😬 5 Reasons Why Traders Lose Money
Published: 2025-10-23
Status:
Available
|
Analyzed
Published: 2025-10-23
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 1
Prediction
Topic
Status
Engaging in a downward spiral of increasing trades after losses without a strategy will result in losing the entire account, potentially in hours.
"This is a downward spiral that will result in you losing your entire account. And it can happen, I mean, truthfully, it could happen in a matter of hours."
Correct
Trading higher quality stocks will lead to higher trading accuracy.
"Now, when you trade something that's higher quality, you're going to have higher accuracy."
Correct
A better profit-to-loss ratio will result in more consistent and higher earnings.
"With a better profit to loss ratio, you're going to be more consistent and you're going to be making more money."
Correct
Making more money will build a solid track record, which in turn will build self-confidence, leading to larger trade sizes and even more profit.
"If you're making more money, that's going to build what? A solid track record. Now, you've got a track record. Now, you're building self-confidence. You're taking more size on all of your trades, and you're making even more money."
Pending
Stocks priced between $2 and $20 are likely to attract more interest from retail traders with small accounts, resulting in higher trading volume for those stocks.
"if the stock is priced between two and 20, there's a good chance that retail traders with smaller accounts are going to be more interested in it, which means it'll have more volume."
Correct
Applying the speaker's trading strategy to stocks that do not meet the five pillars of stock selection will result in losses.
"If I try to apply this to a stock that doesn't meet those five pillars, I'm going to lose money."
Pending
Trading large-cap stocks (like Bank of America or Ford) or the S&P 500 (index) on a typical day will not exhibit the 'nice smooth waves of price action' seen in highly volatile stocks.
"If I try to do this on Bank of America or Ford or or even the S&P 500 on any typical day, you're not going to have these really nice smooth waves of price action."
Correct
Once a trader consistently makes $100 per day, increasing share size is the only limiting factor to achieving significantly higher daily profits (e.g., $200, $1000, $98000).
"Once you're making a $100 a day, the only thing stopping you from going to 200, 400, 600, 800, a,000, 2,000, 98,000 is increasing your share size."
Incorrect
Traders will experience a period of frustrating low profitability, followed by a sudden acceleration of earnings.
"So, it's incredibly frustrating because you'll spend all this time grinding, grinding, making basically nothing, and then all of a sudden you start making little and then it really accelerates."
Pending
For successful traders, the primary limitation to further growth will be their personal risk tolerance.
"At that point, your biggest limitation will be your own risk tolerance of how much you're willing to lose in one day."
Pending
The speaker predicts he will be tempted to re-enter the market if he continues to observe it after having stopped trading for the day, especially if he sees a large price movement.
"because if I keep looking at the market, I'm going to be tempted to come back, especially if I see something that made a big move."
Correct
There will always be new trading opportunities and significant market moves in the future.
"There will be another trade around the corner. There will be another 500,000% move around the corner."
Correct