Why 90% Of Traders Lose Money?
Trading is a tough business and most people who start in the business lose money.
And these numbers aren't small at all, really. In fact, they might even be scary to look at. Therefore, in this article, we will look at some of the most popular reasons why more than 90% of new traders will lose their money in trading.
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The most common reason why many traders lose money is simply that they want to become professional traders without learning more about it first. They trade without even learning the differences between assets and how trading works. Other people start trading after seeing the hyped stories of millionaire traders on television.
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Some traders just follow the recommendations of others and do not conduct technical analyses of their own.
Traders should review the prices, analyze the volume, check the prior trends and analyze other technical indicators before placing their intraday orders.
Rushing just to place buy or sell orders is one of the biggest mistakes intraday traders make.
One should conduct proper technical analysis and then start trading.
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The phrase- “Trend is your best friend” always works in the market. Not following the trend is another biggest mistake that day traders make.
Unless a trader has many years of experience and understanding of the market, traders should try to avoid going against the trend.
If the market is in a strong uptrend, then one should try to trade in the up direction only unless there is any strong resistance or chart pattern breakout.
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Some traders follow rumors and recommendations which are spread by the media houses and brokers.
This is another big mistake that intraday traders make. One should not blindly follow the intraday trading tips and rumors without their own analysis.
Going by these recommendations without conducting your own analysis can cause huge losses.
As we have discussed above traders should conduct proper research before following any recommendations or intraday tips. As we all know that the intraday trading is a mixed bag of losses and gains. Not every trade goes right or is profitable. Thus traders should put a stop loss of their trades when doing intraday trading to protect their capital from losses.
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