This Is Why You Keep Losing Trades (And How to Fix It)

Every year, thousands of new traders enter the market full of excitement, ambition, and dreams of financial freedom.

But within just a few months, most of them disappear. Accounts blown, confidence shattered, and the dream… gone.

Why does this happen?

Is trading really that hard? Or are beginners just making a few key mistakes that sabotage them from the start?

Today, let me share with you what I call the "First Steps Trap" — the 3 deadly mistakes new traders make and exactly how you can avoid them from day one.

A few years ago, a study by the North American Securities Administrators Association found that 70% of new retail traders lose their entire trading capital within the first year.

They observed beginner traders using real accounts in a simulated environment — and guess what?

Most of them behaved not like analysts… but gamblers.

They overtraded.
They chased profits.
They increased their position sizes after every win.

Sound familiar?

This behavior is so common it even has a name now: The Casino Trader Syndrome.

See, the real problem isn’t the market.

It’s how the beginner’s brain responds to reward and risk.

When a new trader makes a lucky profit, the dopamine spike kicks in — the same chemical released when people win at slot machines. And that dopamine tricks them into thinking they’re in control.

So they trade more.
They take bigger risks.
They stop following rules.

But the market doesn’t care about your emotions. It punishes ego. And eventually, that trader crashes.

So if you’re just starting out, here’s the truth:

The market is not a casino. But if you act like a gambler, you’ll lose like one.

I remember coaching two new traders at the same time a few years back.

One of them, let’s call him Jake, made $500 in profit during his very first week.

He was hyped. Overconfident. Started trading random coins. Ignored stop losses.

By the third week, his account went to zero.

The second guy, Brian, made only $50 in his first week. But he journaled every trade. He risked only 1% per trade. He stuck to one strategy.

Fast forward 6 months, Brian had grown his account by 35% and was still trading consistently.

Same market. Different mindset.

THE “FIRST STEPS TRAP” – 3 Common Mistakes

Let me break down the 3 most common mistakes new traders make — and how to avoid each one:

Mistake #1: Chasing “Big Wins” Instead of Learning the Process

• They want to double their account in a week.
• ✅ What to do instead: Focus on consistency. Aim for small, repeatable wins.

Mistake #2: No Risk Management Plan

• They trade based on “gut feeling” with no stop loss.
• ✅ What to do instead: Always set a risk per trade (e.g., 1-2% of your account). Never risk your entire capital.

Mistake #3: Jumping From Strategy to Strategy

• They keep switching systems after one loss.
• ✅ What to do instead: Pick one simple strategy. Test it. Master it. Don’t run at the first red candle.

SOLUTION – Build Long-Term Mindset

The traders who succeed don’t win because they have the best strategy…

They win because they respect risk, manage emotions, and stick to the process.

If you can do those 3 things, you’re already ahead of 90% of the market.

The market doesn’t reward people who are fast. It rewards people who are focused.

Avoid the “First Steps Trap.” Build smart habits now.

And your future self will thank you later.