Discussion in 'Newbie Questions' started by HFStrader, Jun 30, 2017.
why most traders lose money ?
Some one please give answer of this important question.
Because most people are stupid, but it's their stupidity that does not allow them to understand that they are stupid.
When a person comes to know about Forex, they think that it is easy to earn money in Forex. Most of the people wanted to trading in Forex as a part-time. They thought that they would earn extra money by simply sit in front of the trading station and enter into trading. For every business or trade, there is a Profit and Loss.
In traditional trading method, we can forecast the outcome of trading. But in the forex trading, market fills with lot of unexpectancy because of many factors such as volatility, liquidity, geo-political issues. In normal trading, we need to arrange everything such as capital, man-power, place etc. But in Forex trading these are the things not needed very much. We need only capital and electronic gadget to trading. But its not an easy way to earn profit like traditional trading.
Your Time and emotions decides the success in the Forex trading. You have to spend time in learning different types of techniques used in Forex. In every business, risk and money management is the deciding factor for success. It is suitable to Forex trading also. In your initial learning days, you learn only the basic terms, how to enter and exit trade and some strategies. You need not to trade everyday. You have to wait for your turn to enter into trading. It needs some time to decide what kind of trader(scalper, short-term trader, long-term trader) you are and what strategy really works for you. You cannot expect every entry in trading meets success. It is the combination of profits and losses. But your overall success rate tells whether you earn profit or not. You will learn to increase your success rate. But it takes time. So you need to be patience in learning all the aspects of Forex trading.
In the Forex trading business, you will not survive if you do not have proper education. It is not about how much money do you have. It is about the knowledge that you have in your mind. Being a successful trader requires a lot of knowledge and skills. Trading requires constant research, evaluation and discipline.
Thus, forex is not suitable for most people, and the error lies in its advertising, where trade is tried to present accessible to everyone regardless of his mental abilities, gender and age.
Trade is the same science as building, programing, ect. which you first need to learn. If a person who does not know his business build a house, it will collapse. With the money traders will be the same.
Firstly, the prices for the Forex market were formed according to the rules. Supply and demand, etc.
The more money it receives, the more we face manipulation from different sides. It is profitable business for "everyone" to bring large amounts to drawdowns.
My mistake - raising lots. Be patient.
Because a lot of newbie traders thinks it easy to earn a lot of money via Forex. But you have to be patient, time to time search new strategies and test it in demo account. Of course, succes is affected by the conditions of the broker. Also I definteley agree with Jim Tatums Post about people wanted to trading in Forex as a part-time.
Because people think they are very smart and forex trading is a bet they are going to win by all means! Because they don’t understand that forex market serves a much critical function of running the economies of various nations and forex trading is just an off-shoot where people are trying to profit from the fluctuation in the performance of the economies.
Very well answer...
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