NiftyMagician : WHY 95% people always make losses ?

[rawal]

It takes ages to learn few basics of stock market trading and investment and learning is never ending process.......

remember that we all can be part of that 95% anytime........i have been to that category many times.

1.People fail to focus on basic technical as envisaged by DOW THEORY,EW analysis AND Gann......they prefer short cuts which are nothing but simplification process for those who can"t focus on basics.......so nothing can replace basics.

2.People like to digest more than they can chew so try to trade every small swing......that results in missing the major reversal.

3.People are always late to identify the leaders......by the time they realize,it is too late.

4.People prefer buying cheap stocks without realizing why they are cheap........and prefer selling good stocks without realizing why they are rising even in worst case scenario.

5.People prefer to neglect base oscillators like RSI and MACD like they did on 4th September 2013.

6.They are unable to believe anyone including themselves and that results in disasters........always remember definition of economics......."when there are 6 economists,there are 7 definitions".

7.WHILE in right side of trend........they do some basic mistake like accumulation of garbage stocks.......using MTM for increasing positions......that force you to loose the trend and your capital.

8.They are too moody to neglect wiser councils.

ESSENCE......NEVER STOP AT LEARNING AND REMOVING YOUR PAST MISTAKES..

[asif]

wellsaid Devendra sir...!!!! will copy it...!!

[sonali1408]

one reason is more that 95% of people never keep stoploss.