There are a variety of reasons as to why 95% of traders are losers, many of which stem from common mistakes that are made by the majority of traders. First and foremost, most traders lack the necessary capital to properly manage the risks associated with trading financial markets. Many traders start trading with little to no capital, which limits their ability to absorb losses and recover their losses through additional trades. This often leads to a lack of discipline and poor decision making as traders become desperate to make back any losses they incur.

Second, novice traders often lack the necessary knowledge and understanding of how the financial markets work. Without a proper understanding of market conditions, risk management principles, trading strategies, and other aspects of trading, most traders make uninformed decisions that result in losses.

Third, traders often fail to utilize the proper risk management techniques, such as stop-loss orders, position sizing, and diversification. Risk management is a critical component to successful trading, yet many traders fail to implement these techniques properly. As a result, traders expose themselves to greater losses than they would have experienced had they been more careful with their capital.

Finally, most traders lack the psychological fortitude to remain disciplined and consistent with their trading. Greed, fear, and hope are common emotions that traders experience while trading and they often lead to poor decisions and erratic behavior. Being able to control these emotions is essential to becoming successful in trading, yet many traders fail to recognize the importance of this factor.

In conclusion, while there are a variety of reasons as to why 95% of traders are losers, these are the most common ones. By understanding the common mistakes that are made by traders, it is possible for traders to improve their chances of success and make more informed decisions.