#TradingPsychology ### **The Math That Destroys Traders** 🔢
1. **The Loss Recovery Trap**
- A **50% loss requires a 100% gain** just to break even.
- A **90% loss?** You need a **900% return** to recover.
- *The deeper the hole, the harder the climb out.*
2. **Death by Fees & Commissions**
- Trading fees, spreads, and slippage silently drain accounts.
- Example: Paying **$500/month in commissions** on a **$10,000 account** wipes out **60% of capital in a year**—even if you break even on trades.
3. **Leverage = A Double-Edged Sword** ⚔️
- 10x leverage means **10x gains… but also 10x losses.**
- Just a **10% move against you** can **wipe out 100% of your margin.**
---
### **The Psychological Pitfalls That Wreck Traders** 🧠
- **Fear** → Exiting trades too early, missing profits.
- **Greed** → Overtrading, revenge trading, or refusing to cut losses.
- **Overconfidence** → Ignoring risk, doubling down on bad bets.
- **Impatience** → Jumping into trades without confirmation.
**Result?** Emotional decisions lead to **consistent losses.**
---
### **Why Most Traders Fail (And How to Avoid It)** ❌
✅ **No Trading Plan** → Trading randomly with no strategy.
✅ **Poor Risk Management** → Risking 5%, 10%, or even 20% per trade.
✅ **Unrealistic Expectations** → Expecting 100% monthly returns.
✅ **No Discipline** → Ignoring stop-losses, chasing losses.