Top 7 Reasons Why Most Novice Traders Fail in Forex Trading

If you are a novice to forex trading or have been doing so for a prolonged period, the following pitfalls, whether you want to believe it or not, may sneak their way into your trades.

Although it is inevitable to make mistakes and is indeed a part of the learning process, it is essential to keep them to the bare minimum possible, especially when your money is at stake.

Each trader intends to distinguish himself from the crowd and prevent money loss. Obviously, not all traders can fall into this bracket, and you may need to act as trailblazers who are willing to take risks and go in a path that isn't already there and stand out with innovative tactics and a unique approach to confront it.

If you want to be one of the few traders who consistently make their confident attitude to profits, avoid making the following mistakes.

Your Holy Grail Tactic

Those new traders who have yet to become reliably successful and tend to bounce from one method to the next in search of the perfect tactic that will make them a millionaire with immediate gratification are often the ones to get disappointed sooner. We prefer to call it the Holy Grail of trading. Stop wherever you are if this truly defines you.

No Plan No Gain

It is notably essential to have a methodology or trading system to pursue with your trade, and usually, it stems from years of experience. Some traders, however, believe that once they have found the best strategy, it will change their days without requiring much effort, even though knowing trading markets can be chaotic and confusing.

Bad Mind Frame

Human beings are inherently emotional creatures, but they can be calamitous in an uncertain trading environment. Almost every trading psychology book emphasizes the importance of having more positive discipline in the trading and creeping less emotion as it can trigger irrational decision-making that affects trader performance.

Inadequate Sizing Rules

Risking too much per trade due to inadequate account sizing rules is a surefire way that you will lose money. Trading is not a quickie; it is more akin to a long journey. You will occasionally lose trades. What matters is how you deal with loss. If you are a serious trader, you must preserve wealth wisely and know how much to risk per trade and exit.

Unpredictability

You won't tolerate this because trading is not a predictable game as there are lots of other things rolling around behind the scenes. Somedays, speculation is dead easy, whereas, on the other days, it is entirely complicated. The point is — if the trading strategy is unsophisticated all the time, everyone would know how to win and earn.

Excessive Overtrading

Overtrading happens when you trade purely, intending to make a profit. The second is the feeling that you have to be in the market, and this is where you may become impatient. If you take any trades that go beyond your trading plan or the setups that cause you to outstrip your maximum risk limits is a clear indication that you are not patient enough.

No Mentorship

Every thriving trader used to have a mentor or coach by their side to help them formulate a strategy with discipline and make them learn how to succeed. Not having a pro mentor puts a pause to your trading growth and the guidance to point in the proper direction and makes you more inclined to the mistake you may previously experience.

What Do We Think?

Every trader has a different perspective on trading and learning how to perform well usually takes time. Many so-called hobby traders believe it would rather be enough to read a few paperbacks or check those indicators and make a move. This approach to trading is akin to blindly throwing darts at the wall.

Shortcuts will never work, and neither you have to believe in any of these if you are dead serious. Trading is not that easy, and without effort, you can never learn it. You can, however, enlist a seasoned expert (like Funded Trader) to guide you in every aspect of it and make you outshine on your path.

Join Funded Trader

Working with a mentor like us can save you time and money by allowing you to tap into proven trading strategies. When you hire a mentor, you're essentially investing in your future trading while acquiring knowledge and evolution side by side. Finally, you will be able to apply your investment twist to a structure that will be advantageous to you over time, but laying a stable foundation is the first step and which is yours.

But how will you be able to learn to perform it well, and how long will that take while considering your time and discipline? That's seriously a big question to ask!