Why do people quit stock trading?
Stock trading is one of the most profitable activities; in terms of profitability, it is second only to drug trafficking.
But, despite this, there are a large number of people who tried their hand at trading and gave up.
Only I have about a dozen acquaintances who at one time were engaged in stock trading and for various reasons decided to leave this occupation.
Many will be interested in what makes people give up a legal and even such a profitable activity as stock trading. Perhaps you shouldn't do this either.
A superficial approach - a person registers with a broker , downloads the trading platform and immediately starts opening trades, and after a couple of days becomes bankrupt.
An interesting fact is that those who start trading on the stock exchange are less likely to quit this activity than those who come to open transactions on Forex.
The reason lies in the fact that technically trading on Forex seems simpler and people who choose it immediately start trading, less often studying such important aspects as risk management , technical and fundamental analysis.
It is the desire to earn money quickly, without wasting time on training, that becomes the main cause of losses and, as a consequence, the reason for refusing to further engage in trading.
As a rule, such newcomers have previously tried their hand at sports betting and gambling, but failed there too.
Changing something in this case is not realistic, since without studying it is not possible to regularly earn money either on Forex or on the stock market. Therefore, it is the lack of necessary knowledge that becomes the main reason for large losses.
Mistakes when choosing a broker - even in our time, there are a number of companies with which I myself would not open an account.
The reason for loss of deposits from such brokers is not the mistakes of the trader, but fraudulent actions on the part of the managers of the companies themselves - manipulations with quotes, independent triggering of stops, and preventing the withdrawal of funds.
After a trader comes across such a company, he begins to believe that only scammers work in Forex and it is better to stay away from this field of activity.
Those who are disappointed in brokers can only be advised to use brokers with insured obligations or try their hand at alternative trading options, where the possibility of manipulation is excluded,
For example, the same Revolute, yes, the spread in this case is quite large, but no one will deceive you and the money remains in your account.
Hard work - if you do not play on the stock exchange, but work, then you well understand the essence of this statement. It is only at first glance that it seems that trading is just sitting at the computer and clicking the mouse.
In fact, you get very tired from constant stress, monitoring news, and monitoring open transactions.
After several years of work, even such an interesting activity as trading becomes a routine, and constantly sitting in front of a monitor causes a lot of professional illnesses for a trader .
It is for this reason that in a couple of years I myself plan to give up regular stock trading, transferring all funds to long-term investment options.