Why Is Trading So Difficult

by OTC Financial | Last Updated: 2 years ago
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Why is trading so difficult?

Trading is so tricky because so many variables come into play.

Individuals are required to understand the market, predict how the market will move, and then need the skills necessary for technical analysis.

Technical Analysis will allow you to identify better support and resistance lines combined with volume and other indicators.

The honest answer boils down to your understanding of market psychology.

It’s not easy to trade stocks. It takes a lot of time, knowledge, and practice to get good at it.

Why Is Day Trading So Hard

Day trading is problematic because it takes a lot of time, time that you don’t have to practice learning if you are also working a regular job during market hours.

It also requires a lot of skill, and not everyone has the skills to day trade.

To be successful at day trading, you have to possess certain traits: patience, discipline, and emotional stability are just some that come to mind.

You also need to recognize market patterns and trends, not to lose a lot of money.

Why Day Trading Is A Bad Idea

Day trading is a bad idea because it’s even more difficult than long-term investing.

The risks associated with day trading are also higher, which means that the profit potential is lower, and costs incurred to trade on such short time frames may far outweigh any gains you make from your trades.

The other reason day trading can be terrible is that it’s highly stressful.

Day traders need to understand that trading is a job, and they should treat each trade like a full-time commitment where your livelihood depends on the outcome of those trades.

Day trading can be exhausting, mentally and physically.

The emotional toll of learning day trading for new traders usually outweighs any gains from using day trading strategies initially.

Is Day Trading Profitable

It depends on the person doing it.

Day trading is not for everyone, but it can be profitable if you are interested in day trading.

But like anything else, there’s a learning curve and practice involved before you get good at it.

The honest answer boils down to your understanding of market psychology.

Market Psychology Mistakes Day Traders Make

  • Chasing losses
  • Selling too soon
  • Buying on emotion and panic rather than logic
  • Aim to make money every single time you trade

When Day Trading It’s Important To Set Some Guidelines For Yourself

  • Never invest more than you can afford
  • Don’t put all your eggs in one basket
  • Trade with limits and stop losses
  • Keep your emotions in check. Impulsivity is the worst enemy of day traders

Avoid trading with the intent to make a profit every single time. Instead, focus on risk management and consistency rather than trying to become a millionaire overnight with one enormous win.

When the market moves against you, you can cut your losses short because they will keep piling up if you don’t.

Alternatively, if the market moves against you, assessing the trade and using the average down strategy on your position can be another method to break even or get out of unprofitable trades over time.

What Percentage Of Day Traders Make Money

Approximately 90% of traders fail to make money when trading the stock market. Despite this, 10% do consistently make money, and only 10% break even.

Day trading is a risky activity. Many people have tried it, but most day traders lose money because they lack discipline and don’t follow the rules.

How Do Traders Become Successful?

The answer to this question is very subjective. Successful traders may have a different opinion on what it takes to be successful than the next person, but there are some common elements:


It can take years before you see any significant profits when trading stocks.

This requires patience because many people feel they need instant gratification and want to see a return on their investment in less than two weeks.


Trading is not easy, so it requires discipline to stay focused and make consistent profits.

But trading should be viewed as a job that pays well but has many challenges.

You need to have total dedication to this activity if you want to be successful.

Timing The Right Entries

It can take years of practice before someone feels like they’re good at predicting what direction stocks will move in next.

Timing and waiting for the right moment can be tricky.

Successful traders know that good timing and perfect entry points are harder to come by than they seem.

At first glance, it can be a very frustrating experience when you watch trades go in the opposite direction of what was predicted or expected.

Learning From Mistakes

All-day traders make mistakes; it’s a natural part of learning.

The key is not to dwell on any mistake because that will inflict more pain and frustration when you’re already feeling overwhelmed with the pressures of trading but instead learn from your mistakes, so they don’t happen again.


Diversification is essential in trading as it allows you to have a variety of investments so that if one should fail, there are others still generating profits.

Having at least a couple of trades in your portfolio will help reduce the risk and give you some breathing room if you happen to be on a losing streak.

Using Different Tools

Traders use many resources, including charts and indicators.

This helps make analysis easier so the trader can stay focused on trading instead of becoming distracted by other tasks.

Keeping A Trading Journal

Traders need to keep detailed records and track all purchases and trades to describe what was bought and at what price accurately.

This will also help traders avoid making the same mistakes as they can refer to their records and see where they went wrong.


Trading stocks requires practice and experience to become skilled.

A person can’t just start trading without any background or education because they will soon find themselves making mistakes and losing money.

Risk Tolerance

Risk tolerance should be a significant consideration when trading stocks because day traders must put up their capital on trades, so they need to decide how much risk they’re willing to take relative to their financial situation.

Trading should not be viewed as an easy way to riches – it requires patience, discipline, and a lot of research.

There’s no magic formula for becoming successful when trading stocks, but these common elements may be able to help people get on the right track.

Key Takeaways

It is important to remember that trading can be difficult because of individual emotions. That’s why traders need to have a strategy in place before starting their first trade.

Trading is a game of probabilities. You can’t win every time you play, but eventually, you should come out ahead with a concrete strategy.

This doesn’t mean that trading always requires more risk; know there is no such thing as a sure bet in the stock market or when investing for retirement.

It also means that not all trades have to be winners – some may lose money while others make up for them later down the line.

Understand how stocks work before ever trying to trade so that you’re ready with an investment plan instead of feeling like gambling whenever you buy shares online – it could end up saving you from making costly mistakes!

Remember, the more disciplined you are, the better your chances of making great trades that lead to long-term profits.

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