7 Common Reasons Why Traders lose Money
- Not Setting Stop-Loss:
Stop-Loss helps in saving the traders from incurring a huge loss.
A Stop-loss order is a type of order through which traders can instruct the broker to sell the stocks below their purchasing price to reduce losses.
As this order gets immediately executed, intraday traders can reduce the loss if the price movements go against their expectations.
But some novice traders do not set stop losses in their trades which results in huge losses.
As a trader, one should look for maximizing their profits but they should also look to protect their losses.