#TradingPsychology
Why 75% of Traders Lose Everything: The Startling Math Behind It
While trading may seem like a fast track to wealth, most traders end up losing money. In fact, 75% fail due to poor math, psychology, and lack of preparation.
The Harsh Math of Trading
1. Loss Recovery: A 50% loss requires a 100% gain just to break even. The bigger the loss, the harder it is to bounce back.
2. Fees: Small fees can add up. Spending $500/month on commissions could eat up 60% of a $10,000 account in one year.
3. Leverage: While leverage can increase profits, it also amplifies losses, putting your account in serious danger.
Psychological Traps
Fear leads to exiting trades too early, locking in losses.