Beginners in digital trading often lose money for various reasons related to lack of experience and knowledge, and hasty decision-making.

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1. Lack of understanding and planning

Digital trading is not a game of luck; it requires a deep understanding of the markets, chart analysis, and knowledge of the factors that influence prices.

A beginner may enter the market without a clear plan or well-thought-out strategy, which makes him vulnerable to losses.

2. Greed and fear

Emotions, such as the greed for quick profits or the fear of losing money, greatly influence a beginner's decisions.

Often buys when prices rise for fear of missing out (FOMO), or sells quickly at the first loss.

3. Neglecting risk management

Beginners often do not allocate a specific portion of their funds for trading and do not set a stop loss limit.

Not using risk management strategies causes them to lose a large part or all of their capital in a single trade.

4. Influenced by others

The beginner relies on recommendations from unreliable sources or follows rumors, which leads him to make ill-considered decisions.

Over-trusting others instead of relying on personal analysis leads to negative results.

5. Lack of training

Entering the real markets without practicing on a demo account leaves the beginner unprepared for the fluctuations or different scenarios.

6. Using leverage without understanding

Leverage multiplies profits, but it also multiplies losses. A beginner may be tempted by temptations without realizing their risks.

How does a beginner avoid losses?

Learn the basics of trading first, and understand the market you want to work in.

Develop a clear plan with objectives and strategy for risk management.

Training via demo accounts.

Controlling emotions and making analytical decisions.

Rely on reliable sources and avoid rumors.

Digital trading is like a journey that requires study and preparation. Success in it depends on learning and patience, not haste and greed.