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.
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
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So what exactly is the reasons behind that the misery of traders losing money.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
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
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