Characteristics Of Loss making Traders

Trading is a profession where its Survival for Fittest, You need to work hard for making money, even if you are having 10 years of experience but still you might be losing money. So what are the qualities of loss making traders, If you are having any of them, start working on getting rid of them and start moving on path of profitable trading.

  • Loss Making Trader do not understand the importance of  risk and money management.
  • They do not understand the importance of  trader psychology.
  • They Learn a system from somewhere and start trading on them without doing any kind of back testing.
  • Loss Making Trader will always want to trade in Options, as its the fastest way to make money with small capital. Most of them do not know anything about Option Greeks and the risk involved in options.
  • Loss Making Trader believe there is some magic trading method that always wins, they search for the Holy Grail of trading.
  • Loss Making Trader do not understand that the very best traders have strings of losses , losing months, and sometimes even losing years. They think rich traders always win.
  • Loss Making Trader  focus on trading  tips instead of the learning how to trade. Most of them always watch Blue Channel and ready to trade in stock where news are involved.
  • Loss Making Trader never have a trading plan of their own and any loss will look for excuses and will like to put blame on others, They are never accountable.
  • Loss Making Trader are looking for that one big winning trade to go all in on, good traders are trading good systems that they risk 1% per trade on.
  • Loss Making Trader have beginner luck and think they have become master of trading after intial success. This mostly happen at the end of Bull or Bear run where market are mostly trending.
  • Loss Making Trader after 6 profitable trades increase their trading bets like crazy and take a big hole in their account when market moves against them.
  • Loss Making Trader want advice, good traders want robust systems.
  • Loss Making Trader run from method to method  after every losing streak, They never stick to same system.

7 thoughts on “Characteristics Of Loss making Traders”

  1. Excellent write up Brahmesh ji… but I want your view on something..what if a trader who has accumulated capital lets say 30k trades in ITM’s assuming he doesnt risk much has his own system doesnt make many trades unless the charts speak to him and has 3-5 point profit targets since he knows he is playing options and not futures so risk is far greater and thus capital management is more important than that trader also a loss making trader?

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