WHY 90% OF TRADERS LOSE MONEY

There are 4 big mistakes almost every trader makes. Luckily, they can be easily fixed. These mistakes I highlight in this video are probably things you haven't heard before.

Luckily we can flip these points around and come up with a very powerful trading strategy. Charlie Munger once said, "problems frequently become easier to solve if you turn them around in reverse... unless you're more gifted than Einstein, inversion will help you solve problems".

This is what I did in this video. I use inversion to show you exactly why 90% of traders lose money, and how you can capitalize on their mistakes.

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[ricardos.mcdaniel]

Success is not built on success. It's built on failure, It's built on fraustration. it's built on fear that you have to overcome. I pray that anyone who reads this will be successful in life

[chechendikajev]

"Up or down or even in fucking circles." Just like wolf of wallstreet😆 grest detail

[mcdsye]

How does this trading stuff work? am really interested but I just don't know how to go about it. I heard people really make it huge trading

[phantraland]

I'm afraid Trading is a lot more complicated than that video implies, but I highly suggest you disregard the advice in this video about holding onto losing trades.

Going into a trade has two simple outcomes:
1. you are correct.
2. you are wrong.

And if you were wrong, it might bounce back around into a positive outcome later on...or it might not, in which case you are now losing even more money than if had you exited that trade earlier. And it can go quite lower/higher still after that...There are no guarantees that it will swing back your way.
As a trader, You NEVER want to be in a position where you rely on faith, hope and luck on your trade.

[robertmyers]

Never knew trade could be so challenging! Kept running back to these YouTube videos to learn more about this your video is indeed helpful. Thanks

[benmoro]

Most ppl will only understand this video once they bust couple accounts. You did an excellent summary of the most important aspects of trading.

[scottpalmer]

Overtrading exposes many beginners to too much risk. By doing this, you are not insulating yourself from the market. In fact, you might as well be trading randomly. You should only trade when you think you have the advantage, and ensure you always trade according to your plan.

[massiramuzi]

I disagree with not letting profits run and cutting losses short, if a trade is going in your favour, then you should periodically move up SL to protect profits (previous market structure dictating the position of SL, i.e if riding an uptrend, you should move up SL to previous lows every time a high is made). Conversely if a trade is going against you, then one should look for an exit, and then look for a reentry opportunity should it present itself again. It's better to exit at -£50 rather than hold a losing trade at -£500 hoping for the markets to reverse.

[mx-drive]

I thought I was the only one whose stocks were going in circles. Glad I’m not alone.

[Maftguapo]

Did he just say to be patient with your losing trades? 😂

[Humblejose]

Hello what's the best way to get started with trade cos I've been making my personal research for a while now.

[QuantumBraced]

I think you got it backwards. The vast majority of retail traders trade reversals, not breakouts. So they end up trying to catch falling knives and get wiped out by trends. And the vast majority let the losers run and cut the winners short because they're extremely loss averse, so they keep extending their stop losses until they essentially bet all of their money on one trade and eventually get wiped out. Everyone buys into weakness, and the vast majority lose, because weakness is usually followed by more weakness. But doing the reverse doesn't work any better either. The reality is, 90% lose money because the market is a zero-sum game and big institutions have a lot more tools at their disposal, so there isn't a "right" strategy other than having a lot of experience and doing a lot of homework. No rule like "sell into strength" is going to make you money because there are just as many exceptions as cases where the rule works. There's no simple answer to making money in the stock market.

[projectfinance]

Nice video! Another mistake is trading too many positions in stocks that will become correlated in a crash.

[McPhersonz]

Trading to me is more of gambling, you just have to be careful how you go about it.

[ronaldgary]

The wisest thing that should be on everyone mind currently should be to invest in different stream of income that doesn't depend on the govt especially with the current economic crisis around the world.

[FodoBolseta]

Most people seemed not to understand the video. If you buy a stock at $100, don't set your stop loss at 98 and target profit at 130. Instead your stop loss should be a bit further in range than target profit, for example stop loss at 95 and profit at 103. Not bad for a quick day trade. That's what I do and been by far profitable.

[sahasasahasa]

The trader buys buys a stock after observing long time that it is bullish.. But he buys at the tip.. But the problem is he holds that thinking it will go further.. But forgets it's at the top.. Why this happens is he gets reference in his mind looking at charts which has huge upside.. But he forgets that this would have suited him if he would have bought the stock at bottom and not near tip...

[greglee]

"Be patient with your loses" yea buy counter trend and wait 10 years till it reverse

[js_guyman]

Funny. Yesterday, after just two weeks of researching a bit about day trading, and trying some test trades, I came to this exact conclusion regarding losses and profits. Every YouTuber I've seen goes with this concept of making the stop loss limit smaller than the desired sell price, in an OCO. But if you never let the price dip, you're just gonna be constantly accruing small losses. I'm now experimenting with allowing a sizable loss compared to desired sell price. Using it more as a mechanism to not lose my entire wad, rather than a mechanism to evade losing anything at all. I still know nothing about trading, but I know I'll observe and learn more through this set up.

[jasperthefriendlyghost]

Out of everything on youtube in regards to this topic, this is by far the best and most educating one. Thank you for the free knowledge bruv.