Why People Lose Money In Trading

Need More Help? Book Your FREE Strategy Session With Our Team Today!

We'll help you map out a plan to fix the problems in your trading and get you to the next level. Answer a few questions on our application and then choose a time that works for you.


Hi guys, hi from Andrea Unger! Why most people lose money in trading? The answer is pretty obvious, so let's see together the main reasons why this happens.

Trading Is Not Easy at All!

Going straight to the point, this is the main reason why people lose money in trading. As a fact, trading is not as simple as somebody tells you.

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

The problem is that most people try to become traders from today to tomorrow. They jump into this, completely ignoring all the basic rules they need to learn before starting to trade.

Because of greed, most of them focus only on the final goal, which in their minds is to make money. Of course, we all trade to make money, but these people are moved only by their desire to get rich.

So, they start trading immediately, ignoring all the intermediate steps that are absolutely necessary to build up a proper mindset and knowledge.

It's like if you were going to run 100 meters, maybe you're in your fifties, and you neither train yourself, nor stretch your muscles. You just go and run as fast as you can!

Most probably, however, after 30 meters you will get injured and run into some muscular problems.

The same applies to trading.

Commitment and Study

Another funny comparison is the one that was made by a friend of mine, Michael Cook, who said that "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 do not have a good relationship with diets, so this applies to me too, although, fortunately, things work a bit better in trading.

The point is you need to understand the rules, and you need to stick to them, if you want to achieve some results.

People don't do it and ignore the fact that they need to study!

If you're a medical doctor and you go to make surgery or heart surgery to anybody, if you didn't study enough or complete the whole path through your studies, you will cause a disaster.

It's the same thing in trading. You can't imagine becoming a trader by studying a week or so. That's impossible!

This is what many gurus and mentors try to make you believe, so that they can sell their services. However, if on the one hand those services are necessary, on the other they are clearly not enough.

In fact, they are generally devoid of a key concept: you need to be one with the market, and to become one with the market, you need to study and understand the markets, which change and evolve constantly.

Learn a Method

All I can teach you is a system, a method to create trading systems, which obviously rest upon your understanding of the markets.

If you study the markets and learn to understand them, you can create trading systems that work. You can be one with them, becoming able to realize when they are changing, what to do and how to do it, in order to avoid or reduce losses.

You can learn to face the markets, which, rather than your enemies, should be considered your counterpart.

Trading Is Not the Solution to Everything

The method to build trading systems is something that you can learn and you need to study. However, it is not a universal solution to 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 satisfactory, but you need to study hard and prepare yourself in a due way, to be able 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. Then, once your money is in the market, and maybe it's in a critical situation, all the decisions you are going to make will be very hard.

Profits Are Not Everything

Also don't forget that we often tend to rely on track records that are too short. If we trade and we are successful for a couple of months, we feel as if we were the new wolves of Wall Street!

But we are not! We are not because a couple of months can be just a stroke of luck. They can be anything, and short track records do not prove anything.

This is just profits, and although profits are fine, you should never think that you are the ultimate guru because you make them. 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 that trading is easy, just a couple of lessons and you are ready... 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 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 building your knowledge is necessary.

Study, Too, Is Not Enough

Unfortunately, study is not always enough to be successful in trading. I mean, sometimes, you need to acknowledge the fact that trading might not be for you.

It's a very difficult decision and 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!" is always quite difficult.

There are people who are simply not good at trading. If you acknowledge that and think you have such weaknesses, then you should probably drop the idea of becoming a trader.

Trading is not necessary and nobody compels you to trade.

Also, trading is not a solution, as I have already told you. So, why should you look for something you will never be good at?

Recognizing that can be much more profitable than trying to change your mindset or attitude towards 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 the percentage of losing traders, which is not 95% as many people says, because if you read progress statements, this percentage is lower, although it is still a very large one, but if you don't study, for sure you will fall into that group.

Sooner or later you will fail!

I mean, I'm not here with bad luck messages. I'm just trying to make you aware of the fact that nothing is as simple as you might have thought.

Trading is something hard and you need to prepare yourself very well!

That's it for today, ciao from Andrea Unger.

Need More Help? Book Your FREE Strategy Session With Our Team Today!

We'll help you map out a plan to fix the problems in your trading and get you to the next level. Answer a few questions on our application and then choose a time that works for you.

Andrea Unger

Andrea Unger

Andrea Unger here and I help retail traders to improve their trading, scientifically. I went from being a cog in the machine in a multinational company to the only 4-Time World Trading Champion in a little more than 10 years.

I've been a professional trader since 2001 and in 2008 I became World Champion using just 4 automated trading systems. 

In 2015 I founded Unger Academy, where I teach my method of developing effecting trading strategies: a scientific, replicable and universal method, based on numbers and statistics, not hunches, which led me and my students to become Champions again and again.

Now I'm here to help you learn how to develop your own strategies, autonomously. This channel will help you improve your trading, know the markets better, and apply the scientific method to financial markets.

Becoming a trader is harder than you think, but if you have passion, will, and sufficient capital, you'll learn how to code and develop effective strategies, manage risk, and diversify a portfolio of trading systems to greatly improve your chances of becoming successful.