Ten Biggest Reasons of Failure in Trading Business
Position Size ( Lot Size )
I found most of the traders don’t take serious about their lot size while trading. Actually Lot size is the main key in trading.
Traders change their lot size frequently which is one of the Big reason of failure in trading.
Aggressive Traders take five to six time exposure and they increase there lot size without following the money management rule.
Failure traders don’t bother about the money management i.e risk per trade.
Due to frequent change in the lot size traders don’t balance combination of winning trades and loosing trades.They take more losses due to increase in their lot size and they take less profit due to decrease in their lot size.
Therefore lot size must be balanced while trading. That is why lot size plays most vital role in trading success.
Discipline ( Trading Rules )
Traders don’t follow the rules while trading.They plan to follow the rules but when practically while trading they got panic and don’t follow the stop loss and other rules while trading.
Before entering into any trade you should have proper planning for that trade.you should decide the stop loss and target for that trade. But many traders don’t put the stop loss and target order and just they play with that trade which results in huge losses.
Traders make huge losses because of not following the rules and disciplines of the trading.
I have seen many traders don’t book their profit even if they see the profits in their trades. Actually Failure traders are not ready to book small profits because of more greed.
Because of not booking the profits in their trade the same profits are converted into heavy losses.
Greed is the biggest enemy in trading.I say even if the small profits are the big achievements in trading. You should enjoy small profits also.Your intention should be you should not make losses. Even if the profit is less its ok.
If you learn to avoid the losses then ultimately you will be in profit . Set the rules to protect your capital.You should always protect your capital so that you will be always in profit.
Proper planning before trading is the only solution to avoid greed in trading.
Fear is the another biggest reason of failure in trading.
New traders enter into the market so excitedly and enthusiastically to make profits.But many times they got losses in their beginning trades which de-motivates new traders. Therefore such kind of new traders are afraid to enter in their next trade.
Due to fear they don’t enter into their next trade.They see the profit is going on in front of them. Again after watching profits in three four trades they enter into the trade. Unfortunately again their stop loss is triggered.
So such type of traders always make losses and are unsuccessful in trading and always blame the system.Therefore due to fear they don’t enter into the market properly and unfortunately they take loosing trades and miss the winning trades.
Risk management is the only solution to overcome from fear in trading.
I have seen that traders get over-confident when they make good profits. But in their happy mood they are not able to take decisions properly and they just don’t follow the rules and again they re-enter the market and make huge losses. They convert their profits into the heavy losses.
You should have a certain goal or target while trading . If you achieve you target on that particular day then don’t re-enter the market without any logic’s.
If you achieve your target or goal on that particular day than shut down your laptop and plan for the next days trade.
This is the only way to save your hard-earned profit.
Don’t take revenge with the market to recover your previous losses.Forget your previous losses and trade in present with proper planning and money management rules.
So over trading is the another big reason for failure in trading business.
Don’t Follow any one strategy or Trading Method
Traders want to see the success so fast in trading.They just follow their strategy only for few days and without following the rules of that strategy they follow the another strategy.
This way they change their trading strategy frequently and don’t get good results in trading business.
Any good trading strategy gives good result in a long run. You should follow that strategy using money management rules to get good results.
Failure Traders always take advice from others
Most of the Failure Traders take advice from others.I experienced in Trading we should never depend on others for their opinion. Many Traders follow others and make huge losses.
Many Traders always ask others where the trade will go. No one in the world knows perfectly what is going to happen in the market.We can just analyze the probability of the market what the market will do.
If No one in the world knows perfectly where the market will go , then why to ask for others opinion regarding the market. Study and observe yourself and analyze the markets what the market is likely going to do next.
Taking advice from others and always depending on the others for the trades is one of the major reason of failure in the market.
I have experienced Failure traders are always negative about the market. As soon as they place the trades they start thinking negative about the trade and get panic.
You should always have positive attitude about the market. You should have confidence on yourself and the trade which you are going to trade. Positive attitude plays most vital role while trading the markets.
Be positive , Get Positive , Success will come towards you.
Remove all the negative faith and negative understanding from your mind regarding the markets. This will help you to get success while trading the markets.
Focus only on Money in their Trading Account
Many Traders think that trading markets is one night game or quick rich scheme. Therefore they put some money in their trading account and they trade few trades on others opinion and wipe out there account.
This type of traders do not focus on learning the markets. They just focus on the money in their trading account and watch their trading account daily. This is the major reason of failure in the markets.
Traders should maximize their focus on learning the markets or observing the markets.
Many traders get unsuccessful due to not having proper knowledge regarding the markets and they just blame the markets and give up this wonderful profession of trading.
Don’t Love Trading Profession
I experienced many traders don’t love the profession of trading. They are not passionate to learn the market movements. They simply come to this profession only to multiply their money anyhow. They don’t Focus on Learning the Markets.
This is the reason they only focus only on the money not on the Market which results failure in trading.
To get success in trading you should first love this wonderful industry and have a success plan. Trading is a wonderful and most exciting profession in the world.
Market is always there to give to success. It is you what you pick out success or failure.
Learn Jayant’s LIFE CHANGING PRICE ACTION TRADING COURSE and find HIGH Probability trade setups in COMMODITY , NIFTY , BANKNIFTY and CURRENCY . Check Jayant’s PRICE ACTION COURSE . Take your Trading to the NEXT LEVEL using PRICE ACTION STRATEGY.