Article Top Reasons Forex Traders Fail

T2W Bot

Staff member
1,498 115
The forex market is the largest and most accessible financial market in the world, but although there are many forex investors, few are truly successful ones. Many traders fail for the same reasons that investors fail in other asset classes. In addition, the extreme amount of leverage – the use of borrowed capital to increase the potential return of investments – provided by the market, and the relatively small amounts of margin required when trading currencies, deny traders the opportunity to make numerous low-risk mistakes. Factors specific to trading currencies can cause some traders to expect greater investment returns than the market can consistently offer, or to take more risk than they would when trading in other markets.
Forex Market Trading Hazards Certain mistakes can keep traders from achieving their investment goals. Following are some of the common pitfalls that can plague forex traders:

Not Maintaining Trading Discipline The largest mistake any trader can...

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Junior member
14 0
"Learning Through Trial and Error Without a doubt, the most expensive way to learn to trade the currency markets is through trial and error. Discovering the appropriate trading strategies by learning from your mistakes is not an efficient way to trade any market. Since forex is considerably different from the equity market, the probability of new traders sustaining account-crippling losses is high. The most efficient way to become a successful currency trader is to access the experience of successful traders. This can be done through a formal trading education or through a mentor relationship with someone who has a notable track record. One of the best ways to perfect your skills is to shadow a successful trader, especially when you add hours of practice on your own."

I agree for the most part except for this above. I think learing through trial and error is the best way to learn trading than having someone show you how to trade or attending seminar from people who never traded or had very little experience trading. First hand experience through trial and error, nothing can beat that. Also, copying a trading strategy from someone may not be suitable for everyone because we all have different approach to money management, risk tolerance, and trading style etc... Also, I don't see forex as any different than equity market. They both are risky and merciless. For anyone to become a successful trader, there is no short cut via seminar or some one shwing you how to trade. Will required to get over the learning curve by trading every day with real money on the line.


4 0

Fantastic advice given in this article. I now have a deeper insight in many areas that were "misty" to me and will put the good advice towards devising a strategic approach towards my trading goals.

Much appreciated



Active member
128 1
formal education is a scam

Its just a money maker, nobody would work if seminars were good

learn yourself


Legendary member
19,821 3,091
On the ball great article.
Sadly, you can lead a horse to water, but you can't make it drink.
Large insititutions have strict money & risk management rules and tough mentors watching over top graduate recruits to instill the discipline and professional approach to trading. Moreover, non-performers are quickly dropped or shifted sideways.
Individuals with greed and pots of cash often have not much at all.
Certainly more of a marathon to individual traders than speedy gains to riches.

Great article, should be read two or three times by all beginners and digested well.


Junior member
12 0
Great article. It really provides the biggest donts for anyone looking to get into FOREX trading. Reading this will help new traders from losing their shirts in the market.
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