Forex Trading Is Not As Easy - This Is Why Many Fail

forex and stocks market trading stress and risk – crazy stressed and desperate amateur trader man and investor blowing money out of losing trade in wrong investment feeling upset

Experience have showed that forex trading is not easy. To become successful in this industry you need a consistent trading plan and self discipline. So many forex beginners think that they can become wealthy overnight with forex trading. Without proper risk management and money management you can not succeed in this business.

Why So Many Forex Traders Fail

Lack of Capital – You need enough capital to be able to trade the forex market profitably. Small capital with large leverage can blow your trading account.
Not Getting To Know The Market – You need to understand the market that you trading and how it moves (Price Action).
Having An Aggressive Mindset – When you take too much risk you are bound to fail in forex trading. You can only succeed by taking small risk.
Lack of Risk Management & Money Management – You have to safeguard your capital. If it get exhausted you are out of the game. Always risk 1% of your capital per trade. Always place stop loss and take profit.
Greed – If you are desperate for money then forex trading is not for you. If you are not contented with what you have then forex trading will not work for you. You should aim to make little profit consistently.
Not Understanding Market Uncertainty – The forex market is unpredictable. Anything can happen, so you should be prepared to take and accept whatever outcome you see.
Unrealistic expectation – Trying to make 1000 pips in a day when the market can only travel 200 or 300 pips in a day. Or setting your stop loss to 1000 pips with hope that the market will never get there.
Impatience – Closing your profitable trades so fast because you are scared price will reverse and not closing your losing trades with hope it will reverse.
Overtrading – you should have a trading plan that state when to start your trading and when to end your trading. Overtrading can affect you psychology.
Avoid obtaining Loan or using your life savings to trade with – it will affect your psychology. And when you are in a huge drawdown like 50% reduce your lot size and sowly recover your losses. Don’t go all in one because it might not end well.