Although trading and gambling are different, there is some similarity in the risk of losing money. To reduce excessive losses, it will be necessary to manage funds with discipline and be patience.
But it is worth knowing that among the 85 to 90% of traders that are losing, almost no one among them wish to lose. Also some traders among them will think they are patient and think that they know about risk management until trading teach them lessons they do not want in their life.
You are right, those traders develop a tolerance for losses. They do not lose regularly as happens with gamblers. They are determined to continue trading as long as they have available funds because they expect to make high profits but they basically keep on increasing the losses. Short term trading only takes away from them profits instead of giving them profits.
Trade with a risk-tolerant amount of funds. Break the tendency to get rich in a short time.
Exactly, trading with very small amount of money is important. Holding is better, not stressful like trading that can waste many people's time, money and comfort
It would be a wise decision for those traders who lose more than they make profits from trading and realize their mistakes and soon they start moving towards long term investments because this method is less stressful and has a great chance of high returns if completed in a specific period (4-8 years).
Poll
