Why most Lose Trading?

I just want to start a thread on Key factors which lets mostly in losing Trade.
Why a newbie starts losing trade, what are the measures which they must follow it up to be stable if not successful.

I hope much of you will like to share your experiences across for the newbie’s.
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Many reasons behind consistent losing, all psychological within the trader themselves. These are expressed through poor money management, which fails to hold on to the trader's capital long enough for them to overcome their own internal failings.

lets say markets are random and you have a 50% chance of being right or wrong...to survive you need to make more money when you are right than you lose when you get it wrong.. sounds easy but it is the hardest thing to do.. run profits cut losses!.. most newbies (and many experienced traders!) will run losses and cut profits short.

I started a thread like this once, and someone replied "trading must be difficult, because otherwise we'd all give up our jobs and do it". The causality of this argument is perhaps the wrong way round, but you get the idea.

Try reading Van Tharp's book. He outlines some of the common reasons why traders go wrong - breaking their own rules, betting too much, fearful of losing profits, hopeful losses go away, etc.

Sometimes it's simply arithmetic. If you can generate 30 pct returns on capital a year, that's a good return. So if you need 30k to live, your starting pot has to be 100k. The average spread bet account balance is 20k. Thus it's likely betting too much could be a factor. I now expect many comments back along the lines of "I make 30 pct a month", which is usually what happens.

Thats exactly what happened to me.I started the first year with £5 and soon lost that. I then doubled the next £5 making me break even. Ahhh it took me a year to do that so with living exspenses i was down £25,000 and yet my trading was break even. The next year i made £8000 but was still at a net loss of nearly £40,000. You get the picture guys.Learn from it,the most important things are money management,discipline,risk reward ration and then finally your set ups and trades

The French consulate, a property in Sydney, recently sold for £13mio equivalent to one of the Murdoch sons. The French originally bought it for £26,000 in 1956. Sounds like a pretty impressive return, doesn't it.. the value increased 500 times.

However, if you work it out, it equates to an annual return of 12.5% compounded. Which sounds like nothing, put that way.

Hedge funds usually aim to make 20 pct a year. With the power of compounding, 20 pct a year is a formidable number in the long run. There's no point trying to make your fortune overnight. Trading is a business like any other.. aim for achievable and consistent returns whilst minimising risk of ruin, and over time, it should work out.

30% annual return on £100K trading capital employed is pitiful quite frankly. However, as an investor, or buy and hold 'share monkey' it would be stunning, it's important not to confuse both.

You're also wrong on the assumption that SBetters have an average account balance of £20K, it's closer to £5K and in conversation with the major firms they only regard 10-15% of their client base as "professional" and there are hundreds of clients who make 7 figure sums from a surprisingly low capital base.

Back to the OP, the usual suspect mistakes a new trader makes have been done to death, there's probably hundreds of threads were the same question has been asked over and over again; under capitalised, no discipline, poor management (of self and money) lack of ability (having no 'edge'), lack of knowledge, lack of commitment...