Why only 10% of traders make money?
All of you heard that 90% of traders lose money and only 10% generate wealth. This topic is very popular. But did you ask yourself why this happens? What really makes people lose or win? What is behind success and fail?
Yesterday I was watching film “Two for the money” with Al Pacino and Matthew Mcconaughey. It has nothing to do with trading. But it’s a great film and gives clear answers on mentioned above questions.
All secrets are inside us. Our unconscious mind controls all our life. The real reason only 10% of traders are making good returns is the fact that only 10% comes to trading to generate wealth. Yup, that’s true. This 10% are addicted to earn. They are always focused. They read between lines all technical and fundamental analysis and see what behind the scene. It’s not a gift as many think. This is hard-earned skill. Not always all goes well, but these 10% of traders always remain great money managers and they win trading game again and again no matter what.
What is wrong with others 90%? – They are gambling addicted. They never think about building strategy or money management. As they come to trading to get emotions. They used to bet much per trade and make all investment decisions without any complex analysis. In fact they do nothing to avoid potential losses or reduce risk. Suffering from losses is what gives them feeling they are still alive. These people lost ‘colors of life’. Trading is only the way to feel something for most of them.
Good trading to all!