Why Most People Will Lose in Trading – The Truth You Don’t Want to Hear.

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Have you ever lost money in a bad trade? If yes, then you know the feeling is often of disappointment and shame – you thought you had it all figured out, then boom, reality hits you so bad you start doubting your sanity.

The success or failure of any trader is measured in profit and loss. However, one commonly known fact people rarely pay attention to is that to make money trading requires a deep understanding of market behavior and a strong level of commitment.

There are many reasons why people may lose money in trading, and we are going to look at the fundamentals of this significant disparity between successful traders and losers.


While it is possible to make a considerable amount, it doesn’t happen every time. 

Trading is a disciplined procedure, and only the best disciples end up becoming fantastic traders. 

There’s no way you can beat the market, but you can understand and join when a trend is defined.

Most traders are looking for the fastest shortcut to making quick and easy money, forgetting that the market literally will not respect you and your hard-earned cash if you don’t respect it. 

Those who trade using high leverage are always emotional with each swing of the market’s trend and always jumping in and out at the worst possible times, which is just plain setting oneself up for potential disaster. Leverage, as commonly said, is like a weapon of mass destruction unless used carefully.

You have to constantly study different approaches to trading the markets, have other assets over various time frames, using all kinds of strategies and techniques. By The time you master this approach, you’ll discover what works and what doesn’t.


Do you know how much a doctor has to study to get the degree and earn a 100,000 salary?

On the other hand, ask any trader how much time they’ve spent on their education – How much training have they taken – How many books have they read? Then you understand why most people lose in trading.

Trying to trade today’s markets is no different than someone practicing medicine. Would you want someone to work on your loved ones that have no training? I don’t think so.

There are many self-taught successful traders out there, but they all have one thing in common – they paid the price for that success. They understand it takes a lot of patience because trading is business and it runs on business principles. 

You have to set up to learn everything you can about how to trade. Books on trading, subscribing to newsletters and talking to other traders. This time, you’ll be better prepared to come up with better trading ideas, and apply solid risk management techniques, and you can start to see your account growing. 

The truth is everyone makes profit and loss, even the big traders. But few are successful because they make and refine their strategy and follow it from day one regularly without any deviation. Changes are made but only in strategy to follow as it remains intact.

If you are joining the markets, ask yourself how much time you have spent educating yourself. Generally, people spend 4 – 5 years making a career in any field. Can the same be said of traders? 

It would be best to see all the market phases, greed, extreme greed, dull market, fear, extreme fear, panic, etc. to understand how the market works.


Don’t throw good money after bad. Throw good money after good.

Your first job is not to profit but to protect what you have at all costs; else, your loss will be someone else’s profit.

Some traders lose on a first attempt, so they buy a second; hey, it only has to go up half as much to break even then! But it keeps going down, and the money goes faster and faster.

Most successful strategies enter a trade when it makes sense and won’t cause a loss if it gets stopped out. Just like Kenny Rogers’s song “The Gambler,” You gotta know when to buy, hold, sell, cut your losses, and walk away. 

Cut your losses and be content with what you have. Picking tops and bottoms are complex and inconsistent. Let the suckers buy at the top and sell at the low.

However, losses are easiest to accept when they are small, but it only gets tougher to exit as they get bigger. One of the general rules that people pay less attention to is that any trade more significant than 1% of your capital should have a stop loss in place.


The silver lining to making mistakes is that you can learn a lot from them. It is more profitable to learn more from failures than our successes because we usually analyze the shortcomings in greater detail to understand what went wrong.

So the idea here is simple: get good training, practice, start with a smaller portfolio and grow your bag as you learn all the market phases. 

Results are what counts and yours shouldn’t be an exception.

Welcome to the world of successful traders or join a Crypto signals group and learn from the experts.


This article is for educational purposes only. We are no financial advisors. The information provided from SmartOptions is for informational purposes only. It should not be considered legal or financial advice. You should consult with a financial advisor or other professional to find out what may be best for your individual needs and risk tolerance.

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A creative entrepreneur in the tech space, whatever that is as long as we keep the human connection. I love to learn new things, Hands-on Crypto enthusiast with an interest in investing in general. Accepting the world for what it is and learn from its history. Anything you can say has been said already we only change the wording to the times we live in.