98 % of 4X traders lose money - Why?

[Froso@FXNET]

As you can see Forex is never easy and it requires good time and experience before one can be able to learn good from this business. It is a fact that many loose here but a discipline and hardworking trader will always have the opportunity of wining consistently in this market.

Same with my experienced and surely its also was experienced among trader in forex market . till whenever the loss can not be avoided , its just our smartness to how minimize the loss happening. Now we not in part o 98% of forex traders lose with have good result but not sure in next trade , even its also will experience of professional traders will be part of 98% of trader loss money where in certain times loss will happening in their history trades

 

[kemer roach]

Actually, most of the new Forex traders are interested to earn money in quick process. Even, they invest their big trading capital though they have noting trading ideas. As a result, traders lose their trading investment because of lack of trading knowledge. Only knowledgeable Forex traders are real hero in Fx market.

 

[downtrend]

The main reason behind this is that almost all of the newbies spend too much amount depositing in their account than investing in themselves. That is they don't learn properly and start trading directly.

 

[EURUSD]

Actually, most of the new Forex traders are interested to earn money in quick process. Even, they invest their big trading capital though they have noting trading ideas. As a result, traders lose their trading investment because of lack of trading knowledge. Only knowledgeable Forex traders are real hero in Fx market.

I think you're right. There are many people who want to gain a lot of money in short time but in the result is not gaining big profit but suffer big loss in quick time. It's important to realize that forex is not quick time to be rich business. Traders must spend time to get more experience and improve skill of trading, prepare proper money management and risk management, then train psychology control (emotion in trading, discipline, patient, etc) so the result of trading will be easier to be managed.

 

[Floriano]

There are two reasons why there are so few successful traders imo: discipline and emotion.

Because in FX market nothing is certain and all of the traders work with probabilities, we tend to forget to look at the big picture. So we slip away from our initial plan usually at the first sign of danger. I remember watching a documentary about poker and life and one poker pro pretty much summed up the recipe for success imo in any niche/sector not only poker: if you have a plan, you're going to win, those who don't have a plan, they are the real losers.

Why emotion? Because they play a major part in our life. Unfortunately when you get out of our comfort zone, we tend to do irrational things. It's very hard for us to rationalize that although we made the good decision, we still lost so we become emotional, get rid of the stop-loss and stubbornly we dig ourselves into a hole that we eventually cannot climb out of it.

 

[achingbulbous]

i would like to know on what basis these percentages are being calculated

 

[Pharaoh]

i would like to know on what basis these percentages are being calculated

Most of the "statistics" on the number of losing traders are basically "folk wisdom". There aren't a lot of hard numbers out there.

Further, even with hard numbers, statistics are easy to manipulate:

Example 1: If someone makes money for 11 months and loses exactly 100% of the profits in the 12th month, do we count him as a winner (more profitable months than losing months), a loser (had a huge losing month), break even (he didn't make or lose any money), or as 11/12ths winner and 1/12 loser?

Example 2: Someone opens an account at three different brokers. Two of the brokers manipulate prices and/or cancel profitable trades, resulting in losses. The 3rd broker is honest and the trader does well. Do we count him as a loser (lost in more accounts than he succeeded in), a winner (if his final profits at broker 3 exceed his total losses at brokers 1 and 2), or 2 losers and one winner?

As you can see, the rules applied to count someone as a winner, loser, or partial of each can make the final statistics vary wildly.

 

[nahiyar]

Most of the traders loose their investment in this field due to the low experience and hurry in making profits. They try to get high profits at initial stages , it is not possible to double money in just one jump . It is the main reason of doing loss.

 

[downtrend]

i would like to know on what basis these percentages are being calculated

How many traders have you came across that are excellent traders and are doing great in forex from several months. I guess it will be a very low number.

 

[Froso@FXNET]

Most of the traders loose their investment in this field due to the low experience and hurry in making profits. They try to get high profits at initial stages , it is not possible to double money in just one jump . It is the main reason of doing loss.

Its normal and even in any job also like that where the experience will bring the successful or work . when person have low experience its mean be sure will have unskillfullness of the job that they do , Its same in forex business where 98% of forex traders trade by feeling , speculative , randomly and gamble mental where among of them can not analyze the market as correctly