Why does the retail investor continue to lose?
- Thread starter zdreg
- Start date
Retail investors have been winning for the last 100 years at a rate of about 8% a year.
"Traders" are yes typically slaughtered.
"Traders" are yes typically slaughtered.
Because subconsciously people want to lose and don’t really want to make money trading. Most people don’t actually takes it that serious. It’s a weird mixture of people both wanting additional information and to get better via pseudo working with or getting information from people , but somehow against meeting in person or having voice conversations where you can actually effectively communicate. It’s pretty interesting. Think about how many people say trading on voice distracts them. I am sure for some people that is true, but if you can really trade well and know what you’re doing than at that point most people aren’t so fragile that they will suddenly fall apart just because there on voice. You either know what you’re doing and confident in it or you don’t. Again sure there are some expectations but on a macro level it doesn’t really hold water to me, but of course these are just my opinions. Trying to get anyone to trade, discuss or have a healthy debate in any manner other than typing is like you’re asking them for a million dollars.
It boils down to taking trading or investing seriously. Most traders and investors want to become filthy rich without working for it. Take note that a good number of traders trade with negative expectation, even as they continue to lose monies (number 6). If that is your attitude, take your monies to Las Vegas. All the casino games are negative expectation but, the Las Vegas casinos will give you free rooms and comp you buffets atleast, for losing all your monies. If you lose it all trading in the stockmarket, you do not get anything out of it.
https://tradeciety.com/24-statistics-why-most-traders-lose-money/
https://tradeciety.com/24-statistics-why-most-traders-lose-money/
I think many many new traders get in the game seeing it as nothing more than a path to get rich quick...especially the new crowd who first became introduced to the markets on WSB. They have no understanding that one really must have a genuine interest in trading to excel...like any other career path...you must love the process. Unfortunately, most only love the desired results and become frustrated and quit.
concerning the OP, especially the book title. I think that has a lot to do with most brokers being better salesman than market analysists...pushing whatever product they are told to and caring little as to the performance as they collect their commission either way.
Well yes, but making 8% while taking 50, 60 or even 80% drawdowns isn't my idea of a good way to invest.
You want to do it the other way instead.
You want to make 50% a year with 8% drawdowns. Thats where trading comes in.
I think more has been written than needs be. Whatever the reason one gets in the gambling den is theirs. The result is also theirs. Smart people, driven people, lucky people, losers... All trying to make a buck without having to clock a 9 to 5.
So many hustlers; Vegas on steroids. The retail investor walks in with a dream. Some walk out with it, most don't. Who knows the name of the 2nd string defensive back of the Broncos? Exactly. The light is on the winners, don't spoil it.
So many hustlers; Vegas on steroids. The retail investor walks in with a dream. Some walk out with it, most don't. Who knows the name of the 2nd string defensive back of the Broncos? Exactly. The light is on the winners, don't spoil it.
People want big money BUT they spend more time planning vacations than how to make money. Always same story, people get into markets above fair market value and sell it near lows, they are active based on emotions. If they bought when they are scared and sold when thrilled, they do better.
Lol because they couldn't panic sell I'm guessing?
Honestly the buy and hold is just a way better deal unless you are going to devote everything you got to becoming a trader. you can't just dip your toe in this stuff and expect anything but pain...I learned that the hard way haha