🟢FreeFoundations • ⏱ 15 min

Why Beginners Lose

65-80% of retail traders lose money in their first year. Why, and how to avoid it?

Why Beginners Lose

Let's be honest: most beginners in trading lose their capital. Official broker data shows that 65-80% of retail traders lose money during their first year.

This does not mean that success is impossible. It means that there are specific mistakes almost everyone repeats. It is precisely these mistakes that separate the 75% who lose from the 25% who survive.

In this lesson, we will look at the 5 most common mistakes.

1. Not Having a Written Trading Plan

Successful traders always have a clear plan that answers three questions:

  • When do I enter a trade? (entry rules)
  • When do I exit with a loss? (stop-loss)
  • When do I exit with a profit? (take-profit)

Beginners often open a trade based on "gut feeling" without a plan. As a result, they do not know when they should exit, and usually stay in a losing position for too long.

Solution: Before your first real trade, write down your plan. On paper or digitally. Follow it.

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