Why most of the traders lose in Market even after having good knowledge about market and good strategy, it’s because of their emotions. In trading a trader’s biggest enemy is there emotion because when your money is on the line you can’t control your emtions that’s why most of the trader end up losing money.
Why Most Traders Lose Despite Having a Strategy?
90% of the trader lose money in market not because they don’t have any strategy they have strategy for sure but still they make losses.
Computer’s accuracy is around 50%, 51%, 52% also then why it is more profitable than you because it has 0 emotions and you have 100+ emotions. You use your emotion in live market (while trading). First clear your concepts of trading then do any other thing.
How winning ‘Streaks’ make you lose big?
Q.2 How winning ‘Streaks’ make you lose big?
When we have consistent profitable for 10 days let assure you made profit of 12000$ then suddenly you lose all of your profit and capital also 11th day. It’s happening because we don’t want to lose a streak. That’s why we do overtrading and revenge trading so that we can continue our streak and ended up with big losses. Then what’s the solution of it. When a normal trader has winning streak he become over excited but a professional trader become more aware of it. He thinks that he has a streak so a loss can happen anytime.
Limit the number of trade. Doesn’t matter you are in profit or loss make a rule that you will not take more than 1 or 2 trade in a day.
Trading is not a short term game, it is a long term game. You have to last longer. Focus on saving your capital because if you blow your capital you will be get out from trading.
Don’t compare your day 1 to another person’s day 1000. You don’t have that much experience. Lower your risk so that you can lower your fear, means trade with minimum quantity at you beginning.
Learning too much can make you lose money
Some people are less interested in trading but more interested in learning. They use so many indicators like moving average, bolinger band and they have support, resistance and trendline etc. It only creates confusion, in this state you can’t decide where to enter a trade or exit a trade.
So keep your chart simple use support and resistance and price action that’s all you need.
First found your way like to do. Do you like price action, Indicator or SMC. Figure out what you like and make sure stick to it.
If you have strategy then backtest if for minimum 60 days and 30 days forward testing. If you don’t do backtesting and forward testing you will not get the belief.
Remove that short-term thinking from your mind.
How to overcome fear of profit?
ormal trader is always trying to average their loss and they don’t cut their stoploss just adding more quantity to average it but a professional trader always average his profit. He add quantity when trade goes in his favour whether it can be a retest or it can be a break of support or resistance. We call it pyramiding. For some reason reason it is really difficult to add position when you are in profit because at that point you are thinking of booking you profit.
If you want to make money and want to beat millions of people then you have to think beyond the millions of people.
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