There are many reasons why 80% to 90% of novice traders end up losing money. Among the reasons include:
- Being under capitalized
- Taking way too much risk (expressed as a % of capital per trade)
- Attempting to pick tops and bottoms
- Chasing markets
- Becoming obsessed by a scenario (e.g., Silver MUST go up)
- Trading with trading range
- Being compelled to become a day trader
I believe the above reasons, in composite, account for 80% of the failure among pedestrian traders. (more)
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