Why do 80-90% of beginner Forex traders lose ALL of their money?

nahiyar

Private, 1st Class
Messages
809
It may be a main cause of loss because people just want money not want to learn forex as it is needed. They have to get full knowledge about it and about usage of accounts with demo accounts. They enter in this business just to get high income in no time. It is not possible in any business of life. Until you not give time and passion to anything nothing will give you result as good earning.
 

Purekiller

Recruit
Messages
93
Forex is not a 50/50 game, it’s not a simple gamble. Odds are against trades, there are some visible fees like spread, commission and swap, and there are some invisible fees like slippage and execution delay. They all work against trader so let’s say if you simply gamble, your chance in Forex would be 40/60. If you have a slightly good strategy you can now have 50/50 chance of survival. So you need a better strategy to have a better chance. The problem is, that better strategy isn’t satisfying for many new traders so they always search for better ones. If this search doesn’t reach success, the trader is one of the loser traders. Another reason for traders’ loss is natural human feelings. They stop you from trading logically. These are the reasons for this low success rate of traders.
 

Clay Davidson

Recruit
Messages
76
It's very simply because they do not know how to trade anyway, correct ? So I do hope it will really work out with that way no matter what. I really hope you need to be there for many many reasons out there totally and completely. Thanks for that matter.
 

dextor

Private, 1st Class
Messages
57
I think that in first time of trading you have the feeling that you know the market and you can make the money like you can do nothing, so it is big mistake - because if you want to trade good you have to have a lot og knowledges about forex which come only after time with your experience!
Yes, agree with you. Because knowledge without practice is incomplete as well as inappropriate.
For strong knowledge, everyone required strong experience. That's why many newbie traders face failure in start. But no need to worry, do more and more practice until you become successful trader.
 

fxoday

Master Sergeant
Messages
280
Beginner trader usually still too much excited after learning forex from basic, seems simple and easy to make a profit, but because lack of experience, something occurred and their mindset was changing, this is harder than in theory, forex trading needs more experience and also high dedication to learning seriously
 

Albert Dcosta

Private, 1st Class
Messages
66
It is just a practice that will enable a trader to set trading goals according to market conditions. All traders must first learn then think for earning, They have to learn from their mistakes to do a better trading. Loss is a part of forex business and we should never take it to our mind.
 

Nikolas88

Recruit
Messages
2
One of the biggest obstacles for beginner traders is that they don't understand their own psychology which leads them to make specific trading decisions. For example, we are much more reluctant to take small loses than to wait for a big winning trade. We experience much bigger anxiety from losing money than the reward of winning, also we prefer to avoid risk by taking small profits and not letting them run, but on the other hand, we don't like taking small loses and allow them to grow to disaster sizes. This is something built-in everyone's mind and only proper training and practice can make it disappear. For me, it took several years to get rid of these feelings. Also, we have excitement and adrenaline rush when we trade big, and this is addictive make us trade more and bigger size until we hit a margin call or at least a sizable loss that is than difficult to handle. Also, people prefer quick prizes than much bigger long term gains. That's why 90% of people who work on the market prefer to day trade and not to invest for 1-2-5 years. These are only a few of the obstacles, there are many more and it is nothing to do with the brokers, slippage, commissions, etc. This are all some kind of costs, but they are nothing compared to our own ignorance!
 

sebking1986

Recruit
Messages
194
Any type of trading requires education and dedication to learning a skill. I'm baffled by the number of people who think it can be picked up like some kind of magical cash machine. Poor education leads to a poor understanding of the basics, a focus on making money asap rather than learning the process, bad broker choice and horrible risk management (linked to making money point).We live in a world where people want things right now in the moment and the idea of having to dedicate a few years to mastering a skill is unfathomable.
 

momo3HC

Master Sergeant
Messages
430
I'm baffled by the number of people who think it can be picked up like some kind of magical cash machine.
I can`t blame all of them mostly cuz of the fake marketers which are pretending and advertising it as magical cash machine.
 
Top