Good comment - maybe not as stupid as you thought! 
Thanks,
Something I donāt really understand:
Some people say, that one of the causes of fail is that you arenāt well capitalized. First I wanted to trade with stocks, but there really matters if you have enough capital, or you donāt have, because the price of one stock can be really large (ok, relative to my capital), and you will pay a minimum fee, which can be really large, if you donāt have enough money.
But in forex you pay the spread, and the commission (if you have) is a percentage of your trade. So small money - small fee, large money - large fee. There are mini and nanolots, so you can make the same things with $100 as with $100000.
Or I miss something? Maybe this statement can be true, if you want to get by with the little money, and you have to draw back some money all the time. But if you donāt need this money, then the size of the capital doesnāt really matter. I myself switched metatrader to show pips instead of money, so I can do the same thing with $361, $7893 and $1278964.
So I donāt agree with this statement, but by proper logic anybody can convince me.
New traders should spare some time learning and also on building a right approach to manage the associated risks in forex trading, those who easily manage their money and risks eventually prosper in forex trading or vice versa.
A really high percentage of traders fail, because most of beginners think, that Forex is a way to gain easy money and start trading without enough knowledge and experience, so they lose money and keep saying, that Forex is a scam and it`s impossible gain money on it.
I find it difficult to beleive that anyone makes money in Forex. Surely if they did then there would be MANY resources on line explaining how it can be done. But currently every single forex company I have tried is no good
And would you share a legitimate trading method that took you years to produce along with blood, sweat and tears? Itās no small task to become profitable, and those who are profitable will vouch on this.
There is a reason why this industry has the highest suicide rate for any office based profession - itās emotionally draining - so perhaps you will understand why all this hard work and grafting is indeed not fluttered away online for the benefit of the people ā[I][U]who cant be bothered to do it them selves[/U][/I]ā.
being a successful trader is not a job. it is a calling. anyone can learn a job and succeed in some measure. but to be a successful trader you must be ācalledā as they say.
the lure of big fat fast money has brought millions to the fold and the industry has laid waste to them all.
Iām not to sure I follow what youāre saying, never the less im curious for you to perhaps expand on how you feel trading is ācallingā rather than a profession.
From my prospective I fully agree that you need the right mindset and qualities to succeed as a trader, and perhaps these are not qualities that one can simply ālearnā. However, Iām sure there are people out there who donāt know that they actually have these qualities already.
They donāt practice their learning techniques on demo accounts which are free, and invest their real money in the market to get profit in short time.
success in trading like many professions require a certain innate character. like not everyone is a doctor or a lawyer or a street sweeper.
vocation testing is the first stop for a person wanting to get into the field. if you dont get āanalystā in the top 5. save your money effort and energy and pursue one of the 5 you do score in.
then comes ācallingā following a purpose that has to be fulfilled, makes you complete. those that come to the field with that view the market and approach far different the others. typically making them very very successful.
Main reasons in order
- too high leveraged used (above 1:10)
- too little trading capital available
- strategy focusing on getting in trades not on getting out of them
Many traders are afraid of a credit shoulder, because they donāt understand it completely. You can choose the highest credit shoulder, the main thing is not to enter the deal for the entire length of the deposit. Cound what volume will be optimal for you to enter the deal, and use it.
More possible reasons why many fail include -
- Thereās no way to know in advance where price will move to,
- User errors,
- External distractions,
- Broker spreads and / or commissions need to be overcome / passed before a trade can move into profit,
- Stop losses are needed to avoid big losing trades,
- PC, internet, broker or charts software - malfunctions / issues.
Many of traders gets failure because they had a lack of knowledge about the market. They think that forex trading is too much easier for them but in reality forex trading is very tough for those who didnāt have knowledge about it. Taking knowledge about the market is too important.
I agree with you most of novice traders donāt pay heed towards the risk management.Which is the best tool to mitigate your losses in forex trading.
There are many reasons why people fail in forex. Most of these come with hopes that forex is a get-rich-quick scheme and then they become overconfident. You need to understand what forex really is all about before you step in here. Risk maangement and money management are extremely important. Also so many people canāt keep their greed, fear and anxiety in check due to which they fail miserably.
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Many of the traders fails on the forex market because they came here without any knowledge and experience related to the forex market. They also donāt have a plan about what to do in the forex market. They also have lack of motivation. You must have to control your emotions when you are trading on that platform.
Number eight; they open their live account too early instead of practicing the demo.
Thanks for sharing your views. In majority of the cases, it is true what you have mentioned. It is also true when we are trying to trade out of emotions rather than using intelligence it can be hazardous in the real sense.
