Few Reasons Forex Traders Fail

[Setho]

The forex market like any other financial market is something that you can be able to take advantage of and make a lot of money but then it was not give you so many chances and any mistake can prove to be very costly for you .

The mistake that is being commonly done by people who are trading the forex market is trading with emotions. It is always advisable that you should not form any personal connection with your bags and instead you should only be there to make money and when you see that your strategy is showing signs of weakness is then you should abandon it immediately.

As a tree that it is also advisable that you should learn not to be chasing your losses. It is almost impossible that you are going to be having a 100% win rate and as such whenever you lose the only thing that you can do is to take a break and evaluate your setup.

There are also some people who have stayed for a very long time with one strategy which is not good. The forex market is dynamic and things change very quickly and so should your trading strategy and your setup be.

 

[brindagladden]

I have seen many traders who are too reluctant to analyse the market. All they care about is executing trades after half-analysis. It’s more dangerous than not analysing at all.

 

[Nimrod]

Absolutely! Discipline and trading plan are obviously two important aspects of trading. Other than that, I believe traders also fail or don’t grow when they stop learning. The forex market is a constantly moving market, and it can be unprecedented. As a trader, you need to be aware of different market situations and how to trade in them. In order to grow, you should regularly backtest, so you can comprehend the market and strategize better in future.

 

[Rookery]

There are many reasons why traders fail in trading. Imo, the top reason is that many take trading lightly. They also have misconceptions regarding trading. It’s because of a lack of education. Thus, prior research is important before starting trading.

 

[Neuroid]

Indeed! Discipline and a trading plan are two important parts of being a trader. In addition to that, traders should also learn from their trades. The best way to do that is by backtesting. Learn to backtest regularly, so you can make your trading strategies better.

 

[glabella]

There are many reasons why traders fail in trading. Imo, the top reason is that many take trading lightly. They also have misconceptions regarding trading. It’s because of a lack of education. Thus, prior research is important before starting trading.

Many traders, especially beginners, neglect the importance of forex education. Traders should invest time and learn about forex trading before trading live.

 

[Anderw76]

Hello, I am trading forex about 2 and half of a year I finished the school of pipsology last winter and I started a demo account. after a few months, I went live with 98$ in a micro account but the problem was that I can’t really make any money every time I make some money I lose it on later trades and right now I’m on a really bad losing strike and I have 75$. so I want to know if any of you guys is a constantly profitable trader?

 

[Ivo Zetticci]

Failing is a very common phenomenon in Forex trading because millions of traders fall from trading every single year. This is because of lacking of knowledge, deficit in effective strategy, not undertaking the right approach and not maintaining risk management strategy.

 

[Jentacular]

The lack of knowledge is also a major reason why forex traders fail. Some traders don’t study properly, while some think that they are ready to risk their money after learning a few chapters. Some don’t spend enough time on testing their strategies and others are too curious to trade in the live market.

 

[cashisking149]

Lack of knowledge is huge. The arrogance to think you can enter a $6tn a day market with no education and pull money out is mind-blowing

 

[Feeble]

Most traders fail to understand the importance of following a good strategy and risk management plan and lack the basic knowledge about market psychology. Trading involves hard work, discipline and patience to earn profit consistently.

 

[shirleencomer]

The biggest ones I can think of are lack of research, no time given, and a lack of planning or strategy. A trader must carry out a deep research before entering the market, and always have a concrete strategy when trading a live account, which should include a risk management plan to minimise losses when the market is going against the trend. When traders trade without any strategy, and just rely on the luck, they lose and lose big

 

[Archipelago]

It’s quite common for traders to lose the first few trades. But you don’t fail if you keep taking lessons from the losses. If you keep improving, you are doing well.

 

[Hooligan]

Traders fail because of multiple reasons. Lack of knowledge & research is the primary reason behind their failure. Trading seems tempting, but you could lose what you risk if you don’t come prepared.

 

[Macrobian]

It’s no big deal if beginners lose a few trades. Losses are meant to happen and you must learn to accept them. After a few live trades, you will find out what it looks like to trade and what you will have to do to improve your trading skills.

 

[Impetrate]

The biggest reason why forex traders fail is because they don't have a trading plan or they fail to follow it strictly. They frequently change their position sizes and eventually face heavy losses.

 

[Asahi]

Lack of trading knowledge is mainly responsible! Analyzing efficiency must be present in a trader and to increase this efficiency, traders should not go for analyzing multiple pairs at a time. Because, analyzing a single pair at a time is really easy and traders can gain expertise easily. However, Eurotrader offers all the pairs to their traders with maximum of them come with low spread.

 

[Ivo Zetticci]

In Forex business! Every trader trades for the expectation of profit but the skepticism is how many can derive profit. Profit is the result of knowledge, pursuit, good strategy and proper way of trading. But when we see the lacking of good knowledge among traders, profit remains terminology to the traders.

 

[Genesiology]

Maintaining forex trading discipline is critical to your success as a trader. Some traders think of forex as a quick way to get money, but it is actually a long-term process. Before trading live, traders should approach the market with realistic aims and demo trade for a few months.

 

[Palaeophile]

One of the other reasons why many traders fail is their lack of risk management, traders must know how to handle risk and how to control their emotions.