Hey hey, what's up my friend, so welcome back to today's episode, where I'll be discussing right, why most retail traders fail and how to avoid it. So there are a few reasons for this. I would say these are the core reasons, and if you can avoid it, you will really be that much closer to becoming a profitable trader. Of course, I can guarantee you're gon na make millions of dollars.

You know, and you know, live off the beach in Hawaii sipping, pina colada, but but here right we can get you closer. You know to to that goal that you have for yourself. So, first thing: first as a trader as a retail trader, okay, you have to go all-in, you cannot dabble in trading. So what do I mean by demo? You can Eliza? Oh, let me try forex trading.

I thought it's easy to make money right. Ten people a day all right, let me try it. Oh, let me try options trading asset call option is, is something that you know you can make risk a dollar and make five dollars or let me try, you know doing, spreads, know you, you can try it. What try cannot be in your dictionary as a trader? The word try is out.

You must use the. What must I must succeed in trading. I must do what everything do, whatever it takes like to become a profitable trade. I must write.

Do the work and validate my trading strategy, I must be prepared right to make sacrifices along the way you must and that's the attitude right of a winning trainer use the word mass. It's not try could which will could have nice to have. No, those are vocabulary right that will, you know, hurt you as a trader, you must do it. Must I so don't dabble in trading make trading a must number two, many traders.

You know they fool around with indicators, because it's sexy right look at those those lines right now. You know it goes up and now it's so fun. You know the ping line, the blue line in the black line and here's the thing about indicators right is that, but a lot of retail traders think that if they just find the right permutation of indicators right, they can, you know, make money from the markets. If only I know the right combination, if only I know the right indicators used, if only right, I can, you know, use the wrong.

I use the right choice of you know indicators, if only but here's the thing right indicators. There is no magical formula permutation to indicators out there. You might find a set of indicators with a fixed set of parameters could have worked over the last three months, but guess what that works because of a specific market condition and market conditions, guess what they change and when market conditions change that fixed set of indicators. That you're using it's not gon na work, so this is why don't focus on finding the right combination of tools or techniques right to trade, the markets it will expire eventually instead, what's important is to learn how to read the price section of the markets, something as Simple as if the market is in an uptrend they'll look for buying opportunities.

If the market is in a downtrend look for selling opportunities, that's pretty much a very simple framework that you can start with right. Ask yourself what the market is doing and where can I find trading opportunities right to trade in this current market condition? Is it a finding the best permutation and the right settings and whatsoever? Really that will get you nowhere instead, learn how to read the price makes one number three most retail traders fill is because they don't have a consistent set of actions. They are always, you know, dabbling trying new stuff. One moment they are doing.

You know price action trading. One moment is chat. Panthers next woman is Elliott. Wave next moment is indicators.

Next moment is harmonic trading or whatsoever, and when you are all over the place, when your actions is inconsistent, when you're doing everything and anything guess what your results will be inconsistent, I get it right understand. You're excited to to explore as much as possible about trading all the different tools or techniques, the indicators, the patterns. I know in fact I'm going to explore, but eventually you must reach a stage where you have to discard 90 % of the tools are there, because it's irrelevant to your trading methodology. You have to be willing to cut out noise if you're not willing to cut off the color of the noise, and still you don't dabble in everything in anything, then your results will never be consistent.

Okay, one of the centers. Are they really hit me harder? Is that, in order to be a consistent trader, you must have a consistent set of actions, no two ways about it: okay and the fourth thing, retail traders - they don't have an edge in the markets, or rather most retail traders that fail. They don't have an edge in the markets because they just take it to likely be just sting bit. You know one trainer as long as have a minimum of a one to two R is reward ratio right.

I will make money in a bar. It's alright! As long as I have a discipline, it's not a risk management, yada, yada I'll make money in the markets. Well, guess what? No? You must have a niche in the market. You must have something: a strategy, a methodology, a system that, whenever you execute it or in the long run it actually gives you a positive expectancy.

Or what's that big word Rainer, let me explain, imagine you have a coin in your hands every time. The coin comes up here you make $ 2 and every time the coin comes up till you lose a dollar, and you know right. A coin is 50 % of the time. You'll come up here, 50 % of the time it comes up till now.

Let me ask you: in the long run, when you toss that coin, will you make money or not? Well, it's pretty obvious that you will make money, but what, if this time round every time you toss a coin, it you lose $ 2 and every time we I mean when it comes up again, you lose $ 2. If it comes up till you make $ 1, can you see that in the long run, you'll lose money, irrespective of the best risk management, regardless of your trading psychology? It doesn't matter because once you don't have an itch in the markets, nothing else matters. So, as a retail trader, I find that it's important right to explore and extract your age out there. There are tools out there to make your life easier.

You know back-testing platform trading journals, even books that actually share with you trading strategy right with back tests and results. You can just copy that strategy, tweak it to your needs, test it and see whether it works right now to us all there right to make your life easier. But you know you have to be willing to do the work know what is gon na. Do it for you or - and you have to be really to do the work and that's why, if you treat this as a must, a must to succeed, you'll do whatever it takes, but if you just try this, you just try there.

Let me devil this devil. Then it guess what no nothing's gon na change you'll still be a losing trader, okay and finally, all right. Finally, right most retail traders, they lose because they have the wrong expectations about trading right. So you know the marketing messages out there or you know just do this can make money every day.

Just you can make 10 peeps a day right in the money you can make like what uh. I don't know foreigner pips a month consistently around 200 people some month or you know you can make money every single week every single month, but really this you should have look at trading as something that gives you a fixed return comes every single day. Every single week, every single man, because that's not how it works. If you want something fix something consistent, get a job, not trading or not getting involved in business, because there is risk involved.

Market is always changing and it takes time for your strategy to either adapt to that current market condition or to you know, play defense right until the market condition comes back to be in your favor and then the strategy starts making money again, that's kind of the Reality of trading, so, if you don't manage your expectations, if you think trading is something that you know it's like you know, ATM print money, change engine then and really right, you're in the wrong business, so many to expectations. Okay, don't think that you can. You know just take up a weekend seminar and online course, and after which, within a couple of months, you can make money from trading. Well, yes, you could beginner's luck, but after wall, if you do not know what you're doing you don't respect the risk that is involved, you will lose everything and more okay.

So many is your expectations. Okay, this is important and with that said, right, that's a pretty much what what uh? I feel that you know why most traders fail and hopefully right that helps you reduce your learning curve along the way. So that's it! I wish you good luck and good trading, and until next time you.