Why Do So Many People Fail at Trading?

Apparently only 5% of traders are actually successful at trading. The stock markets are so misunderstood and that is why so few people are unsuccessful at it in the long run

• Trading is a business/profession and not a hobby and it should be approached as such, but very few people do

• The reason so many people fail is because traders need to understand psychology of trading, and yet this crucial element is ignored most of the time and because it is ignored by most, most fail

I explain further
The markets themselves are so simple if you know how to read them, and the complexity is not in the market, but in not understanding the psychological issues in trading.

Give two traders the exact same instructions and the exact same training, and you will get two different sets of results.

The problem is twofold:

1) Firstly, a lack of understanding of the market and blindly following a system they bought from the web and not understanding it

2) The bigger problem though, even if they do understand the markets, is not the understanding of what trades should be executed, but rather not understanding to a core cellular level that the even the best traders that make $millions are only right 50% of the time.

The subconscious cannot handle being wrong and there is a fear of losing money because we have been brought up from a very young age with the understanding that we must be right, and that being wrong is bad.

It is these subconscious thoughts that force traders to act irrationally. This trading concept is just not understood by the majority of people and this is why so many people who try their hand at trading, quickly blow out their accounts (also helped by the fact that they have not been taught about money management, specifically relating to the concepts of money management of their trading account)

Trading can be very hard psychologically especially if there is no understanding of the markets.

A lot of people approach trading as a hobby, whereas it should be treated more as a profession or a business.

You would not expect a surgeon to be able to read up on how to operate on the web and then operate, yet that is the approach that a lot of so called traders take, having read a few concepts online and then risk their capital.

Both the psychological aspects and the actual trading system aspect of it are skills, and skills can be improved. A trader just needs a guide to help them through this perceived maze, for something that is actually very simple.

Author Description :
Mike King is the founder of Successful Traders Blueprint.com website. You can learn more successful Price Action Trading at his website

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