Simply because they don’t have enough knowledge or they don’t do enough background research before taking any trade. Never be confused about what you want to do always be confident about what you shouldn’t do. Know the difference between confidence and overconfidence and the act of wise and not rise while doing something.
Success is the road which is built on the bridge of failure.
You clearly have to understand the difference between confidence and overconfidence, most people become very overconfident very fast which means you have a lot of work to do and gain a lot of experience before you can actually start making money. If you don’t get excited too much during the rush hours and during a trade then you have become experienced and you can take big trades now.
There are few rules which each trader has to understand no matter what:
- The market doesn’t know you exist so stay low-key.
- Take trades only when you can afford to lose.
- Don’t try to fight back the market the market has unexpected ways of showing you how it can amaze you.
- Never borrow to trade because it would worsen the situation in an unexpected turn.
- Nobody is perfect and nobody‘s strategy and mindset are perfect more than 70% of the time.
- Always start something with a positive and stayed and fresh attitude.
- Listen to the whole world but do what you want to do.
Failure is a part of Trading
As a matter of fact, failure is a part of trading because if you don’t feel you will not know what else you don’t know. If you are always successful then it will make you mad because the human nature of doing the same thing drives us crazy. Even if you are the biggest trader in the world then also you are bound to make minor mistakes and catastrophic ones as well. Always have the courage to take losses as lessons and not as a meaning. Don’t think this to be a failure instead of learning which will strengthen your trading set up even more and speed up your process to becoming an ever-lasting good trader.
Many traders have the habit of not learning from their mistakes, one can do a mistake twice or even thrice but if you are doing it more than three times then you are wasting your money and time. It is beneficial to choose a better way of making successful trades to have a higher success rate than others. If you are constantly producing positive results then it is a good sign than the people who are making more with inconsistent results, because sooner or later when you make your capital bigger then you can turn into more profitable trades than most people.