Why do most short-term traders lose money?

Why do most short-term traders lose money? Dominic Frisby comments. The reason most short term traders lose money is because they do not manage their risk properly. They'll have a 2k grand account and they'll place a bet that risks half that amount in one bet. And on top of that most don't have a trading strategy. Do you scale into positions? Do you use stops?

[ukspreadbetting]

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[sahasasahasa]

1)lack of money and risk management
2)trading in illiquid and non volatile stocks
3)lack of stratergy
4)practical is different from theory approach
5)jumping into trade before signal

[Stew]

- "I've done it, I've sold a house and bet money on markets. Fortunately, it went well for me - for a bit, and then it went against me" -
Yeah, thanks mate. That's quite enough advice from you about managing risk.

[samialsati]

this guy speaks real things, I have traded real account for months and to be honest it is exactly the same as the demo but just I got soo greedy

[cryptovon]

When trading a demo account there is NO emotion because there is no real risk. For me and just for me diving in head first is the best way to learn.While the next guy is putting in six months on a demo account I have learned to trade live even made profits here and there in six months. In the six months I have been trading I have learned to trade with zero emotions. I have gained an incredible amount of confidence and I have discovered that I am a TRADER. I love it. Just like anything else if you are going to be a trader you got to have passion for it. If not you are wasting your time and money.

[pablodee]

This guy is right! Another great interview on Risk management!

[nullx]

one down-side ..
there is a HUGE difference with trading on a demo-account and with real money !!
its much better to follow the advice with a small account, and trade it up to a large one instead.
smaller accounts may require different ways of trading (like scalping or semilar) but the basics are still the same.
and once the account is big enough .. the first longer running trade is not far away ..
plus the money-management rule need to be kept in place at all times, so if trading a long-term position, the short-term trades simply have to wait or be much smaller in volume. again another learning curve which will simply never happen with a demo-account.
while trading up the leaning how to deal with losses is also always happens as its always real money.

get the basics from a demo account .. then invest somethings small .. but NOT mortage the house if you think you ready ..
the balance of the "small account" will tell you when you ready instead ..

[tonya]

to all the numpties saying that a demo account is not like a real account, well yeah of course its not the real thing, but candlestick patterns are the same, you can test strategies the same, play around with indicators, learn harmonic patterns if thats your thing, there is a hell of a lot of stuff you can learn on demo, not forgetting how to put a trade on, the size, the spread etc and stop loss and take profit , if you go straight to a live account without learning all these things first, even with a small amount of equity, you will lose a lot of money unnecessarily, so the guy is spot on, maybe if you are learning intensely like i am 6 months might be a long time, but he is essentially right .

[howardhill]

have to perfect your system first on a demo account...then start trading small with real money. advice

[AD-wbeg]

After several years you can get your money back in most cases but you have to be willing to wait! Never lose is rule #1

[illegalsmirf]

lol the reason most of the time is that the odds are hopelessly against them. The closer your stop, the more likely it will get hit. So you lose over and over and over and over again.

[BharatMataKiJaiii]

When you talk about risking 1-2%, is it 2% of the trade value or 2% of your total capital?

[fourtoes]

Buy stock and sit on it for a long time.

[ericedwards]

He's a good trader. He's absolutely right enter the trade, place your stop loss ( I use a odd number), and take profit when you have it. Don't get greedy, and don't let your emotions guide your decisions. If you do you will blow up your account every time.

[garyseeseverything]

Heads up, stop loses are seen by the market and will hit it to take your money.

[DXmYb]

The people I've seen fail start off with a loosing strategy. They then develop what they think is a winning strategy but in reality is much more risky (e.g. no stop loss) they see significant gains and then blow their accounts in one trade when something shocks the markets

[bookskamaki]

Very nice indeed, but systems don't work all the time.

[damiancasanova]

How much money should you have to make a living? Let’s say you’’ve already grown your small account

[divinxoii]

English is not my first language. I understood most of this short interview. But couldn't understand **two grant ** 2:20
Does it mean money?

[hadil]

Make It or Die Trying there is no other way ✌🏼good luck 🍀💪🏼