Why most traders lose
Trading apps make it easy to start. That's not the same as easy to win. Firms that offer leveraged trading must warn that most of their customers lose money. Here's why.
1. Big losses are hard to undo
Lose 50% and you need a 100% gain just to get back to where you started. Small losses are easy to recover from; big ones aren't.
2. Borrowed money (leverage) cuts both ways
Many trading apps let you control far more than you put in. That makes wins bigger, and losses bigger and faster too.
3. Greed and fear
People hold losing trades hoping they'll come back, and grab winners too early. Feelings, not plans, make the decisions.
4. Revenge trading
After a loss, jumping straight back in to "win it back" is one of the quickest ways to lose even more.
5. No plan, no stop
Good traders decide before they start how much they're willing to lose, and stick to it. That's what a stop-loss is for.
Learn it by playing, with pretend money.
PLAY HOGLET ▶Free games for ages 8 to 18, and parents too. Not betting, not gambling.