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The Big 3 Reasons People Don’t Trade

The big 3 reasons people don’t trade


Daring to invest in a business or trade is a courageous step that not many dares to take. Mainly, because there are many risks that not everyone is prepared to take. That is why, in this article, we will present you the big 3 reasons people don’t trade.


The reasons why people can avoid trading are several, and depend on many situations. It is almost impossible to summarize all the reasons in one article. That’s why we’ll tell you about the most common reasons. These are: mistrust of exports, fear of failure or bankruptcy and ignorance.

  1. Mistrust of exports


One of the big 3 reasons people don’t trade is distrust linked to exports. Although this economic activity can bring a cash benefit to our trade, many people avoid it, mainly because of the mistrust and the high cost of doing so.

What are exports?


If your company or business starts to have some success, it is normal that people start talking about exports. However, exports are one of the reasons why people avoid trading. Because this type of activity has high risks that not many people are willing to take.

However, exports can be defined as a set of goods, services or products sold by a company in a foreign territory. These products are sold with the purpose of obtaining an economic benefit and providing a quality product to the international market. Thus, the company will gain weight and reputation.

Finally, in this article we will show you a list with a series of advantages and disadvantages related to exports. In this way, you will be able to know why exports are one of the reasons why people do not trade.


Exports advantages


Mainly, the advantages of exports are related to the growth of companies. This growth is linked to both the economy and the number of clients. Since, by doing international business, profits can increase and you will gain a positive reputation that will bring you more customers.

To be able to carry out this type of exports, it is necessary that your business is prepared to face the expenses that this will bring, because, you will need to invest a large amount of money in both raw materials and personnel to handle the export, to increase your profits and make the business sustainable.

Exports disadvantages

This is where the problems and fears of those people who choose not to trade come from. As we have mentioned, in order to export, it is necessary to invest a very large amount of money. In some cases, this amount is unreachable for ordinary people.

Therefore, exports become a practically unattainable option. On the other hand, there are other factors that cause people to be reluctant. For example, the fact those exports have high risks to be taken, mainly non-payment and mistrust.

When doing international business, there is a risk that you will be swindled or not paid. Mainly due to debts of the company you sell to, which is unable to settle its accounts with you. This leads to an enormous distrust among traders. In turn, it leads many people not to trade and to fear losing their investment.

  1. Fear of bankruptcy


As you can imagine, one of the big 3 reasons people don’t trade is related to fear. In addition to the reasons explained above regarding exports, bankruptcy is the worst fate for a trader, because defaults, debts, and mistakes can lead to the dreaded bankruptcy.


What is bankruptcy?

Bankruptcy is a delicate legal and economic situation that can be defined as the inability of a business to pay its debts, wages and payments. This is because they accumulate more than the economic resources generated by the company. Being unable to economically sustain a project and can only produce at a total loss.

After going bankrupt, the natural or legal person who owns the property of the company becomes known as “failed”. The failed party, after receiving a court sentence confirming the bankruptcy, goes on to a bankruptcy trial. In this trial, it is determined whether the debts can be settled with the sale of the assets of the insolvent party.

In other words, by going bankrupt, the person who owns the business enters a lawsuit. This is where it is determined whether he or she will have to sell his or her property in order to satisfy the payment obligations. This makes bankruptcy one of the main reasons people does not trade, because, the risk of losing everything is very high.

Increased risks from the pandemic

Just now, as we enter a relaxation of quarantine due to the global pandemic, businesses are smiling again. Since, the months of quarantine meant very difficult days for many businesses and traders. In some cases, losses were so exaggerated that many businesses had to close down due to bankruptcy.

  1. Ignorance of the basics of the trade


Finally, the last of the three reasons why people do not trade is related to ignorance of trade itself. Many people do not know how to maintain the basics of running a business. This causes people to encounter a world of definitions when trying to run a business.

Such definitions, concepts and business strategies that must be known inside out, are a headache for first-timers. They become the reason why many people do not dare to trade because they are not in the business of learning, understanding or applying all these concepts.



It is of great importance to learn to differentiate each of the reasons why you do not dare to trade, because this may be stopping you from becoming a trader by profession.

It never hurts to take a look at the different news and articles about the market, in case you are not totally convinced about trying to be part of the market. Remember that there will always be things that may discourage you but in general, the trading world is worth it.

Don’t waste any more time and start trading now!


