Few Reasons Forex Traders Fail

[chuxkorse]

• Not Maintaining Trading Discipline: The largest mistake any trader can make is to let emotions control trading decisions. Becoming a successful forex trader means achieving a few big wins while suffering many smaller losses. Experiencing many consecutive losses is difficult to handle emotionally and can test a trader's patience and confidence. Trying to beat the market or giving in to fear and greed can lead to cutting winners short and letting losing trades run out of control. Conquering emotion is achieved by trading within a well-constructed trading plan that assists in maintaining trading discipline.
• Trading Without a Plan: Whether one trades forex or any other asset class, the first step in achieving success is to create and follow a trading plan. "Failing to plan is planning to fail" is an adage that holds true for any type of trading. The successful trader works within a documented plan that includes risk management rules and specifies the expected return on investment (ROI). Adhering to a strategic trading plan can help investors evade some of the most common trading pitfalls; if you don't have a plan, you're selling yourself short in what you can accomplish in the forex market.

 

[moonchild]

The reason why traders is fail is not far fetched many traders just go on to open a live account without practicing adequately on demo.

While some fail because of lack of knowledge on forex itself, learning forex is very free but some people will rather risk and fail than go through appropriate way to learn.

Trading plan is very important, for example you have a plan of making 5$ a day, what trading plan does is to trick your mind to believe that the market will give you 5$ and fortunately ends up getting it.

Trading plan is not just a plan it's a psychological manipulator.

 

[rextee]

Maintaining discipline for forex trading is very necessary for growth as a trader. Some traders relate forex to a shortcut of getting rich, but forex is a long-term process, in reality. Traders need to approach the market with realistic goals and demo trade for a couple of months before trading live.

 

[Wiserr]

You have already made mention of the basic reasons why one fail on his forex investment or forex trading,but I think lack of doing analysis also brings failure,but one should be participating in online class and tutorials that will enhance him on the forex trading he is doing,so that he won't fail in his business.

 

[btaliat]

Forex like most other online platforms demands a good trader to be wary of all the principles that govern it. Unfortunately, some traders are always motivated to join forex for the money and not really the knowledge. This is the number factor for the failure as those traders always trade base on emotion and not really the understanding of the market.

 

[Fejizzzz]

• Not Maintaining Trading Discipline: The largest mistake any trader can make is to let emotions control trading decisions. Becoming a successful forex trader means achieving a few big wins while suffering many smaller losses. Experiencing many consecutive losses is difficult to handle emotionally and can test a trader's patience and confidence. Trying to beat the market or giving in to fear and greed can lead to cutting winners short and letting losing trades run out of control. Conquering emotion is achieved by trading within a well-constructed trading plan that assists in maintaining trading discipline.
• Trading Without a Plan: Whether one trades forex or any other asset class, the first step in achieving success is to create and follow a trading plan. "Failing to plan is planning to fail" is an adage that holds true for any type of trading. The successful trader works within a documented plan that includes risk management rules and specifies the expected return on investment (ROI). Adhering to a strategic trading plan can help investors evade some of the most common trading pitfalls; if you don't have a plan, you're selling yourself short in what you can accomplish in the forex market.

Yes another way to ensure decipline is getting a bot execute your trading for you. Incorporate your ideas in the bot and use it to trade without emotion

 

[Sotherefore]

Thanks for this.. discipline is very important in the life of all forex traders and even people that are trading in a high volatile market like stoCK and Cryptocurrency.. I have lost a lot of money because of lack of discipline in cryptocurrency most especially then that I didn't really have a good understanding of how they work.. it is always very important that we need to follow some of the plans we make on every trading we are entering.. being too greedy is not really good in trading because that is another thing that can make a lot of people to lose because they keep on believing that the market will continue an uptrend without taking any profit.

 

[Setho]

Psychology is one of the biggest reasons why most of the people who are trading Forex usually fail. It is completely okay that they are sometimes where you will be making massive profit and there are sometimes whereby you are going to be making a couple of losses. You should try as much as possible to take profit according to your plan and when it comes to losses you should not try to chase them but instead you should close all your gadgets and then try to look for another strategy. This will ensure that you do not lose valuable money to the market.

 

[Kingsley]

Forex trading is not really meant for newbies who has not undergone the proper tutelage of what forex entails, it so not for people without more than enough funds. I could remember some years back as at around 2008 when I first Ser sail on the borders of forex trading . I was motivated by the much news I heard anout it that I could suddenly become a billionaire if I invest any amount I heard than . So i decide to on on the trip of trading forex I first bough a system unit and i bought a land phone to serve the purpose of a modem, I also had to buy an electricity generating se. All in a bid to provide a very stable power supply for my self as there j s no constant or regulars power supply. I first started with $50 which get exhausted within the fist 7days, when I started trading. Then I stw rated again and this time it was $70. As they say quitters never wins so I tried this time around again and mi made my mistakes dues to lack of enough experience. I lost the whole money to the system.

