Why is Trading so Hard?

The stats we all hear and read state that 90 - 95% of all traders lose money.

How can this be?

Where do these stats come from?

If they are true then 5 - 10% of traders must be making a lot of money.

What are the factors that differentiate between the winning and losing traders?

Here's my list of winning attributes:

Well capitalized.
Patient
Disciplined
Committed
Understand money management.
Understand risk management.
Have documented their business and trading plan.
Emotional control.

Here's my list of losing attributes:

A need to be right.
Failure to take ownership of their decisions.
Trading as a hobby.
Addicted to gambling.

Obviously a lack of any of the strengths is a weakness as well.

What would you add to both lists?

When you look at these lists what attributes do you see in yourself?

For me the on the winning side it is patience, I find it hard to remain patient during the day as I want to catch every move.

On the losing side, it's the need to be right. This manifests itself in revenge trading, I can look back at my trading records and see a losing trade taken at say 9:15 and then I'm in again at 9:16 trying to prove I'm right and getting smacked again.

It's important to recognize your strengths and weaknesses and build safety nets into your trading plan to help you deal with the weaknesses.

Such as after X number of losing trades I must quit for the day. This is to force me to be patient as I know if I take another loser I'm done for the day. My trading plan also does not take very many trades in the day, I force myself to be patient and wait for a strong trend.

To mitigate my revenge trading I have rules on when I can re enter the market after a losing trade. I need to see a reversal of some of the technical indicators I watch and then have them come back to the trigger again.

If this doesn't happen and the move just keeps going, then it goes with out me.

Which I hate. :)

Cause it means I was right. :)

Of course I knew that. :)

Again, look at the 2 lists of attributes and if you can think of any I'm missing make a comment so I can have a look.

Thanks