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WHY traders really lose money

BUY-SELL-PANICLet us now talk a bit about the reasons WHY traders really lose money. Since I was able to talk to many traders from different corners of India, I can honestly say that majority of them show the same reasons to the trading failure.

THE MOST FREQUENT REASONS ARE:

1. No quality trading education and know-how;
2. Poor, or nonexisting, trading plan;
3. Lack of trading discipline;
4. Underestimating the importance of money management;
5. Trading on inner “impulses” or “inspirations”;
6. Trading with the money that one cannot afford to lose;
7. Knowing a little, or nothing, about the psychology of trading.