It’s a known fact that almost 90% of traders are going to lose 90% of their trading account within the first 90 days of trading. This is also known as the 90/90/90 Rule.
If you’ve been trading for a while you probably know this is true, why is this stats so bad. ? Why do so many traders blow accounts. ? Well, let’s dig in and find all the mistakes new traders make.
Trading is becoming popular around, more and more people want to get involved in the industry. Forex is the biggest market in the world I don’t see any reason why anyone wouldn’t want to part of it. Below we have compiled a list of newbies mistakes, we highlight all the wrong things they do when they get into trading. In no particular order, let’s begin.
Greed kills, we as humans tend to get extremely attached to money, we want more and more without any risk involved. That’s just our nature, the markets have so much to give. As of the writing, the Forex Market has been estimated to trade a volume of $6Trillion per day. New traders know this and guess what. ? they want all that chunk for themselves. Funny isn’t. Don’t be greedy, no need to be, the markets have plenty.
#2 Cut losses short, let the winners run.
To amateur traders, it’s easier said than done, one of the things you’ll need to learn on your way to becoming a consistently profitable trader. Cut your losses short, let the winners run, amateurs do it the other way round, basically eat like a bird, poop like an elephant.
#3 Unrealistic Expectation
I’ve dealt with a handful of traders the past few years in my career. One thing I’ve noticed with most of them is that they wanting something for nothing. One trader went as far as asking if it’s possible to trade R50 and turn it into millions. Look, I don’t blame them, that’s what the media taught them *quick money.
Did you know even the world’s richest Trader/Investor Warren Buffet fails to make 40% every year consistently, Think about it?
#4 Lack of Knowledge / Lack of Proper Training
Knowledge is power, trading is like any other profession, it’s not a casino as most think. If done properly one can make a living from it. Of Course, this will require you to undergo extensive training like you’ll do to become a Doctor or Engineer.
Ask yourself this question, can you wake up one day put on a Stethoscope then head to the Hospital and start treating patients. ? Same as opening charts and placing trades, it’s a skill one learns over time. To find out more about our Trading Program click here