Reasons why most of the traders Lose Money

Trading during first half hour of the Session

Trading during the first half hour of the stock market is open on any day and many traders need it. It is considered as the riskiest time to trade. These hours tends to have the most volatile and potential time to gain profits, but in reality the traders often states it as “dumb money” flowing. Dumb money is named as a phenomenon where people make transactions based on the news they saw on the TV.

Failing to hear the market’s message

The stock market keeps on updating people with messages and fresh affairs, but unfortunately people just fail to listen to them. There are many techniques like tape watching which people follow. The stock market usually reacts according to the people’s expectation but the lack of importance on the market’s message makes it a big failure. Keeping the eyes and ears open in stock market can create a huge impact on the trading experience.

Ignoring Which Phase the market is in

It is very important to know whether the market is in trading phase or trending phase. When the market is in trending phase, people have to buy/sell and in trading phase people has to buy weakness and sell strength. Most of the time traders fail to understand the market and end up using the wrong indicators in the wrong conditions.

Trading for Emotional Highs

People need to keep their emotions very balanced on the trading platform, because stock market is an expensive place for emotions and mood swings. It is highly advised to avoid trading in terms of high emotional stress.

Over Eagerness in Booking Profits

Excitement should always be controlled otherwise it will drown the investors. The eagerness to book the profits early should be prevented as it will prevent them from entering the market.

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