forex traders don’t understand what they are doing in the market. they trade currency pairs with little to no knowledge of the pair they are trading or the currencies that make up the pair, and why the pair is behaving the way it’s doing.
Some of them don’t understand technical analysis or fundamental analysis. If they do understand the analysis, they don’t know how to apply the analysis to the pair they are trading.
I’ve studied other forex traders and myself included and this is my observation. Pls let me know what you think about this observation. Is this a major issue in the forex land?
1 Like
Yes.
I agree with you.
The whole industry is specifically designed to attract underfunded, ill-equipped, under-educated people who don’t really know what “trading” is (many of whom even imagine that currencies are changing hands when they bet against a “broker”).
These companies want you to lose money, very consistently and very slowly.
It has taken me several years to develop a profitable strategy and process based on Weekly & 4hr trend trading. Downside is that identifying positive probability of winning trades needs patience. Which actually suits me because I can process and place my trade and forget about it until the following morning.
Hi @menaagina, I used to think the same years ago. This statement is correct applied to beginner in forex retail trader, not to forex trader.
Beginner in forex is not equal to forex trader. Forex trader is person who trade forex for a living. If anyone who just learn forex could claim themselves as a forex trader, then every student of medical doctor will claim themselves as a doctor. That will be disaster, Pal. 
Your statement is also telling that you are currently in this circle. Analogy, when you are living in tropical island, you will never believe there is snow. Once you have visited a place that has winter, you will have different opinion.
Actually there are many good traders, most of them silent. The eager beginners are more outspoken, it makes them spotted easier. This is part of their learning curve.
1 Like
Isn’t that quite obvious?
People who is new to forex, tends to trade for quick buck without putting an effort in learning.
1 Like
Many forex traders trade without fully knowing how currencies work and why they fluctuate. Myself included. This changed when I started focussing on technical and fundamental analysis, thus I believe they are important to pay attention to. One of the simplest ways to do this is to use a demo account, such as Pepperstone, Fxview, or Hfm, where you can trade without risking any real money. This will allow you to better understand the market. I’ll add that spending time on forums like this one or watching YouTube videos can also help understand how everything works.
Not only that.
But VERY often they have the wrong understanding of it.
Especially when it comes to fundamental analysis.
Widely misunderstood, and not just by beginners.