0Lack of Methodology
If you aim to be a consistently successful trader, then you must have a defined trading methodology. A simple, clear, and concise way of looking at markets. Having a method is so essential that EWI founder Robert Prechter put it at the top of his list in his essay, "What a Trader Needs to Be Successful." Guessing or going by gut instinct won't work over the long run. If you don't have a defined trading methodology, then you don't have a way to know what constitutes a buy or sell signal. How do you overcome this problem? The answer to this question is to write down your methodology. Define in writing what your analytical tools are and, more important, how you use them. It doesn't matter whether you use the Wave Principle, point and figure charts, stochastics, RSI, or a combination of all of these. What does matter is that you make an effort to define what constitutes a buy, a sell, your trailing stop, and instructions on exiting a position? The best hint I can give you about setting your trading
Just think about it.
If you always cut winning trades early, how will your losses be covered?
The truth is that both size & consistency of your profits is what matters.
Because, remember, to be profitable in the long run, you need your profits to be bigger than your losses.
Hence, you want to maximize every winner and cut short every losing trade.
One of the best & proven methods to let your winners run is trend following.
If you are riding waves of a trend, until it bends, you have no reason to close your position.
On the other side, the same traders lose a much more significant amount of money by fighting trends through averaging down their entries.
Also, many people get hooked up to trading because of lifestyle being associated with it, but the truth is that to make money - you need money.
It is not the game where broke people suddenly become rich overnight.
Starting undercapitalized will highly increase your odds of failure.
This because various fees may add up and eat significant per cent of your gains.
Not trying to discourage anyone, but if you have 1000Rs, 3000Rs you plan to turn into "big money magically", just don't - it won't work.
Just keep saving and focus more on learning the game.
Study the markets, observe the price action, watch how tickers move, try to identify repetitive patterns.
Without doing this for months, you have no business to look for.
Everybody can learn the rules. If trading were only about the laws of the game, then everybody would be successful. 90% of traders lose money.
Why?
The main reason is that they have the wrong MINDSET.
Having rules and respecting them are two different things. Many people fail at the second one. It is because they have lack the discipline and ability to control themselves. Fear and greed get inside them, which causes them to make wrong decisions. It is why if you want to be a successful trader, you have to realize it is YOU vs YOU game and keep working on yourself and your mindset daily.
Lack of Discipline
Once you have clearly outlined and identified your trading methodology, you must have the discipline to follow the system. A lack of control while trading is the second common downfall of many aspiring traders. If the way you view a price chart or evaluate a potential trade setup today is different from how you did it a month ago, then you either have not identified your methodology you lack the discipline to follow the method you have designated. The formula for success is to apply proven methods consistently.
