I agree that there is a high level of new traders who blow their accounts in the first few months. Any sensible trader would start on a demo account first allowing you to test out strategies and analyse the patterns without the risk of losing real money. It takes time to learn good risk management and make consistent profits with your account.
It is possible to lose money when we do not know how to trade. Among all the possible reasons, this is the most obvious one. You are better off not getting involved in this business at all if you are not knowledgeable about it because even the professionals lose money sometimes. An amateur trader and a professional trader are distinguished by the amount of their loss. An amateur trader might lose all the money he has in his trading account, but a professional trader will lose only a small portion of it.
To fast they copy the so called top strategies that make more poor people as people who can take it to a stable level. The really simple view on the market are trading only a few. Trading can be seriously simple. Can be shared in one message, can be shared without a picture. If not complete ignorant and with an open mind, it can be learned in 10 minutes. Sorry the system corner is full of unsuitable mess.
I know someone who is unsuccessful. I keep telling them they shouldn't risk more than 2% per trade, and that they need to be strict with only making decisions which follow the rules of their trade system. However, they don't listen. They keep making huge risks each trade, at least 10% of balance, and they keep making decisions based on feelings instead of the rules of their strategy. They also never did any backtesting or demo trading.
Lack of education and no control over their emotions. For many newbies, forex trading is an easy way of making money and they take it so lightly that they end up taking big risks and making even bigger losses.
He is not willing to improve himself. In this business, the only person you can blame for a loss is you. You are the one who learns, you are the one who picks the mentor, you are the one who executes the trade and you are the one who analyzes. If you are unwilling to improve yourself and find ways to fix your situation, you will continue losing money until you won't have even a penny in your trading account.
Newbies lose because of lack of knowledge and experience. The same way newbies lose in every type of actiivity actually. As you may know, when you start off a prticular activity, then you lose something. If we speak about trading activity, then here we lose money, while in other activities we lose opportunities or time. There is a question, what is better actually? I think that it's better to lose money than time, because money is a renewable thing, while time is irreversible. Hence, I advice all the newbies never regret about lost money, mainly because the more money you will lose, the more experience you will get and the more chances to become successful you will have actually.
There could be multiple reasons for that. However, above all, I think they fail because of commitment. It is very unlikely that you will win a big amount on your first few trades. Indeed, most of the traders lose money when they begin live trading. New traders want to see quick results, because of that, they trade with greed or fear and end up losing and then quitting.
its a good combination between knowledge and practice , any kind of learning approach can be useless if there is no regular level of practice. so we the traders should focus on practice level first of all.