Why You Continue to Lose in the Stock Market
Statistics show that most traders leave the market in the first year of trading.
Reason being: they simply run out of money.
Yet some traders do exceptionally well.
What differentiates them is often not what you think.
They win; you lose.
Understand your own head space first.
Nothing reveals your true self more assuredly than trading the stock market.
Like it or not, here are the top five reasons traders continue to lose.
1.
You have not lost enough yet.
Until you have seriously lost money in the stock market, you will be unwilling or unable to learn what you need in order to change your thinking and adapt to new, winning techniques.
Some folks have to hit rock bottom before rising out of the ashes.
The winners in this business are also those who lost the most over time.
2.
You are too stubborn.
When you are presented with new information, a new methodology or concept, soak it in.
That does not mean it's valid or necessarily works for you.
Question it by all means but do be receptive.
Take it all in.
Then decide.
Just maybe, there may be something there you haven't considered.
3.
You already know it all.
If that's the case, then why are you still losing, assuming you are? (Otherwise why would you be reading this?) Clearly, you do not know it all...
not even enough to make money on a consistent basis.
The market has a way of humbling the most savvy traders into submission.
Accept that you are not the all-knowing, all-wise stock trader.
4.
You need to understand your position in the market.
Unless you are a market maker, an investment banker or a corporate CEO directing the price of your stock, consider yourself a follower.
The market does not care if you are a doctor, lawyer or anything in between.
Following is not so bad, if you know the direction of the market.
Don't try to lead; just learn to follow.
5.
Be open to new ideas.
If yours are not working, then just maybe someone has some thoughts that do work.
Be open but selective.
Adopt those concepts that match your style, your personality and your capabilities to trade.
If a regular job is keeping you from trading, then watching charts all day will not work in your case.
Many strategies work.
Find the one that's most fitting.
No one was ever born a great trader.
Those who stay the course and change accordingly are the ones who rise to the top.
Reason being: they simply run out of money.
Yet some traders do exceptionally well.
What differentiates them is often not what you think.
They win; you lose.
Understand your own head space first.
Nothing reveals your true self more assuredly than trading the stock market.
Like it or not, here are the top five reasons traders continue to lose.
1.
You have not lost enough yet.
Until you have seriously lost money in the stock market, you will be unwilling or unable to learn what you need in order to change your thinking and adapt to new, winning techniques.
Some folks have to hit rock bottom before rising out of the ashes.
The winners in this business are also those who lost the most over time.
2.
You are too stubborn.
When you are presented with new information, a new methodology or concept, soak it in.
That does not mean it's valid or necessarily works for you.
Question it by all means but do be receptive.
Take it all in.
Then decide.
Just maybe, there may be something there you haven't considered.
3.
You already know it all.
If that's the case, then why are you still losing, assuming you are? (Otherwise why would you be reading this?) Clearly, you do not know it all...
not even enough to make money on a consistent basis.
The market has a way of humbling the most savvy traders into submission.
Accept that you are not the all-knowing, all-wise stock trader.
4.
You need to understand your position in the market.
Unless you are a market maker, an investment banker or a corporate CEO directing the price of your stock, consider yourself a follower.
The market does not care if you are a doctor, lawyer or anything in between.
Following is not so bad, if you know the direction of the market.
Don't try to lead; just learn to follow.
5.
Be open to new ideas.
If yours are not working, then just maybe someone has some thoughts that do work.
Be open but selective.
Adopt those concepts that match your style, your personality and your capabilities to trade.
If a regular job is keeping you from trading, then watching charts all day will not work in your case.
Many strategies work.
Find the one that's most fitting.
No one was ever born a great trader.
Those who stay the course and change accordingly are the ones who rise to the top.
Source...