FAQ-How much trader lost in Forex before they start profiting?

[forexnewsdaily]

I heard a lot of people said 90% of forex trader lose money. I wonder how long and roughtly how much the trader lose become they become the remaining 10% winners.

 

[GladiatorX]

Reason most forex traders lose is because
- Under-capitalised (Hence why they are forced upon Fx)
- Don't understand leverage REALLY
- The reason they trade FX is because it gives opportunity to make money fast without having money, this is a bad mentality and hence; As they are new to trading - They are therefore Losing money TOO FAST instead
- Have too close stop losses because of such high leverage, meaning they keep stopped out of normal expected market volatility fluctuations, rather than a genuine move in the opposite direction to their intended trade
- Many Fx traders have little understanding of the rest of the financial markets (in my experience) and therefore this is unbeneficial ofcourse ...
- They ignore fundamentals and news and instead focus heavily on Price action to avoid having to learn fundamentals because they think they can't; When actual fact knowing them things can give them more understanding and confidence.
- They have a '10 pips a day' mentality which only leads to disappointment because there is no reason a new FX trader should have ANY consistancy, never mind daily.
- Many FX traders in particular take Trading not as a business; Hence they have VERY low out-going costs to ensure lack of commitment is an option and have a mentality that they'll get proper charting when they are making money... Its like a hairdresser waiting to buy a pair of scissors by making money hairdressing regularly first. (Bad example okay)
- Many Fx traders don't structure themeselves or their trading; Assuming they can do everything good live; This only leads to disappointment - They don't predefine what they are looking for either
- As FX traders (retail brokerage accounts) they don't REALLY understand the market and its movements, don't really understand forex and how OTC works, don't really understand how a market works in terms of liquidity and getting filled and all this only leads to a lack of distinction which leads to bad decisions


The profitable FX traders are the ones that don't ONLY understand Forex and actually know about the markets and financial world, furthermore they will have a good understanding of the important news and the fundamentals that are important to specific countries. They will understand that FX fundamentals is about looking at individual countries and then matching the weak and the strong, rather than AUD = Good interest rate... Go LONG AUD - They will PROBABLY match it with something that is particularly weak (USD interest rate for example). They will have experience and have practiced trading with an open mind, rather than basing all their trading on someone elses ideas from a book, they will understand WHY a rule exists for their trading based on their own observations, experience, knowledge. They will have a good idea of what they are actually looking for, what is a trade and what isn't. The good forex traders understand the market uncertainties and work with them, rather than not accepting that the market is always right and doesn't have to abide by any rules... Furthermore they will be consistant with their trading approach rather than randomly executing trades on lots of different things... They will be patient and wait for the right opportunities rather than impatient and accepting of any setup.

Most of all, they won't try and do all the difficult things and keep it mostly simple...
Most failures try predict to the 5-pip turning points and this would be fine if they actually allowed the winners to win; but they don't and they get angry at themeselves for not being an expert when they've only begun.

How long is a stupid question because some individuals; Who are always looking for the easy way to becomming a great trader without any responsbility will generally fail until they stop doing that an embrace the uncertainty... Anyone avoiding the HARD WORK that they know they need to do, will keep failing until they face the really hard work; hard work isn't screen time...

As for how they have to lose; There is no answer... Some people will lose forever because of the way they are and there lack of understanding; Others will be conservative and lose pennies by paper trading for so long and generally being a patient person so that live trading doesn't make them panic; Others will be live from the start and they may lose a good bit at the beginning and then constantly breakeven, make it back, stop trading to learn or consistantly trade well...

One thing is; If you have a setup and you keep executing it and have good record-keeping; At the end of the month you can look at all your trades and make some real improvements; One of your setups may be a consistant loser and you can turn it around to win; Another may be good but you keep exiting early; Maybe all your entries seem random and without meaning

One way or another you'll learn from that.

Safe Init Wicked, WoW

Heck, others may find trading isn't for them, they don't like risk and they don't like the uncertainty...
They may never admit it though.

Take it as a business and atleast you will see what happens; Don't and you may aswell just play xbox instead atleast then you'll save more money.

 

[clorets]

I heard a lot of people said 90% of forex trader lose money. I wonder how long and roughtly how much the trader lose become they become the remaining 10% winners.

It won't be the same for all people, anb I think that the answer to that question is going to change over time. Its not the same thing with the introduction of mini and micro accounts. I think future successful traders will loose way less money at start than before, which is a good thing.

But one thing is for sure, with the available leverage in forex, most traders, even the successful ones, experience a margin call at one point in their career.

