Why Traders Lost Money?

Number one is that traders are entering a trade too late. And I want to show you two very specific examples. The first stock that I want to look at is Uber. So Uber, as you know, previously had its IPO. So we're going back to the time where Uber had an IPO, the initial public offering. And you see this where immediately they started trading at around $44, jumped back to $38, and then they were trading anywhere between $42 and $46. So this is when some traders think

You know what? I missed the beginning, I missed the move from $38 to $46, but now that they're making a new all-time high, let's jump into this." See, a lot of traders, they jump into a trade when it is too late. And this is what happened to many people here in Uber, so they jumped in when it was trading at $45 or $46 and the mainstream media was hyping it up. Now, as you can see, here is what happened right after this. Boom! It went all the way down. Now, let me ask you this if you look at this chart when do you think retail traders would jump back in? Not right here, right? I mean, they would probably jump back in as soon as we are approaching the previous highs. So right here as we are trading again at around $40, hey, now Uber is going back up. And what's happening? It is going all the way down

So this is what happened here, and this is mistake number one, that many traders make entering too late. Let me show you a second example, I want to take a look at Amazon right now. Now, Amazon is a hot stock, as you know, at first, they crossed $1,000 and then at some point they crossed the $2,000 mark, right? So here this is when they crossed $2,000 right here, can you see it on the screen? And this is when everybody got excited and said, "Yay, Amazon is above two thousand." And this is when many traders jumped in. Now, as you can see, here's what happened after this. It moved all the way down. Now the question is, okay, when do you get back in? And this is when main traders went in again when it was above $2,000. And again, Amazon plummeted down. 

Reason number one why traders lose money is entering too late. And in a moment I'll tell you exactly how to fix it. But first, let's move on to mistake number two, which is exiting too late. Because when you're trading, you're entering and you're exiting, right? So if you can make mistakes when entering, you can make mistakes when exiting. So mistake number two, exiting too late. I think it was around $80, as you can see here. Now, what happened after this? It went all the way down to $46. 

Now, here's what happens to many traders. They get into a trade and then it goes against them and what do they do? They say, "Oh, it'll turn around." Does this sound familiar? Have you ever done this? if this ever happened to you that you said, "Ah well, it'll turn around." And sure enough, it did. And this is when hope kicks in, this is when traders are thinking, "Oh, my gosh, this is awesome. It's going up again. It will go up to $80 again, to $90, maybe it goes to $200 - $300." But it doesn't do it, see it goes all the way down now to $40.

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