Why Most Traders Lose Money — Full Breakdown & Transcript

[00:01] most traders broke? If trading is so profitable, why do most people quit? And why is it that it's only the influencers driving the Lambos? I will show you five reasons why this happens, so you can decide whether trading is for you

[00:17] or you should quit right now before losing more money. The first reason is unrealistic expectation. So, you would never You are expectation. So, you would never You are never going to turn $100 or $1,000 into

[00:30] $1 million. A lot of people get into trading because they see influencers fronting their Benzes, the Ferraris, and the Rolls-Royce. They tell their humble story, their humble beginning, and make

[00:42] you believe you can do the same from trading. But, the truth is that majority trading. But, the truth is that majority of the money they make and in some cases all the money they make doesn't come from trading. It comes from you.

[00:57] Many influencers have very lucrative deals with brokers. They make money when you make money. And in many cases, they even make more money when you lose. Now, let me explain that. The broker is the middleman between you

[01:11] The broker is the middleman between you and the financial markets. Ideally, when you place a trade, the broker sends that order to the market and take a small fee But, this is not always what happens because

[01:27] statistically about 85% of traders lose all their money within the first three months of trading. So, instead of passing the order to the market, many

[01:41] brokers just take the opposite end of your order. When you lose, the broker profits and part of that money is shared with the influencer who referred you. The only orders that usually go to the real

[01:54] orders that usually go to the real market are those of consistently profitable traders. In that case, the broker also charges spread and make money that they share with influencers. So, the influencer will always make

[02:08] money either way. This then funds more lifestyle to bring more people in. Other ways influencers will make money are from their courses and paid signals. And let me be clear, this

[02:22] is not actually illegal. This uh legitimate business. The problem I see with it is that it gives beginners the wrong expectation. So, people enter trading trying to achieve that Lambo lifestyle and end up

[02:37] losing everything. Now, let's go to reason number two. overload. There are thousands of courses and YouTube videos about trading. And in most cases,

[02:51] every strategy is different. Many traders jump from one strategy to another. They try one strategy, take a loss, and immediately move to the next one, and they lose again, and switch again, and the cycle just continues.

[03:06] A trader can spend years jumping from one strategy to another and never become profitable. But the truth is this, many strategy actually work. If your strategy, for example, allows

[03:21] you to lose, say, 40% of the time and still be in profit, stick with that strategy. Over time, you can then refine that strategy using data you got from

[03:37] But if you keep switching strategy, profitability will never find you. Now, reason number three. Reason number three I will say was my biggest problem when I started

[03:52] trading. And this is position sizing. I was sizing my trades completely wrong. I will win a few trades, then one loss will wipe out

[04:04] my entire profit. When you size your trades wrongly, you become overexposed, and one trade can wipe out your entire account. As a trader, it is very important you understand these four things: risk um

[04:20] risk amount, risk to reward ratio, leverage, and position size. Once I understood these four things, I stopped asking questions like, "What leverage should I use in a particular trade?" And trading became more

[04:35] trade?" And trading became more controlled for me. And in fact, this is what led me to build the FS Crypto Calculator. It helps you to calculate position size for Forex, crypto, and derive synthetic indices.

[04:50] And it is completely free to use, no ads. Now, once you fix these problems these three problems I've mentioned so far, the next reason is what will determine whether trading is truly for you or not.

[05:05] whether trading is truly for you or not. Trading is very boring and emotional. It will test your patience. If you always want actions, and you cannot wait for the next setup to form, you will take bad trades.

[05:18] days without seeing a setup, then you will see something that looks like a good setup, and you take that trade, and it becomes a losing trade. And right after that,

[05:33] the real setup will now appear. Emotion is a big problem in trading. Many people are just bad losers. They cannot take a loss and move on. A trade will be going against them and

[05:47] approaching their stop loss, instead of accepting that loss, they move they remove the stop loss hoping the trade reverses. What happens next is simply their entire accounts disappearing.

[06:00] And I will tell you this has actually happened to me in my early days. Fear, you see fear and greed, they are two human emotions that are inbuilt into us. And again, this is why most traders keep on losing. Fear will

[06:16] make you avoid good setups. So, you see a good setup, but you don't take it. Fear will make you look close winning trades too early. Fear will make you move your stop loss and eventually blow your account. And greed will make you

[06:30] refuse to take your profits. And in trying to make more money from a single trade, traders will not allow their a healthy profit return to their stop loss. Now, a systematized plan

[06:44] a systematized plan can actually help with setup, entries, exits, and trade management. But emotion emotion is different. For some people, it can take years to control. For others, it's is never going

[07:00] to improve. In this case, trading might simply not be for you. For example, if you're into sport betting and you keep on betting every year, every month, every weekend, but every day, and you keep on losing, but you

[07:15] if you get into trading, you're going to follow that same path. Now, what you can do is this. If you still want to get exposure to trading, is to automatically copy the trades of professionals. That is actually why I am building a platform

[07:30] that allows you to automatically copy my trades trades and the trades of vetted professional All you need to do is to connect your trading account, choose the margin you

[07:43] want per trade, and everything else runs automatically. The platform is also going to be free, so you are not going to pay anything. waitlist using the link in the description of this video. I also leave

[07:56] the link to my Telegram channel where you can see the signals and the trades I'm currently taking. You also see my winning trades and my five,

[08:09] I want you to tell me. Go to the comments. Tell me what is the biggest challenge you are facing in trading right now.