Why People Lose Money In Trading

ABOUT ME:
Andrea Unger here, full-time Trader since 2001 and the only one to win 4 times the World Trading Championship with real money.

Thanks to these results I am often invited as a speaker at conferences in Europe, the USA, Asia, and Australia.
I am also the author of several books, including the first in Italian about Risk Management in Trading, also translated into Chinese and English.

I provide decades of experience, trials, victories, and defeats with which I created the UNGER METHOD™: a scientific, systematic, replicable, and universal method with which, in just 4 years, more than 1,000 traders have managed to become autonomous.

In fact, you may know that studies show that only 25% of traders make money, but 90% of these do it with systematic trading…
How come trainers almost always only teach discretionary trading then?

Becoming a trader is harder than you think, but if you have passion, will, and sufficient capital, you'll learn how to code and develop effective strategies, manage risk, and diversify a portfolio of trading systems to greatly improve your chances of becoming successful.

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Hi guys, hi from Andrea Unger!

Why do most people lose money in trading?

This is a question which has a pretty obvious answer, I mentioned that many times.

Trading is not easy at all!!!

It's not as simple as somebody tells you.

Trading is difficult and it requires a proper approach and study to get some results.

The problem is that most people try to become traders from today to tomorrow and they jump into this ignoring completely all those basic rules they have to learn before starting to trade.

Because of greed mostly, they just think about the final purpose which in their minds is to make money.

Of course, we all trade to make money but they are pulled only from the greed of making money.

So they jump immediately to action ignoring many intermediate steps which are absolutely necessary to build up a proper mindset and a proper preparation to trade.

It's like if you were going to run 100 meters, maybe you're in your 50's and you don't prepare anything, you don't practice any stretching, nothing.

You just go and run as fast as you can!

Most probably after 30 meters, you get injured and you have some muscular problem.

Trading is the same!

Another funny thing that Michael Cook, a trader, a friend of mine said, is: "Trading is like a diet! Most people know what to do in a diet, but they don't do it! That's the same in trading".

I myself... the results in a diet are critical, luckily trading is a bit better, but obviously you need to understand the rules and you need to stick to the rules.

People don't do it, people ignore they need to study!

If you're a medical doctor and you go to make surgery or heart surgery to anybody, probably if you didn't study, you didn't get all the path through your studies, you will make a disaster.

It's the same in trading. You can't imagine becoming a trader studying a week or so, It's impossible!

This is what many gurus, mentors try to make you believe so that they could sell their services, but if on one side those services are necessary they are not sufficient because they would be probably empty of a real concept that you need to be one with the market, and to become one with the market you need to study and to understand the markets.

Markets are continuously changing, they are always evolving.

All I can teach you is a system, a method as I said, to create trading systems.

Trading systems that are built on your understanding of the markets.

So if you understand the markets, studying them, you can create trading systems that work, but being one with the markets you will realise when markets are changing, what to do and how to do it to fight against, let's say against the losses and against the markets, which are not necessarily enemies, let's say they are your counterpart.

So the method to build trading systems is something that you can learn and you need to study.

It's not something that once you get it you solve all your problems.

[deviltrader]

I have been an algo trader for many years in Hong Kong and I totally agree with you. Hope that I can meet you in the future and learn more from you.