In This Article, We Are Going To Discuss The Main Reasons Why 98% Of The Traders Loose Money In Stock Market.
You Might Have Shocked That Do 98% Of The Traders Lose Money ?, Yes Its True 98% Of The Traders Will Lose Money In Stock Market. This Is Not A Random Statement Or A Saying By Big Investors. It Was Said By The CEO Of Biggest Stock Broker In India “ZERODHA”. Who Has Access To The Users Data.
Only About 2% Of The Traders Are Making Profits In Stock Market. The Rest Of The 98% Is Making Losses. This Is To Say That 98% Of The Money Is Going To Only 2% Of The People.
That 2% Of The Traders Are Going To Be Rich Richer And Richest And Remaining 98% Will Become Poor, Poorer And Poorest.
So In This Article, We Are Going To Discuss The Main Points That Why Are 98% Of The Traders Are Losing Money. So That You Can Learn From This And Try To Avoid Those Mistakes.
Learn Before Trading
For Example, In Schools We Will Write Exams, Will You Prepare Before Writing Exam Or Will You Prepare For Supplies After Writing The Exam And Failed In It. And We All Know If We Prepare Well We Will Write Well And Vice Versa.
Definitely Everyone Will Prepare Before Writing The Exam. But When It Comes To Stock Market, Most Of The People Don’t Know Anything About Trading and They Just Open An DEMAT Account And Start Buying Stocks Or Starts Trading Without Any Knowledge
After Buying stocks They Don’t Know Why The Price Of Stock Is Increasing Or Why Is Falling. Then The Traders Will Start Learning About Stock Market.
Some People Will Enter Blindly Without Any Knowledge By Seeing The Profits Of Others Or By Seeing Some YOUTUBE Videos, like They Got 10 Lakhs, 50 Thousand In One Day. By Seeing These Type Of Videos Most Of The Innocent People Will Enter Into the Stock Market In The Hope Of They Can Also Earn Like That.
Stock Market Will Be There Forever So Don’t Be Hurry That They Are Making Profits And You Need to Make Profits Like Them. Take Your Time, Learn About Stock Market And Then Only Enter Into Stock Market.
In Stock Market, Most Of The People Try First And Then They Learn. But It’s Not The Right Way, Learn About Stock Market And Then Only Enter Into Stock market.
Suggestions Or Following Others [ Traders ]
Most Of The Beginners In Stock Market They Want To Earn Money Quickly. Remember That Stock Market Is A Place Where You Can Make The Easiest Money In The Hardest Way. Stock Market Is Not A Piece Of Cake For Everyone. You Can Make a Lot Of Money If You Have Good Knowledge About Trading And Patience.
The One Of The Main Reason Why Traders Lose Money Is That They Follow Others, Like They Join In Some Premium Groups, And Do Intraday Or Swing Trading By Following Their Calls.
This Is The Biggest Scam In Stock Market, They Try To Make Some Cash From These Innocent Beginners By Showing The Screenshots Like Today Profit Is 50k, 1 Lakh Likewise. But Just Think Ones If They Can Make That Much Money By Trading Why Will They Want To Earn From Giving The Calls To Others.
They Will Give You So Many Calls A Day And Only Some Calls Will Be In Profit. Overall Will Be Loss Only In Most Of The Cases.
And Some Will Follow The Suggestions Given By YOUTUBE Channels. Remember If You Take Trade According to their Calls You Don’t Know Why The Stock Is Falling And Why The Stock Is Increasing. If The Stock Falls You Will Exit Immediately In Fear. But You Don’t The Reason And The Stock May Increase After Your Exit.
You Won’t Last Long If Your Are Trading By Suggestions Or Tips. You Will Be Kicked Out Of The Market Sonner Or Later.
Only Trade By Your Capability Don’t Depend Upon Others Capability.
If You Depend On Others You Will Lose The Capability Of Learning On Your Own And After Losing All Your Money By Following Others And It’s Not Working Then You Will Realize. But it’s Too Late Because Already You Lost All Your Capital And If You Learn Also The Confidence Will Be Low As You Already Lost So Much of Your Valuable Money.
Professional Traders Or Successful People
Professional Traders Or Successful People Don’t Follow Anyone. They Trade On Their Own And Don’t Believe In Any Software Or Screener Or Any Suggestions From Others.
They, Trade On Their Own By Their Knowledge That’s Why They Are Successful. So If You Want To Be Successful Trader. First Learn Then Practice, After That Only Enter Into Stock Market.
