95 percent of traders fail.
While the validity of this old number remains in debate, many market pundits believe that it could easily be more than 95 percent of traders who fail.
And honestly, it’s not surprising! There’s a reason, after all, that more than 75 percent of day traders quit within the first two years. (Source)
So, if you’re planning to try your hands in day trading, understand that the odds are against you. You’re very likely to lose money and quit the game due to poor performance.
Don’t want to be a part of this 95 percent of traders?
Follow these three practical tips:
Go through intensive stock market training
The majority of the stock traders who fail are self-learners.
Yes, self-learning is important. It’s essential, in fact. However, it falls short by a big margin if you’re trying to achieve an expert-level proficiency. You ALSO need an expert by your side to help you understand the advanced concepts and learn some “tricks”.
This is why you must go through intensive stock market training from a qualified and experienced professional who is successful in trading herself/himself.
Not only it helps speed up the learning process, but you also learn more thanks to the hands-on experience of that expert.
Say “goodbye” to the beginner’s mindset
Stop Googling “learn how to trade in stocks online” every time and reading the basic, clickbait articles.
Once you’re familiar with the fundamentals of stock trading, move to the advanced level. Spend a ridiculous amount of time in learning (and understanding) technical analysis.
Don’t just read the news and stay informed. Analyze those news updates and stay learned.
In short, if you’re trying to be a profitable stock trader, you’ve got to act like one in the way you think and act.
Take (very) small steps to the top
More than 75 percent of traders quit within 2 years. It’ not hard to assume that the majority of them (still) believes that stock trading is a “quick money” scheme. Don’t be one of them.
Becoming a successful trader takes a lot of time. You can’t enter in a trade today and make a fortune in a week. The climb to the top is long and it takes enough patience and higher consistency.
You must take very small steps with the way you’re expanding your portfolio, entering into newer traders, and taking trading as a full-time job.
In short, don’t rush. Be systematic in your approach, which will take years and decades. Don’t let small losses and short-term poor performance stop you in the long journey.
These are three practical tips on how you can avoid being part of the crowd of 95 percent traders who fail.
Recommended Read: How to learn day trading (without losing your mind)