Monday, December 21

Why Retail Traders Lose Money in Stock Market

Over the years, I have seen several people (including myself) lose fortunes while trading stocks, and I’ve found that invariably, it would be for the same reasons. Such reasons appear mostly psychological and occur often in the trading scene.

It is a known fact 80% of traders lose money and 20% makes profits on the expense of 80% traders going well verse with--Pareto principle

So what exactly is the reasons behind that the misery of traders losing money.
Trade without plan: Most of traders enter the market based on there intuition. They just want to trade as soon as market opens without having any knowledge of volumes, support and Resistances. They just trade coz they want to trade.
Over Leverage: Traders often try to carry too big a position with too little capital, and trade too frequently for the size of the account.
Over Trade: if suppose a trader make 10K in a day
Continue Reading

0 Comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Subscribe to Post Comments [Atom]

<< Home