Conditions for getting started on how to become a successful trader: pt 4.

#OPINIONLEADER#

The subsequent causes of failure are closely related to psychology and are a direct consequence of the above.

Violation of the rules of risk management.

           This is perhaps the main reason why even experienced traders lose money. The desire to make money quickly is understandable. But, for some reason, it is precisely when you increase the number of lots excessively, in a seemingly correct transaction, that the market begins to go against you. Trading is working with probabilities. Losses are inevitable, since there are no completely winning situations. That is why trading capital must be distributed so that it is enough to cover a series of losing deals and stay in the game. Lack of a trading method.

           The market is a great deceiver. He just walked up, and after a minute falls, then moves for weeks in one direction, or jumps randomly in a narrow range. Trading at random is like death. To win markets regularly is an advantage. The advantage can be only one thing - you need to enter only into transactions with a high probability of winning and low risk.

If the entry does not meet these criteria, the transaction must be skipped. Selectivity and patience, coupled with the trading method, a set of trading rules, are the keys to success.

Lack of discipline.

           This refers to self-discipline, not good behavior. Discipline is necessary in order to force yourself to fulfill your own trading rules and your own rules of risk management. Take a word - it is very difficult. It’s hard even to explain why. Either emotionality, or all the same greed and fear, in general, the mysteries of human psychology. Unfortunately, the trader has neither a teacher with a ruler, nor a sergeant with a stick. Only he himself is able (or not able) to control himself. 

Imposing your will on the market.

           Also a problem from the field of psychology. It manifests itself in the formation of a firm belief about future market behavior. It does not pass until a significant part of the deposit is swept away by a mighty hurricane.