Tag: 100

Around 70% of traders watching this video will quit trading within the next 12 months.
Around 90% will not last more than 3 years in the market. Many traders who will quit will give trading a bad reputation.
If most traders lose money, chances are that most trading gurus on YouTube lose money as well.
They just don’t show their real losses to make you think that they are good. In reality, they just want to sell their thousands of dollars of courses to you.
Most things trading gurus are going to show you in a $3,000-$5,000 course can be found on YouTube for absolutely free. But then again, most trading gurus on YouTube lose money, so actually useful trading content might be difficult to find.
Around 89% of traders lose money in futures and options trading.
Many people who day trade regularly on small timeframes give around 50% of their profits in broker and other charges. This makes day trading have a lower probability of making money.
If a trading guru is only showing profits in dollar amounts and not in percentage gain, then that trading guru is probably tricking you.
I have seen many trading gurus show millions of dollars in profit, but if you ask them their account size, they will not answer. Because those millions of dollars in profit will only be like 5 to 10% of their account. Many Stock Market Indexes give better profit returns than that. Even your neighbors dog can make 1 million dollars in profit if he starts with a 10 million dollar account size.
Binary options trading is the worst kind of trading. Your chances of losing money are so high in this compared to other things that it should be banned from trading. I will make a detailed video on this someday.
Most trading strategies work when used properly. We literally have data! But most traders still lose money with them.
Most traders don’t use trading indicators as a tool to confirm something. They use them as the main decision-makers, which leads them to losses.
Trading gurus will try to sell you old strategies under a new fancy name. For example, supply-demand and blocks are basically support resistance with extra steps. Some beginner traders might try to make you believe that they are different, but don’t get confused by their fancy names. Keep things simple.
Many brokers who offer leverage say that most traders on their platform lose money with them.
In the stock market, option selling is usually considered risky, but option buying has a lower probability of making money.
Trading is a bit easier if you have a large account size and want to make a decent profit in amounts.
Sadly, most traders will come with a small account and a get-rich-quick mindset.
Since more than 50% of trading is based on the trading mindset, this get-rich-quick mindset can force you to aim for unrealistic high returns. That will end your unrealistic trading career.
Most people know how important patience in trading is, but in reality, they are impatient while live trading and can’t stop themselves from taking trades frequently.
If you have a day job and get limited time to Live-trade, you might not become profitable or good at trading even after 10 whole years. Just saying what I have seen happen to other people.
A high amount of live trading experience is usually required to get more consistent at trading.
Your chances of blowing up the account are very high in the first 1000 hours of your live trading experience.
Adding more indicators on your chart is not going to increase your win rate in most cases.
If a trading strategy is working now, it doesn’t always mean it is going to work forever in the future.
You can easily lose at least 30% of your account with a high win rate strategy.
Because high win rate strategies don’t give a high win rate in all kinds of market conditions.
The market can stay bad and unpredictable for a very long time. You can easily make big losses during this period, even if you have been trading consistently for a while.
The learning curve of trading can be very steep.
Even though trading can be learned freely on the internet or at a low cost, the losses many will make will be higher than the cost of going to college. Trading will be costlier than your expectations.
Even many relatively safer investments don’t guarantee profits. So, forget the word guarantee in trading. No one knows with high certainty what the market is going to do in the future.
Even if you become an experienced trader, you can still blow up your account. The probability of this happening will be low, but it will still be there.
Most humans don’t like losing money. In trading, overcoming this feeling is going to be very difficult for many.
If you think after learning everything about trading in a few years, you are going to travel the world and enjoy life. Nope, the markets are going to change from time to time, and you will still be learning something new in the new market.
No matter how hard you try, you will never consistently time your entry and exit perfectly. You will see some trades late, and you will book some profits early.
Social media and news headlines will impact your thought process, leading to losses many times.
If you are feeling angry or sad due to other factors, you have a higher probability of losing money that day. Those emotions can impact your trading decisions.
I see many beginner traders complain about spreads and broker charges, but they forget that they also have to pay taxes on their day trading profits.
If a strategy is working for a random person you saw on the internet, it doesn’t always mean that it will work for you as well. Your trading personality might be different.
Trading will probably be stressful for many. It will make your day job look easier.
Your trading or investing profits can disappear because of some event in another country.
If you think your money is safe with the broker, think again. Not all markets and brokers are well-regulated. Your money can disappear. Crypto bros have a lot of experience in this department.
The bigger your account size gets, the bigger profits you will book, but it will become harder for you to get in and out of the trades quickly.
The strategies that work on smaller account sizes don’t always work on bigger account sizes. You need higher liquidity to trade bigger accounts. That limits the things you can trade and strategies you can use.
You are not going to make profits every single month.
There will also be yearly losses.
Depending on the market conditions, there can be multiple years of losses.
If you are not tracking your trades or at least some part of them, you will not know when to adapt to the new market. You will lose money without realizing the markets have changed.
After taking a trade, your brain can trick you into only seeing things that confirm your entry direction. You might be ignoring stronger reasons that say your trade is going to lose money, and you need to get out.
If you stare at a trading chart for a long time, your brain can get tired, or overanalyzing can make you see entry points that are not even there.
If you only trade one market, you might miss out on excellent trades that appear in other markets.
If you only trade with one strategy, you will make losses and miss profits when the market changes and the strategy stops working.
