The traders are new. Rakes old
Day changes night, winter replaces summer. Unsuccessful applicants for fortune in Forex trading are giving way at monitors to new applicants trying to catch a moment of luck.
Unfortunately, the number of unsuccessful traders exceeds many times the number of those for whom trading on the financial market has become a successful business. One of the reasons of such situation is ignoring by novice traders of the experience of previous generations. Lack of desire to learn from others' mistakes.
Regularity of Beginner Traders Behavior Long-term observations of currency speculators turned out to be very interesting and typical pattern in behavior of most beginning traders:
Practically every beginning trader initially starts trying his or her forces in short-term trading using intraday forex strategies. They are attracted by the dynamics of the process, by the seeming simplicity of gaining quick profit. Although, as everyone knows, intraday trading is the riskiest due to rapidly changing market conditions, and trading on small time frames is the most sensitive to any market noises.
Day trading requires both academic knowledge and a balanced mental attitude. These are the very qualities that are lacking in beginner speculators. All this comes only with trading experience, and there is none. Therefore, it is better for a beginning trader to abandon illusions of fast enrichment and focus on medium-term and long-term trading, develop psychological stability and slowly gain valuable experience.
-Lack of knowledge and experience, lack of confidence in your own abilities make a beginning trader look for an "oracle" in your environment. He listens attentively to the recommendations of even more experienced, but not always successful colleagues, completely atrophying his own ability to analyze the market and make decisions.
It seems to newbies that a casual comment from their neighbour most precisely describes the market situation, while their own opinion is not worth a penny. Of course, listening to the opinion of others is not forbidden. But it must be an opinion of a recognized authority, which ultimately will help a beginner to develop and implement his own trading system. It is the work according to the system, not the unsubstantiated prediction of price behavior that distinguishes a professional trader from an amateur.
-The emotional component of trading influences trader's psychology. They do not want to admit that they made a mistake in calculations and do not hurry to close loss-making positions hoping for the situation to change for the better. Surely such behavior will lead to failure. Failure will lead to a new outburst of negative emotions and a desire for immediate revenge. And so it goes in a circle. Eliminating emotions from trading is a much more difficult task than the trading itself. Opening - closing positions is a small part of the trading system. Internal self-control is the main component of trading on Forex markets. Naturally, winning psychology comes with time.
So it turns out that there is no trader without experience, and experience, of course, is divided into positive and negative because a break-even forex strategy is an advertising ploy of internet sellers. But, knowing and analyzing the mistakes of more than one generation of predecessors, why make them again? Working on the mistakes, eliminating negative things from your practice, will only bring any novice trader closer to the heights of financial success.