The Top 3 Reasons Why New Traders Lose Money (it's not what you think)

If you understand these 3 things, you have a pretty good chance at trading...

Become a Better Trader

I see it all the time... A new or even experienced trader thinks they know it all... They learned some fancy trading pattern or strategy and think all their money problems are solved... They may even get lucky the first few trades and get a nice return! This is the start of an uphill battle...your ego/confidence rises and you don't even have the proper foundation set yet... What happens is at this point in time, most traders never see consistency ever again... Today I'm going to try my best to explain to you why most traders fail and how to not just be "another statistic". Read closely as I explain the 3 main reasons why most traders never find consistent results and how you can come out on top. 1. Beginners Luck There seems to be a weird phenomena with gambling. This is when someone gambles for the first time, they end up winning money. Not sure why, but it happens.  Just like how I said above, when a new trader places their first trade and wins a decent amount, their confidence skyrockets and they think it's an easy "game".  They go to place a few more trades and coincidentally win them all.  Their confidence rises further, so they increase their position size even more... They finally get their first loss which costs them a large sum of money, if not all of it. They let the beginner's luck take control of their mind and it costs them when the markets finally go against them. Beginner's luck won't last, especially without proper knowledge. This leads us to the next point.    2. Lack of Knowledge/Training When most investors want to transition to day trading, they start out on demo accounts.  What happens is after a week or two on demo, they think they're ready for the real markets. The truth is that they haven't even passed "elementary school for trading" yet.  They get the beginner's luck and then lose thousands of dollars trying to cut corners. They quickly learn that they need to get proper education and training to have a chance profiting in the markets.  When you finally receive the right training, you want to laugh at yourself for thinking you could cut corners or try to do it on your own.  I understand there are skeptics out there who are negative against paying for training because they believe that "everything you need to learn can be found in books and on the internet"  If that's the way you think, I hope you enjoy spending multiple years trying to put the puzzle pieces together by yourself. On the other hand, you could pay a knowledgeable trader/educator money to help you learn the information in a matter of days or weeks.  It will save you years of time and profit by paying for the right education. Please keep that in mind.  3. Trading Plan  Do you know how you're going to approach specific market conditions, how much your max risk percentage is, or what confluences need to align for you to take a trade? You need to have these types of specifics written down in a trading plan to make sure that you are only placing trades when your plan is allowing so.  On top of this, it's incredibly important to keep a log of your trades.  If you are serious about becoming a profitable trader, you need to treat this like a business. Any successful company keeps track of their sales and expenses, balance sheets, etc.  As a trader, you must keep track of your trades to see where you are making the same mistakes and how to fix those mistakes. Not having a trading plan and a trade log will result in inconsistent, emotional trading and you'll likely never end up being able to make trading a main or secondary source of income.  Now if you aren't sure where to start, here's a free day trading video course. It's roughly one hour long. I go into the main mistakes most traders make and how to over come them. I also show the number one strategy that I use each day in the markets to make 2-5% averaged out, daily.  The result is a PnL that looks like this... Watch Free Day Trading Webinar The video I linked will teach you how to avoid making the same mistakes as most other traders and provide you with a clear path to profitability.  Hope you find value in it! Trade Safe, Trade Smart,  Head Trader at TrueTrader.net

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