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Why Most Retail Traders Fail And How You Can Avoid It

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Why Most Retail Traders Fail And How You Can Avoid It

hey hey what’s up my friend so welcome back to today’s episode where I’ll be discussing right why most retail traders fail and how to avoid it so there are a few reasons for this I would say these are the core reasons and if you can avoid it you will really be that much closer to becoming a profitable trader of course I can guarantee you’re gonna make millions of dollars you know and you know live off the beach in Hawaii sipping pina colada but but here right we can get you closer you know to to that goal that you have for yourself so first thing first as a trader as a retail trader okay you have to go all-in you cannot dabble in trading so what do I mean by demo you can Eliza oh let me try forex trading I thought it’s easy to make money right ten people a day all right let me try it oh let me try options trading asset call option is is something that you know you can make risk a dollar and make five dollars or let me try you know doing spreads know you you can try it what try cannot be in your dictionary as a trader the word try is out you must use the what must I must succeed in trading I must do what everything do whatever it takes like to become a profitable trade I must write do the work and validate my trading strategy I must be prepared right to make sacrifices along the way you must and that’s the attitude right of a winning trainer use the word mass it’s not try could which will could have nice to have no those are vocabulary right that will you know hurt you as a trader you must do it must I so don’t dabble in trading make trading a must number two many traders you know they fool around with indicators because it’s sexy right look at those those lines right now you know it goes up and now it’s so fun you know the ping line the blue line in the black line and here’s the thing about indicators right is that but a lot of retail traders think that if they just find the right permutation of indicators right they can you know make money from the markets if only I know the right combination if only I know the right indicators used if only right I can you know use the wrong I use the right choice of you know indicators if only but here’s the thing right indicators there is no magical formula permutation to indicators out there you might find a set of indicators with a fixed set of parameters could have worked over the last three months but guess what that works because of a specific market condition and market conditions guess what they change and when market conditions change that fixed set of indicators that you’re using it’s not gonna work so this is why don’t focus on finding the right combination of tools or techniques right to trade the markets it will expire eventually instead what’s important is to learn how to read the price section of the markets something as simple as if the market is in an uptrend they’ll look for buying opportunities if the market is in a downtrend look for selling opportunities that’s pretty much a very simple framework that you can start with right ask yourself what the market is doing and where can I find trading opportunities right to trade in this current market condition is it a finding the best permutation and the right settings and whatsoever really that will get you nowhere instead learn how to read the price makes one number three most retail traders fill is because they don’t have a consistent set of actions they are always you know dabbling trying new stuff one moment they are doing you know price action trading one moment is chat Panthers next woman is Elliott Wave next moment is indicators next moment is harmonic trading or whatsoever and when you are all over the place when your actions is inconsistent when you’re doing everything and anything guess what your results will be inconsistent I get it right understand you’re excited to to explore as much as possible about trading all the different tools or techniques the indicators the patterns I know in fact I’m going to explore but eventually you must reach a stage where you have to discard 90% of the tools are there because it’s irrelevant to your trading methodology you have to be willing to cut out noise if you’re not willing to cut off the color of the noise and still you don’t dabble in everything in anything then your results will never be consistent okay one of the centers are they really hit me harder is that in order to be a consistent trader you must have a consistent set of actions no two ways about it okay and the fourth thing retail traders they don’t have an edge in the markets or rather most retail traders that fail they don’t have an edge in the markets because they just take it to likely be just sting bit you know one trainer as long as have a minimum of a one to two R is reward ratio right I will make money in a bar it’s alright as long as I have a discipline it’s not a risk management yada yada I’ll make money in the markets well guess what no you must have a niche in the market you must have something a strategy a methodology a system that whenever you execute it or in the long run it actually gives you a positive expectancy or what’s that big word Rainer let me explain imagine you have a coin in your hands every time the coin comes up here you make $2 and every time the coin comes up till you lose a dollar and you know right a coin is 50% of the time you’ll come up here 50% of the time it comes up till now let me ask you in the long run when you toss that coin will you make money or not well it’s pretty obvious that you will make money but what if this time round every time you toss a coin it you lose $2 and every time we I mean when it comes up again you lose $2 if it comes up till you make $1 can you see that in the long run you’ll lose money irrespective of the best risk management regardless of your trading psychology it doesn’t matter because once you don’t have an itch in the markets nothing else matters so as a retail trader I find that it’s important right to explore and extract your age out there there are tools out there to make your life easier you know back-testing platform trading journals even books that actually share with you trading strategy right with back tests and results you can just copy that strategy tweak it to your needs test it and see whether it works right now to us all there right – to make your life easier but you know you have to be willing to do the work know what is gonna do it for you or and you have to be really to do the work and that’s why if you treat this as a must a must to succeed you’ll do whatever it takes but if you just try this you just try there let me devil this devil then it guess what no nothing’s gonna change you’ll still be a losing trader okay and finally all right finally right most retail traders they lose because they have the wrong expectations about trading right so you know the marketing messages out there or you know just do this can make money every day just you can make 10 peeps a day right in the money you can make like what uh I don’t know foreigner pips a month consistently around 200 people some month or you know you can make money every single week every single month but really this you should have look at trading as something that gives you a fixed return comes every single day every single week every single man because that’s not how it works if you want something fix something consistent get a job not trading or not getting involved in business because there is risk involved market is always changing and it takes time for your strategy to either adapt to that current market condition or to you know play defense right until the market condition comes back to be in your favor and then the strategy starts making money again that’s kind of the reality of trading so if you don’t manage your expectations if you think trading is something that you know it’s like you know ATM print money change engine then and really right you’re in the wrong business so many to expectations okay don’t think that you can you know just take up a weekend seminar and online course and after which within a couple of months you can make money from trading well yes you could beginner’s luck but after wall if you do not know what you’re doing you don’t respect the risk that is involved you will lose everything and more okay so many is your expectations okay this is important and with that said right that’s a pretty much what what uh I feel that you know why most traders fail and hopefully right that helps you reduce your learning curve along the way so that’s it I wish you good luck and good trading and until next time you

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