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Why do Newbies Lose?

Quoting MarkFxAnde
when i was a newbie in Forex trading , honestly speaking most of the time i losses due to same reason which was emotions and greediness , when making a losses tried to recover this losses by another trade , it was the major mistake i had , and always trying to make profit instantly by using high leverage , this is another one.
Agreed! Emotions cause a trader have major losses in the beginning. Newbies got to handle many things because of which confusions are common to occur. It is better that a trader stays careful and tries to make a balance between everything, that will help him get a long way.
Quoting Bob99
{quote} Agreed! Emotions cause a trader have major losses in the beginning. Newbies got to handle many things because of which confusions are common to occur. It is better that a trader stays careful and tries to make a balance between everything, that will help him get a long way.
Emotion plays the important role in trading. Not just newbie most traders do not have emotional stability when it comes to trading. Fear and greed overpowers them. That's why it's very important to learn how to control emotions..
Most newbie traders lose due to rushing in live trading with just basic forex knowledge rather than starting from the depth with a demo tool to build skills and strategies before entering into a live trade.
True. That leads to so many losses and consequent misery, but I don't see it changing anytime soon, unfortunately.
Quoting DeanLittler
Trading knowledge is very weak, starting from the confidence of the newcomers. This is why even if they make some profit, they can't keep that profit for long.
I think, traders need good trading plan for making consistent profit.
For sure. But a trading plan is not enough, one needs to have the discipline and experience to follow through.
It's very practical and common attitude for beginners level, due to having emotions they can't survive when kick off a live trading , in practical there is no way to stop emotions at all, but only by regular practicing with discipline it can be controlled of course.
emotions is very common attitude that cannot be avoid after passing a long time. so we the traders should take this easily.
The main reason for losses is commonplace - it is inadequate expectations from trading.
Quoting DarrenLehma
emotions is very common attitude that cannot be avoid after passing a long time. so we the traders should take this easily.

After all we are all human. But traders have to control their emotion to be successful in this field.
You don't have 50-50 chance of winning/losing
Maybe on demo. On live account, odds are against you. If you win 51% of times, you will still lose money (WHAAAT!)

Look at my scalping:
https://i.imgur.com/YBqtExA.png

From generating $26 in forex trading, due to commissions on 0.1 lot I ended up with $5.60
From that $5.60 I need to be able to also cover future loses.

To fix this I either:

  1. need to make more pips per trade (but that's scalping! I need just few pips)
  2. use a broker that doesn't charge commission and has spread but that's ugly!


So to be successful you need to find something that works on live. Most traders try on demo and
get bad when on live

loss is an inevitable part of trading and there is no way to avoid losses in spite of having most powerful analysing trade knowledge and experience. so we the traders first of all have to keep losses easily.
most of the time i faced losses when trading during news ,
its very common loss project and i faced it so many times.
if you loss in news trading i think its more appropriate to follow Forex economic calendar which is mainly considered as a best place for news trader.
be experienced about fundamental knowledge
and bring good profit during news.
Most newbies are not quite good at fundamentals though. Fundamentals take a long time to learn.
Newbies needed min 3 years of experience to understand how spikes works + psychologie
Quoting piechu87
Newbies needed min 3 years of experience to understand how spikes works + psychologie
I'm pretty sure you can undrestand stuff about spikes way faster but yeah agree, emotions and psychology take a lot of time to ''master''.
Quoting piechu87
Newbies needed min 3 years of experience to understand how spikes works + psychologie
Isn't 3 years too much of time? I mean many traders excel before that as well, depends on everyone's skills and knowledge I suppose.
It's not too much time. Learning to trade is like another university degree - three years is actually pretty realistic.
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