What is the reason you fail as a trader?

mindset transformation trading mindset trading psychology Jun 20, 2024
Trader Losing Money

Reading Time: 7 min


Becoming a full-time trader is undeniably appealing, not just for the potential of unlimited financial gain, but primarily for the freedom and independence this type of "job" offers. I use the word "job" in quotes because being a trader is more of a lifestyle and a mindset than merely a way to make a living. Those who have been trading for a while will likely understand this distinction.

The perspective of working from anywhere, living on your terms, having no boss telling you what to do, making your own decisions, and on top of it all generating lots of money easily just by pressing the buy and sell buttons, is just too good to pass on. 

It's a dream life for many people.

However, what most do not realize is that their idea of how a trader's life looks like is sabotaging them in their efforts to bring this image to life.

In simple terms, the very reasons people aspire to become traders are often the same reasons most traders fail.

To succeed, it's essential to recognize and overcome the misconceptions about the freedom that trading promises. By doing so, you'll regain control over your actions and greatly increase your chances of achieving your trading goals.

Key Takeaways:

  1. Discover the reason why most traders fail to trade for a living.
  2. Understand why the freedom you sought might be the reason that is sabotaging your trading efforts.
  3. Learn the true meaning of freedom and independence in trading.
  4. Accept the importance of a strong trading mindset: disciplined and consistent.
  5. Get actionable tips to achieve the success and dream life you want, without self-sabotaging your efforts.

Let’s get into it!

There are two main reasons why most traders fail because of the freedom they crave. Let me explain the first one.

Freedom is the power that not many can control

Having freedom as a trader is not about doing and thinking whatever you want. Having that kind of freedom is not working for most people in general, especially if it comes to realizing ambitious goals. And let’s face it, trading for a living is a very ambitious goal. 

Not many people have the discipline to motivate themselves to action. The pandemic gave us a good taste of that, I think. But being consistent in your actions is a whole other level. 

🧠 Remember: Consistency requires full commitment on your part. That means your trading goal is your priority and everything else needs to support your efforts. Moreover, it requires persistence and perseverance.

Having freedom allows you to arrange everything around you to help you achieve your trading goals. But that includes compromises and full dedication to the process. Not just doing whatever or having the attitude of "I'll see how it goes" because this most likely will turn into "I see it going away from me". 


The freedom you get as a trader, cannot be misunderstood if it comes to your thinking. Yes, you can think what you want, but unfortunately, it is not very effective in trading. Because instead of using thinking to help you to make money you will be talking yourself down and out of trading decisions you should make. We, people, tend to find ways to talk ourselves out of things that are good for us long term!

And more often than not, we choose to think about what makes us anxious and unhappy. And we keep telling ourselves stories that stop us from pursuing our dreams. “I am not gonna succeed”, “I am a loser”, “This does not make sense”, “This is just too difficult”...


When you are a trader these ruminating thoughts are an absolute killer of your success. So, while you have all the freedom to think what you want, you need to be constantly alert. Trading is a mental game and you need to become your mind coach. Because even one thought that is not supporting the goal can cost you a lot of money. 


I like to compare trading to an athlete’s performance. You have just a few hours during the market open hours to shine. But all the other hours are for preparation, physical and mental. And it is up to you to get ready to perform at the highest level possible. To increase your odds to win. To exclude any distractions that might take your mind away from what’s needing your attention. 

Important Note: You have the freedom to choose to succeed. It’s up to you to make that decision and follow through on it!

The desire for independence without follow through

The second reason why the freedom you gain as a trader might be a double-edged sword is the feeling of independence it brings.

The image of independence for most traders is about “I can do whatever I want” and “nobody will control me”.

Not many want to see, that to trade successfully you not only need to have a strategy that gives you high odds to win, clearly defined goals, and a plan on how you will realize those goals, but first and foremost you need to be able to implement it.

πŸ’‘ Important Note: You need to build the discipline within you to implement your plan consistently to succeed as a trader.

This means that your success as a trader fully depends on you, on your ability to follow through on your trading strategy and your plan.

To do that you have to become your boss who sets very strict rules and has the discipline to obey them. You must become like a hawk making sure you are not deviating from your rules on one hand, and on the other have the flexibility to adjust your plan when conditions require it.

And a lot of times you need to make difficult decisions that cause you emotional pain. Only you will bear the consequences of your decisions. 

It’s not very easy to do the right thing when your comfort is compromised when you feel fear and your emotions are at play. Especially, if “the right” decision must be taken in a matter of seconds and there is no way to tell if it’s right or wrong.

And if you are not aware of what is happening on a deeper level throughout this entire process and you just react to triggers, your sabotaging mechanisms will make your decisions for you.  

πŸ€– Interesting! According to neuroscientists about 95% of how we do things is pre-programmed. A big chunk of that programming is protection mechanisms we developed based on our life experience. If you don’t know which of them is sabotaging you in your trading, you are no longer in charge.

You surrender your independence and your ability to do what’s right to the subconscious program, which makes you repeat the same mistakes over and over again.

The reason why most traders fail is sadly because they don’t have the discipline to always do what’s right; and also because they do not have the desire to do the work and discover how to get out of their way. 

Freedom and independence come with responsibility. If you want to be free and independent you need to understand that you own the outcome. You are responsible for the results of your actions, which means you must always act in your own best interest and not against it. 

Traders who do not take this responsibility seriously or do not understand what that means in trading, pay a very high price. Most of the time the price is higher than they want and can afford. 

Only those who can commit to a sustained effort of action over the long term and use the freedom and the power they have at their disposal – have the chance to succeed.  


Need Help?

You’re stuck in a failing cycle and tried everything to get out of it?

If yes, then you probably need a helpful hand to show you how you can start controlling your actions in trading.

I’m a seasoned trader and a Trading Mindset Coach, working for years in this business helping people like you. I teach traders how to work on building that disciplined mindset, and turn trading dreams into reality. 

Check out ways we can work together and make that happen!




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Subscribe and receive my 2-week free email series with easy and immediately actionable tips to help you break free from the failing cycle.

Join now and start going forward on your trading journey!

I respect your privacy. For details see the Privacy Policy below on this page.