Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / New
Stats: 3,195,052 members, 7,956,929 topics. Date: Monday, 23 September 2024 at 10:50 PM

Why Traders/investors Fail (how To Stop Failing At Investing) - Investment - Nairaland

Nairaland Forum / Nairaland / General / Investment / Why Traders/investors Fail (how To Stop Failing At Investing) (666 Views)

Why Ponzi Schemes Always Fail (Graphic And Mathematical Proof) / Are You Looking At Investing In Farming . / Reasons Why Most Forex Traders/investors Are Not Successful (2) (3) (4)

(1) (Reply) (Go Down)

Why Traders/investors Fail (how To Stop Failing At Investing) by mcqwerty(m): 10:12am On Jan 26, 2016
Why traders/Investors Fail, Mostly.

Two major reasons traders/Investors fail are:
1. Lack of proper education/training
2. Inadequate capital

Lack of proper education and training- Most new traders have little or no training about the financial markets they are planning to invest in. Some prefer the shortcut of going to "Experts" for stock tips and stock-picking advice. It is necessary for you to know about the market environment you will be investing your funds and how you get knowledgeable is taking up investing books, security analysis online courses. A good book is stock investing for dummies, 2nd edition by Paul Mladjenovic and Wiley publishing. Its an introductory piece good enough to get you started on the financial investing journey. If you are interested in participating in the short term price fluctuation, then you might consider getting a specialised training on how to trade intraday markets.

Inadequate Capital- Most new investors or traders still ask this epic question, "how much risk do i need to take up in trading a $100 account?". A good financial market education would make this question unnecessary. Particularly when it comes to the Forex markets, the lower your capital the lower the time frame you can trade and inversely, if you plan to trade higher time frame like the 4-hour or daily charts, you need bigger equity over $1,000. For a $100 equity with a 1:20 leverage, you probably can't trade higher than the 15 minutes time frame provided that you even trade a moderately volatile currency pair like Euro Dollar (EURUSD), but highly volatile Euro Canadian dollar (EURCAD) or Euro Australian dollar (EURAUD) you might have to shore up your funds to provide for price movement. Like I discussed above, it all boils down to your market and financial education and the depth at which you understand how the market works.
In conclusion, a trader or investor cannot afford to be ignorant or inadequately capitalized because these two reasons could bring his/her wealth accumulation ambitions to a stop very fast. Make good on these two and you might just stand a chance at becoming another Warren Buffet in the making. The markets are so fraught with so many variables that are outside an investors control. Anything can go wrong no matter how knowledgeable, skills or trained you are. Even professional fund managers blow up account. That's the nature of the market. its advised to only invest with money you can afford to lose".
PS: This is not an investment advice!!!

To your wise investing,
henry mcqwerty
adsstudios5@gmail.com
Re: Why Traders/investors Fail (how To Stop Failing At Investing) by amp01(m): 5:32pm On Jan 26, 2016
Good write up.
Hope they will understand.
Re: Why Traders/investors Fail (how To Stop Failing At Investing) by mcqwerty(m): 8:52am On Feb 25, 2017
As a followup, i have developed a Simple but powerful intraday trading system which takes advantage of trending price movements.
Feel free to get an introduction.
Whatsapp
08062657675
Re: Why Traders/investors Fail (how To Stop Failing At Investing) by mcqwerty(m): 1:31pm On Jun 29, 2017
3 Day Forex Trading/investing Workshop available

For Whom: NYSC graduates, students, pensioners, stay-at-home moms, entrepreneurs, business persons, anyone that wants to know how to start trading or investing in currencies.

Contact megapipsforex2017@gmail for bookings and payment.

(1) (Reply)

IMF To Buhari: Your Forex Policy Is Distorting The Economy. / Srs,life Saver Of Batteries!! / How To Make Over 100k

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 14
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.