Why most traders lose money?

(English is my secondary languge and This is my first post here so feel free to point any gramatical errors)

IN 1999 a famous report by the american investor protection organization stated that 70% of traders in us stock market lose money.

Although the report is bit old,recent statistics indicate a similar number.

The main reason for the imbalance of statistics is that large number of new traders give up in their first year.

Why new traders quit before achieving their goals?

From personal experience there are four main reasons

1-Beginners mistake

There are tons of mistake i made as a beginner that made my effort meaningless and made me give up for some time.

Perhaps the deadlist mistake i made as beginner was being overconfident and cocky.

So after i made some profits at first i got cocky and risked a lot of money that i can't afford to lose at the time.

Needlees to say the shock of losing that money made me unable to look at chart for weeks.

Often traders loses the first money the trade in forex or crypto ,you can consider it the price of learning and experiance.

So if you are about to get started,use demo account,deposit a small amount and find yourself a broker with a food welcom bouns if you trading crypto or forex.

2-bad risk mangement

A proper risk mangement in my opinion is as important as analysis.

It is the seat belt that protect in the event of crash and initially a crash is certain.

3-negative feelings

Greed fear and regret are feelings that you will always face while trade

Later you will learn to keep your self under control through experince an practice ,but until then remember that you are in process of learning and market is full of oppurtunitis

4-illusion

Recently,many peopl entered the market through false advertisement

Trading can be excellaent source of income ,but it is not easy money or free money.

In the forex stocks and crypto markets the competition is fierce,and you have to keep wprking developing and learning to be able to keep up withe the competition.

The purpose of this article is not to frustrare you but rather the opposite.

If you keep learning from your mistakes you can become one of the 30% who make money trading