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The Main reason Why Forex Fraders Fails.


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If we are looking for reason then your like counting stars at night. Theirs no way we can all identify the reason why we fail in forex. But the big question is what we can do to prevent or minimize the effects of this failures. That's why its better we do more practice and more research. It does not solve all the constant problem we encounter in forex but its really help a lot.

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Its always good to try and know what are the most common reasons that make traders fail because they help others to avoid falling for the same things themselves. Its part of the learning curve that no one should avoid which is why we continuously talk about things emotions for example and how effective manage them.

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Traders fail for a lot of reasons, and though the main causes are emotions and lack of discipline, that are many others that are annoying. Like for example, some traders fail because they assume that predicting in Forex is guess work, and make it turn into a game of gambling. Then there are those who choose to trade directly on the live account without even using the demo account after doing a little reading.

mostly like what you said, but i find few trader that make mistake when predict the price of currency, but that is something that rarely happened unless the market condition is too hard to predict, and so far i don't see any major reason aside from lack of discipline or emotions.

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The most important aspect in forex trading is the decision making and that plays a very prominent role in making profits with forex business and i am sure that most of the traders will be failing in forex just because they do not take right decision in correct time . Some newbie trader will be failing in forex just because of lack of knowledge .

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traders fail and always suffer loss because they try to control the market. they want the market move suits with their expectation while its impossible to expect it will be happen. traders need to beat their self first and not expect that the market will always give them win. if traders still feel that some of consecutive loss will wrecked their life and one win make them happy like children got 100 bucks from their parent, that mean their success is still far far away.

Well, it is not easy to try controlling the market here. Only big players and like governments can do the effect to control the market here. But, the correct thing can be, many traders try to fight against the market. Not following the market trend, not following the big players

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The most important aspect in forex trading is the decision making and that plays a very prominent role in making profits with forex business and i am sure that most of the traders will be failing in forex just because they do not take right decision in correct time . Some newbie trader will be failing in forex just because of lack of knowledge .

 

So this means that the reason for failure then boils down to lack of knowledge and experience. You have cited beginners as an example and for them its because they are still new in the environment and dont know yet what to do in order to make profitable trades as they are still learning.

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The most commonly find fault about forex is most of the people will be thinking forex as a money making machine so they just enter with a excitement of earning a huge cash with in a short period of time but when they come to the reality of trading they will getting fear of loosing and that is the reason some of the traders will be loosing . and i can say that emotions will make the traders loos money easily .

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  • 4 weeks later...
  • 7 months later...

Traders lose cause they lack knowledge, are new and lack experiences and do not have a firm grasp on the finance world. Once you have knowledge, develop experiences and have a strong understanding of fundamentals, you're better at trading and will make more money. That is just how it is unless you lack willpower and gamble with your trades and trade blindly like a gambler and trade in a bad environment. You will need to be a very skillful and experienced trader in order to not lose money. The more you know the more you earn. 

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  • 3 months later...

The major reason traders fail is just because of lack of knowledge or quite some inadequate knowledge. When the trader is not having enough trading knowledge and sufficient skills to trade, he is bound to fail. Half baked knowledge can just be very injurious in the live of any trader.

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I think that there are many reasons why forex traders fail in their trading, perhaps the most important one is lack of knowledge as well as practice, many traders especially the teenagers want to make some quick cash and without learning/practicing properly in demo account they go for live trading and that is why they suffer loss because of their greed for fast money.

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market really dangerous and lead traders to get loss result. however, the risk will be reduce when traders know how to implement the strategy in discipline attitude. major failure happen due to inability of traders being patient and discipline to follow the strategy and plan rules.

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market really dangerous and lead traders to get loss result. however, the risk will be reduce when traders know how to implement the strategy in discipline attitude. major failure happen due to inability of traders being patient and discipline to follow the strategy and plan rules.

Yes if we do not put this thing into consideration that forex trading market is very risky it would greatly affect our trading and might bring us loss as well, so we must there move with a proper strategy if we want to survive in the forex market and not let our emotions interfere with our mind as well.

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  • 2 weeks later...

If a trader fails to learn how to trade, he only succeeds in learning how to fail. Other reasons traders fail from Forex is that they set a very high target for themselves. They want to make the whole money they need to make within a very short period of time and it only ends up making them very greedy. Trading is not a get rich quick thing. It requires more time to become successful.

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  • 2 weeks later...
  • 2 weeks later...

If traders who are trading in the forex market are trading with emotions, they will fail. Emotional trading is a bad thing that makes the traders to fail. When he or she is trading with greediness, it will make him or her to trade without good risk management. This thing lead so many traders to losses and they finally lose their money to trading.

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  • 1 month later...

Many traders lose money in forex out of lack of knowledge and greed. They lack the principle of risk management thereby using a big lot size to enter the market while they have a small balance. For eg: they use a lot size of 1 when they have only $100 as their capital. but for maximize our capability, we can use $5 cash rewards from FBS

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When a trader wants to make the whole profit he should make over a period of time in one day, he is bound to fail and it will only take a saving grace for him to learn again. Trading in Forex is quite a very difficult task and it is also something the trader must be very cautious of in other not to join the league of those who easily quit.

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