Why the Beginner Traders Lose?

Hello my FF friends,

Whether you are a professional and experienced trader or just a beginner, you can have some good answers for this question that "Why the Beginners Traders Lose?"

Your answer will help both the beginners and also the professionals because even professionals should never stop learning.

Here is what I think:

1. Emotions: Fear ; Greed ; Impatience

2. Bad or no system

3. No enough experience

4. No enough knowledge

Emotions are the biggest enemy of the beginners and sometimes even professionals.
Bad or complicated systems are another problem. Using too many indicators and analysis do nothing but making more confusion.

Making just a few good trades at the beginning is also a bad luck because beginner traders think that they know everything they have to know to become a good trader and can trade with the real account and bigger budget. But they lose all the money in the next a few trades.

What do you think? Let's discuss.

Happy New Year to you

I have to go with any combination of the above and all of the above. I have noticed that a lot of traders are coming to this forum without any training at all. This in my opinion is a grave mistake. Although this is the BEST FORUM to learn about the forex thanks to Admin and the Moderators that put together a wonderful section for beginners, this is not enough for someone to jump into the forex arena and start trading.

Please traders, if you have no training, please seek it. I want everyone to profit from the forex market.

I also had to choose all of the above.....
The other thing I am seeing is the rush to threads like how I turned 1,000 into 100,000 in 1 week..... I mean good god 531 posts and 100,745 views.
While this thread ...... Information For Beginners by diallist gets 58,583 views. and here is the link for those that want to learn http://www.forexfactory.com/showthread.php?t=6948
many that get involved with fx have not taken the time to get some education and grounding in FX befor they charge off to make there fortune.
While I absolutely agree it is possible to make obscene amounts of money in this business few will be able to hang onto it in the long run because of their lack of a solid foundation in money management and an understanding of themselves.

Beginner traders lose because they're beginners.

I also voted all of the above. I'm fairly new to trading myself, though have not blown out my account yet. I have had a 35% drawdown since I began, but, I am back to within 4% of break even. Reading, learning, MM and planning is all I can say so far.

SeerEye

all of the above, and the reason beginners blow their accounts is because they want to make that million sooooo fast, and thus over-leverage, do not use mm and risk management.

i know, i've been there, and i have learned A LOT by blowing my account

I would not classify someone who shows up here and starts placing trades after a week a "Trader"
Granted everyone has their own "Learning Curve" some will catch on faster than others.
I would think if asked, most successful Traders would say that after looking back it was many months or even years before they became a "Trader"

That being said my vote was "All the above"

This post by Diallist should be a sticky.

http://www.forexfactory.com/showthread.php?t=3156

Hi Everybody,

Thanks for the votes and replies.

One of my daily reports received a comment from a beginner and made me to write an article about it. In this article I have explained how long it takes to become a good trader and what stages you have to pass.

Some people love to make things complicated but I love to simplify everything. It is very easy to become a good trader:
http://www.weboma.com/when-you-will-...-forex-trader/

Although on paper it might seem to be an easy task to become a "Good" trader the facts prove that human nature is such that it is Not easy for "Most" people to achieve.

Fact: The overwhelming majority of individual traders LOSE.

Irregardless of the reason they do lose obviously there are aspects of trading that prove difficult for many to easily overcome.
I have no doubt that there are some that do find the process of learning to trade "Easy" .
Becoming a Successful Trader for Most is Not easy. (jmo)

AND DON'T FORGET IT! The MT4 bucket shops are eagerly waiting to swallow their cash every day. I think that new traders should avoid MT4 brokers at all cost, if they are able. There is no need to use MT4 unless of course u are riding that Golden EA that has a proven track record. and there are EA's that do work ...... but they are hard to get ahold of, because most of them are really bad..


You can trade stocks all day long for 5/10 bucks a trade. Forex has the largest spread Commissions & charges ....of any other Financial Market! I just love the lie "we have no Commissions"! And just how stupid do they think we all are? IMO


Those of you with 100k accounts here do have more options than us and you well know it. Maybe if the New traders were allowed to trade for 1 pip on the Majors as some of you do and could scalp as u do .... they would also have a better chance to survive. The real problem with Forex is the Brokers have these rules that do not allow you to scalp if you are new, and get in and out as with stocks, as the professionals do! Oh we have FXDD and there we can scalp for a big spread. IMO


Usually new traders are just too in a hurry though ......... to make that first Million. And too in a hurry to begin trading live and giving their hard earned CASH to the Bucket shops.

Please, New traders avoid expensive MT4 bucket shops if you can for live trading .... We do not need MT4 to go live. DEMO them to death and trade with a real Broker that you can trust ..... are my thougHts. Remember the sharks and the Brokers are looking for a free lunch and you are it! IMO


The Moral of the Story for new traders is, learn your system well before you go live. Never be in a hurry to lose your money, as if you are you will blow your acct. every time! So be patient and prove your system first before you dare go live! IMO

RE your statement about commissions........
I have been trading stocks for about 10 years and in every trade there is a spread and a commission.... the spread can range from 1 cent to over twenty cents and more, depends on the volume for the stock. then there is the commission.....7 bucks in 7 bucks out, ( I use Scottrade) so I have to make 14 bucks plus the spread before I see a dime......
In FX I have 0.9 pip on the EUR/USD (this is at Oanda) price only has to move 1 pip and I start making money...... also don't forget the leverage you have in FX, if you were going to try fofr leverage in stocks it's gonna really cost you.
some of you guys really need to educate yourselves on the true costs involved in trading.

IMPATIENCE.

oh man, when i start seeing the green bucks getting into my account for a trade, i dont let my tp to be hit and close the position before.

this has hurt my winning ratio a lot. i am somehow conservative before i enter a trade and i have noticed almost all trades i have entered could have hit tps easily.

still keep in profit cause some rogue trading strategies i have prepared, but again.
IMPATIENCE is my biggest drag.

probably there is a conflict between get your profits and run away against proper appliance of the whole first thought plan.

i dont know, ll try to resolve it. then ill share.

thats my oppinion.