Why Traders Fail (lesson4)

Number 1 reason why traders fails is

• Laziness

Looking for path of least resistance ( Holy Grail )

Many traders and news traders who come in this market think they will follow signals or someone's gonna tell them where to buy or sell and they will have magical indicator that will predict market correctly and they will be able to make money trading without doing any hard work and that is not realistic because this is profession, with unlimited profit potential and just like any other profession you need to invest big amount of time, dedication and you need to become independent thinker.

• Unrealistic expectations

Many new traders think they will double their account in month or week, some even days and that is not realistic

• Lack of knowledge

Many time traders come and focus only on technicals, they are looking for technical strategy, robots, indicators where they look at charts at their indicators trying to trade markets not understanding fundamentals of the market, market flow, sentiment, Intermarket analysis, equity, commodities.

This is all things you need to understand if you want to become a consistently profitable trader.

• No consistency

You need to be consistent with your approach to the market, you need to have a trading plan, the way you look at the market.

Example: what's happening in big picture fundamentals, what's happening with central banks, then what economic data is coming out for the session then you look at market sentiment, next look at Intermarket analysis- equities, commodities.

Then you can go to your charts and you know what you are looking for, you need to have a proven edge, you don't want to change your indicators every day, week, month.

What you are doing is just find the new strategy or indicator lose and ditch it, then repeat the process over and over again and you will never be profitable that way.

It is the never-ending circle where many traders are trapped.

• Fail to implement risk management

Many traders don't use stop losses, they trade to large lots, risk too much. Don't fall into that trap.

You can blow up your account if you don't use stop loss just on 1 trade, that trade could be fatal to your account, so always use your stop loss and manage your risk, it's the basic thing you need to do.

• Trading Mindset

You need to be thinking like a trader, think in probabilities and understand that anything can happen.

We need to everything to line up so we can have low-risk high probability trade.

It is almost impossible to know where a market will go next.

You need to think like a trader not like a forecaster.

Trader Alen