Why 90% of Traders Fail (And How You Can Beat The Odds)

90% of traders never make money with trading and most quit within the first year. To be completely honest I can’t blame them, trading is the hardest way to make easy money. After blowing countless accounts myself I know the exact reasons why most day traders fail and what separates the 10% that succeed.

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The Lie: Trading Will Get You Rich Quick

Believing this lie is the number one reason most traders fail before they even place their first trade. Social media has sold the fantasy that trading is a path to quick and easy money.

You see screenshots of 10k days, luxury cars, and beach laptops. What you don't see are the years of losses, the blown accounts, and the constant questioning if it’s all possible.

Most people enter trading with unrealistic expectations. They think they'll turn $500 into $100,000 in six months. When reality hits they end up quitting and saying trading is a scam.

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No Real System

Most traders don't actually have an edge or strategy, they just take the same trades they see their favorite influencer take. You need to take the time to backtest and collect data on your strategy and see if it’s even profitable in the long term.

Having no rules that you follow or no risk management is the fastest way to lose money and never progress. Trading isn’t always about making money but about keeping it, if you have a proven system with no risk management you’ll fail.

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Lack of Discipline

You can have the best strategy in the world but if you don't follow it consistently, it's worthless. Most traders are inconsistent, they follow their plan when things are going well, then abandon it after a few losses.

They go from strategy to strategy, never giving anything time to actually work. The truth is discipline is boring but it’s what separates profitable traders from unprofitable ones. 

It means taking the same setups over and over. It means sitting on your hands when there are no good opportunities. It means following rules even when you 'feel' like breaking them.

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How You Can Beat The Odds

• First, accept that trading is hard. It's a real skill that takes time to develop. If you're not willing to wait and treat it like a profession then don't start.

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• Second, develop a real edge through backtesting and analyzing your data. If you can't explain why you enter each trade and why your strategy should work mathematically, you don't have a strategy.

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• Third, have strict risk management and rules. Make your own rules and hold yourself to them, if you can’t follow your own rules and risk management you’ll become a part of the 90% statistic.

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• Fourth, keep a detailed trading journal. Track everything to your emotions, your risk, your obedience to your plan, and your results. Review it weekly.

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• Fifth, build discipline outside of the charts. Going to the gym consistently, building your relationship with God, and eating right will directly relay to your discipline within trading. 

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• Sixth, focus on process over results. You can't control whether any individual trade wins or loses, but you can control whether you execute your plan properly.