Professionals and newbies both face the loss in the market. But, sometimes, they face a big loss for which they are forced to leave the market. Remember, being a retail trader, you can’t ignore the losing streak but you should try your utmost to reduce the number of losing streak. Or else, you might fail to protect your capital. However, this is also seen, many pro traders also face massive loss and thus lose their whole profits. So, as a trader, you should always take your steps consciously.
In this post, we will discuss the reasons for facing massive losses in the market. We hope, it would become helpful for you to identify the root of the problems. So, go through the article.
Not sticking to the plan
Traders should follow their plan properly. But, sometimes, because of the ups and downs of the market, traders can’t stick to their plans properly. Let’s say a trader had a plan to withdraw his money from eToro (here’s an article on how to withdraw from eToro: wikitoro.org/etoro-withdraw) but due to greed, he decided to ditch the plan and just invest it instead. Because of this, they face loss and can’t make the money. However, without sticking to the plan, you can’t do better. You might face problems to deal with the difficulties and go on the wrong path. So, being a trader, try not to skip any steps of the market. If you do so, you might face a major problem.
Not giving time
Many traders after completing office hours can’t focus on the market. They become tired and can’t think properly. For this reason, they start to commit an error and lose money. However, if you don’t spend time in the market, it would become difficult for you to understand the market. However, if you want to choose to trade as a main profession, you have to give time to the market so that you don’t face any hassle. However, spend at least six months in the demo account to become a skilled trader. Check here and get your paper trading account from Saxo. Use their free learning resources and develop a strategic technique. But make sure you dedicate yourself properly or else you will lose money most of the time.
Misled by others
Sometimes, traders take the suggestions for the wrong person. That’s why they face big problems. To get the right suggestion, the newbies need to choose the right person. Because some traders are always trying to mislead the newbies. However, being a fresher, if you can choose the right broker, you can get suggestions from the trading experts. As a consequence, you might take the right decisions for your trading process. That’s why, as a retail trader, always try to aware of scammers.
Overthinking is a very bad habit for newbies. Sometimes, traders start to think about the previous outcomes and can’t get out of this. As a consequence, they can’t think about the other activities. Being a novice trader, you always need to think about how to improve your trading process. For this, you need to take some major steps which will aid you to develop your trading system. But, because of overthinking, trades miss many opportunities and thus fail to do better. So, being a retail trader, try to stop overthinking and focus on thinking logically. Because, if you take illogical measures, you might face a big problem.
Due to emotional complexities, traders can’t see the reality of the market. Being a trader, you need to become optimistic as well as realistic. If you ignore the reality of the market, you might face major problems. So, try to reduce the emotional complexities so that you can take the right steps. Otherwise, it would become tough for you to get a better result. However, take some rest for some time to keep your mind fresh.
However, being a beginner, try to avoid these mentioned things. Otherwise, you might face big troubles. So, watch some videos of the pro traders or consult with them properly so that you can avoid massive losses and get success.