Why do traders Fail?

Beginner Questions Trading Psychology
1

The most of the common reasons for fail :

  1. They trade with the aim of getting lucky to make money.
  2. Their greed exceeds their need.
  3. They think trading is a game of chance and luck and do not get the proper education to succeed.
  4. They don’t favor to invest enough time and amount for education and mentor-ship.
  5. They have Poor focus.
  6. They are more emotional than intellectual.
  7. After failing, they want to make up their loss; therefore they may further incur loss.
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2

Need 3 more reasons to make this threadworthy

  1. They sign up to Chris Capre price action course.

Feel free to add your own

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  1. They learn too little.
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I read this somewhere and I would like to share it here. Only 3 reasons to make losers :5:

  1. Lack of capital and unrealistic expectations
  2. Lack of skill and lack of identifying talent
  3. Lack of ability to accept uncertainty
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5

Firstly, for a more accurate description you should have replaced the word traders in your title with people.
If you’re referring to amateurs or retailers, then the primary reason is quite simple to identify.

The vast majority are complete f*cking idiots who can barely be trusted with a basic savings account let alone a betting account.

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Thanks Vincentas to share some important points regarding traders’ fail.

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I totally disagree with you. We cannot blame forex trading courses / mentors. Because they are doing a service. Even both of us can start forex courses if we are good at that thing. It is only the trader’s fault to loss in the forex market. You may have the best system in the world or you trained from the best mentor in the world. But again you fail if you not trade according to the plan with less emotions and good money management. I like to see valuable comments here like “Vincentas” one.

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They trade, loose a bunch of money. Then maybe look into education. Ahah it needs to be the other way around. Learn, then learn more, then trade.

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They do not have proper risk management. It’s awful that most of the people doesn’t give much weight to risk management than that of gaining no.of pips…!!!

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I agree with you gs8888.

Don’t focus on making money; focus on protecting what you have ~ Paul Tudor Jones

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They learn too little and imply more. They often focus on the money as to save it but does not think about making it big. They trade, loose a bunch of money. Then maybe look into education. Ahah it needs to be the other way around. Learn, then learn more, then trade.

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They are ignorant and fail to learn from their mistakes or they keep making the same mistakes and hope for a different outcome.

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Its because forex trading requires learning to manage and people think they can do it with no training.

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They start trading Forex! :stuck_out_tongue:

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15

Overtrading - The desire to “just” make a few hundred dollars a day by locking in tiny profits whenever possible is a losing strategy.

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16

I think a lot of new skilled day traders spot patterns in the current market and can make money in the short term, but then they get overconfident from their winners, and when the market conditions change, their strategies start backfiring in dramatic fashion.

For anyone wanting to begin day trading forex, I think the best thing to do would be simply to watch the market for 2+ years and wait until you’ve seen a whole range of different market conditions before committing a lot of actual money to trading. Focus primarily on watching the market and learning how price move on different kinds of days, and focus less on making money. During this time stick to just paper trading or trading small size.

Once you have developed multiple strategies for different market conditions and learn the signs for what type of market conditions are likely to occur that day, stuff becomes highly-predictable and it then just comes down to good risk management and execution.

Once you’ve been consistently having something like 80% to 90% winning days over the long-term, then that’s the time to start focusing on the making money aspect more. Until then your focus should be more just on the learning aspect.

If your primary goal initially is to make money instead of learning about how pairs move, then it can be pretty easy to start thinking that winning trades are good trades and losing trades are bad trades. That’s where new traders tend to run into trouble.

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Lack of capital and unrealistic expectations, Lack of skill and lack of identifying talent, Lack of ability to accept uncertainty

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18

Really like your post here.

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I’ve been reading the autobiographies of millionaires / billionaires like Richard Branson and Theo Paphitis and one thing I noticed is that many of these people took on HUGE risks early in their career, and only began to reduce their risk once they became rich.

The biggest newbie mistake I made was buying a trading course / methodology and using it live without backtesting.

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Sorry guys, but cannot be 100% agreed with you. Your comments are really good and proper but, I am afraid noone from you can really remember how it was , when you were a real newbies. As I am still one and can tell you, normal studying and practising newbies are loosing bcose the are not able to apply knowledge they already posses. I know exactly why I am loosing trade, when trade is already lost, but have hudge problem to apply my knowledge and analyse market situation before made an order. This , is an real edge. I need to believe, this will come with training and stubbornness. Sorry for my english, but hope anyway my point of view has been explained

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