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The Big 5 Reasons 90% Of Traders Fail

The Big 5 Reasons 90% Of Traders Fail

 

If you want to know what are the big 5 reasons 90% of traders fail, this is the post for you. No one likes to fail at their job so read on and don’t give up.

Do great ideas work?

Every entrepreneur is known for having great ideas, for being a creative and energetic person. It’s normal to be willing to do anything to achieve your goals, but are they all great ideas? You have to be careful and not make mistakes that will not be solved later.

Just as there are people who are willing to give their all, there are also entrepreneurs who never finish setting up their projects for fear of failure. It is vital to overcome these fears because they will not let you fulfill your dreams. In the long term,  you will only get frustrated and discouraged

Keep in mind that there are always mistakes, nothing can be perfect. But the factors that will cause your business to fail now we’ll talk about them so you can get all the points straight.

  1. Entrepreneurship alone

 

Keep in mind that there are always mistakes, nothing can be perfect. But the factors that will cause your business to fail now we’ll talk about them so you can get all the points straight.

One of the main problems when creating a business of any kind is to think that you can do everything by yourself. No, the best thing is to seek support, you know what they say, two is better than one.

Many people believe that it is better to be alone than in a bad company or that, to avoid inconvenience, it is better to do it yourself. A good team of partners can be very helpful. Think of it this way; you have a problem and for exactly the same reason you can’t take over the company for a while, your partner can always cover for you.

Of course, it is not easy to work with the same people but they have to find a way to work together without fear. Make a work plan; you take care of one sector and the other person of another.

Surround yourself with people you can trust and work with without problems. In the end, both of you will be able to achieve your final goal. Don’t try to take on more than you can handle.

  1. Not having enough capital?

 

Another big 5 reasons 90% of traders fail in a business is not having enough money to get the whole project up and running. Keep in mind that always starting with something new implies having good capital to cover all needs.

Besides, if you make the first budget, the best thing is always to put more capital, you never know what could go wrong. The first investment may be the strongest, but if everything goes well you can cover everything within a year and have a good return.

Something that many do not understand is that when you start a business you should not only have a budget for the first me. You must continue to cover expenses for at least half a year. Yes, it sounds like a lot, but then you see the reward. If you don’t do this your project will be doomed soon after it has begun.

Another thing, if you have already started well it is important not to let the losses grow too much. Admitting your losses can be a bitter pill to swallow, but it’s better to look for immediate solutions before they become irreparable.

Do not let the thought of having a loss overcome you. You have to think coldly and look quickly for a way to solve the problems. It is normal to want that the trade is always something positive and in the most extreme cases gives mobility to their losses to generate more.

That is one of the worst things you can do the stop is a kind of shielding wall to protect capital but by doing this we only put it at more risk.

  1. Lack of commitment

 

If you think you can start and then rest when your business is set up, you’re very much mistaken and you will be inside of the statistics why 90% of traders fail. From the beginning to the end you need to maintain a completely committed attitude. Otherwise, you will end up earlier than you expected.

If you make this mistake your business will surely fall in a short time and you will feel very unlucky. Remember that mistakes will be made and you cannot prevent them, but what you can do is look for solutions and try to solve them immediately. The important thing is to be able to learn from them to become a successful trader.

  1. No information or instruction

 

Another point is this issue is not just to focus on making money and doing little work as this will not work. Among the main reasons why traders lose money and settle their accounts is because they don’t get informed.

It sounds funny but you need to do your homework so that you don’t have significant losses. By this, we mean fully understanding the market you are in. Find out who your potential customers are. Find ways to make the business more appealing.

You can add those points and many more to your to-do list and in this way you can guarantee your success. Remember that before you create your own business you need to know your assets inside and out.

However, when you already know the business world well, it is necessary not to over negotiate. Usually, an experienced trader has already learned the lesson and they do not plan to make this mistake again. Markets are not easy things.

If you don’t want to make this mistake, you just have to know yourself and your interests very well. If you’re one of those who get excited quickly about gaining funds or depressed about losing something, you should take a break from trading. There is no worse thing than closing a deal and realizing that you have been hurt.

