Four Things That Kill A Forex Trader Faster

Most Forex traders including me have failed miserably because they have failed to approach the global market in a professional manner. I will be discussing the factors that have caused the failure and still leading more than 95% of traders that are not ready to follow the right path, the following describe some of the factors why most Forex traders are not successful.

1. Lack of Trading Plan

If you don’t have a trading plan you are planning to fall for anything your mind comes across on the trading platform, which means you are only gambling in the financial market. Majority of traders that are not successful fall in the category of not having a trading plan.

2. Lack of Discipline

Discipline set in automatically when you are always sticking to your good trading plan. A trader without a trading plan has nothing to do with being disciplined. Most traders will not succeed because most of the orders they placed would not give them rest of mind because they are over leveraging which will eventually lead to FEAR. This kind of traders would be emotionally in-balanced because of GREED.

3. Taking High Risk Without Good Money Management

Money management should be the first thing to consider if you have ever dream of becoming a successful trader. Most traders chase the profit instead of controlling the risk, when you use a proper money management trading plan even when you are making some mistakes in the market you tend to have chances of correcting yourself till you are able to get to the right channel.

Most of us get the wrong information of getting rich quick trading the Forex which led almost all of us especially Nigerian traders to fail in this business. Also, virtually all the fund managers failed to deliver to the investors as promised.

The most painful part of it is that some so called traders/signal providers still pass the information that traders can get rich in few months with just little capital trading the Forex and that they could make couple of pips daily without talking about the risk that is attached to it.

I urge all Nigeria traders to please approach the Forex market the way the professionals do it and also our Forex investors should invest wisely with the mindset of getting to know the amount of risk they are willing to take in terms of money. Having it in mind that this is what they can afford to lose. Maximum daily drawdown should not exceed 5% of their equity.

4. Aiming For Unrealistic Expectation

Another factor that kills Forex traders fast is aiming for unrealistic expectation. Most traders gamble just because they want to get rich over night. We need to be wise by now. If it is really working out this way everybody should be rich today. When setting your goal as a trader or investor make sure you are not aiming for unrealistic expectation that will lead to taking some risk you cannot afford to take as the fact remains that you will never win all your placed orders.

When a trader or investor is aiming for 1% – 5% profit in a month that’s realistic expectation. But to my greatest surprise I still see some traders and investors aiming for 50% or 100% profit in a month which are unrealistic expectation, in other word I call it GAMBLING and this is the mistake we all made and still making.

TWO THINGS THAT KILL A FOREX TRADER ARE: