Trading and the stock market have the potential to settle and allow you to live the life of your choice, and many people have got the chance to live the life of their dreams. But it will only set you free if you know how to play it, and unfortunately, most people don’t. Traders always forget that trading is a profession and requires skills to be developed over the years. Guy Gentile SURETRADER is a successful multi-millionaire day-trader who has built his fortune through the stock market and talks about why traders lose money on the stock market.
Why do 80% of day traders lose money?
It is estimated that around 80-85% of intraday traders end up losing money in the market with a lack of trading discipline. It is critical. As a day trader, your primary focus should be protecting your capital and limiting your losses.
- Poor risk management and no risk management are major reasons for day traders to lose their money quickly.
- Not taking control of losses and mistakes. There should be a trading book to guide your daily trading. You should trade only with stop loss, and also you should keep booking profits at intervals. Failing on these aspects leads to losses in intraday trading.
- Over-trading is one of the most common things in day trading that prevents you from making money. When you panic in the stock markets, you are propping up the other trader who doesn’t panic. Intraday trading requires you to take a basic amount of risk, and proper risk management.
- You must set limits for losses for each trading day. If the loss happens in the first hour, have the discipline to shut your trading terminal for the rest of the day.
- Trying to recover losses quickly is an unrealistic expectation among many intraday traders. When they incur a loss, they either try to average out their position or try to overtrade to recover that loss. This will only cause more loss.
What to do to skip the loss?
Most day-traders lose money because they do not get the little things right. Focus on micros, and the macros will take care of their own. Guy Gentile SURETRADER mentions, don’t expect to be a millionaire by the end of the year, but keep in mind the possibilities trading online has and be mindful of your trading decisions and views on trading. He is the founder of DayTraderPro Academy and offers a Day Trading Fundamentals course that helps people learn the fundamentals of day trading, you will learn hands-on learning, people trade approach through live trading lessons and rehearsals with veteran day traders and short-sellers.