  1. Lots of leverage

 

One of the big 5 reasons 90% of traders fail for a business is leverage when trading. This is because talking about money clouds the mind and makes hasty decisions.

Although many use leverage as a good tool and make a lot of money, it can go wrong. If not used carefully it can easily destroy accounts. It is best not to trade on leverage.

 

 

10 Comments
  • Jason
    Posted at 23:04h, 15 July Reply

    A good read Tommy, thanks for sharing. I guess the logic can apply to most new business ventures as well as trading. Research, planning, patience, selecting the correct partners, not over committing, parking aside additional funds etc. are all ingredients into getting off on the right foot. Easier said than done of course but I also think learning from ones mistakes and having a false start or two is a great way to learn. With hard work and commitment learning from these mistakes may just be the difference on the next venture. All the best – Jason.

    • Tommy
      Posted at 10:00h, 16 July Reply

      Hey, Jason thanks for the comment yes for sure it’s a challenge starting out in any business for sure. In terms of all the ingredients try and error, once you know that you’re driving to the main goal with consistency and analysing to process as well as doing research in all these topics before starting your adventure, is advisable for as well for sure.

      Thanks, 🙂
      Tommy

  • Puneet Vatish
    Posted at 11:16h, 16 July Reply

    Hey Tommy. This is a great and informative article. I have dabbled in trading before but it sort of just faded out. If I had read your article then, I definitely would have stuck to it. The way it has been broken down is so easy to understand and some of the information, I didn’t even think of, so thank you for the great insight.

    • Tommy
      Posted at 16:52h, 16 July Reply

      Hi Puneet,

      That’s great for the comment I appreciate that nice to see that you have dabbled in training before.

      For sure the excitement of New Adventures is great but we do need to do that bit of research to understand more in terms of the adventure that we are venturing into.

      For me I was very excited back in the early days and two did not do enough research until I lost money and wondering what was going on before I had to do a lot more research etc.

      I am very glad that you got some insight into this.

      Thanks, 🙂
      Tommy

  • Habib
    Posted at 18:12h, 17 July Reply

    Hey Tommy,

    It’s a great and informative article and I really enjoyed the read. You are absolutely spot on! There are so many or even one of this factor why many people don’t reach the top of the list. If we are serious about being in the rich list, then we gotta be serious about what we really need to do and get there, leaving no room for error (at least try to!)

    Thank you for educating us all on your knowledge.

    Best Regards

    • Tommy
      Posted at 22:27h, 17 July Reply

      Hi Habib,

      Thanks for your comment, that is for sure when serious and you want to reach your goals you need to put in all the hard work and to get knowledge and understanding exactly the Factor in all the applied areas to become and to achieve your goals.

      Thanks, mate. 🙂
      Tommy

  • lee
    Posted at 14:57h, 18 July Reply

    Capital is a big part of it.
    When I went out on my own for my first venture that was one of the biggest mistakes I made. I didn’t raise the money I should of and I drained a lot of my savings to keep the project going longer than I should. Being my first venture I thought everything would happen much quicker, I wasn’t concerned with raising capital and felt I could do that part on my own.
    Outside of the long hours and pressure, this added additional stress at home when I needed to budget things more tightly as we were using our savings to fund the business.
    Lesson learned for future ventures.

    • Tommy
      Posted at 23:08h, 18 July Reply

      Hi Lee,

      That’s great thanks for stopping by, and for the comment too.
      Yes, when planning to do a new venture where a lot of your time goes into it and money, for sure on one side is time and the other is capital where you need to set your goal and fixable capital to get there in a realistic time.

      Thanks. 🙂
      Tommy

  • Thabo
    Posted at 15:30h, 18 July Reply

    hey brother

    I agree with these points since I am a professional Trader myself. I also believe that when you are a professional trader you can kind of bend most of these rules according to you risk.
    I remember struggling with the over leveraging part because I wanted to make fast money now now Now I know better than this.

    • Tommy
      Posted at 23:15h, 18 July Reply

      Hey,

      Yes, this is true as a trader with a realistic growth and a good trading plan which has been backtested
      in all market conditions, you can grow your account steady.

      Thanks. 🙂
      Tommy

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