It is often said that 80% of forex traders lose money. There must be some truth to it and makes me wonder why this could be? Forex is as lucrative as it can get. All thoughts are most welcome.
I would say the percentage of losers is actually higher than that.
My thoughts on why that is;
- Forex is often marketed as a way to make alot of money with very little upfront cash for minimal effort. The type of people this sort of marketing attracts are generally financially illiterate
Nothing is free and unfortunately there are that many unregulated sharks and scammers out there in the forex ecosystem that the majority of the newbies get funnelled into their web and end up loosing all their money, with the blame put on the victim for not having the right mindset or having not cold showers
Bottom line. Be skeptical and educate yourself.
Just my two cents worth why most fail
many people might try to hit a few golf balls with a club, though probably wont complete a round let alone become a decent player
anybody can know if an instrument is going up or down , almost every trader you just have to look at the daily timeframe
and this fact is being exploited by some sharks
meaning they took price for a ride until all those stop losses are hit and those accounts are blown before letting price go its normal course
this industry is very dangerous
Yes. Because of their low knowledge and lack of skills.
Look in the Mirror… Master yourself only then will you master trading… Have to be always Focused …Disciplined, Follow the Careers of anyone … Business. Coaches, Athletes.
(work in progress)
Some brokers advertise the win/loss rate. I think mine says 74% of accounts lose money. That’s not the same as 74% of people though. Most people who blow an account start a new one rather than fund the old one. People who don’t blow accounts only have one. So that skews the figures a little. I think there are a lot of people who start with small amounts and blow it quickly who heavily skew that number too.
But the reality is that most people lose money, that’s why your broker makes so much profit.
that is 100% true. I believe more than 90% people lose money in forex. reason is impatience and lack of knowledge
According to me, the reason for losing in forex can be the greed of making maximum profits. Over trading in forex leads to nowhere in forex except losses.
Because virtually none treat it like the profession it is and then commit the time to properly learning it.
Many of them want to make plenty profit with little balance
what is the maximum number of trades is suitable for a newbie?
I remember reading this article here:
Id guess its because people focus to much on entering a trade but not on how to manage it.
Amazing Question Mate , well let’s see , 80% of people lose money because they see this market as an easy 2nd income source , they think : ok i have like extra 10,000 dollars and i want to INVEST or TRADE currencies to make more money , either they are Lazy and not willing to read books or educate themselves , or they don’t have the time or they think it’s not even necessary to learn anything , they just wanna learn how to open buy or sell positions , that’s like 20% of the people , on the other hand 40% of people are the ones who have studied Technical or Fundamental analysis and they now how to work with Indicators , TrendLines , Economic Calendar and etc… they try to predict the market using Technical or Fundamentals , and they do it fine in front of the chart in TradingView but when it comes to the actual Trading part they have no idea how to manage it!! the other 20% of the people are those who can analyze , create a strategy , manage their trading using Risk & Money Management and they do make money (hooray)
BUT NOT CONSISTENTLY…
and that’s because they ain’t got the right mindset and they don’t know anything about trading psychology and discipline!
so that’s why 80% of people lose money and only 20% manage to make profits CONSISTENTLY
oh and not to mention the unregulated Brokers , scammers , useless VIP signal Telegram channels , the holy or golden 100% accurate trading robots or indicators and many other false things…
lack of experience ,naivety thinking it going to be easy bucks without the experience
Would agree, lots go in including myself thinking it’s easy money which it’s far from as you can think you have learned everything and then the market goes the opposite way
it can be easy money too with minimal knowledge and experience until the account blown
We live in an instant gratification kind of world. We want results likeyesterday. Twitter,Insta, Snap, Telegram, Discord, Youtube you name it all show us social media traders killing it and it’s soooo easy. It’s raining money! All I have to do is put $5 bucks in some app or website, click a couple buttons and once the line goes up, presto! I just made $1000. EASY! We want some of that, especially if it’s that easy, right?
There you go.
I agree. But are there any real institutes/trainers that can teach you well enough so that you can build profit making strategies?