The GREENS Vs The RED

9 小時前

There are two most important and fundamental questions that every trader should ask to himself and should not put his hard-earned money in the market before answering them.

>> The first one is why more than 95-98% traders lose money in the market?
>> And the second one is How those 2-5% traders are still able to make money in the market?

🤔 Is it about fundamental or technical analysis that fill this gap here or is it something else that is ignored on part of the losing traders?

Well one can be a good analyst who mastered those arts in months or over years but may still lose 🎃 when it comes to real trading.

Social media has made it too easy to learn analysis but trading still keeps its difficult spot in the real world.

The space 📏 between the winners and the losers is surely more about discipline and consistency.

Losers generally lose because of fear or greed.

Fear 😣 could be of missing the trade, so entering too early or could be of losing a winning trade and always exiting with minor profit. Both scenarios lead to damage when trade goes against the expected direction.

Greed 🤑 may result into keep on holding a losing trade in hope or not booking good profit in the hope of more and then booking loss. Greed may also lead to unacceptably higher position sizes or over-trading. One should not forget that greed in a good cause is still greed and can damage capital in trading.

Both greed and fear lead to lousy decision making and hence loss in almost all cases.

Winning approach is more about discipline. It is to know one's reasons for trading. These reasons could be their tested setups- No setup, no trade.

Its also about knowing when to stop 🤚. Stop when a defined loss in a trade reaches or stop when specific number of trades are lost.

Winners 🥇 understand that there is no perfect exit when in profit. Either exit at a target or at least with some profit. Protecting capital, without overtrading, could boosts confidence in future trades.

Hence the task of winning more can be achieved by losing less with the above-mentioned approach. One can also lose less by keeping (acceptably) wider stop and hence limiting the number of trades by by-passing volatility.

I hope this would make sense for some traders.
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Regards.