Why most people lose in trading and how to avoid it

Every one should read this article 📖 👇

1: many traders jump into the market without proper knowledge of how it works. They don’t understand fundamentals and technical concepts .and they lack a solid understanding of risk and market behavior

2: no trading plan

Trading without a clear plan is a recipe for disaster . Every trade should have :

A defined entry point 👈

A take profit target 🎯

A stop loss 🛑

3: poor risk management ⛔️

Risk to much capital on a single trade can wipe out your account quickly good traders only risk 1-2% of their capital per trade stop 🛑 loss should be always be in place

4: letting losses Run & cutting profits early

This is one of the biggest psychological traps 🪤

Traders hold on to losing trades to long hoping they will recover . But the exit wining trade to quickly of fear is losing small profits .

5: emotional trading (fear and greed)😊

Greed makes traders over trade and fear make them exit too early or avoid good trade .controlling emotions is critical in trading

6: following the crowd

Jump into the trades just because everyone else is doing it often leads to entering to late or it the wrong time .make decisions based on your own analysis

7:over trading

Some traders feel the need to always be in the market this leads to poor setup and unnecessary losses only take high probability trades

8: ignoring market news

Economics announcement earnings report and geopolitical news can cause huge market movements .stay informed and avoid trading during the major events if unprepared