Why do 90% of people lose money in the Stock Market?
Trading is like chess. It is easy to learn, but it’s hard to play.
In chess, both the players have the same knowledge. But the winner is the one who can read the other person's mind. Can understand the next move of the other person. Same in trading.
Just think about this everyone knows the same things. Support, Resistance, Trend-lines, Chart Patterns, Indicators But why not all make money? What is the reason that 90% of people lose their money? Lack of knowledge? But everyone has the knowledge, Then what?
The common reasons people lose money in the stock market…
- People don’t like to learn first, but they want to earn.
- Some people do gambling, not trading.
- People are not under-capitalized, but their mind is underdeveloped.
- People also take the right trades but lose their money due to impatience.
- People want to get rich fast.
- People have no control over their emotions.
There are many such reasons why people give up.
In the market, I learned that 10 percent of skills are required and 90 percent of psychology. The market rewards those who have patience, discipline, and who are developed psychologically. People who trade based on opinion or emotions always lose here. The market doesn’t care about your emotions and opinions. He goes where he has to go. Many people try to control the market, but it is impossible. The market doesn’t go anywhere, only your money does. So it is better to control your emotions than to control the market.
The stock market is often seen by many as a way to make money quickly. However, for those who think so, it’s a way to get poor fast. Here, more money makes more money, this is true. But if a beginner enters the stock market with such a mindset, then he will destroy himself. As a beginner, everyone should focus on the process, not the profits. If you focus on profits, you will never be able to make profits.
People who trade in the market based on emotions and opinions always lose money. But do you know that the market deliberately set up the setup so that more and more people lose money? He himself intended for people to lose money. So how can we win?
Trading is a mental game. Frankly, the winning is not in the charts but in your mind. Whose mindset is positive, who has a winning attitude, who is emotionally strong, who does not have fear, who has confidence, only that person can win in trading. Those who don’t have control over their minds can never win.
Trading is actually You vs. You! You have to be better than yourself than yesterday.
We all make the same mistakes in the trading journey.
- Overtrading
- Revenge Trading
- Opinion Based Trading
- Large Qua. Size
- Entering Based on Emotions
- Hoped Based Trading
- Enter in Hurry
It is a specialty of the market that it makes everyone make the same mistakes. However, the trader who learns from these mistakes and does not repeat them becomes a successful trader. (This is the secret to becoming a profitable trader.)
Like we have to become something in our life, but if we are repeating some mistakes, again and again, will we be able to become successful? Obviously not, we have to learn from those mistakes and don’t have to repeat them, then only we will get success.
Most people lack patience. They believe that after 2/4 months, they will be able to make money in the stock market. It’s also important to have experience. Tell me one thing that a medical student can do the operation after reading 2/4 books or watching videos. Obviously, he can’t. And even if he does, there will be a lot of fear, a lack of confidence in him. Because one, he has not yet learned properly, nor does he have experience.
(If you do not have any income source and if you are trading with saved money or loan money, then please don’t do this. You should never trade with money that you are afraid to lose.)
- Learn the market first. Start with small capital. Trade First Stocks. Trade with low quantity. Focus on the process, not on the profits. Gain experience. Be slow & consistent.
- Learn risk management and money management, and apply them strictly. Be patient, be disciplined, and develop your psychology.
- Don’t Repeat Your Mistake. Losses are always lessons. learn from them.
- Try to take a small loss, small profits, breakeven, big profits. Always avoid a big loss.
- It is much more important to keep that money safe than to earn the money in the market. Keep your capital safe at all times.
- Trading is a business, so treat it like a business.
And if you can earn $1 then you can also earn $1000. Great things take time.
and never give up because
Winners Never Quit & Quitters Never Win…
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