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What is the reason most traders never become profitable?


System hopping is the most frequent error that traders make that causes them to be inconsistent.

System hopping is the practise of changing one’s trading strategy, indicator, and entry/exit criteria frequently without committing to one strategy and refining it.

Why do investors switch systems?

True, traders detest suffering losses. When we experience two or three losses in a row, we begin to question our methodology or approach. We constantly tweak our tactics in search of the elusive Holy Grail that will bring us untold riches and elevate us to the status of Mukesh Ambani. But does trading operate in that way?

Looking at a price chart for a stock, foreign currency pair, or futures contract makes it appear as though making money should be simple. When day traders initially begin, they frequently concentrate on the major movements and believe that they could have made a fortune if they had entered at the right time.The majority of people, however, are unable to gather the necessary expertise to become consistently lucrative in their occupations due to the length of time required for learning and practising.

Many people may believe day trading is a reasonably simple and quick road to wealth if they adopt such a mentality. If you know how to do it, day trading can generate sizable revenue.

In my early days, when I suffered 2-3 losses in a row, I, too, used to hope.

Because they are unaware of or unwilling to face reality, new traders frequently change their systems. New traders mistakenly believe that a good trading strategy should only produce positive transactions and are unaware of the value of losses. In actuality, traders who can look at their trading with objectivity will realise that while their trading strategy may be successful, they are ultimately to blame for their failure.

Always keep in mind that the trader himself is the weakest link in any trading system.

You will always fail if you switch systems.

Need for a Reliable Approach

Lack of a sound trading plan is one factor that could cause traders to lose money. Making a successful strategy is not as simple as glancing at a chart after the fact. If you create a solid strategy, you can utilise it in a variety of market circumstances and it can even tell you when to stay out of the market since the circumstances are unfavourable.

An excellent strategy helps you get ready to act before a lucrative chance presents itself, rather than later. Finding patterns and trends that indicate trading opportunities with a chance of making money should be the aim of your strategy. Your outcomes might be mostly affected by chance if you don’t conduct the research.

Every time a trader switches from one technique to another, they must start over from square one and lose all previous gains.

You won’t succeed as a trader if you win twice and then switch to the next strategy after losing three times.

Have you ever observed a successful businessperson revise his strategy each week?

Everything we do in life requires persistence. The majority of traders only consistently use one trading strategy every few deals. If you wish to continue trading in this manner, I advise you to visit a casino and start rolling the dice; it will be at least significantly more enjoyable.

How to go beyond SYSTEM

Stick with one system and one configuration. Learn it, love it, and know it inside and out. See the outcome after a full back test. This will enable you to calculate how many consecutive losses you might experience if you use it in a real market. And once you’ve done so, you’ll have discovered a trading strategy that consistently generates successful outcomes. This will give you the confidence you need to use that strategy even after suffering several losses in a row, since you’ll know it will ultimately succeed.

Therefore, everything comes down to a proper, well-backtested trading method.

Understanding all of these concepts will help you begin trading with the right plan, approach, and attitude.

Trading becomes simple when you have the proper plan and procedure, and you will succeed in trading for sure.

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