What Things Prevent You from Being a Successful Trader?

Margo

Margo

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Statistics of successes and failures of traders in the financial markets is unbiased: the vast majority of traders lose money, while only a small percentage of market participants consistently receive profit from price movements. What prevents traders from achieving stability?

Neglecting Trends

The overwhelming majority of traders trade at the moment when, in their opinion, there are optimal conditions for entering a deal. Most often, they provide some kind of analysis, technical or fundamental, as a basis for making decisions, and rely on the fact that their pricing model works, as history tends to repeat itself. However, if a particular model contradicts the current market trend, there are no guarantees that it will work and the deal will succeed, since the market, as the well-known stock trader Jesse Livermore said, has a tendency to move along the line of least resistance.
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Studies show that traders tend to buy at market lows and sell at market highs. Of course, in a particular transaction, this may be justified. You can immediately recall a dozen tactics that use overbought or oversold markets, or support/resistance levels from which the price can push off in order to trade against the trend.

This article was originally published on HYIP.com - Online Investment Watch Blog.

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