Here's Why New Traders Are Losing Money
Due to the pandemic, there are a lot of new traders out there. I've been observing them on several websites.
These new traders are making the same mistakes newbies have always made. I don't mean "newbie" in a derogatory sense, because I was a newbie once. I made those same mistakes twenty years ago.
What is the biggest mistake new traders are making right now?
I see them in groups on social media websites. They frequently ask each other:
"What stock should I buy?"
First of all, if you're going to ask for advice, don't ask a stranger you just met online.
It's painfully obvious that these new traders are asking advice from people who can't possibly help them. The results are about what you'd expect.
Do you really think successful traders spend their days hanging out talking to newbies on Reddit or in Facebook groups?
When you're new at trading, you don't know what you don't know. The confident stranger who brags of his gains seems convincing, but only to those who've never spent time in the real world of trading.
So, we have a lot of new folks who are going to enter the market, quickly lose their money, and learn nothing in the process.
I only want to offer these folks one word of advice.
Instead of asking which stock you should buy, ask which books you should read.
Read three good books on trading before you place another trade. See if it doesn't change your perspective.
You can succeed at this game. You can have the things you want. But before you get to that point, you have some work to do.