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Why do most traders lose?

Most traders, in fact around 90% of new traders lose money.
This article is not to scare away newbies in the market, but rather to educate them.

The 2 big Reasons – System & Execution

# 1 The first big reason many traders lose is that they don’t have a system to their trading.
Many people just sling shot trade just for the sake of trading.

To become a Super Trader you must have a precise system that tells you exactly where to get in (a trigger), where to take profits (a profit target) and where to get out if your wrong (a stop loss).

To put it bluntly -

If your an inconsistent trader then you probably have and inconsistent system Or An inconsistent way of executing your system!

# 2 The second biggest reason most traders lose is their execution. Many traders will sit for hours late
at night and create the perfect plan, but when the time comes they simply can’t pull the trigger.

This often leaves them with the feeling of regret. Execution has a lot to do with Trader Psychology,
which is why we always finish our AppleTrader Video Weeklies with a conversation about Trader Psychology.

Most losing streaks generally come down to either your system or you execution!
Have a look into your trading, can you see that many of your losing streaks were either from
a non-successful system or poor execution of a good system?

Solution – First identify which is it, your system or your execution. Then go to work on that specific part of your trading!

Trader Psychology is something all traders deal with, yet few talk about.

1 Comment

    You have pretty much described my trading so far.
    Sometimes I create the best plan, and then I can’t seem to execute it.
    Then I get in late and lose, its a circle for me.

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