200,000 Yen Monthly Income in Six Months from Zero FX Experience! Earning Power from Scratch 2

Chapter 2: Characteristics of Failing Beginners and Their Causes

While the FX market offers many opportunities to earn money, it is also a world where many beginners lose easily.

In this chapter, I will explain four common patterns of failure among beginners and provide points of caution so that you do not follow the same path.

2-1. Reckless trading due to the impatience of wanting to earn quickly

Many beginners fall into the trap of trading with large lots due to the impatience of wanting to make a lot of money in a short period.

If you suddenly take a position of 100,000 currency units with 100,000 yen in capital, a movement of just 1 yen will result in a profit or loss of ±10,000 yen.

In other words, there is even a risk of losing all your capital in just 10 minutes.

To earn money, the prerequisite is not to lose.

You should start with a small goal, such as 10,000 yen per month, and gradually step up.

2-2. Overtrading: The disease of entering positions when there is no opportunity

There is a famous trap in FX called overtrading.

This is a psychological state where you feel uneasy if you do not have a position, leading you to repeat entries without any basis.

・Buying because it looks like it might go up when you look at the chart

・Trying to recover immediately after one loss (this is also called a revenge trade)

All such actions are trades dominated by emotion.

To win in FX, calm judgment is essential, entering only when the conditions for entry are met.

2-3. Entering "just because" is the same as gambling

Many beginners enter trades just because it looks like it might go up when looking at the chart, or because someone on social media said they were buying.

This is no different from gambling.

Trading requires clear rules.

What kind of chart patterns should I enter on?
What should the RSI or moving averages look like when I enter?
Where should I set my stop-loss and take-profit lines?

Entering a trade without these "my rules" will cause you to accumulate losses rather than profits.

2-4. Lack of money management

To survive in FX for the long term, "protecting your capital" is the most important thing.

No matter how excellent your strategy is, you will go bankrupt if you cannot manage your funds.

Basic rules include the following:

・Risk no more than 2% of your total capital in a single trade
・Always decide on a "stop-loss line" when entering
・If losses continue, take a break and review your trades

What you need first to earn money is to "survive."

While money management is "defense," it ultimately becomes the pillar that supports your "offense."

2-5. "Recording" and "reviewing" are necessary to prevent failure

Finally, there is a habit that most beginners do not do, but winning traders always do.

That is keeping a trade record.

Why did I enter at that timing?
What was the result?
Were there any points for improvement?

By performing this "review" every time, your trading accuracy will definitely improve.

Conversely, people who do not keep records tend to repeat the same mistakes and lose their capital.

Chapter 2 Summary

The biggest reasons beginners lose in FX are "emotion" and "ignorance."

Instead of trading based on intuition or mood, approaching the market with clear rules and calm judgment will bring you one step closer to becoming a winning trader.

In the next chapter, we will explain the "way of thinking" and "preparedness"—the mindset—necessary to actually earn 200,000 yen per month.