Why Forex Traders Fail?Forex, Highlight May 11, 2015 - 11:31 am No Comment
Invest in something especially in Foreign Currency Exchange maybe seem so easy. Forex trading offers huge profit for anyone and there are some people who can achieve a great success in currency trading. In fact, statistics reported that over 90% of Forex traders fail to success. It means that the chance of losing is also great in spite of the profit make. If the losing number reaches 90% then it means that there must be reasons why the traders confront the same failure.
Those 90% traders fail due to a major common reason. They lack of knowledge in currency trading or in other word, they are not ready yet. Due to the minimum experience but they still insist to enter the trading market, they dig they own grave. Many of them lose their money because they take it less serious in learning trading. Many others depend too much on their trading tools or software. Therefore, before joining a trading market, learning and consulting to trading experts is much needed to avoid a big loss. By learning and having a good plan, a trader can avoid future risks since Forex trading is extremely unpredictable.
Many traders especially beginners fail to achieve success in this business because they are not discipline and do not follow their trading plan. Being discipline and consistent to the trading plan can lead traders to gain profits. Traders should have known when to hold or exit the trading. On the other hand, because of lacking in emotional management, fail traders tend to follow their greed and end up gain nothing. Traders should control their emotion since in trading being patience and calm is absolutely needed to face every situation including when the market turns against the traders and end up losing the trade.
The third is that common people have unrealistic expectations. One main reason people put their money in Forex trading is because they want quick money. Many traders also put all their money in the trade with the expectation that they can double it in a short time. Many of them believe that Forex trading can give them instant money with a little effort, yet this assumption is totally wrong. Success requires hard work. It is one little thing many traders forget that the currency trading is undoubtedly potential and it also comes along with damaging risk.
Finally, to gain profit in Forex trading is possible. However, there are many things one should prepare and maintain if he wants to be a success trader. Learning and studying hard, planning good, managing the money and emotional well, are the things that every trader should have.