Blessings. 🙂


  • Simon
    Posted at 14:54h, 06 August Reply

    When you really think about it, most aspects of life entail some degree of risk – and you can’t escape from so many of them anyway. This post highlights on a fundamental level where a person can fall down, yet is also partially encouraging at the same time. I enjoyed reading it, and wish you all the best with your website for the future.

    • Tommy
      Posted at 20:05h, 06 August Reply

      Hey Simon,

      Thanks for stopping by and leaving a comment, yes you are right in anything in life these a risk degree and at the same time, there are great rewards to be had as well.
      In life, there are things we see around us or hear a great story in someone success in something and at the same time for that 1 success story, there was a risk to make it happen.

      Thanks 🙂

  • Christine
    Posted at 17:32h, 06 August Reply

    Fear is always the one thing that holds us back, isn’t it? It’s the same with me. When I was afraid to do something, I sometimes ended up not doing it, but very often I did it anyway, despite my fear, and then I ended up being glad that I did, for I learned somethng new and I gained a new experience and more knowledge, and also success. Concerning trade, I think that besides fear, other things that may hold me back are a lack of assets and location. I live in a tourist area which is a great place to start a business (well, not now during the pandemic), but I have also seen some businesses close down after only a few months … It is always a big risk, and there are many things to do and keep in account to keep the business going. I think that some people fear all these responsibilities, perhaps? I’m just guessing 😉 but could there be another reason?

    • Tommy
      Posted at 19:59h, 06 August Reply

      Hey Christine,

      That’s great thanks for your comments, well this is the thing fear is one of the biggest opticals that holds people back from doing something they have a passion for or would like to try it out the situation well one of the big things is if you like to dabble in it is very advisable to use a Demo account which means not real money but real market price. Least this way you can get educated which is a big factor not advisable just jumping into trading the market just looking at a few YouTube stuff or Reading some articles without some hardcore education behind you to apply onto your Demo account first of all to get a really good feeling of how it operates and from that you can move forward to get your goals.

      Thanks. 🙂

  • Cheyenne
    Posted at 23:34h, 06 August Reply

    I agree that fear is one of the biggest things that hold us back in life from many different situations. Having to have a large amount of money upfront will be hard for many people after this pandemic. I also believe more people have distrust in international trade at the moment. It appears as though people need to be very eager to learn and understand to be successful at trade. You have peaked my interest now, and I will be looking into some news to see what is going on in the trade world.

    • Tommy
      Posted at 10:46h, 07 August Reply

      Hello Cheyenne,

      This is the thing for sure fear is one of the big opticals for many a person at the start when this whole trading world is a big game that one needs to have educational to understand how the functionality of it works. Well, that’s great that you have some interest and you are looking to further your interest in the financial feel free to ask me if you have any other questions, thanks for leaving your comments and stopping by.

      Tommy 🙂

  • Russ
    Posted at 10:07h, 07 August Reply

    Hi Tommy

    I really enjoyed your post. Trading is something I had always had an interest in. I think the issue I have is it’s so easy to see the ‘Instagram traders’ led across their lambo or sat on their yacht with a caption like, earn 1000’s a day like me. Its enticing but we all know if it was really that eas, everyone would be doing it. So I try to do my research and look for a more professional looking trader rather than someone drapsed in Gucci. I really enjoyed this post and also your site as a whole.

    • Tommy
      Posted at 11:08h, 07 August Reply

      Hey Russ,

      Well yes have to dream about my yacht from all the earnings I am making from the financial markets.haha ?? in reality for me as a professional Trader the only way I could do that is if I had big amount of 7 figure in my trading account and still, in reality, it won’t happen overnight.
      But long-term, when you get educated, have a good strategy that meets your needs with a trading plan that you stick bye you can long-term make steady gains in the financial markets.

      Thanks for stopping by and leaving your comments 🙂

  • Habib
    Posted at 13:35h, 11 August Reply

    Amazing contents as usual. I think our mind set if the biggest factor in not taking the chance when it comes to money making opportunity. Fear is the one that is fed into our subconscious mind right from the childhood which always stops us from getting out of the comfort zone.

    I really like the way you’ve explained all the factors in your post here. Keep up the great work mate.

    Best wishes

    • Tommy
      Posted at 15:19h, 11 August Reply

      Yes, its one of the biggest for sure when it comes to trying something out of the comfort zone but this is where learning and
      applying comes into play which is the biggest key.

      Thanks 🙂

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