Everyone knows over 90% of day traders lose money. But, why does it happen? As a trader, you can’t think short-term. Trading is like a war. You can win one battle in a war, but it doesn’t mean the war is over. It continues. Many traders are focused on the next trade or making money immediately. Thus, they lose sight of the fact that this is a long-term business. So, it is one of the main reasons so many beginners fail in trading.
Why do day traders lose money?
Trading as a business
If you think of this as being a business you likely understand that point more clearly. Do you know of any business that tries to make all the money they can in the first week or two? – I don’t.
The success of a business comes from endurance and staying power. The difference between great day traders and the many that they come and go is that the great ones are still here because they have a long-range view of their business of trading.
People that just come into this trading game start running out too fast over trading, betting too much on the trades, trading too often, trading too many markets. There is no next month in their world.
Building wealth is a long-term process
I want you to understand the simple thing that the massive wealth that has been taken out of the market, was never taken out in a short time. Certainly, the fortunes were generated by the consistent application of effective trading rules.
I know so many traders that want to get daily income from trading. When I tell them it’s virtually impossible. Because some days are good, some days are bad. After that, they most often go on their way looking for someone who will tell them what they want to hear.
I have been following markets for 8 years, I made millions in trading. And, I have seen a lot of people come and go and a lot of successful traders. Therefore, I know for sure the wealth is generated on a consistent basis and it’s a long-term process. In my opinion, those are two main reasons why so many day traders lose money.
Why 90% of day traders lose money by Inna Rosputnia
Wishing you a great week!
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