There has been an estimate that more than 90 percent of forex traders lose money and end up quitting, but there is always a reason for that loss. Usually those with only a small amount of capital and outsized risk, end up being emotional with each swing of the market and jumping in and out and the worst times possible. Those who does not know risk management would be in big trouble because the main goal right now is to protect what you have and not make profit. Being greedy would get you nowhere so try not to grab every last pip before a currency pair turns because this can set you up to lose the profitable trade that you are sitting on. Don't be indecisive because switching back and forth will just make you lose little bits of your account at a time. Learn to admit mistakes and learn from that so you can move on and trade better. You got other reasons why Forex Traders lose money?
wackypete2
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Hoggums
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Inadequate backtesting and over-leverage.
In my opinion it's the first of these that leads to their downfall, their backtesting is not realistic, they look at the start and end of the trade without looking at what happens in the middle. Their sample data is too small and they focus solely on trying to make their system work rather than trying to break it.
In my opinion it's the first of these that leads to their downfall, their backtesting is not realistic, they look at the start and end of the trade without looking at what happens in the middle. Their sample data is too small and they focus solely on trying to make their system work rather than trying to break it.
the hare
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Or more precisely, vendors assisted by the dark forces
Masquerade
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Over-leverage and they take too many losses.
Citizen2007
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Only one reason . Self responsibility.
Time.
Most think they can crakc the game within a few months, by short cuts, books, crappy seminars etc.
Want a chance - put aside at least 2 years, then come back after 5, that's probably the minimum.
Want to be a top Doctor, lawyer or accountant? It's the same isn't it. 2 -5 years minimum, and then you're probably only getting started.
Most think they can crakc the game within a few months, by short cuts, books, crappy seminars etc.
Want a chance - put aside at least 2 years, then come back after 5, that's probably the minimum.
Want to be a top Doctor, lawyer or accountant? It's the same isn't it. 2 -5 years minimum, and then you're probably only getting started.
imho
reasons why people lose in the world of forex are:
- treating fx trading as a gamble
- not investing enough time on demo and LEARNING
- lack of discipline and self control
- GREEEEEEDDDDDD
- quitting and lack of determination.
and many many more
and the legend says that its 99% that fails. hopefully we all make that 1% where successful traders are
reasons why people lose in the world of forex are:
- treating fx trading as a gamble
- not investing enough time on demo and LEARNING
- lack of discipline and self control
- GREEEEEEDDDDDD
- quitting and lack of determination.
and many many more
and the legend says that its 99% that fails. hopefully we all make that 1% where successful traders are
Novice traders tend to not stick to any kind of system for any period of time.
A few losing trades and the think that it doesn't work and move on to the next holy grail.
It never occurs to them that they might be executing the strategy wrongly.
Most 'traders' don't take it seriously enough, and most 'traders' over complicate things.
Just my two pennies worth !
A few losing trades and the think that it doesn't work and move on to the next holy grail.
It never occurs to them that they might be executing the strategy wrongly.
Most 'traders' don't take it seriously enough, and most 'traders' over complicate things.
Just my two pennies worth !
flowerhorn
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"cos one doesn't need any qualification or know how(at least that what most newbies think) to trade. Trading forex gives the imagination that money can be made easily (of course the reverse is also truth but that is not on the mind of most traders) and without hard work.
One only have to guess one of the outcome: UP or DOWN. Guess that won't be very difficult, right? But there is more decisions to make when the trade goes one way or the other. Close the position, add in new position or placing more orders etc... These requires know how which most traders ill equipped.
One only have to guess one of the outcome: UP or DOWN. Guess that won't be very difficult, right? But there is more decisions to make when the trade goes one way or the other. Close the position, add in new position or placing more orders etc... These requires know how which most traders ill equipped.
GabrielaIronFX
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One big problem is that many newbies treat Forex like gambling.
Once they find a Forex service, they start trading with entirely no signals and idea what is going on in the currency markets. This more or less like gambling, since they are just hoping and praying that things will work well for them.
They just can’t seem to make any money. At the long last, they realize that they are only loosing money. They notice that they are doing the forex trading mistakes they read on the internet! They realize that persistence alone is nothing. In most cases they are more broke than they were when they started off with Forex trading.
Ask for help when you want to invest, Account Managers are payed to help you whenever you need information concerning Forex Trading.
Once they find a Forex service, they start trading with entirely no signals and idea what is going on in the currency markets. This more or less like gambling, since they are just hoping and praying that things will work well for them.
They just can’t seem to make any money. At the long last, they realize that they are only loosing money. They notice that they are doing the forex trading mistakes they read on the internet! They realize that persistence alone is nothing. In most cases they are more broke than they were when they started off with Forex trading.
Ask for help when you want to invest, Account Managers are payed to help you whenever you need information concerning Forex Trading.
The Leopard
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NVP
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hmmm - are those stats so different to any other small start up business ?
ask why do they fail ? :smart:
Poor Product and Market research
Zero (or poor) Business Plan/Strategy/Contingencies
insufficient capitalisation
Poor processes and systems
Lack of focus and committment
Growing to quickly...
Totally different to trader failures then.........
N
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