Ever thought about why your dreams to get rich are breaking? The reality is that you don’t know the reasons for your trading failure. Of course, you are unaware of
these trading pitfalls. Can you remove your mistakes?
Why not!! You can do it after understanding them.
This post focus on the failure of traders and why traders put their trades on the wrong track.
Most traders trade without learning the trading skills. Entering the trade without understanding results in blowing accounts frequently. Which leads you to give up your game without reaching the final match.
Let us try to find why 90% of traders fail?
Records prevail that 90% of traders fail. The reasons behind this failure are overconfidence, lack of discipline, poor money management, week strategy, worst timing, and emotional behavior. They don’t like to learn before entering the trade.
Nearly 85% of day traders lost their money within a few months. 70% give up after one year of losing money. 90% continue struggling beyond the third year. Somewhere the figures state that this failure extends to 95% of traders.
Reasons for The Failure Of 90% Traders
You are losing money repeatedly; definitely, you give up. Nobody in the stock wants to blow the account. As your entrance into a trade is full of future dreams.
When you feel that your dreams have no access to forex trading, you will lose the courage to take risks on further trades that may push you to the winning point.
Different blogs and websites disclose that more than 90% of traders eat up their own accounts unconsciously.
You can review the reasons for the failure of traders in the following:
Being Friendly with The Market
You fail when you take the market as a beating terminal. However, if you join and
Understand it after the clarity of a trend. But the market acts like your enemy when you dream of getting too much by using a minimal funded account.
Mostly the beating stock policy enhances the traders to trade aggressively. This may turn the beginning of your disaster.
Starting with Small Capital
Every trader in Forex trading likes to make money quite easily. Commonly, forex marketers are pushed up to put large lot sizes.
They have to struggle more profits with a small amount of starting capital.
In short term trading strategy, due to top leverage, trader’s emotional behavior.
Never let him/her face the ups and downs of the stock market.
You can overcome this problem by increasing your account deposits.
What is a reasonable amount of initial account?
For trading smaller/micro-lots, 1,000 dollars is a reasonable capital.
Which amount of account is insufficient to trade?
An account of less than $1,000 falls the traders to disaster.
Unable to Have A Grasp on Risks
The backbone of the survival of a forex trader is the Management of Risks. You are kicked out due to the lack of risk management.
First, you want to secure your account rather than to get more. When you lose your capital, you lost the chance to get earning.
To cure this disease and handle risk, understand to use stop-loss orders. Once you have a lot of profit, just let them move.
They never use reasonable lot sizes as compared to their capitals. Traders go for long-term traders without having a sense of trade. To avoid more failures, such traders should give up.
Greed to Get More
Sometimes, traders realize that they should squeeze each final pip from market movements. Just before the changing of currency pair, try to hold every last pip.
This may cause you to stand longer positions. In this way, you are set down to miss the profitable trades.
Here following, greed is a curse seems the solution obviously. However, hundreds of pips go around. But you have to target the reasonable profit only.
As currencies are moving continuously, so it is not necessary to try that last pip. The next chance is waiting for you.
You have to face trading regret conditions while trading. Such an atmosphere create when you fall into the non-profit zone.
At that time, you are bothering yourself as a loser. Then being afraid of missing something, you put your trade on the wrong track.
Now you put your drive on a reverse gear, which would be a failure of your trading strategy.
Otherwise, this is a time to select a position and try to stick with it. Overall keeping forward or backward will cause you to fail.
The situation remains till your investment goes exhausted.
Trading by Choosing Tops/Bottoms
Most newbies try to choose the changing points of currency pairs. They will go on the wrong track and repeat this again and again.
Such negative trades will result in a potential disaster. And you end up your accounts on your own.
Trending trade is better. It is uncertain to you to pick one bottom perfectly out of ten trials.
When you know the change in trend, you trade in a further direction without waiting for the verification of this trend.
Picking a position at the bottom using the downtrend is not a safe track. Go to pick the uptrend that will secure your trade.
However, pick a top if the market is moving up. Try to pick a top from a downtrend.
Afraid of Being Wrong
Some trades are so unfit that they won’t work out. Psychologically, your fear of being wrong makes you in a protective position.
This position never lets you take risks on the right trades.
The mindset to be right causes you to blow up your account. It looks impractical, but in actual practice, you are playing on the wrong pitch.
No matter whatever the reason is, you have to accept the pitfall.
Only to avoid repeating this mistake can you learn to correct your trading track.
The best way to go right is to move on to avail of the next chance. Fear of being wrong will never let you on the right track.
