- The appetite for more money: whether it is pure greed, addressing gambling needs, people wanting to retire, young people wanting more cash to buy things they at the end don't need, people to get out of poverty this leads to borrowing money they can not return, and many more different reasons.
- Lack of knowledge, not understanding how the financial markets and trading works, and leaning on other so called signal groups on social media and messaging apps: here we have situation that is alarming regarding how people lightly and with joke take on trading. No one is thinking of first preparing themselves, learning, taking a demo account, go on a course, or reading a book, they just go in and lose everything most of them in the first day of trading. Moreover, we have the so called signals providers, which are nothing more than most of the time affiliates of brokers, or, people that do not have a clue about trading and analysis (here are not considered signals providers that have proven to be genuine), so beginners unfortunately stick to the non-proven signal providers and the end result to their account is not different, they end up with zero just after couple of days.
- Ever growing number of non-loyal competition in the brokerage business: as we can see we have thousands of brokers whit aggressive marketing which unfortunately many of them are not taking care of their clients to educate them enough or restrict of what the clients can do at start with their real account and how much risk they can bring. This leads to losing the clients from start, losing reputation and losing licences.
Going trough a process of learning will bring a lot more awareness to the beginners in trading what they need to do, and if it is not going good after, they should stop trading. I do not write this to say people must go and take courses, of course if they can afford it why not, it is even better, but for most it is enough just to start learn step by step on the demo account with more scenarios and strategies that can be found all over the internet, if they think that this can be their another source of income or a profession it is good to take part of a course and gain more knowledge delivered from experienced professionals working in this business.
Finally , here three tips from TheTrade.Academy
- Learn to control your greed for profits, and fear of losing.
- Start developing and testing strategies that suit your style and personality foremost.
- Keep a trading diary or notebook and write down everything you have done day by day, trade by trade, every situation marked with date and time.
The steps above are the basics from where you should start if you want to be a successful trader.