Why 95% Of Traders Lose Money

So, it is said that 95% of traders fail. So, is this true and what can you do to not be part of the 95% of traders. Well, that’s why we’re going to talk about
today. So, as you know, I’m doing a lot of
videos about trading and sharing my experience with trading, sharing what I do, and encourage others to trade because I do believe that trading is a great way to make some extra money. Recently, I saw a comment right underneath my video where somebody says, “Well, don’t even bother because 95% of traders fail. Leave it to the professionals. Now, first of all, you know me… I wouldn’t trust the professionals. I mean, the professionals… Well, what have they done to your
account? If you had an IRA or 401K in the past few years, how has it been doing? Probably not too well, but let’s talk about it. So, why is it that so many traders are failing? Well, first of all, you need to understand that trading is a business. And I think that’s important to
understand, and if you want to succeed with trading, there’s three things that you need. First of all, you do need money. You need money to make money. If you don’t have money to trade, trading is not for you. The second thing that you need is you need to have a
solid, a proven trading strategy so that you know exactly what to trade. That you know exactly when to enter. That you know exactly when to exit. And also, how you limit your losses. And we’ve talked about this in other
videos. The third thing that you need is a broker. Many people when they approach trading, they just think, “You know what? Let’s try this.” And I think this is the completely
wrong mindset of saying, “Well, I’m just going to try it”, because trading is a business and you should treat it
as such. The mistake that I see that many newbie traders make is that they
approach the market without the strategy, not having enough money, and also not having the right tools. Think about this way. You know, I’m German, right? I grew up in Germany, and one of the famous sports in Germany besides soccer is Formula One. Race Cars. Formula One is actually the most expensive sport in the world. Did you know this? Way more
expensive than any other sport. So, a Formula One race car cost $15 million-dollars. And see, that’s also the other
thing… If you wanted to participate in a
Formula One race, you couldn’t. They wouldn’t even let
you. But let’s just say for the fun of it, because when it comes to
trading everybody is allowed to trade, right? Let’s say that the Formula One guys would say. “All right, you know what? You can participate in a race.” Now here’s what most people would do if I compare it to trading. They would say, “You know what, I’ll start with my car. And once I win some races, then I’ll start investing in a Formula One car. Well, what do you think your odds
are if you are starting in your own car
competing with $15 million-dollar cars of ever winning a race? Slim to none, right? And the same in trading. If you don’t have the right trading strategies. If you don’t have the right tools. If you don’t have money to trade. I mean the little money that you
have will be gone in no time. Is this making sense to you? I mean is this analogy sinking in? Because I thought about it this
morning after I read the comment I thought, yeah… I don’t know if it is true, by the way, if 95% of traders are losing money. I have no
statistics. I mean, it could be, could not be. Who knows, but many people say 90% of traders lose money. And again, if you want to play the game of games… If you want to compete with other traders, you need to be prepared. Don’t bring a knife to a gunfight. And this is what most aspiring newbie traders do. And this is why they fail. I mean, obviously, if you bring a
knife to a gunfight, what do you think? Who wins? It’s very important. Please, treat your trading like a business. And in order to run the business, you do need money. You do need to have the right tools because think about it, you’re not only competing with me, you’re competing with the smartest minds in the world. So, you want to make sure that you
have the best tools for the job. My point is be prepared when you get ready to trade. And most people, this is what I see, most people are
not prepared enough. And this is why they lose money. If you want to compete in trading, if you want to participate in the in the game of games, and make money with trading, make sure that you have money to trade, that you have the very best tools, and that you have a proven strategy. Hope this helps. If you find these
videos helpful, hit like send a comment and say, “Hey! Yeah, this super
cool”, because the more likes I get, and the more comments, the more I’m motivated to do these videos. I want to make sure that you
find these videos helpful. And if you do, let me know. Make sure that you also subscribe to
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7 Replies to “Why 95% Of Traders Lose Money”

  1. Marcus, thanks for one more good motivational video. Watching your video helps me to optimize my thoughts and be in a good trading shape.

    "People don't plan to fail. They fail to plan".

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