Mar. 1 at 3:32 PM
$AAPL $MSFT $NVDA $AMZN $NFLX
WHY MOST RETAIL TRADERS ARE NOT ELITE
Let me start with some numbers.
Returns thus far in 2026 (January 1 through February 28):
- The Dow Jones Industrial Average: +1.90%
- The S&P 500: +0.49%
- The NASDAQ Composite: -2.47%
- My Account: +42.35%
TO BE CLEAR, I AM NOT A GENIUS NOR AM I SOME KIND OF PRODIGY.
I HAVE SIMPLY STUDIED THE 5% OF TRADERS WHO ARE CONSISTENTLY PROFITABLE AND I HAVE LEARNED TO DO WHAT THEY DO.
With that said, let me tell you SOME of the reasons I have found that prevent retail traders from becoming elite traders.
These reasons are not in any particular order and I will only give the top-line reasons here.
Notably, becoming elite takes a lot of work and those that are members of the server referenced in my profile are learning how to transition into the 5%.
Here are some truths:
- Amateur traders do not focus on the thing that would make them elite…the reasons are psychological and not technical.
- Amateur traders have not developed the emotional mastery needed to allow them to act rationally when others act emotionally.
- Amateur traders are more interested in listening to other people then doing the work themselves to overcome the psychological barriers that prevent them from being profitable.
- Amateur traders do not think of the stock market in terms of probability distribution.
- Amateur traders want certainty from the market when certainty doesn’t exist.
- Amateur traders trade with the goal of having the market make them feel good and don’t focus on the things that will make them profitable.
- Amateur traders do not have a clearly defined edge for entering trades.
- Amateur traders have not learned to identify structural trends in the market.
- Amateur traders do not have a system that is proven to make money over time.
- Amateur traders do not understand that a system works over a series of trades, not one individual trade.
- Amateur traders are not willing to accept a losing trade as simply part of the probability distribution of a system.
- Amateur traders believe a losing trade says something about them and their ability to trade, not simply a cost of doing business.
- Amateur traders have not learned to sit still when the market isn’t offering high probability set-ups.
- Amateur traders do not believe that being in cash is taking a position.
- Amateur traders do not cut losses quickly.
- Amateur traders average down on a losing trades.
- Amateur traders do not average up on winning trades.
- Amateur traders will sell winning trades because they are afraid of losing the gains.
- Amateur traders are not willing to buy a stock that is at a 52 week high.
- Amateur traders trade too much because they believe activity is a requirement for profitability.
- Amateur traders take trades when they are bored rather than waiting for quality set-ups.
- Amateur traders have not accepted the fact that there are times when you will need to feel uncomfortable and be okay with it.
- Amateur traders define success in terms of how much money they make rather than adherence to a proven process.
- Amateurs look to blame someone else or something else rather than themselves when they have a losing trade.
- Amateur traders want other people to tell them what to do rather than learn how to become elite themselves.
- Amateur traders will not do the work themselves that will allow them to have high conviction when it is needed to participate in a long-term structural trend.
- Amateur traders are not willing to do the “boring” work day in and day out that will enable them to become elite.
There you have some of the things that separate amateur traders from the elite traders. I speak more about these concepts on my podcast “The Trader’s Edge” that I do with @HitTheBidRadio as well as on the server referenced in my profile. I would also be happy to do a podcast on this topic for @Stocktwits members if they are interested. Who knows, maybe @JoeyRockets might be willing to do one with someone who has a proven track record that can defintely help others here.
Warmly,
DC77
