Yes this a fair point ,though some can’t accept their failing s or mistakes and carry on the same practice .Maybe everyone has nt the same level of self awareness .
People fail because of three major reasons: Lack of knowledge, poor money & risk management, and lack of control on emotions such as greed, fear, anger, revenge, etc
My top reason why I failed as a forex trader when I was starting off was that I was easily losing patience with a lack of understanding about forex. Also, time management is another issue.
- Not maintaining discipline while trading
- Trading without a plan
- Failed to adapt to the market
Imo, the three main reasons to fail in forex are:
- Lack of knowledge
- Over trading
I think one single reason for this is lack of desire to be a successful fx trader.
If there is a will there is a way.
Anyone can do it.
Being a beginner I would say it’s over trading, fomo about losing trades, and being indiscipline.
There can be various reasons for failure but the top three are- having unrealistic expectations, trading without a plan, poor risk and money management.
According to me the main three reasons to fail at trading is due to :
- Lack of discipline.
- Over-risking due to greed
- Lack of proper forex knowledge.
A high failing rate in the forex market is a result of traders not being able to adapt to the market conditions. It’s not a good idea to assume that a proven strategy would be able to deliver endless winning trades. The market is not static and you have to track down these changes to take advantage of the opportunities.
Some of the most common trading mistakes:
1 Poor risk management
2 Over trading
3 Not doing proper research
In my view point top three reasons why traders fail are these:
- Lack of discipline
- Lack of knowledge and skill
- Inability to manage risk
The top three reasons are greed, a lack of proper forex learning and poor money management.
I think the biggest reason for the failure of newcomers in the forex market is that they keep repeating the very same mistakes over and over again. They don’t learn from their mistakes and never make progress and remain stuck in the same loop. And then this leads to failure after failure and they eventually quit trading. So, the only way to attain success in forex trading would be continuous learning and not giving up until you become a skilled trader.
In my opinion lack of risk management skills is the primary cause of trader failure.
That’s it really. Once a new trader has made that single decision the other errors associated must follow.
Going back to the OP, I don’t disagree with anything he said, but it’s going ro take more than stop-losses, risk management and a win/loose ratio to give any trader an edge.
That was an insightful read. I think the top 3 reasons for failure of forex traders would be greed, impatience and impulsiveness. All these emotions will lead to irrational decisions and major losses in the end. So, one must practise emotional control in order to become a skilled and successful forex trader in the long run.
Reasons to fail in trading are:
- Lack of discipline
- Trading without plan
- Poor risk management
- Poor Risk Management
- No Trading Plan
- Lack of control on emotions