why 90% of traders fail -- why traders lose money -- why most traders fail // stock market 101, stock market tips, stock market for beginners, why investors fail, stock market crash welcome to looking at the markets with david moadel today we're going to try to solve amystery why ninety percent of traders fail somethingi've heard many times i don't know if the exact number is ninety percent buti've heard that many times nine out of ten traders fail see if we can get tothe bottom of that most beginning
my stocks , traders by when prices are high andthey'll call it a break out or they'll say it's confirmation of an uptrend andthen they sell when prices are low they might do this once or maybe a fewtimes losing money each time then they just quit trading they give it upaltogether
so here's twitter and for example theymight buy it up here because it's it's breaking out to break out or its it it's a confirmation of an uptrend andwell you know what happens when you buy at the top right trade goes against you they see these three big red candles andthey they freak out and they sell for a sizable loss or maybe they hold on andthen boom and they sell for an even bigger loss and they might give uptrading all together after that or maybe they you know maybe they bought up hereor up here or up here forever and then they sell at the bottom not arecipe for success
well on a chart such as this one theyinstead could have noted that twitter appears to have a floor at 14 let's say for teens here notice that ittends to bounce right off of the 14 area doesn't seem to go below it they then would need to be patientwaiting until the price goes down to the 14 area before buying it of course there's no guarantee that itwouldn't fall any further than 14 but at least they wouldn't be buying atthe top so we're talking about putting the oddsor the probability in your favor
the tendency to buy after a break outand then sell during a break down combined with an inclination to put waytoo much money into each trade is why ninety percent of traders fail in myopinion so what can you do to solve this well using small position sizes witheach trade would help to prevent emotional trading the feeling of greedbefore the trade is made and then the feeling of fear that causes them to sellwhen the trade goes against them and end up looking and feeling like that guy you don't have to be one of the ninetypercent you can reverse the buy high and
sell low mindset and use small positionsizes to beat the odds and succeed where others have failed
and if you'd like some help with this ifyou'd like more details or you want to put together a trading or investing planyou can contact me anytime at david modell @ gmail.com i hope this was helpful and i'll talk toyou again soon
