Top Reasons Why Most Beginner Traders Fail

No no that cant be right, it cant be 100/100x100 it has to be 99.999999, because that means they didnt include you, Mingray!!

Yes indeed (;
Retail forex has the particularity that if you were to invest 1 dollar in each retail account that is currently active world wide, your entire investment would dwindle to zero after a while due to the transaction cost alone.

The beginners first of all try to make money from this volatile trading place without learning and they took this market place as a casino. This is the foremost reason behind the losses.

This should be ten reasons why all beginner traders fail, because beginner = novice. So define ' beginner '. Google the word and you will get - 'a person just starting to learn a skill or take part in an activity '.

Therefore any such person naively attempting to make money from trading will fail - 100%.

Trading is difficult, very difficult, and it takes years to acquire enough knowledge and experience to consistently make money. That is why all beginners foolishly putting their money on the line will fail, and fail quickly..

they quit because they're people who just want to get rich quick.

as they wake up, they swtich from "everything works" to "nothing works" ... and quit.

Agreed! In the greed of making quick bucks, most of the newbie traders fail to understand the importance of learning and practice in forex. And end up blowing their account and quitting.

So true! Maximum novice traders count their initial trading success so quickly! As a result, they start their live trading before one month demo practicing! Since they don’t know how to control emotions and greed, as a result they start their live trading with huge damages! That’s the general scenario, but which traders learn first they can enjoy their live trading!

Yes agree.
Newbie always try to make success from this trading place very rapidly without learning.
as a result they become loser due to lack of real trading experience .
we always have to remember ,
the success in Fx always related in long term process.

You have to wait until stochastics are oversold oversold/bought - next you must wait until ahead of. MOving average 20 AND then check fibs and get in at 61.8 for a discount price
put stop loss 10 pips away and take profit @ 20 pips that way you always make 2:1 and its impossible to lose money as you always double your risk so when you lose you only lose 1. But when you win you win 2. Its really simple

Mostly traders are loser from here due to some common reasons,

they took this trading place as a casino,
due to lack of real money managing plan
, don’t know how to use Stop Loss ,
trade during news without accurate fundamental knowledge trade
no ability to control emotion and much more
always try to make money very rapidly without learning

Beginners fail because they don’t trade in demo account before live trading.
as a result they become loser in live account due to lack of exact trading knowledge.

Yes, I think that you need to start with a demo account.
On the demo account, the first time you generate your strategy. But one strategy is not enough.
Successful trading depends how much your mind can be cold, you are able to assess the situation and draw the appropriate conclusion.
Trading on the demo gives you a definition with a further strategy. This adds confidence and cold mind.
But one trade on a demo account is not enough. In any case, as soon as you start to peck for money, you worry. The excitement of losing real money. From this feeling you can not escape. Not one demo will not help. It is necessary to pass and get used to it. Until you learn to look at trade from an absolutely neutral side, and not from a person who "can lose money" you do not become a successful trader.
First time it is necessary to toge by the minimum lots, and be ready to that that% of losses will be more than% of profit. It is necessary to get used to how to earn and lose money. And even after that, gradually increase the lots.
This is just my opinion.

All important points you have explained about losing. But I think trading without a demo account is also responsible for losing. The newcomers always avoid this trading place but practically this is the master place to acquire real fundamental knowledge about trading which is very supportive to continue a live account in a proper way.

Most traders are gamblers in denial. Simple as that.

Beginners should trade demo account minimum for 3 months for acquiring real trading experience which is very supportive to continue a live trading in a proper way. but they don’t believe the importance of this trading place at all. so it would be better if they start minim live account instead of demo trading.

Almost 90% beginners are loser from this trading place due to only lack of most accurate money management plan, basically they only emphasis on acquiring good trading knowledge and always ignore other inevitable parts . as a result they become loser. So besides good trading knowledge we the beginners have to ensure how to manage money in Forex.

Money management is an inevitable part of any business and Forex also.

But what actually money management in Forex ?

The most important part is to take full responsibility of your own trading. Nothing technical or money management. They usually follow along when you start taking responsibility.

Impatience has a lot to do with why many traders lose in the forex. Many traders today are just after the pips. Not bad though. Just that the way trader follow after profit is worrying. Some want to make huge amounts that their level of experience in the forex can't support. At the end, they blow up their account.

Its funny how in these trading forums, all this conventional wisdom BS is spread around:

1. just having a good MM, does NOT make you successful. You need an edge. R/R is not important.
2. Discipline does not help you if your trading system does not have an edge
3. somebody mentioned 10.000hours chart time. While its a good start and certainly better than 10000 posts on FF, its important what you do in these hours and that you learn something. Every market has its own characteristics (volatility, key levels, key trading hours) and traders should learn them first and only focus on a few pairs but learn the characteristics inside out. (beside exotics often have very bad trading costs in terms of volatility vs. spread and should be avoided). Understanding candlesticks and the price patterns is also well spent time
4. many newbie traders have no system or a terrible one, and no understanding what drives the markets (fundamentals on the long term, technical and orderflow on the short term basis).
5. overcomplicating the system: a lot of people love to make things really complicated and use fancy indicators and all the tools while basically there are only 2 trading systems: Trendfollowing or Rangetrading. Trendfollowing is easy, and you dont need fancy indicators, just use your eyes and draw trendlines or if you want use Moving Averages. For Rangetrading you just need an indicator that gives you an estimated range of the price. i.e. bollinger bands. Thats it. Whats more important for both systems is to put ones odds in your favour. Know the key levels (S/R, high/low, BRN...) and where and when (time of the day/week/month) to enter. A good trader dont just click on buy/sell, he waits for the perfect time and price level to hit the button, so he puts himself in the best position possible.
6. not having an ADEQUATE mm-sytem: as mentioned before a mm-system itself does not make you successful. Lets assume you found an edge, but its really small. Therefore your staking should adapt and be low otherwise your account will slowly but surely die. On the other hand if your edge is bigger you can and should risk more otherwise you are wasting potential gains.
7. not testing what works: I assume many people browse through the forums hoping to find a holy grail system and jump from system to system. Instead understand the basics and then try to improve your trading, get better in interpreting the PA. Most importantly test it on the charts. Stop listening to forex gurus online and look at the charts. The charts are always right. Make some statistic tests, but do it manually because you cant just load some data in and hope to find inefficiencies. PA and Pricepatterns, news events are not/very difficult to implement into a algo.
8. not accepting randomness and not preparing for it: even if you trade your inefficiency, you dont know how the market will react. Sometimes it doesnt go your way, so if you have your trade at an opportunistic level and your are big in the trade, mimimize the risk when you see its not working out (setting a stoploss at breakeven or partial close the trade).

There are still many more points and especially the traders who are not newbies anymore fall for a lot of BS, because its posted over and over again. Often in posts regarding what gain is possible, people comparing themselves with hedgefunds. Seriously? These funds are huge, they have to trade completely different in order not to leave a footprint in the market, and get all their orders filled. They are more like cruiseships, while individual traders are like small motorboats. Its a different game. And therefore thanks to leverage and smaller orders, individual have to trade differently and much bigger gains than the usual 20%/p.a. are possible for good traders. Leverage is also always a good thing, because it means you have to deposit less money in your account, what kills is the inadequate sizing.