What is tradingTrading is an art of profiting from short term price movements which exists due to temporary inefficiencies in market.
Trading time frames can range from a day to few months. Traders take huge risk in expectation of higher returns and will also be active in market unlike buy and hold passive investors.
Bases on duration of a trade, it can be devided into various categories like scalping, intraday trading, swing trading or positional trading etc. We will discuss those things in another post.
Why traders lose money
- Emotional trading
- Lack of discipline
- No trading edge
- No proper risk management
- No proper position sizing based on risk
- Greed and fear
- Wrong leverage
- Lack of patience