Why 97% fail at trading They risk too much to try to make so little. They trade with the probabilities against them. They think trading is easy money. Instead of focusing on learning how to trade they focus on getting rich. They blow up due to improper position sizing. With no understanding of the mathematical risk of ruin they are doomed after the first long string of losing trades. Blindly following a guru that leads them down the road of destruction. They donÂ’t do their homework. They trade opinions not robust systems. They go looking for Â‘tradesÂ’ instead of a methodology. They have no trading plan. They attempt to piggy back on the trades another trader but donÂ’t understand the risks. Most new traders quit when they realized how much work is involved in trading successfully. Most traders quit when they learn how many losing trades they will have to have to get to the winners. New traders quit if they do not have a passion for trading itself. Many new traders will give up the moment they realize that trading does not have guaranteed income, you are an entrepreneur. They are not willing to pay the tuition to learn to trade in time, study, and losing trades. They are crushed by the learning curve that they do not work hard enough to get through. We lose a lot of new traders when they realize that trading is actually harder than their job. The traders that donÂ’t make it quit when they were tired, frustrated, and stressed out, the winning traders quit after they had figured trading out.
I am also still fairly new (started Jan last year) and succeeded to make a profit of 26% for the year! Advice from a beginner: * Attend standard bank's free courses (I've attended 3 so far) * 'Keep your ears to the ground' (I've listened to market overviews on my way to work - radio 702, read market overviews most days, follow people on chat forum - sometimes very useful information, but one needs to learn to find common themes and who to trust) * Develop strategy/plan and revise if necessary (based on information - from articles, experts, internet, etc. - you will soon find common theme(s); common theme for 2014 is poor rand/$ exchange rate and better returns from develop markets - use this information to develop best strategy for you...) * STICK TO YOUR PLAN, don't react, LEARN FROM MISTAKES * Keep on learning and learn who you should trust for guidance when needed (I'm working full time in very demanding job - the interesting thing is that investing is not time consuming and MUCH easier what you may think!)