“90% of people who trade on the stock market lose money.” I see this everywhere sa internet at sa social media. Sa dami ng nagsasabi na 90% ng tao na nagtitrade sa stock market ay natatalo naging fact na ito.
If 90% of retail investor/trader loses money in the stock market, then why don’t they stop? Have you stopped and ask yourself this question? If 9 out of ten people drown on a certain swimming pool sa lugar ninyo, would you still try and swim there? NO! Bakit when it comes to stock market eh marami pa rin nagtatry?
Walang pinipiling tao ang stock market kasi kahit si ‘Sir Issac Newton’ (the guy who claimed to discover gravity when an apple accidentally fell on him) also lost money in the stock market. Now, I’m neither a genius nor a stock market expert. I’m just another girl who has been involved in the market for quite some time and has read countless books on the stock market. Here are the things I have observed bakit natatalo ang karamihan ng traders.
Una. Pumasok sa stock market para yumaman kaagad. They have no idea how stock market works but have heard stories of traders buying NOW stock at 3 pesos and selling it for 17 pesos in a short period of time. They started making mental calculations “If ako yun at binili ko sa 3 pesos gamit ang 200k ko, may mahigit isang milyun na ako ngayon. Di ko palalampasin to. Papasukin ko to.” They buy hyped stocks then biglang bagsak kaya ipit.
This might sound crazy ngayon but at the height ng Telco plays may ibang nag akala or umakala na mag iisang libo si NOW. “Si TEL nga lagpas 1k, for sure minimum na 1k ang stock price ni NOW!” Can you imagine if you have no knowledge of the stock market and you were presented with this idea. “You but NOW TELCOM at 17 pesos and wait until it became 1000 pesos then you sell.”
Lets do a little calculation just to elaborate. If you have 100k and you bought NOW at 17 pesos then wait until it became 1000 pesos bago magbenta, you will have over 5 Million pesos.Crazy, right? Kaya nga as NOW was tumbling down you can see posts from some gurus to “NEVER EVER EVER EVER SELL YOUR NOW SHARES!”
Pangalawa. Ignoring Fees. When you are new sa stock market you just hit the buy and sell button. You don’t pay attention sa fees. All you know is you buy low and then sell high every time. Kahit mga basic ideas like dapat 8 thousand pesos ang minimum na bili mo para di ka lugi sa fees ay hindi mo alam. You just push the buy and sell button without realizing na nagpatong patong na pala fees mo.
Pangatlo. Letting emotions get in the way of sound decision. FOMO or fear of missing out. Nakita mo marami nagbilihan ng stock na FRUIT the morning na nagbukas ito sa market. Marami ka nakikita na posts ng gains nila sa social media. Ayaw mo maiwan kaya bumili ka only to find out na down na siya 50% ngayon mula sa high niya sa opening day.
Natalo ka. Di mo matanggap ngayon. “Babawian ko tong stock market na to humanda ka!” Naghanap ka ng bagsak na stock na sa tingin mo mura para bilhin. “Humanda ka stock market. Bawi.an kita!” Only to be in a much worse situation that you were before. Revenge trading tawag dun.
Marami reason na nakaka affect sa outcome ng trades mo. May hype, may fear, may greed, may maling reco, etc.
The list of reasons why 90% of traders lose money in stock market goes on and on. It could stem from you being afraid to cut your losses to you being a victim of a pump and dump.
Let me tell you a secret that someone told me a decade ago about 90% of traders lose money and the ten percent that don’t. Listen carefully for this may be the first time someone told you this truth.
Those ten percent who don’t lose money or lose a little money belonged to the 90% who lost money before but did not quit. They were a part of the 90% that lost a lot but they managed to not quit trading. They cry. They feel depressed. They feel like the world is really hard on them but they did not quit.
One day they woke up and the losing streak stopped. All the crying and depression eventually stopped. They found themselves winning. You see, my friend, you need lessons. You need experience. You need to lose. You need to make all those mistakes and learn from it. You need to be a part of the 90 percent!
I was. I endured three years of losing. Wiping out my trading account one after the other. I got hyped. I had FOMO trades. I had revenge trades. Whatever mistakes you can think of I had been through it. I went to Baclaran church. I went to Quiapo church. I prayed na ibalik lang losses ko magbabago na ako. I gave up more than 100 times.
A few times I said “Di talaga para sa akin tong trading na to!” I make mistakes. I promise myself not to make them then right after few trades I go back to making the same mistakes again. All those experience add up to who I am now. I can tell you all these because I have been through it. This is not based on someone else’ experience. This don’t come from an article or a book I read somewhere. This is my truth.
You will lose first and learn all the lessons. It will be a struggle but if you don’t quit something amazing awaits you! If you want help you can join our Facebook Trading Group called Trader’s Lounge. We help new stock traders over there for free.
If you want to learn more about stock trading join our Facebook Group called Trader’s Lounge.
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