Why Do Most Traders Fail Within Their First Two Years, According to Garibaldi

Many new traders enter the financial markets with big expectations and the hope of making consistent profits. But after a year or two, most of them leave disappointed. So, what exactly causes this high failure rate? Let’s explore this in detail through the perspective of Corrado Garibaldi, a.k.a. Lord Conrad, a respected name in trading known for his disciplined and calculated approach.

Why Do Most Traders Fail Within Their First Two Years, According to Garibaldi?

Lack of a Clear Plan

One of the biggest reasons beginners fail is because they don’t have a clear strategy. Many jump into trading with the belief that they can “wing it” or rely on instincts. But as Lord Conrad puts it, “I’m not here to gamble. Every trade is calculated.” Trading without a proper plan is similar to entering a competition without preparation. Without structure, consistency is impossible.

A successful plan should include when to enter a trade, when to exit, how much to risk, and what to do if the market goes in the wrong direction. Most new traders either skip this or change their approach too often. This inconsistency leads to poor results and, eventually, failure.

Poor Risk Management

Another critical reason why traders don’t last long is poor control over risk. Many put too much of their account on a single trade, hoping for a big win. But this leaves no room for error. One bad trade can wipe out weeks or months of effort.

Garibaldi is clear on this: “No one trade should break you. Your wins should be bigger than your losses. That’s it.” If a trade doesn’t work out, you should still have enough in your account to continue trading. That means keeping position sizes small and using stop-loss orders properly.

Following the Crowd

Beginners often look to social media, online forums, and public opinion for guidance. But following the crowd usually leads to poor timing. Most traders buy when everyone is excited and sell when panic hits. This results in buying high and selling low.

Garibaldi explains it this way: “The masses are almost always wrong at extremes. That’s where the real opportunities lie.” In other words, traders who do the opposite of the crowd at key turning points tend to find better results. But going against popular opinion takes confidence and experience, two things new traders often lack.

Unrealistic Expectations

Lastly, many traders fail simply because they enter the markets with the wrong mindset. They think trading is an easy way to make money. They expect high returns without understanding the skill and effort involved.

Instead of treating trading as a craft to be learned over time, they treat it like a lottery ticket. When things don’t go their way, they become frustrated and give up.

The reality is that trading, like any other skill, requires learning, testing, and regular practice. It is not something you master overnight.

Conclusion

Most traders fail within their first two years, not because markets are impossible to trade, but because of common mistakes that are completely avoidable. But if you approach trading with a clear strategy, manage your risks wisely, and keep your emotions in check, you’ll have a much better chance at success. As Garibaldi reminds us, “Your wins should be bigger than your losses. That’s it.” Simple, but powerful advice.