1. Lack of an effective strategy

The first problem is strategy.

Anyone who trades will have a deadlock at some point because the strategy is not effective.

The number of strategies is very large, you can easily find all types of strategies that are shared everywhere in the community. But even if you copy a strategy from a pro trader, it may not work for you.

There are several reasons for this difficulty:
  1. You've tried too many strategies, but haven't studied any of them in depth yet.
  2. Are you looking for a strategy that doesn't suit your personal trading style?
  3. You expect too much from a trading strategy.
  4. And many more reasons.
To find the best strategy for you, you should test it thoroughly, and come up with a winning percentage of the strategy. Finally, compare them against each other and combine to see which strategy suits your trading style best.

2. Risk management

The second difficulty comes from risk management.

Even if you have found a good strategy, with regular pips, the truth is that it will still lose at times, even lose more than you think.

So the problem is?

It is possible that you have not controlled your risks well. A common rule in trading is to always keep a 2% risk on every trade you make. Even more sophisticated traders will keep that number to around 1% or even 0.5%.

Why keep the risk per trade so low?

Because when you combine a low risk tolerance with an effective strategy, i.e. the win rate is higher than the loss rate, you will be profitable in the long run.

3. No time for trading

Next is a matter of time to trade.

As with any job, time is an indispensable resource for success.

However, the required trading time will vary from trader to trader. If you trade short term you will need more time than if you trade long term. Or if you trade part time, of course it will be different from a full time trader.

4. Don't know when to exit

Many new traders can be confused when not knowing where to exit, or when to exit.

Actually, this is down to your trading strategy. You can choose from several candlestick patterns, or price patterns to find the most profitable exit point for you.

There is a caveat that you should not exit just because the price goes against your expectations, because that action shows that you are being influenced by emotions in your trading decision. Emotions are the next issue in this article.

5. Trading psychology is not stable

The biggest difficulty for a trader is not strategy or capital management, but trading psychology.

Emotions will push you to act beyond the trading rules you have committed to. In fact, any trader is affected by psychology, but compared to newbies, experienced traders will know how to manage emotions such as:
  • Stop trading every time the mood turns negative.
  • Don't trade just to get revenge on the market.
  • Adding trading sentiment to the diary.

And those are 5 thorny challenges that you will surely encounter when trading.