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Why most traders fail?

ProTrader

Forex Supporter
It rumored that 95% of traders failed in Forex trading and no longer trader after a few years. Why is such high failure rate? Below is a few common mistakes:

1. Too much expectation to win:

As new traders, you usually win and make a good profits, it somehow called new trader's luck which gave expectation that they understand the market and the market will go as they want. But it is WRONG.

You have to understand and accept the fact that you will on the wrong side sometime, even Warren Buffett make wrong decision so it's okay for you to be wrong.

2. Follow the market rules on both Technical and Fundamental:

If you traded for sometime you probably got skills and a few indicators on your platform, but that's not enough to generate the profits.

Technical indicators don't understand fundamental factors, some data such as NFP can move the market up-side down.

Have you ever make above mistake? Would you have something to added? Please share your thought. :)
 
I think the trader himself is responsible for what happens to him on the Forex market. Traders lose the money due to their undisciplined approach to tackle with the market fluctuations. It is really hard to accept losses here, on the forex market!
 
Yes too much expectation is one of the most common problem here. I see, a number of new traders join here with more than 80% monthly return although they have no knowledge on Forex market.
 
It rumored that 95% of traders failed in Forex trading and no longer trader after a few years. Why is such high failure rate? Below is a few common mistakes:

1. Too much expectation to win:

As new traders, you usually win and make a good profits, it somehow called new trader's luck which gave expectation that they understand the market and the market will go as they want. But it is WRONG.

You have to understand and accept the fact that you will on the wrong side sometime, even Warren Buffett make wrong decision so it's okay for you to be wrong.

2. Follow the market rules on both Technical and Fundamental:

If you traded for sometime you probably got skills and a few indicators on your platform, but that's not enough to generate the profits.

Technical indicators don't understand fundamental factors, some data such as NFP can move the market up-side down.

Have you ever make above mistake? Would you have something to added? Please share your thought. :)

Well said; I really appreciate your 1st point; really we can’t expect any unrealistic target here!
 
without passing a long time it is not possible at all to lead a healthy trading life with certainly, because the success in this market is related with long term process. But practically mostly traders in particularly the newcomers try to make success very rapidly and fall a great loss when trading practically.
 
Personally, I think traders loose that much because they 'make follow' to others traders. Basically, they copy, or they are influenced by the big players in the industry..
 
Most individuals don't understand that for forex trading you require incredible learning and capacities. They expect that trading is just acquiring and offering money related measures. They take in some marker based procedures and deduce that it will help them to get rich overnight. They don't attempt to grasp the market and market mind investigate. You can't get accomplishment in case you are not skilled.
 
I think that we will all agree here that new traders are expecting too much of this market in a very short period of time. I am not blaming them, considering that marketing campaigns of many brokers are supporting this view
 
because they are impatient like hell and nothing more anyway on so many parameters I can't stress enough how much, you really need to make something with it anyway. Care to show me something else on anything you may like it or so.
 
in Forex trading , has good risk management is indispensable because by having a good risk management will allows us to trade with the maximum . for that , try to always have a good risk management to try trading by always using the SL and TP when trading.
 
I agree but I do not think that such a high percentahe actually does that. Some people do not have such high expectations. All they do is try their luck and they sometimes win and other times loose. Knowlledge is what is important in trrading. Once you know it all round, failing will not be that easy.
 
Its true bu I think it is alos about strategy, they fail because they have no strategies in trading. They go in plain and expect good results. Expecting to win is not a bad thing, you cant trade and expect not to win. We are here to win. We have to be optimstic but also be able to expectthe opposite outcome.
 
Trader sometime use multiple indicators in the chart for hoping better result. But in reality, it confuses trader in their trading decision.
 
Greed and fear are the cause of loss for most traders. Many face losses by trading out of greed. If you trade with emotions, you can lose. Failure to do fundamental analysis can lead to a loss. Over-trading can lead to losses. Lack of compliance with Money Management and Risk Management can lead to a loss. Most traders face losses for all these reasons.
 
Two main reasons of failure in trading are lack of enough knowledge and poor trading psychology. We need analysis skills and control over our emotions.
 
Most traders fail in this market because of their wrong strategy. Success in the forex market mainly depends on the trading startegy. So, make a good strategy and earn money from this market.
 
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