Why do 90% of traders lose money?

By | October 29, 2015

Traders trading without a trading plan and not having proper discipline are bound to loose in stock market, as they are unable to change the sides quickly end up being a loser. As per Stats only 5% traders are able to make money on “consistent” basis in the market in long run. So what makes trading so fascinating that only 5% traders are able to learn lets look into the reasons.

1.  They will never trade for living for initial 5 years of trading, They use this time to get acquainted with all kind of market situation understand the value of 3 M in trading . The need for steady money like a weekly paycheck will corrupt your thinking and force you to deviate from your plan of action that was so well thought out prior to the heat of the battle.

2. They will trade only with money they are willing to loose. They do not need the money that they loose. Even if the account goes bust their retirement planning and other necessities goes unaffected,  The enormous amounts of money that it requires to learn to daytrade would exceed most people’s lifetime income. What makes the number of successful day traders so low is that even the few who could make it, dont have enough capital to endure the learning curve.

3. They never rely on other people opinion. With the initial learning curve they make sure to build habit of  trusting the system!! They do not worry what FII’s are doing or believe in some insider news.

4. They do not follow the crowd, and there is no pressure on them to conform or perform. One absolutely must not be in a position to be held responsible for anything that you do. Total freedom from both personal and monetary obligations are a MUST, this alone eliminates 99.9%.

5. They have incredible discipline to not buckle under pressure. They have a perfectly clear head and understand fully what they do and how they do it.Battle wounds and memories of defeat are more valuable to them than the money.

6. They do not trade with the goal of making money. Quite the opposite, they would be just as happy in any type of intellectual challenge that requires the extraordinary inverted thinking and brilliance required to win at an individualized sport.”

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7 thoughts on “Why do 90% of traders lose money?

  1. Kiritsinh kher

    I makes money in day trading….only trading in bank nifty, gold, silver and crude…in small qty…making 30 , 35 thousand…per month…it is possible for anyone…who are descipline, dedicated to his work…chart, pivots, candlestick,rsi, bollinger band and macd can do mircle to ones life….hard work can do everything in life…

  2. RAJMOHAN

    PASSION LEADS TO (1) PRACTICE & PERFECTION /
    IN TURN (2) SUCCESS /
    IN TURN (3) CONSISTENCY /
    IN TURN (4) PROSPERITY

    i AM NOT HNI. I AM IN STAGE 2 BECAUSE OF PASSION — ( AFTER LOSING ALL MY INITIAL CAPITAL)

    POINT 6 IS A FACT

    THIS ARTICLE IS JUICED OUT FROM EXPERIENCE AND MATURITY.

    THANKS BRAMESHJI

  3. Bramesh Post author

    please watch this video

    I do not agree with your views, traders provide liquidity to the system

  4. sudhin

    When you trade you are trading for self and the society does not benefit, moreover trading for .4-.5% does not require brains, no need of any charting s/w also just plain pivot points is sufficient. By trading only the trader/broker benefit and no one else, if that is the case it is addiction in my view. Anyway you are free to air what you want.

  5. Bramesh Post author

    Looks at all big companies founder(Steve Jobs,Bill Gates Dhirubhai ambani) its passion which drive them not money. same stands for traders

  6. sudhin

    Sorry I don’t think I agree with point no 6, if there is no money then why do I need to trade. This sounds like good only in words or is the writer a super rich HNI?.

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