{"id":5387,"date":"2020-08-18T17:08:24","date_gmt":"2020-08-18T14:08:24","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=5387"},"modified":"2023-06-23T09:25:21","modified_gmt":"2023-06-23T06:25:21","slug":"what-psychological-traps-do-beginner-traders-face-what-stands-in-their-way-to-success","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2020\/08\/18\/what-psychological-traps-do-beginner-traders-face-what-stands-in-their-way-to-success\/","title":{"rendered":"What Psychological Traps Do Beginner Traders Face? What Stands in Their Way to Success?"},"content":{"rendered":"\n

Let us get started with the simplest questions: how did you find yourself in Forex<\/a>? What was the reason for you to get interested in such a thing? One of the most popular ways of attracting an untutored searcher of new money sources must be to promise them a quick and easy-to-make profit. Indeed, the Internet is full of ads assuring you that making money in Forex<\/a> is nice and easy; however, it is not.<\/p>\n\n\n\n

Of course, one has to get up really early in the morning to fool such serious-minded and clear-headed people like us: we know that there are no free lunches. However, the more you try to ignore the ads, the more curious you become: how do people make money in Forex? This is the starting point where a beginner makes their first step from simple to complicated techniques, from mere curiosity to engrossing passion. Today, the amount of free information about trading<\/a> and earning is virtually unlimited: read, study, and try. Imagine how delighted you will be to make your first profit on a demo account<\/a>!<\/p>\n\n\n\n

With your cheeks flaming, you start calculating what profit you could have made on a real account, and how much it would amount to monthly or annually. You make a wide gesture and deposit<\/a> your money on a real account. Alas, after your first success or even without it you lose your money. It damps your ardor but you realize that there must be a reason for your losses<\/a> and recall seeing an ad somewhere promising to teach you how to trade in a fortnight. You rush there.<\/p>\n\n\n\n

A new step in your studies begins: you learn about indicators<\/a>, patterns<\/a>, trends<\/a>, support and resistance<\/a>, trading systems<\/a>, money management<\/a>, psychology<\/a>, and other useful things and novelties. Simultaneously, your teachers tell you that in fact, things are simple. Indeed, you succeed again: your demo account is growing, and what you have learned really works. No need to repeat that you deposit your money on a real account – and return to where you got started…<\/p>\n\n\n\n

<\/span>Why do beginners drain their deposits?<\/span><\/h2>\n\n\n\n
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There are several answers to the question.<\/p>\n\n\n\n

<\/span>Reason one<\/span><\/h3>\n\n\n\n

Your learning is just a part of your way, the necessary minimum that you need to start making money. The market moves<\/a> either up or down (for now, we will neglect the times of consolidation). Hence, the first half of beginners will end up with a profit while the second half – with a loss. This first half will immediately open a real account and lose the deposit. Meanwhile, the second half will go on learning, being sure that their effort was not enough – however, they will also open a real account later, explaining their previous losses by a lack of knowledge and experience.<\/p>\n\n\n\n

<\/span>Reason two<\/span><\/h3>\n\n\n\n

All learning, especially in a dealing center, is a kind of hypnosis. As soon as you read something, you immediately start looking for confirmation of the information on charts – and, curiously, you find them. On the other hand, your teachers leave out the cases when you could suffer losses in the same circumstances. When a beginner opens the terminal and tries trading in accordance with the information studied, one of the two things happen: they either make a profit and fill with enthusiasm – or suffer a loss and start thinking something like: “My gosh, I should not have entered here!” or “On the longer timeframe<\/a> it was okay but on the smaller one I entered counter the trend!” or “I did it right except for the Stop Loss<\/a>, it was too short!” or “Why on earth did I wait? I should have closed it with a profit!” or something else of the kind. There might be thousands of explanations, however, not many will admit that the strategy was erratic from the start.<\/p>\n\n\n\n

<\/span>Reason three<\/span><\/h3>\n\n\n\n

Theoretically, the probability of a profit and loss is 50\/50 – of course, with all the spreads and commission fees, it is lower. Opening a trade, the trader is already suffering a loss until they cover the spread. Nonetheless, most beginners do lose their first deposit. Try to remember how many traders you know who make real money on trading. I suppose that among your acquaintances those who make a good profit are much fewer than those who lose regularly. Hence, nothing is surprising in a beginner losing their first deposit. The reasons are mostly psychological.<\/p>\n\n\n\n

<\/span>Typical mistakes of trading on a real accounted<\/span><\/h2>\n\n\n\n
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The problem with the psychology of trading appears when the beginner opens their first trade on a real account. Opening the very first order<\/a>, in general, is a very important step, and the strategy of trading often changes right after it. Let us see why it happens.<\/p>\n\n\n\n

<\/span>Mistakes with an open profitable trade<\/span><\/h3>\n\n\n\n

If the first trade is profitable, the trader starts doubting and gets tempted by the following desires:<\/p>\n\n\n\n