Common mistake traders make as a beginning traders

Trading is a business but not a gambling. Many venturing into trading journey and think they can become millionaires in few months through trading. This is the common mindset for every newbie , including myself when i got started.

Trading requires some level of discipline and patience like a student spending years before graduating from college.

KEY REASONS WHY MANY TRADERS FAIL IN TRADING GOLD/XAUUSD SUCCESSFULLY

1. Gold moves fast and violently
   XAUUSD can move 20–50 pips in seconds. New traders:
   Use small stop losses
   Panic when price spikes
   Get stopped out before the real move
   Gold doesn’t respect tiny SLs the way EURUSD might.

2. Over trading because “gold always moves”
   Gold is active almost all day, so beginners:
   Enter too many trades
   Trade every small candle
   Don’t wait for confirmation
   More trades, more profit. On gold, it usually means more losses.

3. Ignoring news & fundamentals
   Gold reacts strongly to:
   USD news (CPI, NFP, FOMC)
   Interest rates
   Risk-on / risk-off sentiment
   Many new traders trade during high-impact news without knowing, and gold spikes both directions. Before you know it, account is gone.

4. No clear structure (just indicators)
   Most beginners Stack indicators
   Don’t understand market structure
   Enter randomly without bias
   Gold respects structure, liquidity, and sessions more than indicators.

5. Wrong lot size (this one kills accounts)
   Gold requires proper position sizing. New traders:
   Use big lot sizes on gold
   Over-leverage
   Risk too much per trade
   One bad trade expose the whole account into big loss

6. Emotional trading
   Because gold moves fast:
   Fear makes them close early
   Greed makes them hold losers
   Revenge trading after losses
   Gold exposes weak psychology very quickly.

7. No patience for confirmations
   Gold loves:
   Break & retest
   Liquidity sweeps
   Fake breakouts before real moves
   New traders enter too early and get trapped.

The real truth most pro traders won’t tell you:
Gold doesn’t hate beginners, rather beginners disrespect gold.
Once you:
Trade fewer, high-quality setups
Respect structure and sessions
Control risk properly
Gold becomes one of the best instruments to trade.
Learn, be patience , risk wise and you keep making consistent profit.

Analysis vs Result

Its only pure knowledge and patience can give you this kind of results. Over 3000pips on xauusd on a single setup
#lord_of_the_ chart