Traders fail when they jump in the trading world without knowing it properly.
Forex demands a lot more time to sink in than most people think. If you think that forex trading is your quick ticket to huge stacks of money I am sorry to burst your bubbly, but it is not. If you are not paying serious attention to demo trading, lack a trading plan and the discipline to stick to it and are not following risk management youâll never make it far in forex.
Many good points indeed. We can summed it up to two words here where the problems lies from traders: mentality and psychology. If one donât have good mental behavior or logic psychology, also knowledge, itâs not worth to trade at all. Forex will punch them in one shot and energy is all gone.
Exactly my thoughts. Eventually it all boils down to tradersâ psychology and mentality. That is why forex is not profitable for everyone. It will test your patience and resilience many times so you should be strong enough to fight it back.
Yes these things also had impact on trading as behaviour to react market , right psychology and controlling emotions in time when they are going adverse for y It is easy to manage trading as well as your personal thinking when you find root cause of failure. Learning will help in all times it is basic thing to avoid failures in forex market. Thn do much practice to gain proper experience because without it one can fail at initial step.
Isnât that called poor risk management? A solid plan, plus a solid set of goals are the things traders must bring on the table when they start trading the markets, right?
@brimpsjoy You got that right.
@imbest Exactly, thanks for raising a good point. Learning failures from the surroundings helps one to avoid it. In the same sense, itâs not healthy when one only focus on profitable strategy and learn from it, which unfortunately, many people do.
@PetreDragos I agree with your view, all should be on the GOOD table.
I do agree on all of your 7 points! Actually, there is no shortcut way of learning; always itâs a long term process.
Traders fails because of greedy behaviour they shows and also because of lack of knowledge. You must have a huge experience about the forex market. You also have a huge control on your emotions. These things helps you a lot to save yourself from failure.
There are many reasons a person fail in trading. One of the biggest reason is that they canât cope with the changing market. There are a lot of factors of the market. Another big reason is the emotional factor. They get scared of the shear quantity of activity in the market.
Traders fail as they have no idea who they are going up against. If you are new to FOREX, ask yourself one simple question: âWho is on the other side of your trade?â This will open up the doors to the reality that retail traders, unless properly schooled in this business and with a very in depth understanding, will struggle to profit in the long term. There are all kinds of algoâs, next level tools, depth of market, volume profiling, realtime news, etc, that most retail players simply do not have access to.
The Flip side⌠You CAN MAKE MONEY in Forex
I think that majority of people fail in forex because they have preconceived notions about forex being an easy and quick way to make loads of money, thus they are ill-equipped in terms of understanding, education and skills to be able to survive in this business and eventually just fail and leave it. You need top have a proper plan about how you are going to approach forex trading even before you start it and consider its implications more practically before committing yourself to it.
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Forex is regular struggle for getting profit . Once you pick forex basics it not means now you should stop your learning and practice. Every trader need continuous work even then too the forex is not seems easy money making business. I am not creating fear but actual cause stands for failure when we take it easy not learn properly and trained our self .
Many of the traders fails because of many reasons but the most common reason is that they never do some research about the market. They donât have knowledge and experience about the market. This is the main reason behind their losses. Whatâs your opinion about this?
I completely agree with these obvious reasons.
Planning! Great call caravalpoppy. To add to that, most people plan the wins⌠to be successful in this game you need to visualize worst case scenarios. then you won´t react improperly if they do occur, you will have a plan for it.
So many traders get fail in trading, this is the fact because forex market is very dynamic movement, sometimes trade open buy but then price move to down and likewise, this is a common reason, but for specific reason is because trader lack of knowledge and experience, they can`t making good research about the trend market behaviour, and they having so weak psychology trading, that this is very important on trading
you are absolutely right! lack of knowledge and experience is the biggest cause behind the failure of forex traders.
I think actually that new traders usually select the wrong trading style and strategy and thatâs why they are doomed to fail. It wonât matter how much experience they need, they will never have time to acquire it before they are wiped out. What I mean is -
- day-trading
- trading reversals.
Anyone new to trading who selects both these will fail.
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