When emotions are that high, it becomes you vs the market. Like a fight. You think that you can push your will against the market and win. If it were a physical fight against an enemy you can exert your will over your opponent’s. Or if it were a physical training, you can force your way through an exercise.
But mental activities don’t work like that. You’ll usually lose. That’s been my experience. The market always wins.
I imagine you mean the beginner trader shouldn’t think about profit–just focus on properly trading your strategy.
Is that right?
In that case I agree. Focus on proper entries and exits. You can randomly trade and get profits and think you’re amazing. That won’t last.
Speaking from experience. Traders lose money because they don’t stick to one strategy.
I can perhaps even be a little more specific.
If a trader begins trading with $500 and in Month 1 they make $30, they might be quite encouraged and think they’re on the right track. So they carry on in exactly the same way and in Month 2 they make $32. In Month 3 they carry on trading their strategy and they make $34.
So now they have been trading for 3 months with all the work and effort and emotional stress that this involves. And so far they have made less than 100 bucks. Plus they’re thinking next month I’m just going to make another 30-odd lousy bucks.
Its at this point that their “regular world” thinking overcomes their “trader brain”. They ask themselves what job is worthwhile if you have to work at it for 3 months and give yourself headaches and an ulcer just to make less than a hundred bucks. And they decide it isn’t worth it so they increase their risk levels. And this blows the account in 3 weeks.
They saw profits as dollars not percentages because that’s what you do in the “regular world” and didn’t realise what would have been the outcome if they just carried on making 6% a month…
From the point 2 to 4 is all related with the first one.
Good example. Let’s not forget the power of compounding!
Might not be the biggest reason, but certainly worth mentioning:
When you get some inside information from a reputable investor/trader, so you bet the farm on it because “it’s a sure thing”…
Strangely this post came up today in conversation - 12 years back.
because of greed, poor planning, and changing stop loss.
Looking for broker and of course analyst ,where are the best 
Thanks
In my opinion ALGO TRADING (Can not win against IT) is the main reason and misleading news resources (Desinformación). I have been learning trading from books any resources are available since the pandemic started and since NO followable clue to get closer to the direction of the market in daily aspects…Why? because if dollar goes up it was sad stocks should go down but if the 10year bond goes down the stocks goes up instead of go down No sense at all …eh? Only one rule is for sure if it is a buy, market goes down and opposite is true too. But the funny is if I have another account and doing the sell version on the same product (what I bought on a different account) will be in negative both because the market that day not moving significantly to any direction… Stop loss is an order so if applied algo trader will go for it So? should it be applied ? Haven’t experienced once stop loss was hit buy algo trader direction returned to where it was supposed to go…
Not having a profitable trading plan and not sticking to it if and when they find one.
Actually, at the risk of being a little technical, traders don’t usually have huge losses. They usually have very small accounts, they are often said to be under-capitalised.
But this is the one time when new traders do think in terms of percentages and not pips or dollars - they recognise a 100% loss when they experience it.
Always be thinking in %, not $.
Greed and Fear of losing.No trading plan or not sticking to it.
What traders need to realize is the mindset you bring to trading is very different from your everyday mindset.
Most traders are stuck in an everyday mindset.
What a trader needs to learn and apply is a probability mindset. Its what trading is all about - probability!
Please I’m trading synthetic indices volatility 10 - 100… I’m a beginner trader… Can I get any advice to help me get along… Thanks
Backtest them more and see that’s work depending on your strategy. Journal everything and annotate whatever you feel to.
You know, it’s an interesting idea. As retail traders, we are pretty aware that there is a lot of garbage content out there (bad teachers). However, there is a fair amount of good content out there, and a similar amount of blame can be placed on us “bad students”. What I am finding is that the more I look, the more I learn. I am doing my best to piece together information from many different sources
90% fail that is a lot of bad students don’t you think?