WHY 90% OF TRADERS FAIL

In today's stock market, 90% of new traders fail. They come from all professions and walks of life. This means that The stock market does not discriminate against who's money it takes. It wants everyone's money! 

Here's a list of 10 of the top reasons traders fail and potential solutions to these problems.

Don't do that. If you're going to listen to anyone about buying or selling assets on the stock market, make sure either;

A. They are licensed and qualified to give such financial advice.

or 

B. They make their living investing and have multiple years of experience doing it.

This reason takes a while to fix. However, the sooner you begin learning it, the sooner you will understand technical analysis.

Again, experience will fix this but you can rest assured, every professional trader has been chewed up and spit out multiple times by trading algorithms. Trading Algos  have one job. Make more stocks available for more trades. That means stopping you and everyone else out of our trades ASAP. So, are you feeling lucky? DON'T! Trading Algos are "The Boss" in the trading industry and there's no beating them. Instead, learn to play by their rules.

In most cases, once it becomes news, the move is over. There's a reason there's an old saying in stock market trading, "Buy the rumors and sell the news."

Every professional trader has parameters and a trading plan. It's different for everyone, depending on their goals and risk tolerance. You should research this and determine what trading plan best fits your personality.

Or worse, they refuse to lose. The market will change that, or you will not be actively trading.  Losing is a part of winning and the best traders on earth are fantastic losers! Trading psychology is one of the most important factors of trading. Think of trading as a job. This job has rules which must be adhered to, if you want to be employed in this field.

Market Makers know everything about the trading psychology and human instincts. They have unlimited capital to program the trading algos to exploit and capitalize on stubbornness and "hopium." They literally make millions of dollars per day doing it thousands of times. Don't be one of the 90%ers that get chewed up and spit out! Determine what your maximum tolerable loss is for each trade and if price gets to that point, get out! Take the loss and live to trade another day. Don't become a statistic.

This one is easy to avoid. Most major brokers offer free trading software that will allow you to practice your trading skills before risking any real money. Take advantage of it and prove to yourself that you are consistently profitable, for at least a month, before spending any real money in the stock market.

If you find yourself in this trap, you should take a break. Repeatedly go through the situation that leads you to making the same mistake and recognize it. Then use a trading simulator change your behavior in that situation.

If you don't understand support, resistance, trading channels, patterns and moving averages, you shouldn't be trading real money. Join a free trading community and learn from others who have been there. Practice makes perfect! 

Another of the most important aspects of trading the stock market is money management. You should understand the "R" System, also known as Risk/Reward. Know this before you start. Then, start small and build your confidence over the first year or two of trading.