The surprising fact about trading the financial markets independently is you first have to go through what doesn’t work in order to establish a method that does work! Every self-taught successful trader will tell you the same thing.
Firstly, the things not to do when trading the financial markets is attaching emotions when making trade decisions. As humans, we naturally have that attachment to money, the loss of it affects us in various ways. One of the worst ways is when making a loss on a trade without the structured risk management plan that is highly advised. This leads to the beginner losing 10-20% of their account and sometimes more. The next obvious thing in the beginner’s mind is to at least cover their loss by breaking even. As you would expect, this then makes the trader enter into riskier trades, without no set ups and worst of all still without no risk management. I mean, the ‘lucky’ ones actually manage to get their accounts back to square one (even though they suffer with potential heart attacks sitting behind their screens in the process). However, when the majority of beginners do this they begin to lose even more money – picture a mouse attempting to catch its tail. This then programmes into their minds that trading is ‘gambling’, then why are others making ridiculously sums of money from it?