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Hi guys, hi from Andrea Unger!

Why do most people lose money in trading?

This is a question which has a pretty obvious answer, I mentioned that many times.

Trading is not easy at all!!!

It’s not as simple as somebody tells you.

Trading is difficult and it requires a proper approach and study to get some results.

The problem is that most people try to become traders from today to tomorrow and they jump into this ignoring completely all those basic rules they have to learn before starting to trade.

Because of greed mostly, they just think about the final purpose which in their minds is to make money.

Of course, we all trade to make money but they are pulled only from the greed of making money.

So they jump immediately to action ignoring many intermediate steps which are absolutely necessary to build up a proper mindset and a proper preparation to trade.

It’s like if you were going to run 100 meters, maybe you’re in your 50’s and you don’t prepare anything, you don’t practice any stretching, nothing.

You just go and run as fast as you can!

Most probably after 30 meters, you get injured and you have some muscular problem.

Trading is the same!

Another funny thing that Michael Cook, a trader, a friend of mine said, is: “Trading is like diet! Most people know what to do in a diet, but they don’t do it! That’s the same in trading”.

I myself… the results in a diet are critical, luckily trading is a bit better, but obviously you need to understand the rules and you need to stick to the rules.

People don’t do it, people ignore they need to study!

If you’re a medical doctor and you go to make surgery or heart surgery to anybody, probably if you didn’t study, you didn’t get all the path through your studies, you will make a disaster.

It’s the same in trading. You can’t imagine becoming a trader studying a week or so, It’s impossible!

This is what many gurus, mentors try to make you believe so that they could sell their services, but if on one side those services are necessary they are not sufficient because they would be probably empty of a real concept that you need to be one with the market, and to become one with the market you need to study and to understand the markets.

Markets are continuously changing, they are always evolving.

All I can teach you is a system, a method as I said, to create trading systems.

Trading systems that are built on your understanding of the markets.

So if you understand the markets, studying them, you can create trading systems that work, but being one with the markets you will realise when markets are changing, what to do and how to do it to fight against, let’s say against the losses and against the markets, which are not necessarily enemies, let’s say they are your counterpart.

So the method to build trading systems is something that you can learn and you need to study.

It’s not something that once you get it you solve all your problems.

Trading is never and will never be the solution to your problems, if you face it like that you will have an additional problem.

Trading can be a hobby, a profession, it can be anything satisfactory but you need to study hard and to prepare yourself in a due way to face the markets.

First put in place all the necessary knowledge and then start.

Greed is your enemy in this because greed tries to put you immediately into the market with your money and once your money is in the market and maybe it’s in a critical situation then all the decision you are going to make will be very very hard.

Don’t forget also that many times we all rely on too short track record, maybe for some reason we trade and we are successful for a couple of months, we believe to be the new wolf of Wall Street!

No, we are not!

We are not because a couple of months can be luck, can be anything.

For sure that short track record, a couple of months, is very short, it does not witness anything.

It’s just profits, fine, absolutely fine, but don’t think you are the ultimate guru because of past profits.

You have to go through a long experience and you have to keep on studying and learning what the markets can be telling you.

This is very important, it might be disappointing because you might have thought it’s easy, simple, a couple of lessons and I go, No I’m not the man who is telling you this.

I’m telling you it’s hard, it’s interesting, it can be done, but it needs a great commitment.

Only if you are really committed you can have some chances to be successful in trading.

To study, to learn, to dedicate time to build in your knowledge is necessary.

It’s not sufficient, again… bad news.

Bad news because you might not be a trader, you might not be a trader yourself, I mean you have to acknowledge that trading might not be for you.

It’s a very difficult decision or it’s a very difficult response to give to ourselves because it goes against our ego, saying: “I’m not good at this, I won’t be good at this!”

There are people who won’t be good at trading and if you acknowledge that, if you recognise your weakness in that, you may simply drop trading.

Trading is not necessary, nobody compels you to trade.

Trading is not a solution, I told you, so why should you look for something where you will never be good at!

Recognizing, that will be much more profitable than trying to “correct” let’s say, your mindset or your attitude at trading.

So guys, trading is not simple, it needs study and studying might give you a better advantage in trading.

If you study, you can skip out of that percentage of losing traders which is not 95% as many say, if you look at progress statements they are less, but it’s still a big percentage, a very large percentage, and if you don’t study for sure you will fall into that group, this is for sure.

Sooner or later you will fail!

I mean I’m not here with bad luck messages I’m just trying to bring to you the awareness that nothing is as simple as you might have thought.

Trading is serious and you need to prepare seriously!

That’s it for today ciao from Andrea Unger.


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Andrea Unger

Known as the only 4-Time Trading World Champion (2008, 2009, 2010, and 2012), Andrea Unger is a full-time professional trader since 2001 and honorary member of SIAT (Italian Society of Technical Analysis, a branch of IFTA). Appreciated author, he is often invited as a speaker all around the world.

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