Why do only few traders survive?

Question

Charles · Accepted Answer

There is a level of risk inherent in stock market trading. Nonetheless, most people attracted to the market are willing to take higher risks, believing that they are adequately prepared to trade after reading a few books or attending a weekend course. There are many traders who seek instant gratification, plunging head-first into the stock market using complex strategies with the hope of making a profit. Unfortunately, many lose their hard-earned savings due to unrealistic expectations.Knowledge is said to be everything, but in the context of trading, I think it is the application of the correct knowledge that is most important. Many wannabe traders are profitable in a bull market through sheer luck rather than good knowledge. A strong bull market can hide mistakes in judgment and lack of knowledge, which is why I say that you cannot call yourself a trader unless you have been trading the stock market successfully for more than two years.Learning to trade is the easy part; the hard part is understanding your psychology since it is true that your success as a trader depends on the nine inches between your ears. When it comes to failing as a trader, a lack of knowledge is followed closely by a lack of psychology.

Thomas · Answer

When people come to the world of commerce, many think they only have to learn a strategy and follow the rules of that strategy. And there are people who do this kind of thing for a while. The problem with those who do not first get a good foundation of the markets is that when the markets change or when they have a drawdown, they start making mistakes. These errors result in sabotage even in the healthiest minds.The only way to trust your strategy is to experiment with it. If you do not, when you have a decline, you will begin to question yourself. So it could be too late because you could be short of money and short passion. Moreover, wherever there was support from your family, you now have a conflict.

Vernon · Answer

Lack of discipline is the most common reason for trading failures. It is common for traders to trade without a proper strategic approach to the market. Long-term investors sometimes benefit from trading against the trend since they can assess the market and predict emerging trends. For day traders, however, it's best to trade along with the market's momentum. There is very little time for intraday traders to react to the market. As a result, many of them panic too early in choppy markets. This is a common trait among new traders, especially. When you panic and sell, you compromise your profit potential, which benefits traders who don't panic.

Why do only few traders survive?

6 Answer

6 Answer

Why do only few traders survive?

6 Answer

6 Answer

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