 

[destinyrim]

I think the most common mistake that a trader makes is lacking proper learning and knowledge about the forex market. Many newbies enter forex trading without knowing the risks that are involved and the amount of hard work that is required to trade profitably.

 

[sincerem]

What you outlined around forex trading as reasons for beginners failure, looks the same, but very pivotal for an upcoming forex trader to acknowledge. Forex market isn't the one any one can come in, having the mindset of making money without putting hard work, to learn what it takes to be an expert trader forex is very risky, at same time, we should be wary of the risk and learn how to control it, minimize the loss and maximize profit. Not maintaining discipline and trading without adequate plan is disastrous for any trader, not just for the beginner, even sometimes the so-called experts commit such kind of blunder.

I don't know much around forex trading, it looks similar to crypto, but are risky,having almost same terminologies for a trader to master in order to execute trading perfectly without mistake. You can't simply come into forex trading, and simply trying those options to carry out trading as inexperienced, if not, losses follows. Because surely, the trader will go on placing a trade and using the highest leverage to trade thinking is simply a way of controlling the marketing. That's why we need to seek basic experience first, before handling anything around forex trading.

 

[Shaf]

The best way to become good in trading from why I've seen is to actively trade, while you've learnt the basics and while you're improving on that knowledge. You gain exposure to how the market works, how to plan your activities and trades, how to control your emotions and the strategy that works best for you.

Some people prefer using a demo account, but while great, it just limits you because there's a huge difference between trading with rep and imagined money. Even if it's just $10, it's better to use use and gain that first hand experience which will serve you better in the long run.

 

[funmi]

With my basic knowledge of forex and fired trading I know it is not meant for people who are not well schooled in the market system. One other thing that makes people to fail in trading in forex as shown from all time records has always been greed. Many traders are always too greedy, it is either they will set unrealistic lot price with is unreasonably too high and they expect the market to hit the point they have set. And in most cases it doesn't hit is before the market reverses and goes against them. Some do not even bother to set a take profit limit, they just allow the system to run on it on and they keep watching and hoping it will keep rising and all of a sudden the market may decide to move in the opposite direction and they begin to suffer loses. Some are even more careless to the point where they do not even bother to set a stop loss limit they watch their trade and it goes against them and they hope that it will reverse before they get liquidated. This is not always the case for them and hence they suffer losses.

 

[LaneBall]

Even though failure is an inescapable part of the forex journey, there are still a few things that you as a trader can do to minimise losses such as:

Do your homework before finalising a broker

Don’t fall for trends and flashy sites

Start from a demo account

Use reasonable leverage

Have a risk reward ratio

Use stop-loss

Start small when going live

 

[Critomancy]

The reasons why traders fail mostly include:

1. Emotional trading - Trading in anger, excitement or other emotion result in wrong decision-making
2. Lack of discipline - Not sticking to the basic rules while trading
3. Impatience - Entering or exiting a trade earlier than the calculated point.
4. No risk management - Skipping the calculation of lot size, risk, margin, etc.

 

[Suba]

Basically I agree with your opinion, that forex traders fail because they are not disciplined and without a plan, but to my knowledge many forex beginner traders fail because they lack mastery of forex strategies, excessive expectations, cannot use new strategies, because they need to adapt to market changes. forex, as well as novice traders often just try trading so that the results are disappointing, and most of them also quickly give up. I don't want to study any more.

 

[eldavis]

The mindset is also a major reason why most traders fail today, they go into forex trading with the mindset that it is a get rich quick scheme, hence they rush into the forex market without any proper training because they feel the time they would use in learning, can be used to make money. only to go in a face reality that it was not as they had thought it to be.

 

[Ponmo]

Failure is an inevitable part of any trade. Although, you can always adopt measures to prevent losses. Here are some tips that should be followed to avoid failure:
Create a plan before making each trade
Limit usage of excessive leverage
Avoid trades driven by emotions like fear or greed
Avoid herd mentality and follow strategies that work only for your and your goals
Be well versed with risk and money management techniques

 

[Tactical]

Undoubtedly, without a successful plan and discipline, no trader can make a profitable trade. But there are other reasons too which prevent traders from getting successful. Not learning from their trades is one such reason. Many traders ignore their losses and don’t check the reasons behind it which is crucial for becoming a successful trader.

 

[Eduard Hahn]

The sad truth about forex trading is that the number of traders making profits in the market is far less than the traders making losses. Sometimes traders take it too lightly while sometimes they are overconfident. Some traders don’t study properly, while others waste too much time that they miss important trades. And there is no end to this.