Trading in the financial markets may seem simple, but it is far from easy. Most people repeatedly attempt to profit but end up losing money in the forex or stock markets. This is because they fail to adhere strictly to rules and trade more like gambling, easily influenced by surrounding information.

Basic Principles of Market Operation

In the stock market, there will always be deposits and withdrawals of funds. If all participants in the market only withdrew and did not deposit, the market would quickly dry up and resources would disappear. To maintain the continuous operation of the market, most people need to be depositors, while a minority acts as withdrawers. If the majority were withdrawers, the market would collapse rapidly.

Therefore, for the market to function healthily, the majority must be depositors and not withdrawers, which explains why most people will never become market winners.

Market Design and Risks

The market is designed to make most people lose money. The market deliberately creates negative news to push prices down, when it might actually be the best time to open positions; similarly, it generates positive news or historical highs, which might be the best time to close positions.

All of this is intentional. Buy recommendations always come at market highs, and sell recommendations at market lows. This design ensures that 90% of people eventually get eliminated, with the remaining 10% possibly acquiring professional knowledge through self-study or trading schools.

Trading Misconceptions

Many people believe that simply finding good news stories or investing in excellent companies will lead to profits. In reality, trading is far from that simple. Even the smartest investors can suffer losses in the stock and forex markets due to blindly following news. Relying solely on an upward or downward arrow, or just using alerts on your phone to decide when to buy or sell, is often a flawed approach.

Trading Psychology and Market Manipulation

Buy recommendations always appear at high prices, and sell recommendations at low prices. Good news typically leads to market declines, while bad news may push the market up. This design is meant to frustrate most investors. Many mistakenly believe that finding good news stories or investing in fundamentally sound companies will result in profits. In reality, even the most brilliant minds can incur losses in the stock and forex markets due to these erroneous beliefs.