10% of the winning traders earn tons of money trading these 90% worthless scam stock.
Wrong. Zero sum game definition means majority must fail. And points 12345 have nothing to do with trading success either.
i think it is because people always analyse and do not observe.... and most losing traders go against the trend and do not understand how to determine strength. strength follows strength....this is law of Nature if it does not, then it is a warning ...of trend change
Here's something that's pc incorrect to say, kinda a bit jarring, but I'll spit it out anyway. If you have a mental asylum with patients and really they are long term incarcerated because neither doctors, specialists or nurses can turn them around. There really is no hope or future for them. If that's the case and it's reality, then its probably fair to say some people cannot be cured to become traders, it's impossible, you could throw every training program at them and they would remain clueless. The unfortunate reality is, we most often cannot recognize our own shortcomings.
what you say is very interesting. after a very long time, i have come to realise that i,like most people, form opinions. if the market goes up strongly and then turns,i used to wonder why it is not going up,what could the reason be!!! if the market should go up but it goes down....the trend has changed. ignore at your peril. it is better to lose your opinion then your money
It has to work like this. Money must flow from unskilled traders to skilled ones. It's the way of the universe. It makes sense because that's the way it should be . Effort and ability should be rewarded. Laziness and lack of skill should not. When you were at school, the guys and gals who had ability and studied hard, received the top grades. Imagine how it would be if the guys and gals who did not study hard and had little ability received the top grades! Common sense.
No -- it's nearly an accident. It's a small after-effect of our transactions. It's only applicable to a single transaction, and while a 'work ethic' is a great thing, luck is just luck. First, when the shares that we trade are first issued, the company underlying the shares got our money. If I trade my shares to you, the company *still* has that money. We only trade shares of ownership -- we can only turn them into cash when *we* sell them. (And as happens so often, if the company goes to schieze, our *paper* wealth goes to schieze as well.) So, the "wealth" which traders trade off is but a sliver of the actual chunk of the economy. Second, in an active repeated-play 'tournament' -- like a bullish market, all players can gain. (And vice-versa -- a'la 2008-2009.) And nothing at all to do with "talent".
A lot of the mistakes traders make is their doing. It is self-inflicted. Fortunately, it can be corrected if the trader has the will to change! I am probably, one of the few who talks about this topic but, if you do not have risk management in your trading, you might as well pack it in! Remember Optionsellers.com, Timothy Sykes, Long Term Capital, etc.? There are numerous examples and trades were huge too in the tens if not hundreds of millions. In my humble opinion, this is a mistake that a lot of traders ignore until, they blow up their accounts!