Purchasing A System
Many online fake trading systems are available for sale. Some of us are busy exploring the 100% perfect forex trading system.
Traders that follow such a trading system never allow you to win the game. After all, you will leave by saying, “Grapes are sour; I can’t eat them.”
Being a new trader, you should not take trading as a free candlelight dinner. To win the trading game at forex or anywhere else is a story of struggle.
You can achieve your goals by making your personal way, plan, and mechanism rather than buying some expensive online system.
25 Amazing Statistics of Traders Failure
Today is a modern age of social media. Everyone tries to take advantage of online data. Unfortunately, more than 90% of traders rely on online trading data.
In actual trading zones, No authentic papers verify this data. Traders depending on the internet trading system, totally face failures.
These statistics are scientifically verified by the real analysis of traders’ practices.
Most traders lose their money by following these avoidable mistakes. Here are 24 surprising figures of traders’ mistakes:
- Within the first two years, 80% of all-day traders give up after being losers.
- About 40% of day traders keep trading for one month only. About 13% hold on trading for three years. 7% stay on trading after 5 years.
- On average market index of individual performance is 1.5%in one year. However, practical traders show 6.5% annually.
- The selling rate of trader’s winners is 50% more than losers. Winning sales are 60%, while losing sales are 40%.
- With a strong existence record, day traders continue to get powerful future profits. However, just about 1% of all-day traders are experts to know about the future net charges of profit.
- Traders with a negative record of 10years of failure continue trading. Trading of day traders still trades if they get a negative signal. This depends on the trader’s capability.
- Day traders earn a small revenue of all traders. Its average per year is 1.6%. These trades make 12% of all trading profits.
- Out of all traders, the earnings of profitable traders are more than that of unprofitable day traders.
- Weak people spend a lot of money on purchasing a lottery. They maximize their expenses on a lottery, which may cause them a decline in their earnings.
- Marketers with high deposits and their aspiration rates stand risky on risky trades in their profiles.
- The number of trading women is less than males. The ratio of unmarried men is high than married men.
- Poor people of non-rural areas try their luck by buying lottery-type schemes. Usually, they belong to some typical minority groups.
- Non-gambler’s effect on gambler’s performance of each business category.
- Traders try to hold on to their losing trades. However, they tend to sell the winning trades instead. In this way, they miss the opportunity to win.
- In April 2002, a lottery was launched in Taiwan. Unluckily, 25% of this Trade dropped badly. And people got exhausted.
- At times of sudden big lottery crisis, the interest of individuals comes to an end. They feel insecure about trading in that uncertain situation.
- Traders tend to repurchase a stock that has given a profit in the past instead of losing money stock.
- In some typical signals, trending search frequency indicates fast profits ratio in the previous two weeks.
- People increase their trading rate if they get more achievements from their present trades.
- Learning is not part of the traders’ strategy. They feel no need to learn trading skills. And they take trading as easy as playing a game of kids.
- On average, day traders make losses by a specific margin. They set it for transaction prices.
- Common traders lost about 2% of GDP in TAIWAN.
- Traders cross the weight limits of the industry, which is employing them.
- Most intelligent investors stay with more joint-funded accounts and more accounts. Hence advantages are more disturbed by verification.
- 90% of retailers follow the technical instruments that come after moving price. But the needed thing is ahead of price.
How to Solve the Trading Mistakes?
OH! My trading wallet is near too blown away…
Worried about what to do???
Everything is possible in the winner’s dictionary. Each mistake is born with its solution.
So don’t worry!! Try to find out the answers to your failures.
The best way to tackle these pitfalls is:
- Try to approach all about trading.
- Increase your knowledge by studying good trading books.
- Join trading classes of some reliable trading courses.
Below is a table of some avoidable mistakes and their solutions:
|Unknown Issues||Increase your information by learning more.|
|Afraid of being wrong||No coordination of being perfect and profit speed.|
|Fearful of missing out||Take care of timings while using stop-loss orders.|
|The pressure of giving back the turnovers||Trade with that account on which you can afford 1% of the risk.|
|Fear of failures||Make a trading plan and carry it.|
After knowing the 25 analytical figures of a trader’s failure from the above post, you will be able to avoid the major pitfalls of trading.
Remember, trading decisions don’t depend on an emotional mindset.
You have to master the trading skills, control personal emotions, and powerful trading strategy. Trading always needs a long time to target the goals.
Sometimes investors leave to struggle at the time of winning trades. Which pushes them into the valleys of losers. Finally, they have no option t