Reasons for 95% losers in Forex!

Discussion in 'Trading Systems and Strategies' started by topfx, Oct 11, 2011.

  1. topfx

    topfx Trader

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    In any case if you have come across forex trading under the short form forex, fx, or simply currency trading the rudiments are the same as they all depict currency trading by traders of diverse knowledge and experience. Forex is the world’s most liquid market with more than $3.6 trillion traded daily in a marketplace with no boundaries, no geographical limitations and no business hours. This means that people of different ideas or knowledge could make profit at any point in time depending on their strategy. But despite the existence of thousands of indicators and robots 95% + loss money in forex either on the long run or within a short period of time.
    The question is ‘’WHY” is majority losing?
    Many became traders just because they attended a seminar where they taught the elementary aspect of FX and with the Zeal or eagerness to make money, they were motivated to come and join because their coach might have implanted in them the spirit of success without telling them the negative aspect in Forex market. Can a learner drive on a very busy highway meant for only experts? Forex is likened to that because if you are not experienced you will not succeed.
    Second factor that contribute to the failure of many traders is the use of Robots. I am not advocating that all Robot are fake, but majority of them have disappointed their users.
    Thirdly, Not all Forex seminars is worth attending because many who organize them do so for their selfish gain in other to to exploit the newbie and enrich their pocket.. Most of them have tried making a living trading forex but they never succeeded and they now turn to novice who will donate money to them so that they can make a living at all cost. They may choose to introduce the novice traders to an indicator that they themselves cannot apply properly after which the student will be rejoicing not knowing that his/her master is an illiterate and this will lead them to failure.
    Fourthly, some traders successfully make profit for weeks, months and the market sentiment or movement at a particular point in time may not be favorable to their way of trading or EA, and this have led many to loose the profits they made and easily fade away.
    There are differences between successful traders and successful losers
    1. A professional must have the mind of a trader: Trading in a volatile market requires courage and understanding of market movement at a particular time.
    2. Successful traders where at one time losers, but for the fact that they want to stand out, they put much effort and this led to their success.
    3. They have a lion like mind, even if they see a draw down in their equity, they are not frustrated into entering bad trades, but tactfully handle issue and make more profits.
    My next article will will discuss more on this topic.
     
    37riched likes this.
  2. new digital

    new digital Master Trader

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    My next article will will discuss more on this topic.
     
  3. J_C_Anderson

    J_C_Anderson Trader

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    The point about the "lion-like mind" seems to be very important for any trader. Even with small acount you need to think about the possibility of scaling, as it could play important role for the future development as a trader.
     
  4. Alfredo

    Alfredo Trader

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    That is good reason, I have worked on Forex market since 2004, and according to my research I found that most of the people select the correct and right direction of market but their Profit is a little and just with some pips such as 8 or 10 or 20 pips they will give up and for their loss hold the positions maybe till their accounts turn back or call margin, this is the main reason why most of traders are loser.
     
  5. Csmit82

    Csmit82 Trader

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    for me it is about mental state, I paniced when trading manually, so prefer EA trading, without my stupidity being involved.
     
  6. new digital

    new digital Master Trader

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  7. Roman111

    Roman111 Trader

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    Cool!)
     
  8. rcbarlow

    rcbarlow Active Trader

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    I fully agree. Great system posted here. Will make you money if you let it.
     
  9. Ervin Samue

    Ervin Samue Trader

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    I agree with you that 95% of traders fail to make money in forex trading, But the main reason to loss "Surrendering to Eagerness".

    A few traders feel that they have to crush each and every pip out of a move in the market. There is cash to be made in the forex showcases consistently. Endeavoring to snatch each and every pip before a cash match turns can make you hold positions excessively long and set you up to lose the gainful trade that you are trading.

    The arrangement appears glaringly evident here, simply don't be ravenous. It's fine to shoot for a sensible benefit yet there are a lot of pips to go around. Monetary standards keep on moving each day so there is no compelling reason to get that last pip; the following open door is directly around the bend.
     
    Mauk, Helloyees, Ulacan and 1 other person like this.
  10. new digital

    new digital Master Trader

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    There are 10,000 useless systems for free , there is no such thing as a free lunch. Traders lose money, all their money with forum systems
     
  11. Uaredaty

    Uaredaty Trader

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    I think that reasons can be various for making lose deals, from lack of knowledge to insecurity or simply wrong analysis and assumptions. I was actually surprised realising how psychology is playing crucial role on Forex and needs to be understood and properly controlled and managed.
     
  12. new digital

    new digital Master Trader

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  13. 37riched

    37riched Trader

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    Its true that many traders are losers. It could be 95% or even more, but the fact is that, people lose. The main difference between losers and winners in forex is the ability to master and implement a strategy. Some traders think that they have to crush every last pip in the market, and that's why they lose
     
    Mauk likes this.
  14. Ulacan

    Ulacan Trader

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    The reason why people fail in trading is the lack of professional counsel. Those who are successful in forex are very busy trading, after several years of struggling to understand the market. Those who are free to offer guidance to new traders are just failed traders, who only misinform people. Greed makes new traders fail to analyse the information presented to them and they just end up feeding on garbage
     
  15. new digital

    new digital Master Trader

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    Are there really any successful forex traders?
     
  16. Helloyees

    Helloyees Trader

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    It's not only in Forex trading or something related. I think there are way too much activities where you can see that lot of people do not show 95% success but rather fail. It's a life, somebody loose, somebody gains;) I think you should take that in account along with strategies;)
     
  17. new digital

    new digital Master Trader

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    Even the broker loose in forex .So it is 99 % + 99.999 % lose

    FXCM said on Thursday it might not be able to meet certain regulatory capital requirements due to "unprecedented volatility" after clients suffered losses of $225m.

    https://www.bbc.co.uk/news/business-30846543
     
  18. Mauk

    Mauk Trader

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    The reason why many traders fail is GREED and IMPATIENCE. A greedy trader will see no use for stop loss and will also take very high leverage. Without patience, you'll not be able to go through the necessary learning process and you'll want a get-rich quick means thus falling into scammers' traps
     

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