Various Reasons Traders Incur Loss

Posted by on July 26, 2018 in Posts | Comments Off on Various Reasons Traders Incur Loss

Various Reasons Traders Incur Loss

Most of the people have a misconception that trading shares are one of the simplest ways to make money. However, if you don’t take it seriously, you could easily lose all your money within a few days. People lose money because they follow undisciplined ways of trading. You need to stay away from those ways if You wish to make in share trading or else the market will wipe out all your funds. It is better to change your approach as soon as possible.

However, in the case of digital currency trading, you need not have to worry so much as there are sophisticated software’s available online such as BTC profit which guides the trader through the entire process of trading. All you need to do is to deposit a nominal amount in the trading account to initiate the process.  Read through here if you wish to learn more about it.

Reasons why people fail in stock trading

Trading during the initial hour of the session- The initial hour when the market open is usually driven by emotion that is affected by movements happened overnight in the global market and the aftermath of the trading done in a previous day. Also, it is during this period that the market entices the novice trader to take a position which would be just the opposite of real trend that will emerge only in later part of the day.  Many experienced traders only watch the market simply for the first few hours to check out the intraday patterns.

Not noticing the message sent by the market- You should be able to notice the message send by the market and reconfirm it using charts. You need to watch if the market is holding on to certain levels.  If the market is oscillating within a small range then it is asking you to stay away.  Hence you need to trust what the chart says. If the chart is showing that the market is acting in a particular way, then you need to accept it.

Failing to lower the position when required- Whenever the market is showing a strong trend or when the trading counter-trend happens, you need to be flexible to reduce the position size. You market exposure should be depended on the mood of the market.

Failing t treat all the trades just like others- Undisciplined traders think often that particular situation will give profits for sure and take too much of risk more than the normal level. You should expect normal profits all the time and do not take risk expecting supernormal profits.