The number of losing traders overwhelms those who are

succeeding

"Do Day Traders Rationally Learn About

Their Ability?"

Do day tradersmake money?

The majority of day traders quit relatively

quickly

Investors irrationally attribute success

disproportionately to their ability rather than

luck

Many day traders are remarkably persistent in their day trading activity despite a history of losses

Most people who take up trading quit

Think they are skillful instead of lucky

Have a history of losing

Trading brokers report that losing traders

make up the bulk of their clients

When we survey typically the number of people losing ranges

from 88% - 92%

There has to be others that struggle

MethodRisk management

Psychology

Most still have a hard time following these

mantras

We came up with these 5 actions that most failed traders don't bother with

LOOK FOR A 65% WINNING PERCENTAGE

I've seen plenty of people trade with 90%+ win ratios, only to wipe out weeks or months of gains with outsized risk

This is a goal and an objective that can

stand the test of time

ACCEPT REASONABLE AVERAGE WIN TO AVERAGE LOSS

RATIOS

A closer reality?

Reward/risk ratios from as low as 1:1 up

to about 1.5:1

With a 65% win rate, a simple $1 risk and $1 reward can work

beautifully

EMBRACE THE POWER OF QUITTING

For us when we day trade, it tends to be

2 winning trades + positive results

= Quitting Time

If we get two winners but are still negative, we continue until we reach a hard time-

based stop.

Most US futures markets tend to be

valid to trade the first 2-3 hours, then fall

into a rut

This applies to ALL day trading in particular -

forex, futures and stocks

YOU MUST ACCEPT REGULAR LOSING

TRADES

You need to look at successful trading as how you did over 50 trades, 100 trades, or

much more

You have to be able to outlast the whims of markets you cannot

control

CAN YOU TRADE YOUR SYSTEM

CORRECTLY 25 TIMES IN A ROW?

If you're anything like me, who has time for

that, right?

The Point?You will not master the

trading rules by watching a video or

reading a book

Until you start to train your mind and develop

some habits and instant instincts, you

will lose money

Most will neverfollow this

Knowing why traders lose money allows you to improve on the very

things they fail at

The fact is that there are many successful

day trader stories

You know success is possible because other

people have done it

Knowing how traders make money and

actually doing it are two very different

things

It's important to acknowledge and even confront what stands in the way of success.

Simple things like cutting losses and letting winners run seem to be easy to do

With work and determination though, you stand to possess a skill that can be used

for life