Why do Newbies Lose?

And I think it is a mental problem. On DEMO they are ok, and then when they play for real money, they can't stand the pressure and they do stupid things.

Newbies lose because of the lack of education, a lot of emotions and risking what they can`t afford to lose.

losses usually happens for mistake but if traders creates same mistake again and aging i think no way to come back from regular losses.

It is very bad when a beginner uses only intuition in trading.

From what I see most here lose, not just "newbies".

Maybe too early to realize, but it doesn't really matter what "level" you are there's tenants to currency trading that not many know or even will admit to when told.

Yet they're integral to long-term success in my opinion.

I think it's also much of a psychological challenge at the beginning.

For example if a trade doesn't turns out well, a "newbie" will try to compensate the loss and start trading emotional.

In addition to that the "fear of missing out" effect is causing newbies to loose much money. For example if an altcoin like LUNA crashes and you think it has bottomed out, but the price drops further and you buy again and again and again because every time you thought it bottomed out and you can make millions if it pumps again.

At the end you lose all your money so it's better to learn this real quick.

I think you should all understand, newbie, seasoned forum member they all lose. Why? Simply, your brokers are trading against you. They all are, some are more aggressive and blatant (your favorite off-shore bucket shop) others are very covert.

The industry cannot and does not survive on spread. That is a fallacy period, it's too competitive and you...or your money is easy money. People keep coming. As a matter of fact, you broker PROFILES your trading characteristics.

Most people don't care to believe this and I say if you don't you might as well just quit now.

There's a shitt-load of secrecy to these brokers. Their algorithms are designed to see you fail, it's in their interest to see that you don't take their money consistently.

For those of you with live accounts, why do you think the returns come so slowly yet the losses happen with much more velocity?

If you have the right tools you can actually see this happening if you're a good study of the currency market.

So your job is to put yourself in a positions and times where it is not optimal for the brokers/liquidity providers to go take you out.

Watch when you place an order and what the price always does unless you catch a ripping market. It turns and puts you in the negative like someone is doing it on command.

Now watch what happens when another party in the market starts to fight the move. You can do this by pitting one broker with another. Same pair/size one long and the other short....

You'll see the market start to tussle within a tight range suddenly...that is your brokers' algorithms defending themselves from a loss. As a matter of fact zoom out and that's the majority of all the volatility in the intraday is from...

There's more to this, but this is it in nutshell. People don't talk about this because not many know and many won't want believe that there is someone against them.

Just think of it this way, humans are way to resourceful and smart to constantly lose on their own...yet the vast majority can't achieve greatness in currency trading...for many reasons, but this is one that's pinnacle. It isn't just coincidence.

That is some real nonsense ;D
Based on your statements, I just assume that you are still at the beginning of your trading career. That's perfectly fine, everyone starts at some point.
And I also agree with you that there are brokers who trade against their own customers. But there are also good brokers who are interested in the success of the customer. But the beginners always sign up with the broker who makes the most advertising (I did so myself at the time).
A broker earns nothing at all on the spread. The broker earns on the commission.

No one but yourself is responsible for your success.

As beginners try to trade on their own, although investments were created for beginners.

I'd say for newbies and professionals alike GREED always ends up ruining hard work.

Yes, I believe that the main factor that prevents traders from acting rationally and instead causes them to ruin their trades is greed.

Yep self sabotage, if you can stop hosing yourself you're half way there.

I believe it’s very common; suppose if Brazil Football team play a game with a noob team; who will win? Of course the professional team!

90% is the mind. You will find that on a Demo where one has nothing to lose and can work with no emotions, It is so much easier for a newbie to trade without the psychological burden of trading. On a real account, the biggest battle is with yourself to stay disciplined and stick to the principles you have acquired to trade.
Secondly, I think the excessive expectations of quick riches in this space causes newbies too come in headfirst make a little cash, get excited and lose it the next day.

Unrealistic expectations.

Lack of a plan. Most people go to work everyday and do certain things to accomplish the work they do. They know if they do A,B,C they will accomplish their task. Some jobs like factories are repetitive daily but you do the same thing over and over to get the job done. Trading is no different. Most new people show up to the market from a practice account with no actual trading strategies to repeat each day in the market. They just place a buy or a sell and hope it all works out. Hope is not a strategy in the markets. Here is an example of a trade strategy using exponential moving averages, a relative strength index and an average directional index. We will call this trade a trend trade and with it we will use money management habits and trade rules to make sure our emotions are kept in check. Here is what the setup would look like. The red circles are the clues to watch for on your indicators and moving averages as shown in the image.

9 (green)Exponential moving average
15 (red) Exponential moving average
65 (gold) exponential moving average
200 (skyblue) exponential moving average

Default 14 relative strength index
Default 14 Average directional index

The setup strategy is shown in the image. Now with the setup here is how a trend trade would work. Simply put a trend trade is when a trader observes prices moving either in an uptrend or downtrend depending on what time frame they are to trade on. I prefer the hourly charts. There are clues to watch for during a trend trade. With the ADX (light blue) and +DI (green dotted line) above 25 reading and the relative strength index with a reading at 60 and the moving averages 9, 15 moving upwards we would place a buy at the 9 moving average using a LIMIT Order at a price at 3830 and depending on how a person positions the lot size a stop loss at 3820 and a take profit at 3848. I use Avatrade so a 0.01(mini lot) would net you about $22 if the take profit target is reached also a 0.10(micro lot) would net you about $220 and a 1.00(standard lot) would net you about $2200. Defence is the best strategy should a trade go in a traders favour by a few points so best to cover the initial entry of 3830 with the stop loss, should the market decide to turn around and retrace unexpectedly the trade ends up being a break even trade and nothing is lost. This is an idea of a trade setup.

Most people over position themselves with big contract positions while having little money in the trading account and when trades go against them it wipes out the majority of their trading money. Also a lack of money management is what gets people losing, sometimes trades work out and sometimes they dont so its best to cut losses quickly. Small losses that can be recovered back in a few trading sessions are ideal rather than an account wipe. Most traders hold on to trades that are losing hoping they come back and they remove stop losses and let the market go on a roller coaster with their money when in reality the markets can be vicious especially when reports or unexpected news come out and the trade is going against our trader. Should your goal of your profit target is reached lets say 200 and our trader decides to continue trading here is a money management rule, if you place a trade and it goes against you and you already up $200 do not give back all the profit to a loss or even $100 because you sure you the other trade you made could make you more. This is how traders become emotional holding on to losses afraid to lose rather than get out for a small loss and they end up losing with huge losses. Now this is not ideal for everyone and every trader has their own setup. This is how I would approach one setup I do have more than 1 setup and as time goes on I will post more trade setup examples.


**Trading Forex/CFD & Options on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent financial advisor if you have any doubts.

It’s very common actually; suppose you are learning football; then you can’t expect your good skill from your 1st day of training! Without a good trading skill, Forex is so much difficult!

Beginners need to learn how to invest correctly, it is much better to make money that way.

There are many reasons in my opinion but the most frequently one is switching from one system to another

from my experience , breaking rules