Most Traders Will Lose Money | This Is How you Can Still Succeed.......
Any trader new or veteran, knows that this is a game of probabilities and risk management.
Can we limit our downside while increasing the chances of our desired outcomes?
But if this is all about probabilities, wouldn?t it make sense to pay attention to what our probabilities of becoming a successful trader are in the first place?
I want you to think about that. It is widely accepted that 90-95% of traders will fail and quit in the first 18 months of real money trading. Of those that are left, half will quit in the subsequent three years. We end up with a very very small percentage of traders making it.
So how about that for probability? Would you take a trade with a 98% chance of failure? Only a fool would do that. Yet new traders line up in droves everyday convinced that they will be part of the 1-3% of people who actually make it and they take that risk not just with their capital but their lives.
How does this happen, I?m going to explain how in this video?
But first let?s think about why people start trading in the first place.
Is it a lambo, a huge house, popularity?.? No, contrary to what gurus would have you believe its not that for most of us?.. for most of us its freedom??.its freedom
We want to be free to do what we want when we want. We want to feel that we have some sense of control over our lives and our destiny.
To say that this legacy of poverty and lack will end, and it will end with us. No longer will we settle for less than what we are capable of.
The goal isn?t trading, trading is the mechanism.
But the mechanism has a 98+% failure rate, there has to be a better way to ensure our success.
So, I propose a different way of looking at this, one that has a substantially higher success rate when it comes to the real desired outcome of freedom. So pay attention, I?m going to challenge you in this video.
Hey everyone, I know you don?t like to see ads. Especially ads from people trying to sell you on some trading course or get rich quick scheme. I don?t like those very much either. The videos that I make take substantial time and effort. I do not charge for anything, and these ads pay me a small bit of money. So skip them when they come up, and bear with me.
If you want to help the channel grow, then subscribe and hit the like button. Leave me a comment because good or bad, I read them all.
Thank you for watching
So why is it, that even though we all know what the failure rate is for new traders we continue to believe that we will be the ones that succeed despite the probabilities?
It goes back to something you?ve heard me say before.
Trading is an art and not a science.
For those of you that just got offended, please remember this is merely my opinion but there is logic behind it and a whole lot of experience.
So lets take a look at the narrative that causes this.
If someone can convince you that this is simply about defining your risk and then putting in stops to limit your risk at pre-determined levels, then you have taken the first step towards believing that this is simply math and not much more. typically The next step is to convince traders that they need to define take profit areas normally at 2-3 times their pre-determined risk amount and voila, they now have a 1:3 risk reward ratio, and you just need to repeat that in order to create millions.
It then becomes about finding the highest probability trade setups, these are to be definable and repeatable and all look the same. We use historical back testing to determine the validity of these setups, obviously with every aspect perfectly defined and we only look for those with the best track records of giving us the risk reward ratios that we seek?. Because certainly these patterns will continue just the same into the future.
With every step within this narrative, traders begin to buy in more and more to the idea that this is simply math and money management.
That is easy to understand right?
But if that?s the case, then why does the failure rate stay so steady? Are new traders simply that incompetent? Many will convince themselves that they are just one winning setup away from the riches they desire.
That is if they could just discover that elusive indicator setting, then they could be a part of the 1-3% of people that actually make it. Or if they could just quit their job so that they can see the market during the day, that would translate into their success?.. man I hate being tied to this job all day.
If you still believe that is all there is to this, then boy do I have a trading course to sell you?. JK
Traders mostly forget that while the Setup and the risk management pieces are very important, they are only part of the process, and in my opinion, they are some of the least difficult pieces to master.