Here are the key factors that often keep people from making consistent profits in trading or investing (especially in options or short-term markets):
🔹 1. Lack of a Clear Strategy
• Trading without a tested and proven strategy leads to inconsistent decisions.
• Jumping between different strategies ("shiny object syndrome") can prevent long-term success.
🔹 2. Poor Risk Management
• Risking too much on a single trade or not using stop-losses.
• Letting small losses turn into large ones.
• Not understanding position sizing relative to your account size.
🔹 3. Emotional Trading
• Fear, greed, and FOMO (fear of missing out) often drive poor decisions.
• Revenge trading after a loss or overconfidence after a win can lead to impulsive trades.
🔹 4. Lack of Education
• Trading without fully understanding the instruments (e.g., options Greeks, volatility, time decay).
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