Trading seems to be an easy task, that why a lot of people choose it as their carrier, but the sad part its that about 95% of those people are not earning a dime on trading instead they donate their entire capital to the market.
Why is it so? Why are the numbers of losing traders so high compared to the ones of profitable traders? ; let us discuss simple reasons behind this numbers.
Hope for luck
It is very common among humanity to hope for luck even if there is no work done, when we were kids usually our greatest wish is to find coins along the path, that why we used to always keep our heads down hoping to see a coin or if the gods are on our side, a note.
Its strange how traders have come with that child-like mentality of hoping for luck. One thing that you need to know is that in life you don’t get what you want or wish for, but you always get what you deserve.The hope for luck forces traders to use unreasonable LOTS, opening multiple positions at the same time, not using stop loss orders and so on. Yet all this things are a definition of poor risk management which is the main cause of loss in trading.Before you can sunk your entire bank account just know that the market rewards you for hard work and proper risk management.
Lack of clarity and awareness
Majority of traders deserve to be called gamblers because to be honest, they don’t know what they are doing. “Gold always flee the man who invest in what he doesn’t understand”.
They keep on switching indicators now and then, they change systems daily, they don’t keep records. Those are the 95% who are losing money and end up blaming the markets and blaming mentors.
The simple way to change your trading results is improving your awareness and clarity in what you are doing. Clarity comes from observing and consistent learning, never stop acquiring information.
Wrong approach
How you come into this industry matters, many approach Forex as a get rich quick scheme, others see it as a gambling platform and profitable traders always see it as a business ,just like all other businesses in the business world.
If don’t see trading as a business , you likely going to lack at risk management. And sad part is that risk management is the key requirement to a successful trading journey.
Changing your results starts with changing the way you see trading. See it as a business not a gambling opportunity.