 

[everyonerich]

its all up to the individual themselves

- i might say money management and dont gamble.. while probably theyre others completely against this kind of approach
- starting with small capital vs enough capital
-

 

[everyonerich]

*just think of any excuse you can come up to prevent losing, and all of em would have someone doesnt agree with that!

 

[meanreversion]

In my opinion, too many people try to make money trading market noise. "Noise" is the random oscillations which occur from rumours, large orders going through, stop losses being jammed by banks, manipulation of the rate around the fix time, etc. If you don't have an inside track as to the banks' order books or where the stops are (99 pct of day traders don't), you're going to struggle trading for 10-30 pips intraday.

 

[JDTRADER]

Reason most forex traders lose is because
- Under-capitalised (Hence why they are forced upon Fx)
- Don't understand leverage REALLY
- The reason they trade FX is because it gives opportunity to make money fast without having money, this is a bad mentality and hence; As they are new to trading - They are therefore Losing money TOO FAST instead
- Have too close stop losses because of such high leverage, meaning they keep stopped out of normal expected market volatility fluctuations, rather than a genuine move in the opposite direction to their intended trade
- Many Fx traders have little understanding of the rest of the financial markets (in my experience) and therefore this is unbeneficial ofcourse ...
- They ignore fundamentals and news and instead focus heavily on Price action to avoid having to learn fundamentals because they think they can't; When actual fact knowing them things can give them more understanding and confidence.
- They have a '10 pips a day' mentality which only leads to disappointment because there is no reason a new FX trader should have ANY consistancy, never mind daily.
- Many FX traders in particular take Trading not as a business; Hence they have VERY low out-going costs to ensure lack of commitment is an option and have a mentality that they'll get proper charting when they are making money... Its like a hairdresser waiting to buy a pair of scissors by making money hairdressing regularly first. (Bad example okay)
- Many Fx traders don't structure themeselves or their trading; Assuming they can do everything good live; This only leads to disappointment - They don't predefine what they are looking for either
- As FX traders (retail brokerage accounts) they don't REALLY understand the market and its movements, don't really understand forex and how OTC works, don't really understand how a market works in terms of liquidity and getting filled and all this only leads to a lack of distinction which leads to bad decisions


The profitable FX traders are the ones that don't ONLY understand Forex and actually know about the markets and financial world, furthermore they will have a good understanding of the important news and the fundamentals that are important to specific countries. They will understand that FX fundamentals is about looking at individual countries and then matching the weak and the strong, rather than AUD = Good interest rate... Go LONG AUD - They will PROBABLY match it with something that is particularly weak (USD interest rate for example). They will have experience and have practiced trading with an open mind, rather than basing all their trading on someone elses ideas from a book, they will understand WHY a rule exists for their trading based on their own observations, experience, knowledge. They will have a good idea of what they are actually looking for, what is a trade and what isn't. The good forex traders understand the market uncertainties and work with them, rather than not accepting that the market is always right and doesn't have to abide by any rules... Furthermore they will be consistant with their trading approach rather than randomly executing trades on lots of different things... They will be patient and wait for the right opportunities rather than impatient and accepting of any setup.

Most of all, they won't try and do all the difficult things and keep it mostly simple...
Most failures try predict to the 5-pip turning points and this would be fine if they actually allowed the winners to win; but they don't and they get angry at themeselves for not being an expert when they've only begun.

How long is a stupid question because some individuals; Who are always looking for the easy way to becomming a great trader without any responsbility will generally fail until they stop doing that an embrace the uncertainty... Anyone avoiding the HARD WORK that they know they need to do, will keep failing until they face the really hard work; hard work isn't screen time...

As for how they have to lose; There is no answer... Some people will lose forever because of the way they are and there lack of understanding; Others will be conservative and lose pennies by paper trading for so long and generally being a patient person so that live trading doesn't make them panic; Others will be live from the start and they may lose a good bit at the beginning and then constantly breakeven, make it back, stop trading to learn or consistantly trade well...

One thing is; If you have a setup and you keep executing it and have good record-keeping; At the end of the month you can look at all your trades and make some real improvements; One of your setups may be a consistant loser and you can turn it around to win; Another may be good but you keep exiting early; Maybe all your entries seem random and without meaning

One way or another you'll learn from that.

Safe Init Wicked, WoW

Heck, others may find trading isn't for them, they don't like risk and they don't like the uncertainty...
They may never admit it though.

Take it as a business and atleast you will see what happens; Don't and you may aswell just play xbox instead atleast then you'll save more money.

YouTube - How to Become One of the 5% of Forex Traders Who Win