5 REASON WHY NEWBIE FAILS WHILE TRADING

[EMANES]

Like many high-performance endeavors, success in forex trading takes time, patience, and a lot of practice.
This is why not many newbies successfully trade currencies on their first try.

In fact, popular trading discussions estimate that only 2% of newbie traders eventually make money.

So what makes it hard for traders to stick to forex trading anyway?


I’ve learned of countless reasons after talking with fellow forex traders in my blogs and in the forums, but I think we can narrow them down into five:


1. They blew their trading account.


What’s the point of trading if there’s no account to trade?


One of the more common mistakes newbie traders make is that they wade deep into the trading pool without bothering to learn how they can avoid drowning in losses.


They take the first trade ideas they see and hope for the best. And, because they lack the basic knowledge on economic correlations and risk management, they lose more often than they win. Heck, some even bet the farm on one trade in the hopes of getting back in the green!


Obviously, this practice is unsustainable and is one of the surest ways to get a margin call. This is why risk management is important, people!

 

[cashisking86]

You failed to mention that they jump straight into live trading before they are ready and understand the concept of risk management because they are arrogant and greedy. A surgeon doesn't go straight into working on live patients, a trainee pilot doesn't go straight into flying a commercial jet. They practice on cadavers and use simulators for hours and hours. But this isn't the sexy part of the process which is fundamental to your understanding and competence.