The Number of Reasons why 95% of people lose their assets while trading..
Some of the most common reasons include:
* **Lack of knowledge:**
Many people who start trading do not have the necessary knowledge to make informed decisions.They may not understand the risks involved, or they may not be aware of the different strategies that are available.
***Emotional trading:**
When people trade emotionally, they are more likely to make poor decisions.They may be influenced by fear or greed, and they may not be able to think clearly.
***Overtrading:**
Many people who trade do so too often.This can lead to them making mistakes and losing money.
***Not using stop-losses:**
Stop-losses are a way to limit your losses.If the market moves against you, a stop-loss will automatically sell your position, preventing you from losing more money than you can afford.
***Not having a trading plan:**
A trading plan is a set of rules that you follow when you trade.This can help you to stay disciplined and make better decisions.
If you want to improve your chances of success in trading, it is important to avoid these common mistakes.Make sure you have the necessary knowledge, trade with a cool head, and use stop-losses.You should also have a trading plan that you follow consistently.
