Why do Newbies Lose?

I will say this much, the psychological side of the game gets increasingly easier, as the technical side of the game gets increasingly better.

Regarding simple mechanical strategies. I am personally yet to be won over by any I came across. Seen a few in action, and although the trader assures me of it's track record over the duration, from my point of view, I am watching a totally hair brained trade in play which I could never bring myself to take. There will be periods where the market will reward simple mechanical strategies, but even longer periods where it won't. I literally stormed the first phase of my FTMO evaluation trading high S&D zone retraces into Dow Trend Theory Breaks. Was looking back at old charts the other day, and these setups just kept firing. No thought necessary, just trade the signals......but then, they stopped working, and I have found them wholly unreliable ever since. Fortunately, I am not a mechanically minded trader.

I would go as far as saying 'all Setups are bunk', at least in the long run. It's the trader's ability to recognise (or not) when the market might be conducive to a certain configuration playing out, or not. Most of the time this will simply be down to the trader's ability to pick the right zone to enter a trade and I would say that any trader who thinks he can beat the markets over the long run, with a simple 1+2=3 strategy, that could be taught in 5 minutes, if only they could get their mindset sorted out, cos it's 90% psychology, innit! is likely due for some hard lessons.

1. Lack of Education: Many beginners jump into forex trading without fully understanding how the market works, trading strategies, risk management, and other crucial aspects. Without a solid educational foundation, they are more likely to make impulsive and uninformed decisions.
2. Overleveraging: New traders often use excessive leverage, which allows them to control a larger position size than their initial capital. While leverage can amplify profits, it also magnifies losses. Overleveraging can lead to wiping out an account quickly if trades move against the trader.
3. Emotional Trading: Forex trading can be emotionally intense, especially during volatile market conditions. New traders might make impulsive decisions driven by fear or greed rather than sticking to a well-thought-out trading plan.
4. Lack of Risk Management: Proper risk management is essential in forex trading. Beginners sometimes fail to set appropriate stop-loss orders or position sizes, exposing themselves to substantial losses.
5. Chasing Quick Profits: Many newcomers are attracted to forex trading by the potential for quick profits. They might take high-risk trades in pursuit of fast gains, neglecting the importance of consistency and a long-term perspective.
6. Ignoring Fundamental and Technical Analysis: Successful trading requires a combination of fundamental and technical analysis. New traders who neglect to study these aspects might make trades based on guesswork rather than informed decisions.
7. Following Others Blindly: Beginners might rely on signals or advice from others without understanding the rationale behind those recommendations. What works for one trader might not work for another due to different risk tolerances and trading goals.
8. Lack of Patience: Forex trading requires patience and discipline. New traders might overtrade, entering and exiting positions too frequently, which can lead to increased transaction costs and erratic performance.
9. Not Having a Trading Plan: A well-defined trading plan outlines entry and exit criteria, risk tolerance, and overall strategy. New traders who don't have a plan are more likely to make haphazard decisions.
10. Misunderstanding Market Dynamics: Forex markets can be influenced by various factors, including economic indicators, geopolitical events, and central bank policies. Beginners who fail to understand these dynamics might make trades without considering the bigger picture.
11. Market Manipulation and Scams: The forex market is decentralized, which can make it vulnerable to manipulation and scams. New traders might fall victim to fraudulent schemes or unscrupulous brokers.

Again I have to disagree mate. I am not saying that every strategy keeps working forever but there are certain traits to the market that are always there. It moves and it corrects over and over and over. There are quite simple strategies that benefits from that and if applied correctly also work over and over.

There are enough examples in the real world. The prop firm I trade for on the side have always taught the same strategies (I don't use them myself, I use my own) and they are in business since the mid-90's. Countless traders have used them over decades and are insanely profitable (they publish the results yearly so there is a track record) and they are all very mechanical.

I know a guy personally who trades purely based on the Elliot Waves principles, they are ancient and they still work. At least for the people who take the time and effort to study them decently. He is pulling money out of the market in a way people would die for.

Tom Hougaard, research him. There is no one trading more mechanical than him and he does it live in front of everyone. He has one strategy that just takes the 4th candle of the trading day and if price goes above its high he goes long, if it goes below he goes short. I couldn't trade the way he does but he does it for more than 15 years, has a public track record and more than doubles his account every year.

They all have one common thing though, for them trading psychology is the core where they start from. For them it's 99%.

I am not saying your (more complex?) strategy doesn't work, it probably works for you. And I hope it works very well for you. But it is not the only way of trading profitably and if new traders read this and throw their strategy away because they think it should be more complex, I would be very sad. Perhaps a potentially very successful trader would never be.

And hard lessons will come on everyone's path, how good a trader you are doesn't matter. And they will be different for everyone.

Try to keep an open mind to other ways of trading although they are not suited for you. When people backtest their strategy for years and years back, then forward test them on demo or small accounts, and finally start trading them successfully in a live environment they should get the credit they deserve.
It even makes me think of how my own family reacted. In a way it was exactly the same, saying "It won't work" "You are insane if you think you can make more money in the market than an index fund, they are professionals!" "You will end up in the gutter!" "You are a dreamer, start behaving like a grown-up!".

They are very quiet now :-)

Everyone should just find what works for them and let the market decide if they are worthy or not. We are not suitable to be judges on their strategies.

The best of luck to you all!

because they haven't made enough mistakes )

Because we keep money in the table. When we make profits, withdraw.

It is VERY easy to trade After the fact. Knowledge is pointless without the ability to follow through on it and create an "action" from it. If people had the patience to “learn from their mistake” and create a proper mindset to ride out the lesson they get from that mistake, maybe the statistics would be different.Trading requires patience and discipline,trading is easy to talk about but to be profitable you need to put more work on psychology and technical stuff, not like some social media gurus who think that a picture of a Lamborghini will teach people how to trade

Hi … i am new about trading… before this i have an account buts still loose..

Agreed. The market has stable characteristics, and there are various successful approaches to it. Trading psychology is of 99% importance. Every trader needs to find their own path.

Hi
as long as you lose on a Demo, you should not get into real Monex

The key issue that it is extremely hard or even impossible to differentiate a loss due to mistake and loss due to being unlucky. Same goes for profitable trades. All you can do is to access aggregate characteristics of your trading performance and infer is the system good or not but still, even with random trades you can easily achieve statistics of 60 profitable trades from 100 which leaves you basically with nothing that can help you to determine if you really have an edge or not.

1. Excess trading
2. Too big lot size
3. To short stop loss
4. No exit strategy

Yes Well put sovy.
They typically always underestimate risk.
And they break rules over and over again.
get overconfident after a few wins.

Losing in trading, especially for beginners, often stems from a few common mistakes. One of the significant factors is emotional decision-making. New traders might panic or get overly confident, deviating from their strategy. Lack of risk management is another issue.