Why Most Traders Fail
Why Most Traders Fail
These are my thoughts and ramblings on why most traders fail to be successful in the market.
- Holding for Unreasonable Profits
- Get Rich Quick
- Lack of Knowledge & Education
- Time Commitment
We see so much money flow in and out of the market and our accounts that the profits traders want to take are far greater than what they should be taking. This is especially true in the world of crypto when people are up 50%, 100%, 500% on a single trade and continue to hold like it’s nothing.
We should be steadily taking profits out of the market or sliding it into safer investments for the long hold. Compounding this money is how people become wealthy. Don’t let yourself get bamboozled into holding out for 100%+ gainers.
Get Rich Quick
People want shit loads of profit in a short amount of time but trading crypto shouldn’t be that sexy. In-fact the market should be boring with slow and steady growth made by calculated choices instead of hopping in and out of the next meme coin looking to triple or quadruple the original investment.
The rich get richer because they are the smart money taking the dumb money. Most traders fail because they make a mistake. On the other end of that mistake is someone who was patiently waiting for that mistake to happen and then they reap the benefits and rewards.
Don’t let your money get taken! #LiamNeeson #Ihaveaspecialsetofskills
Lack of Knowledge & Education
Trading crypto has become readily available to more and more people through apps like Robinhood, Coinbase, Twitter etc. On the surface this is great because we are encouraging more and more people to think about investing in their future. The problem is 90% of these people don’t know what they’re doing. They either follow the guy who’s throwing up screenshots of epic gains or buying into the “I’m the most successful real money crypto trader on the planet,” guy stepping off “his” private jet. Looking at you Jeff!
I’ve seen so many people blow up their accounts on these junky shit coins holding out for that big feature release or news to send it to the moon. Or those that think commenting and posting about their coin all over Twitter will somehow pump the price. If you are relying on hopium, you are going to fail.
Doing extensive research and looking for the right opportunities instead of following the sheep can and will make you a better trader - even if you lose on the trade. We learn better when it’s our own mistake instead of suffering from someone else’s mistake.
So, lock down your profit, stop dreaming about the big overnight winners and ignore the hype. Doing these three things alone will make you a more successful trader. I promise.
How Can You Prevent This From Happening to You?
If you want to be a success trader yourself, you have to come to grips, that it is going to take time, A LOT of time. We are talking like 6-12 months at minimum to get your head around most of the concepts. Trading crypto or stock markets are ever changing and require you to adapt based off what is taking place around you. What you are trying to accomplish is the ability to predict what is going to happen next within the market. Obviously, predicting the future isn’t easy, same goes for the market. One of the most important parts to understand is, it is going to be frustrating, you are going to lose money, you are going to struggle at times from an understanding and an execution standpoint. These are all parts of the growing pains that all traders go through.
If you are comfortable with the above information and want to dedicate the time to it, then you can be a successful trader.
In the near future we here at BreadBytes will be providing educational blog articles that help you learn a bit more about trading, understanding different indicators and how to best approach trading the market.
A good starting point is checking out our crypto trading bots. These bots are created from our custom indicators and consistently improved over time. Being able to see the bot executing trades on your behalf is a great way to start understanding the markets and what is happening in crypto on a day to day basis. Some people use our bots as a guide for their own trading to keep them on the right path throughout their own trading journey.
You can check out our lineup of bots here: https://www.breadbytes.com/breadbots
Hope you enjoyed this article, and as always feel free to reach out to us on Twitter if you have any questions!