FTSE 100 closed today for bank holiday. Why do so many traders fail?

28th August 2017

The FTSE 100 is closed today due to a UK bank holiday. So, lets look at why so many traders fail instead.

I am sure you have heard the statistic that 90% of people that start spread betting fail and from that inferred that it is nigh on impossible to make a success of it. As you can see from my results I am not in that 90%. So, how can you avoid being in that group too? There are a whole range of reasons why traders fail and I have set out a few below. If you would like to avoid falling into the failed trader camp I would bear these in mind! To overcome them please consider joining or attending one of the seminars!

  • Overtrading
  • Chasing losses
  • Gambling – no discipline
  • Stake too big (as a % of capital)
  • No control over emotions
  • Cut winners too soon – But dont let a winner become a loser
  • Adding to losing trades – Better to cut and run I feel

There are of course other reasons but these are the main ones in my opinion. Despite what you read about “working” for half an hour a day and making untold wealth, it requires skills and knowledge. Join me and you can learn what you need to do.

Typical New Trader why do so many fail
Typical New Trader why do so many fail


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1 Comment

  1. Yes Nick I like those onservations every one is true. Particularly the gambling reference as I believe many people who spread-bet are in fact gambling addicts and the SB interface is no more than a permanently-running fruit machine or possibly bears an unpleasant resemblance to a fixed odds betting terminal, the so-called crack-cocaine of gamblng addicts.
    Setting that aside, I would make 3 observations based on many years of investing-
    1) Leverage is your enemy
    2) Although stake sizes should be manageable, they must also be meaningful, otherwise theres no point. So I am always looking to be all-in on my positions where the odds are in my favour. I want a great return at low-risk and low cost. No financing costs on leveraged positions thankyou. I want decent returns of 1-5% every time I deploy capital. Compounding does the rest.
    3) Its OK being fully invested as long as you have an exit-plan when the market moves against you and the discipline to take the loss. This year I have bern very fortunate and booked no losses.
    Undoubtedly some luck involved, but also the patience to stay out and allow high-probability situations to develop. I have also exited with great timing when break-outs failed to develop, you font have to be a rocket-scientist to spot this, its just typical behaviour playing and replaying over and over again.

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