Why over 95% Traders Lose Money 🔥

browsing the net I came across the following information all traders start with the dream to get rich quick 40% traders only trade for one month 80% quit within first two years only 7% remain after five years and less than 5% profit which means over 95% of traders will lose money now the question is why such a huge percentage of people they lose money in the market when it comes to trading there is also another interesting fact which is called as the ninety ninety ninety rule if you do a google search which says 90 90 90 trading these are some of the results which you get which says that over ninety percent of traders lose 90 percent of their capital within the first 90 days looking at this data I'm very sure all of you will be amazed let's understand why this happens when it comes to trading trading can be broadly classified into two categories one is called as fundamental analysis and the other one is called as technical analysis whenever you want to make your trading decision whether you want to buy or you want to sell you have to lean against one of these analysis or maybe use combination of these two let us understand what is fundamental analysis and what is technical analysis fundamental analysis is basically the analysis of business financial health so what people do is they look at the business financial health by looking into their order books by looking into their owning squad or after quarto by looking into their balance sheet and based on that they try to identify how the company is performing when it comes to futures Forex and commodities it focuses on the overall state of the economy and based on that people make their decisions and technical analysis is security analysis methodology for forecasting the direction of price through the study of past market data which means people they only look at the chart and based on that they make their trading decisions now when it comes to fundamental analysis this is what fundamental analysis broadly teaches you if you find a fundamentally strong company you should always be a buyer and if you find a fundamentally company you should always be a setup now people use a number of methodologies to identify whether the company is fundamentally strong all week but once they have identified the company as strong or weak based on their analysis this is the trading decision to make coming to technical analysis all trading books teach you that trend is your friend which means if you find something in an uptrend you should always be a buyer and if you find something in a downtrend you should always be a seller people have been following this learning for n number of years still over 95% of traders they lose money so what is the reason behind it following fundamentals and technical analysis this is what people do if a company has been going higher and higher fundamentally it will be a strong company and would be performing really really nice if you look at the past data similarly if you talk about technical analysis this would also be a stock which is in an uptrend therefore people who follow technical analysis will be buying it and people who follow fundamental analysis will also be looking for buying opportunities on this company and if a company has been moving lower and lower and lower fundamentally looking at the past performance this would be a company which would be fundamentally weak and if you look at the trend we will also be in a downtrend now depending upon whether use fundamental analysis or you use technical analysis your action would be to serve that company so this is what we do as traders if you want to be a buyer we look for company which is in an uptrend or we look for a company which is fundamentally strong and you try to buy that stock and it is not just the fundamentals and technicals which makes you buy it when you see a stock railings like crazy the greed also makes you buy that company similarly based on technical analysis if something is in a downtrend or if a company's fundamentally weak we always try to sell it and other than these two reasons your emotion of fear can also make you sell that stock let's take example of five point seven the cost of this for analysis now is somewhere around eight hundred dollars let's imagine that you get this phone a discounted price which is six hundred dollars what would you like to do at this cheap price I'm very sure you would be very happy buying this phone at six hundred dollars because you're getting it at a discounted price but if you talk about fundamental analysis and technical analysis the price is moving down technically would be a downtrend and would mean that this is an acid which is a weak acid similarly if this is going higher and higher you would love to be a seller at that expensive price because you know selling at expensive price is the best thing to be done but what is your fundamentals and technical analysis teach you technically it will be in an uptrend which means you will be buying and fundamentally this would also be strong now if you go back to the same example where you're looking for a stock which is in an uptrend and also a fundamentally strong company plus you're also dying because of greed this is what you would have experienced as soon as you buy what happens to that stock that stock starts moving down and the reason behind that is somebody was very happy selling to you at those expensive prices similarly when you were selling something in the downtrend or you were selling a company which was fundamentally weak or maybe even selling because of the emotion of fear somebody was very happy buying from you at those cheap prices and what happened as soon as you sold prices they started moving up so why over 95% of traders will lose money the reason is because both fundamental analysis and technical analysis are designed backwards which means people they do things which defy logic people start buying something at expensive prices and they start selling stuff at cheap prices which is logically incorrect and this is why over 95% of traders who lose money

12 thoughts on “Why over 95% Traders Lose Money 🔥

  1. Why over 95% Traders Lose Money is because they think they know what their doing when in actual fact retail trading is a massive game of chance and the graph is random. Sorry to disappoint all the people who think they have a skill. best wishes Hayden


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