Why Most Traders Fail: The Emotional Trap of Trading
We all got into trading for the same reason— the dream of the big win.
At some point, we saw a story about someone turning their last few dollars into millions. Maybe it came in the form of an article, an ad, or a flashy sales pitch offering a “simple secret” that promised financial freedom.
Most of the time, we ignored these gimmicks. But at a vulnerable moment, the idea of effortless riches seemed like the answer to our prayers.
So, we jumped in.
The Harsh Reality of Trading
Whether we followed price patterns, market waves, or some indicator-based strategy, we all quickly learned one thing—__desire and dreams aren’t enough to survive in the markets.
To stay in the game, we needed:
✔️ A back-tested system we could trust.
✔️ A way to remove emotions from trading.
✔️ The discipline to treat it like a professional job, not a lottery ticket.
That’s when we started taking things seriously. We studied trading gurus, watched their live trades, or tested different strategies using software. Armed with a system, we approached the markets with rules, stops, and profit targets—ready to execute like professionals.
Then, the Emotional Trap Begins
At first, things seem to go well. We take trades, stick to the plan, and even land a big winner.
The news confirms our brilliance—the market is moving exactly as we predicted. Our profit target is just a few ticks away, but the momentum is strong.
So, we think:
👉 "This move is bigger than expected! There's no way it won’t keep going. Let me lift my profit target and let it run!"
The market closes slightly higher. Confidence grows.
👉 "I’m getting good at this. I have a feel for the market now!"
To "protect" profits, we set a stop-loss at our original profit target—so if the market reverses, we still take home the same gains we originally planned.
And then… disaster strikes.
Overnight, unexpected news hits the markets. A weather shift, a central bank statement, an earnings miss.
The market gaps down past our stop-loss, wiping out our trade entirely.
The big winner just turned into a big loser—not because of a bad system, but because of emotions.
The Hardest Lesson in Trading
This is the same emotional trap that pulled us in from the start—the belief that we “know” what the market will do next.
In reality, professional traders don’t try to outsmart the market. They follow their system. They take the profits when their rules say so. They don’t get greedy.
Because in trading, it’s not about being right—it’s about being disciplined.
The Truth About Long-Term Success
If you’re still trading after a few years, it means one of two things:
1️⃣ You have deep pockets and can afford to keep learning the hard way.
2️⃣ You’ve learned to control your emotions and follow your system with discipline.
If you want to make it in trading, you need both.
Because the market doesn’t care about your feelings—but if you respect the rules, stick to your plan, and take profits when your system tells you to, you’ll give yourself a real chance at success.
Are you following your system—or letting emotions run your trades?
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Credit to the originals 💐