BTC/USD - Why Most People Lose In Trading – The Traders Mindset
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Hello Traders,
In this article, we want to talk about some educational stuff because we see so many people losing in trading.
How many months or even years are you in trading? 2 months? 6 months? Or even a year or more? Most of you out there who read this article might try to find out why they make the one-day profits and the other day lose it all again. We did a lot of research on this topic and wanted to provide you all the reasons why YOU still not made it so far in trading.
Let us start.
For this question, we want to bend a bow and try to start at the foundation why people start to trade. Most of you out there started with trading for a simple reason: to make tons of money. The prerequisites are low to none! You simply need to open a trading account watch a few YouTube Videos on trading and et voilà you are a trader, right? Well if that would be the case, we would all lay right now at the Bahamans with a Whiskey and relax life as a rich person but trading is so much more.
Unfortunately, when money comes into play as a tool to make even more money, then usually psychological factors and barriers come into play and glare us to make bad decisions. We want to share with you now some facts that might interest you and where you possibly see yourself as well.
Did you ever heard about the 90-90-90 rule? – Well, this rule is often concealed by Brokers when you open an account. But it is true! 90% of the traders lose 90% of their capital within 90 days! – It sounds crazy, right? Like 90% of all traders lose almost all their capital in this short time!
This cannot be true, right? – Unfortunately, it is. Now let us explain why. Well, the objective here in the financial market is clearly defined. – Achieving profits. So, every winner faces a loser on the other side! We need to understand that first in terms of understanding the profits and losses!
Basically, the truth is that we will have to deal with losses sooner or later again and again. And that is the problem for new traders! An unsuccessful trader can NOT deal with losses! They tend to exaggerate with their emotions once they face a loss.
Why is it like this? – Well, by losing money you have earned so hard, we become emotional. Simply, a rising account puts us in joy and euphoria. Whereas a falling account will put us in scare.
If this case applies to you, you need to learn and apply the ability to control your emotions and concentrate on the substance. This will bring us into an advantageous position.
We simply want to provide you an example, which you might be reflected with:
Our risk behavior changes depending on our profit series. For instance, you win 3 or even 4 trades in a row and booked, let’s say, 2 percent from each trade, you made an overall profit of 6-8%. Then our subconscious mind starts to think riskier because we suddenly think that things going well and seems to be quite simple. On the other hand, a series of losses will paralyze and confuse us. We try to get away from these circumstances as quickly as possible without thinking rationally. We become impatient and in the end, lose our objectivity! And this frame of mind could fast become a doom loop!
You rather need to think like a professional! That is:
Preparing for the market
Preparation for the trade
Have rules and strategies that work
Know that the market is ALWAYS right
Never gamble! We are NOT in a casino. This knowledge will give us a huge trading advantage!
Obviously, there is a lot more to talk about but this will give you a short introduction of the right traders mindest.
Hope that helps.
Cheers
In this article, we want to talk about some educational stuff because we see so many people losing in trading.
How many months or even years are you in trading? 2 months? 6 months? Or even a year or more? Most of you out there who read this article might try to find out why they make the one-day profits and the other day lose it all again. We did a lot of research on this topic and wanted to provide you all the reasons why YOU still not made it so far in trading.
Let us start.
For this question, we want to bend a bow and try to start at the foundation why people start to trade. Most of you out there started with trading for a simple reason: to make tons of money. The prerequisites are low to none! You simply need to open a trading account watch a few YouTube Videos on trading and et voilà you are a trader, right? Well if that would be the case, we would all lay right now at the Bahamans with a Whiskey and relax life as a rich person but trading is so much more.
Unfortunately, when money comes into play as a tool to make even more money, then usually psychological factors and barriers come into play and glare us to make bad decisions. We want to share with you now some facts that might interest you and where you possibly see yourself as well.
Did you ever heard about the 90-90-90 rule? – Well, this rule is often concealed by Brokers when you open an account. But it is true! 90% of the traders lose 90% of their capital within 90 days! – It sounds crazy, right? Like 90% of all traders lose almost all their capital in this short time!
This cannot be true, right? – Unfortunately, it is. Now let us explain why. Well, the objective here in the financial market is clearly defined. – Achieving profits. So, every winner faces a loser on the other side! We need to understand that first in terms of understanding the profits and losses!
Basically, the truth is that we will have to deal with losses sooner or later again and again. And that is the problem for new traders! An unsuccessful trader can NOT deal with losses! They tend to exaggerate with their emotions once they face a loss.
Why is it like this? – Well, by losing money you have earned so hard, we become emotional. Simply, a rising account puts us in joy and euphoria. Whereas a falling account will put us in scare.
If this case applies to you, you need to learn and apply the ability to control your emotions and concentrate on the substance. This will bring us into an advantageous position.
We simply want to provide you an example, which you might be reflected with:
Our risk behavior changes depending on our profit series. For instance, you win 3 or even 4 trades in a row and booked, let’s say, 2 percent from each trade, you made an overall profit of 6-8%. Then our subconscious mind starts to think riskier because we suddenly think that things going well and seems to be quite simple. On the other hand, a series of losses will paralyze and confuse us. We try to get away from these circumstances as quickly as possible without thinking rationally. We become impatient and in the end, lose our objectivity! And this frame of mind could fast become a doom loop!
You rather need to think like a professional! That is:
Preparing for the market
Preparation for the trade
Have rules and strategies that work
Know that the market is ALWAYS right
Never gamble! We are NOT in a casino. This knowledge will give us a huge trading advantage!
Obviously, there is a lot more to talk about but this will give you a short introduction of the right traders mindest.
Hope that helps.
Cheers
Nota
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