Why Do Most Traders Fail? And the Most Important Ways to Succeed
The trading market is full of risks, and many beginners mistakenly believe that success is easy to achieve.
As a result, most traders fail, and the reasons are numerous.
One of the most significant and common reasons is:
Capital Management:
One of the most neglected aspects by many traders, if not most, is proper capital management.
This negligence often leads to account losses in a short period.
Therefore, the first step to success is to determine your capital, create a trading plan, and stick to it.
Once you do that, you can say you have taken your first step toward success.
Even if you lose several consecutive trades, you can compensate with a single successful trade.
Thus, protecting your capital and adhering to your plan is crucial and essential.
Emotion Control:
Simply put, if you want to succeed, you must control your emotions and not let greed or anger take over.
If emotions control you, you will lose focus and fail to stick to your capital management plan.
This leads to entering random trades with high lot sizes, ultimately resulting in losing your capital and exiting the market easily.
Do not let your emotions control you. Set a specific daily profit target, and once you reach it, stop trading.
If you incur a loss, do not let anger push you to recklessly re-enter the market to compensate.
Thorough Training on Your Trading Strategy:
It is essential to train well and take enough time to learn before starting to trade.
Many beginners rush into the market after a short period, sometimes just a few days or weeks.
Ideally, training should last between three to six months.
The longer the training period, the better, as it allows you to gain more experience and go through most market phases.
Trailing Stop:
An important concept often overlooked by many, recognized only by successful traders, is the “Trailing Stop” or continuously adjusting the stop loss.
Limiting yourself to a small number of profit points or exiting too quickly after making a profit is a mistake.
It is crucial to set a trailing stop, either manually or through a specialized expert advisor,
to maximize your gains from market movements and secure the highest possible profit when the market moves in your favor.
This is a critical point to focus on.
Choosing a Good Brokerage Firm:
This is undoubtedly a crucial factor for trading success.
Choosing a reputable brokerage firm greatly ensures your continued success in the market.
Look for a company with a good reputation among traders, strong regulatory licenses,
low spreads, fast trade execution, various deposit and withdrawal options,
and reliable, fast Arabic support.
All these features must be fundamentally present in your chosen brokerage firm.
Determining Your Trading Method and Avoiding Distractions:
It is strange to see a trader using a different method every day, lacking consistency in strategy or technical approach.
This inconsistency is a primary reason for failure, even if you stay in the market for a long time.
Some believe there is an infallible trading method, constantly experimenting and searching for it.
However, the truth is that no method is foolproof; losses are inevitable due to unexpected news or events.
The most important thing is to train your mind to accept losses, just as you accept gains, as they are natural in the market.
Therefore, avoid distractions, choose one method, train on it, and accept losses when they occur.
Understand all aspects of your strategy, including its strengths and weaknesses.
After adequate and thorough training with positive results, you can confidently enter the real trading market.
Final Thoughts:
These tips are essential for ensuring continued success in the market.
We wish everyone successful trading, God willing.
We recommend some companies for traders that meet the most important criteria for choosing a trading company, such as Tickmill.
It has a good reputation among traders, is licensed by strong regulatory bodies, has low spreads, executes trades quickly, allows you to withdraw and deposit funds in various ways, and has strong and rapid Arabic support.
