98 % of 4X traders lose money - Why?

[robertrfx]

it is some thing around 80-89% who loss money, having many reasons. like lack of forex trading education, lack of skills, depending on wrong signals, trust on not suitable brokers, etc. Those who trade safe always careful about the risk management, time management and have required skills which make them in remaining successful %.

Yes I am totally agree with you on this. In this game we need to know almost everything. Brokers, basics, price actions,etc. But the most important thing is to be disciplined trade with correct mentality.Otherwise of course you are included in 98%

 

[EL DIABLO]

In my opinion, it is usually down to improper risk management. Perhaps it is the idea that was sold to them - forex trading can make you rich. What they 'forgot' to mention is the timeline. Forex trading may eventually make you lots of money but it has to be over a long period of time. So what many traders ended up believing is that they can get rich in a short period of time, fire their bosses and trade the market full-time in a beach resort.

Nothing can be further from the truth.

Success in forex trading takes lots of effort and persistence (just like many things). It is a skill and it takes time to master it. Most people lack the patience to learn. They just want to risk big and profit big. They may succeed for awhile (if they are lucky), but eventually they will blow off their accounts and add to the 98% failure rate.

Trading is counter-intuitive. By default, we human beings are lazy, greedy and impatient. All the above results in a trader risking more than he is comfortable losing because he wants instant gratification - with disastrous results. It takes conscious effort on the part of the trader to do otherwise in order to have any chance success in getting into the 2%.

 

[navyseal]

Earning money is never easy. If it easy, everyone will come to it and then it is harder.

But if you want to know why, I can talk to you:
Greeding and lack of Forex knowledge are two main factors that makes almost traders lose money.

 

[perryfx]

it is some thing around 80-89% who loss money, having many reasons. like lack of forex trading education, lack of skills, depending on wrong signals, trust on not suitable brokers, etc. Those who trade safe always careful about the risk management, time management and have required skills which make them in remaining successful %.

Agree with you

 

[montagu]

Nowadays we have a lot of information, internet is full of different analyses, charts, articles. If you have any question, you can ask it on various forums. If speaking about trading, than almost everything is done to trade successfully. But anyway, most of traders lose their money. Why? In my opinion because they don't want to learn, to read books. They are too lazy for going deep, for studying. Most traders want immediately start making money. But as we know, this way they still will keep loosing money.

 

[f-man]

As in everything we do in life, (professionally and privately) in the beginning is very likely to make things wrong.

The more experience you gain, the better you become. The problem in Forex is, that new investors / traders invest a large part of their investment portfolio right from the beginning and lose either all of it or a very big part of it.
The consequence is that they do not have any funds to continue in Forex, or they are sure that they will lose again, because they lost much at the beginning.

That is why the figure is so high, because it is somehow "manipulated" from the number of newbies in Forex that get in, lose and get out.
The majority of long term traders / investors that follow specific systems and money management rules do profit in Forex!

 

[itkraze]

It is a fact that many traders that enter forex market losses as they don't have sufficient knowledge to back their trading abilities. If you are a good learner, then you can earn fast in forex market.

 

[4xfool]

Not sure what the real percentage of traders who blow out their account. It does take a long time for some to finally figure out that slow and steady wins the race. We think we have a perfect system and risk too much on a trade and when it goes against us, it pains us to close the losing trade. So we let it go a little more, thinking it HAS to turn around soon. Next thing we know, we're about to blowout our whole account! Sound familiar? The market is going to do whatever it wants to do. Trade for the long run.

 

[Kristjan]

It might not be as high 98%, but I do expect the percentage to be quite high. It actually does make sense that most Forex traders lose money. It's because a lot of people get into Forex trading without reading about how things should be done before they start trading, and they'll lose money. After the first loss most of them will quit, others will lose again. Some might get lucky once or twice, but will still lose more times than make money. To sum it up, I'd say that most traders have the wrong mindset, they don't want to learn, they want to make money instantly.

 

[RahmanSL]

Reading the last few posts above makes me think of comparing trading the forex to having sex.....the more you do it, the better you get at doing it!