Successful Traders Or Professional Traders Are Also Same Like You In The Beginning. They Also Do Some mistakes And Lose Money But They Learn From Their Mistakes And Rectify Their Problems. Build Their Strategies From Their Experience.
For Everyone Starting Stage In Stock Market Is A Painful Process. Everyone Will Lose Money in The Beginning But It Is Only For Some Time. Later You Can Also Start Earning Decent Money In Stock Market.
Not Learning From The Mistakes
Every Beginner In Stock Market Will Lose Money In Their Initial Days. But What Makes A Trader Successful Over Time Is Learning From Their Mistakes.
Most Of Beginners While Trading They Do Mistakes, It’s Very Common In Stock Market. But They Don’t Note Their Mistakes And Will Repeat The Same Mistake Again And Again. This Is The Main Difference Between A Successful And Unsuccessful Trader.
If You Want To Be Successful In Trading, Do Note Each And Every Mistake Of Yours And Think Why The Mistake Has Happened, What Is Wrong In The Trade. Likewise, Note And Analyze Each And Every Trade. This May Feel As Extra Burden But The One Who Does This Will Surely See Their Progress In the Future.
So Learning From Your Mistakes Is One Of The Important Thing If You Want To Be A Successful Trader. Don’t Waste A Good Mistake, Just Learn From It.
Thinking Trading As A Part Time Job
Trading Is The Most Riskiest In Stock Market. If You Want To Be A Trader You Need To Spend Your Full Time For Stock Market. You Need To Take Trading As A Full-Time Job Then Only You Can Be Profitable In Trading.
If You Are Not In A Situation To Spend Your Full Time For Trading Then Choose Short Term Trading Or Investing.
The Traders Who Spend Their Full Time For Trading Are Also Failing In Their Trades. Because Trading Is the Most Difficult Thing. You Need To Spend Your Time To Follow The News Regularly And To Speculate The Stock, Market Trends, And World Market Trends.
Even If You Know Technicals Very Well And You Are A Pro In Analyzing The Technicals But If You Don’t Follow News It Is Of No Use. Because If You Have Done Technicals Analysis Of A Stock And If You Took A Position. If There Is Any Bad News Regarding The Company. It Will Effect The Stock, So The Stock May Drastically Fall.
News Effects The Stock Price More Than The Technicals, If There Is Any Good News Some Times The Stock May Increase Even 20%. So Follow The News Regularly.
Don’t Trade Regularly
Trading Everyday Is Not Compulsory. What Beginners Do Is They Trade Regularly Because They Want To Make Money Quickly and every day.
Trade Only when There Is An Opportunity, Don’t Trade Regularly And Most Of Beginners Addict To Trading They Feel Bored If They Don’t Trade A Day.
This Is Very Common For Every Beginner. But The One Who Holds His Emotions And Feelings Will Succeed In Stock Market. If There Is No Opportunity Then Just Watch The Market How It Is Moving. Watch The stocks In Your Watchlist How They Are Moving.
This Is To Say Only Trade When There Is An Opportunity. Do Remember That Trading Regularly Is Not Compulsory. It Will Also Effect You Mentally And Emotionally.
Lack Of Emotional Balance
In Stock Market, You Need To Respond For Your Emotions But Not React. Before Taking A Trade Be Clear About Your Profit Targets And Stop Loss And Don’t Be Greedy. If Your Trade Hits Your Target Then Come Out Of The Trade Or If Your Stop Loss Hits Come Out Of The Trade.
What Beginners Do Is They Don’t Have Clarity About Targets And Stop Loss. They Just Run Back The Stock. If The Stock Is Raising Then They Think It May Raise Further And Holds. And If The Stock Is Falling They Think That It May Raise And They Hold It.
The Stock May Fall Further And The Losses Will Be Huge.
This Is Also One Of The Biggest Mistakes Done By Beginners While Trading. So Be Clear About Your Profit And Stop Loss.
The Other Mistake Is Over Trading, To Recover The Losses Beginners Do Trade After A Trade And At The End, They Will End Up Losing More Money.
Do Control Your Emotions, Don’t Over Tarde, If Your Trade Goes Wrong Just Exit And Analyze Why It Went Wrong, Don’t Hold In The Hope Of That It Will Raise. Be Clear About Your Profit Target And Stop Loss.
Other Main Reasons Why Traders Lose Money
Other Main Reasons Why Traders Fail In Stock Market Is No Money Management, High Margins Or Too Big Size Positions And Fighting With Trend.
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