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why most traders lose money ?
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[QUOTE="JimTatum, post: 132052, member: 40530"] Hi, 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. Happy Trading...... [/QUOTE]
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