Why did most traders fail?

Before we talk about that, let's look into some reasons why do people get into trading?

1. They like to earn without exchanging time with money.

2. They don't like selling to people

3. And they want to earn money quick

All of the above is possible if the trader has equipped himself/herself with the Right Knowledge and be in the Right Community.

What do I mean by right knowledge?

1. Reading the market trends right, is the most common issue with most traders. They are often confused with the market direction and unsure if they are trading with or against the trend. That poses a great threat to their trading and needless to say their trade management.

2. Most Traders' Trade Management is a mess!! They do not have ironclad trading rules and they do not have clarity in their trading plans. I'm not saying that the trader isn't supposed to intervene in their trades; but before we go into the rules of intervening in the trade, the traders have to be clear of their trade plan and know the right way of reading the chart.

3. Traders do not have a strong Money Management System. Before we talk about money management, you have to be clear about the results that your trading strategy brings you. You will need a sample size of 100 trades per strategy, investment product and per timeframe. Without that, you can't customise effective Money Management.

Having the right community is pivotal to a trader's success. It is not the number of traders but the quality of traders who are in the chat. There are some simple checklists I can share with you.

1. Do you see that the Chief Analyst of the group responds to traders' questions? You like to have support, but do you have the right support?

2. Are the traders in the group mature? The group size isn't the most important benchmark. Some indications of a mature group include, i) you will not see endless chats that go on and on. ii) They have clarity in their trade plan. iii) And the icing on the cake is that the group are open to opposing trading ideas and still stick with their trading plans.

3. How long do they take to respond? Depending on what kind of investment you are in, some market never sleeps, understand that the Analyst needs to sleep and might not be available at the time you post your question. A response within 24-hours seems like a reasonable timeline.