You can watch all the trading videos you want, but if your trading knowledge is mostly theoretical and less practical, you are going to have a bad time in the live market. Practical experience is far more important than theories.
Trading income can be very unstable. When your neighbor Bob asks you why you haven’t gone on a vacation like the previous 6 months with all your financial freedom, you will have to look him in the eye and answer how food choices of other countries are affecting your financial freedom.
As your account size gets bigger, the fear of losing it will also increase. After all, you don’t want to lose years of progress and go back to zero. That’s going to affect your trading decisions.
Trading is not suitable for everyone. Since trading success is mostly based on the trader’s psychology, some will be naturally good at it, and some will really struggle.
Human brains often see patterns where none exist. Remember that price action traders with your artistic drawings.
You will need to keep your mental health in check, as Good mental health will pretty much be directly proportional to how good you do at trading.
No matter how good you get at trading, no matter how good you place your entries, profit, and stop losses, your broker can face technical glitches or failures that will lead to big losses.
In my experience, a trader needs at least 1000 hours of live trading experience to get consistent results.
Chasing losses can lead to bigger losses.
It is hard to recover from larger losses than it is to maintain profit. If you lose 50% of your account, you will need to make 100% profit just to break even again in total.
No matter what your favorite trading guru says, no one is going to completely master their trading psychology in their lifetime. There will always be mistakes. There will always be decisions made by emotions. The only difference between a beginner and a professional is that the emotional part is minimal.
People with big money on low-liquid stocks can manipulate the prices, and you can make losses because of them.
For some traders, trading can become a gambling problem, and you might not even know it.
Anticipating profits on smaller timeframes can give you dopamine hits. If you are trading on smaller timeframes, check if you are addicted to trading or not.
Even if a strategy has a very high win rate, it can still have very big losing streaks. Even professional traders lose money continuously in a row.
Many experts who appear on the news channels don’t know your risk tolerance, but they still give general buying and selling advice. Listening to this advice can lead to big losses if your risk tolerance is different or lower.
Also, it’s literally their job to give buying and selling advice to whoever asks. So many times, they just pick a random stock that you have probably never heard of before to confidently give you advice, even though they themselves are not going to touch that stock in their lifetime.
Many self-proclaimed trading gurus on the internet give misleading advice.
Most technical indicators are lagging behind what is happening on the chart. This lag can many times make you miss out on some good profits if the price suddenly moves in the entry direction before the indicator gives an entry point.
Economic projections are frequently inaccurate.
The market will do whatever it wants, regardless of your wishes.
Most trading bots don’t make money in the long run.
Most hot trading tips are worthless.
One news event or a rapid market crash can destroy your entire trading account.
News articles often make big deals out of small things that are not going to affect the market by much. But still, these news articles will impact your trading decisions many times.
Even if you are a technical trader, if you don’t pay attention to the fundamental news events that are actually moving the market, you might face big losses.
Trading is not always passive income. Successful trading requires active management and attention. So, if you are imagining yourself sitting on a beach somewhere while trades cover your cost of living, forget it! Add some monitors, and a stress ball to make it look more realistic. A phone will do just fine as well.
Even the stocks that are considered good or safe for trading and investing can crash and plummet in value. There is no such thing as too good to fail.
Even Warren Buffett said to buy low and sell high. But in trading, most traders follow a herd mentality. They will buy after the price moves up, and they will sell in a panic when the price moves down, resulting in buying higher and selling lower.
Fear of missing out on profits can and will lead to bad decisions for many traders.
Traders who wait to buy at the exact bottom of a market-crash many times miss out on the recovery.
Stress and losses from trading can affect or destroy your personal relationships.
If you want to quickly lose all your money, then try penny stocks trading. A highly speculative and dangerous game.
Inflation can reduce your real profits.
Even if you make a profit, that profit has to be better than the market returns. If you are making less than 10 percent profit in a year on average, it will be better to quit trading and just invest in an index fund.
Most traders are not going to outperform the stock market index returns.
If the market attitude currently is positive, then it can randomly change to negative.
Bear markets can last for longer than anticipated and can be painful. You will have to hold a losing position for years before it finally makes a profit.
There are multiple news events throughout the year, like central bank policies, that can significantly impact the market and throw your technical strategies out of the window.
People who are trading on smaller time frames are trading market noise of higher time frame traders most of the time.
Financial news events that are easy to forecast are probably already priced into the market.
When the news comes out, many beginner traders enter based on the news event and lose money when the price does something else.
Many times, there is no correlation between a news event and the market price movement. If the news event is positive, the market can react negatively, and if the news event is negative, the market can move positively.
For every winning trade, someone else is losing. So, if a trader is winning consistently, someone else should be losing consistently. That person could be you for many years. There always has to be someone losing in the market for experienced traders to make money.
Most candlestick patterns are useless on a chart most of the time.
Just because you saw someone make profits in the short term for 2 to 3 months doesn’t mean they are a profitable trader in the long term.
Most articles you will find on Google share beginner-level information and overpriced products. You are not going to become profitable by learning from these sites. Their whole job is to post as much content as possible so they can rank on Google and make money from those visitors.
Stories of successful traders often make headlines. But stories of most traders who lose money will never see the light of day. People who come to trading by only looking at the success story fall into the trap of survivorship bias and end up with most traders who lose money in trading.