The inability for traders to plan and follow up.
This is a fairly broad topic, I agree.
However, it has to be in there as one of the top three. Many may argue that this one is the most important.
But what good is a plan, if you do not have the discipline to follow it in the first place?
What good is a plan, if it is so expansive no one can review it accurately to see if it was followed?
When I talk about planning, I am not talking about planning with a small letter ‘p’. I am not talking about preparing a watchlist for the day, or checking the daily schedule. I am talking about planning with a big letter ‘P’.
I mean a very detailed plan of what you are allowed to trade every day, when and how you trade it, how you enter, how you mange, when you can change it, what strategies, and all the money management rules.
If you day trade without a trading plan you follow religiously every day, you WILL fail.
The other half of this reason for failure is the inability to follow up.
No Trading Plan is worth anything if it is not followed.
For sure, the number one reason traders fail is they do not receive a quality education. That is what we do here, provide the best education in the business.
What I wanted to address here is, even after the education, why do some still fail?
Lack of discipline, lack of focus, and the failure to create a trading plan and to follow up to make sure those first three are in place.
That sums it up.
Do you have these three eliminated?
Eliminate these three reasons to fail, and you will have an outstanding chance for success!