3 Reasons Why Traders Fail
An in-depth understanding of failure creates responsibility and respect for success.
To succeed, it’s important to be able to thoroughly assess failure and, above all, to accept the responsibility of your mistakes. Failure can come from systematically ignoring basic rules that one refuses to follow and may not have fully understood. And as traders, you have to analyse all aspects of potential failure and frustration, so that you can raise your head and continue to trade confidently.
One of the biggest mistakes traders make is the inability to control their emotions, thus losing control of their decisions. Some failures will obviously create a sense of frustration and also fear. What you should not overlook, however, is the fact that there are smart strategies that can help you reduce the damage and react accordingly to achieve the desired result, in the long run.
Absence of a Trading Plan:
Without creating a trading plan, it’s like going into a “fight without guns”. Successful traders adhere to a trading plan to avoid pitfalls. They create targeted plans that will help them deal with all kinds of trading strategies, effectively. It is also important that a trader follows and does not deviate from the first failure of his plan.
A mistake often made by traders is the lack of a proper sense of responsibility. They often blame everyone for their own failures. They waste time blaming others and refuse to go into a beneficial self-assessment and reflection process. Somewhere in the process, they lose the essence of things and important trading rules, making it difficult for themselves.
It’s therefore understood that there are essential reasons that may lead a trader to failure, but they can be addressed by consistently applying basic trading rules. As a professional trader, you need to identify which is the right way of addressing failure for you, by closely analysing your style and risk appetite.