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1) Entry trade with no plan.
2) don't have a good trading strategies.
3) Risk too much per trade don't have proper Money management.
4) not enough capital for account.
5) not Patient and discipline.
Thank you
Tan
Why do many traders lose?
In my opinion, reasons are:
- Not manage risk
- Not pay attention to important news
- Not follow the market
Yes sure,
some other points also
greedness
don't have to waiting opportunity
obviously want to do some fast track
I was hit pretty hard at stage one, had to take a cold shower. Fortunately it only took a very very hard hit at stage one for me to conclude that I can't predict market direction, this was most likely due to the fact that I hadn't been exposed to MT4 at this point.
After stage one I also knew I couldn't trade all day everyday, and that returns would need to be taken annually or at the very least every 6 months if I were to hold them reliable indications good discipline. I think from there I didn't necessarily make it to stage 5 and view trading as a job but instead as a kind of banking. It was more important for me to protect my capital than it was to necessarily grow it, if the growth was gradual that was fine, as long as it was outdoing inflation.
I have used and developed systems with martingale type attributes, but I knew very early on that full scale martingales were monstrosities. I think at that point separating mathematically sound methods from practically sound methods was something that came into force.
Recovery modes were someone contradictory for me, and I have always had an issue with the logic behind them.
Recovery modes are no more or less likely to correctly predict market direction, and if they are more potent generators of revenue why not use recovery modes at all times? The only type of recovery mode I can understand is perhaps one which trades more cautiously until losses are recovered, that way you can hold on to the benefits of an aggressive trading system while holding onto the fail safes of a conservative one.
From my experiences why many traders lose because :
GREEDY IS MAIN FACTOR.
GREEDY IS MAIN FACTOR.
1) Easily influenced by feelings (greed, use of martingale)
2) Thinking of trading as a first world miracle and not a third world job
3) Lack of discipline
4) No fundamentals backing up their trading decisions
5) Lack of money management
GREED IS A KING OF FAILURE!