Investing is a zero sum game. For every winner there is a loser, which is what keeps the market efficient. Knowing this, it is possible to develop an edge in order to win more than you lose. This is why some of the best trading systems make people so much money. These systems have found a way to analyze trading opportunities and automate the process so you can get in and out of trades quickly and profitably.

However, many investors and professional traders still manage to end up in the red. These investors are unsuccessful because they let emotions get in the way, are too stubborn to be successful, or they think they know something other people don’t. They can literally have their trading system screaming at them to get in or out of a trade, and yet they ignore all the signs. What these losers fail to realize is that the market is irrational because it is driven by emotion and institutional houses throwing their weight around. For that reason, it is nearly impossible to predict short-term directions and win every time.