Why newbies fail?

<p id="isPasted">Most new traders start off with the hope of making tons of money on the market. While this is an excellent way to get motivated, the most appropriate approach is learning how not to lose money rather than trying to make quick cash.</p><p>After a few losses, fear kicks in. This is a basic emotion that is deeply seated in the human mind.</p><p>Overtrading&nbsp;is the most common reason why Forex traders fail. Overtrading might be caused by unrealistically high-profit goals, market addiction, or insufficient capitalization.</p><p>Assuming that one proven&nbsp;trading strategy&nbsp;is going to be enough to produce endless winning trades is another reason why Forex traders lose money. Markets are not static. If they were, trading them would have been impossible. Because the markets are ever-changing, a trader must develop an ability to track down these changes and adapt to any situation that may occur.</p><p>Indiscipline in forex trading leads to emotional decisions that lead to failure. While there can be some lucky undisciplined traders who make money, the success is short-lived, and if they keep continuing the same practice that would cost them loss of a lot of money and they could get trapped in debt traps if they tried to borrow money from high-interest rates lenders.</p><p>The main objective of having a plan and a trading system is to ensure that you make the best trades. If the system is ignored, then it is rendered obsolete, and you become no better than traders without a plan. The trading system you have created is supposed to inform all trading decisions just like a good businessman would rely on a business strategy. But when it’s put aside, forex becomes gambling, and nothing is guaranteed.</p>

<p>Because they have no one to guide them on the right path. Because they start trading after watching some random endorsement videos in YouTube and think that trading is some game which they will master after making points.</p>

<p>Most of the new traders into this business because of the greed to make instant money. They trade without any prior knowledge, which results to failure</p>

<p id="isPasted">Not maintaining trading discipline is the biggest mistake any trader can make. Forex trading success means achieving a few big wins while suffering many smaller losses. The experience of many consecutive losses can be emotionally draining and test a trader's patience and confidence. Intending to beat the market or giving in to fear and greed can result in cutting winners short and letting losing trades run out of control. By trading within a well-constructed trading plan, traders can maintain trading discipline and conquer emotion.</p><p>Without a trading plan, one is unlikely to achieve success in trading forex or any other asset class. The adage "Failing to plan is planning to fail" holds true in any type of trading. Successful traders follow a documented plan that includes risk management rules and specify the expected return on investment (ROI). A strategic trading plan can help investors avoid some of the most common trading pitfalls; if you don't have one, you're limiting your potential in the forex market.</p><p>You should make a plan for every trade before the market opens. Planning the moves and countermoves for every possible market situation can significantly reduce the risk of large, unexpected losses. As the market changes, there are new opportunities and risks. Long-term, no panacea or foolproof "system" can prevail. Traders who are most successful adapt to market changes and modify their strategies accordingly. Traders who succeed plan for low probability events and are rarely surprised when they occur. Through education and adaptation, they stay ahead of the competition and find new and creative ways to profit from the market's changes.</p><p>The factors that cause forex traders to fail are similar to those that plague investors in other asset classes. To avoid some of these pitfalls, build relationships with successful forex traders who can teach you the trading disciplines required by the asset class, including how to manage risk and money. Then you will be able to plan appropriately and trade with return expectations that prevent you from taking an excessive amount of risk for the potential rewards.</p>

<p>Lack of proper knowledge leads these newbies to lose their entire capitals.</p>