Kardec Trader breaks down why most day traders fail: no backtested strategy and bad risk management. You need time and many trades to find what works, and you have to plan for being wrong instead of chasing quick money.
A lot of traders struggle to become profitable. Most traders when they enter the market, they have no strategy, right? And even if they do have a strategy, the strategy actually isn't good. So what you have to do is you have to make sure you backtest the strategy. The strategy is viable enough and it has worked in the past through certain parameters. You have to understand it will take time to develop. It will require a lot and a lot of trades to, you know, be entered to see when it works, when it doesn't work. So it becomes a trial and error situation over a long course of time. The second reason a lot of traders in my opinion are unprofitable is because they don't have a proper risk management strategy. Now one of the main key fundamentals of trading, in my opinion is making sure you are always protecting your downside. Traders rush into the markets looking to make quick money with no risk management. Why? Because traders don't like to factor in the idea of being wrong.
