98% of traders are guaranteed to fail #motivation #inspiration #mindset #discipline #trading

Summary

In this video, the speaker discusses the harsh reality of trading, revealing that nearly 95-98% of traders will lose their capital within 3 to 5 years. The key reason for this is their focus on winning at all costs, leading to a misguided sense of control over the outcome. The speaker emphasizes that trading is about engaging with randomness and uncertainty, not controlling whether one wins or loses. Acknowledging and managing risk is crucial for longevity in the market, rather than chasing unrealistic victory.

Takeaways

• 😀 The majority of traders (95-98%) will lose their capital within 3 to 5 years and exit the market.
• 😀 Traders who are fixated on the idea of winning at all costs are more likely to fail.
• 😀 A major challenge in trading is that traders cannot control the outcome or whether they win or lose.
• 😀 Trading involves engaging with randomness and market uncertainty, rather than being a purely controllable activity.
• 😀 Risk is an inherent part of trading that must be acknowledged and managed.
• 😀 The mindset of 'I must win' is often counterproductive to long-term success in trading.
• 😀 The outcome of a trade is unpredictable, making it impossible to guarantee success.
• 😀 Successful trading requires adapting to the randomness and volatility of the markets.
• 😀 Traders should shift focus from the need to win to managing risk effectively.
• 😀 The key to long-term survival in trading is accepting uncertainty and approaching it with a strategy for risk management.

Q & A

What percentage of traders are likely to lose their capital within 3 to 5 years?

Somewhere between 95 and 98% of traders will lose their capital within 3 to 5 years.

Why do traders typically fail within a few years of trading?

Traders often fail because they push their own agenda of needing to win, focusing on making things happen regardless of the market's randomness and uncertainty.

What do traders fail to recognize about trading outcomes?

Traders fail to recognize that they do not control the outcome, and they cannot control whether they win or lose or whether they are right or wrong.

What does trading engage with, according to the script?

Trading engages with randomness, the uncertainty of the markets, and the inherent risk involved.

How do traders often approach their decisions, according to the script?

Traders often approach their decisions with a mindset that they must win, pushing against all odds and trying to make things happen, which can lead to failure.

What role does risk play in trading?

Risk is a fundamental part of trading, and it comes from the uncertainty in the markets that traders cannot control.

What is the key issue in traders' mindset that leads to their failure?

The key issue is that traders focus too much on winning and trying to control outcomes, rather than accepting the inherent uncertainty and risk of trading.

How does randomness impact trading?

Randomness in trading means that traders cannot predict the outcome with certainty, and thus they cannot guarantee that they will always win or be right.

What happens once traders fail to control outcomes in trading?

Once traders fail to control outcomes and do not recognize the role of risk and randomness, they typically blow through their capital and exit the market.

What are traders ultimately engaging with when they trade in the markets?

Traders are ultimately engaging with the uncertainty and randomness of the market, which includes managing risk without control over the outcomes.