There are so many reasons, more than you can count. But after doing some extensive research, we found:
THE 5 MOST COMMON REASONS WHY TRADERS FAIL…
1) Beginner traders lack discipline. They lack the ability to stick to a trading plan so they never find a successful strategy that works for them. This requires a lot of dedication, back-testing and journalling, and the ability to manage your emotions when trading.
2) Traders are unable to handle losses emotionally. They say trading is 20% skill and 80% psychology – how you handle losses will determine if you will thrive in the markets. Losses are a part of trading even the best of the best traders cannot predict the markets.
3) Traders do not understand risk management. Trading is a game of probabilities and nothing is ever guaranteed. Over-leveraging is the number one reason for blown accounts. Beginner traders who don’t learn how to manage risk early simply ensures they will lose.
4) Aspiring traders come into the markets with overly ambitious goals and unrealistic expectations. Many new traders come into the markets thinking they will turn $1000 to $10,000 overnight. This mentality will not get you past the first year of trading.
5) The most mind-boggling statistic of all – 80% of all traders QUIT within their first 2 years of trading. Trading is a skill that requires time and discipline to learn and years to master. Do you remember that guy that quit? Neither does anyone else.
Now do you see why 95% of traders fail?