98 % of 4X traders lose money - Why?

[EURUSD]

Yes , i think so . there are a lot of people who still has poor in skill but be over confidence to trade in forex market while the result of demo account not have stable . sure their system still not mature and less understading about how managing the risk during trading

Yes. it's very weird if we think logically when there is trader who feel overconfident although he can't gain consistent profit. Many people want to get system which can give guarantee to gain profit in every transaction, and it is not realistic. There is no one who ever gain consistent profit and gain big amount of profit without doing a lot of practices. There is no instant way to be successful, it will need time and process. And learning from mistake is part of the process so don't be afraid to lose money but we must capable to manage profit and loss in trading so our loss won't be bigger than our profit.

 

[downtrend]

As forex trading is not a conventional business so there are many traders that lack proper practice and experience in this market. Many try to get rich quick but fail and instead lose a lot of money.

 

[nahiyar]

When we try to make money faster with forex it becomes more risky for us. It is a main reason for loss of new traders. It is said that most of them are fail to make forex as their living . They do not follow rules and regulations so they are not successful.

 

[EURUSD]

When we try to make money faster with forex it becomes more risky for us. It is a main reason for loss of new traders. It is said that most of them are fail to make forex as their living . They do not follow rules and regulations so they are not successful.

I think the risk will depend on your money management and risk management, trying to make money faster in forex won't make the risk higher if you still followed the trading plan well. But it will be more risky if you're in hurry to make bigger profit so you made higher target to reach without considering the risk which you will face. There are many traders who lost in forex business but there are traders who won too so don't be afraid with possibility of loss.

 

[WatanFX-Rep]

It is not just FX. Majority of participants in other markets also lose money.

But I see this term being used wrongly. 98% of "new" traders lose all their money. There is a 3 to 4 year learning curve, after that one gets to understand things a lot better.

 

[nahiyar]

Many traders loose h ere but 98% is much I think more than 10% are good traders in forex market. if just 2% are successful this business will not spread all over the world so rapidly. If I can do good trading with my own efforts many can do like this.

 

[carnelian]

I am surprised that why we are increasing the losing numbers. As far as I think the number of winners are increased in last 5 years. Brokers offering many promotions like contests and Rebates are giving us chance to get some money without much investment.

 

[WatanFX-Rep]

I am surprised that why we are increasing the losing numbers. As far as I think the number of winners are increased in last 5 years. Brokers offering many promotions like contests and Rebates are giving us chance to get some money without much investment.

Professional forex traders trade directly with banks, or with prime brokers only. Sometimes, through discount brokers that have a direct relationship with a highly connected prime broker. A prime broker is a company that has a direct liquidity relationship with a bank, and a FX broker is its client. Opening up an account with a prime broker requires upwards of $500k deposit.

Metatrader 4, cTrader, Spotware produced software was primarily created for the bucket shops, and all these outfits create their own market, that is precisely equal to the total amount of deposits/customers.

The above listed software is designed to go against the interests of the customers. There is no liquidity or bridge etc. Its all fake advertising for the most part.

I would be surprised if there are more than a dozen brokers that have an actual live liquidity bridge connected to a prime broker/banks.

Things like slippage, price spikes, platform freezes, disconnections, wrong fills, expanded spreads etc are all part of the software's internal coding.

That is why experts trade only exchange traded products or for vanilla spot fx, trade directly against a bank, through that very bank.

 

[downtrend]

It is not just FX. Majority of participants in other markets also lose money.

But I see this term being used wrongly. 98% of "new" traders lose all their money. There is a 3 to 4 year learning curve, after that one gets to understand things a lot better.

Yes, after 3 to 4 years a trader should develop himself to such extent where he should start making money. But still there are many that just keep on doing random experiments without any progress and only waste their time and money in the market.

 

[iMusingKiMi]

It is not broker, slippage, manipulation etc. It is all because of trader himself. As usual, a gambler always blame everything to avoid admitting their mistake.