Why many traders fails in Forex trading?

Discussion in 'For novice traders' started by Roman Rias, Sep 21, 2017.

  1. Roman Rias

    Roman Rias Member

    It’s no hidden fact that over 95% traders are losers in this giant field of trading. So, what do you guys feel that makes so many people lose?

    I always feel this is entirely to do with lack of discipline, patience and not having proper plans. When we miss out on so many points then it becomes more or less obvious that you are not going to get positive results.
  2. There can be many reasons and discipline is certainly one of that. So we need to start from there and then we should move forward in order to gain most. I feel my losing always come due to impatient approach, but if we are patient then we can really make good money.
  3. ibm'73

    ibm'73 Active Member

    Of the many new traders who plunge in this forex trading world, most of them have failed. Here are some common factors that cause a trader to fail. Not just beginner traders, traders who have long traded too many experienced obstacles by factors below.

    1. Do not keep discipline in trading.

    The big mistake many traders make is to let emotional factors take control of you while trading. Being a forex trader means you must be prepared to deal with losses in transactions. not infrequently the loss transactions experienced as much as 2.3,4 times in a row.

    Having major losses, or losses in a row will greatly test your mental and your patience and emotions. That's why one trading system and trading plan must be run in discipline, to avoid excessive emotional factors.

    2. Trading without a plan / trading plan.

    One of the first steps in investing is having a clear plan, as well as in forex trading. Developing a trading plan which is then followed by the implementation of such trading plan with discipline is one of the key to your success.

    A good trading plan has a trading system. clear money management arrangements, as well as clear profit projection as well. Thus all your steps in trading will be more planned and focused in achieving the target.

    3. Failed to adapt to the market.

    Forex market is a fluctuating place. As a trader, you should be able to see the market and adjust to it. The easiest example is in the trading system.

    Let's say you are a follower trend type. In 2008, price movements in the GBP / JPY pair tended to trend with an average daily price movement of 200-300 pips per day, with a daily retrace that could reach 50% of the daily range. Of course this is ideal for you to save take profit 50-100. However, if you look at the current daily range of GBP / JPY is much reduced, so to get TP 100 pips for one transaction in one day tend to be more difficult.
    Read: US Humor shut down, is it true that white house is also closed?

    Failure to adapt the strategy used in 2008 with the current conditions will lead to failure.

    Another example is gold. Still remember when 2 years ago deals in Gold quite easy? you simply buy and most likely profit. This time is no longer like that.

    4. Unrealistic targets.

    No matter what people say, forex is not a quick way to earn wealth. Because of this you need to set realistic targets.

    Many traders are caught in the state of wanting to get big profits instantly. This is what causes them to use large lots without calculation, and ultimately leads to the loss of all the capital (margin call) repeatedly.

    Forex trading can provide great benefits, it just requires a clear process and financial arrangements. Please arrange good trading plan and money management, along with capital compounding as well if needed. If done with discipline, chances are you will reap the sweet results in a faster time.

    5. Risk management and bad capital.

    Forex trading is synonymous with money management. The amount of lot you use, the expected profit that may be achieved, how much risk you set, are familiar things that you will continue to set and use every time you transact.

    Failure to arrange this can cause your trading process is not maximal. Have you ever experienced this; The amount of profit from 5-10 times your transaction lost only because one transaction is loss? If ever, then that is the most real example of the lack of risk management and money management.

    5 above is a common cause of failure experienced by a trader. If you experience one or more of the above, it's good to start thinking about trying to fix it.
    Nia likes this.
  4. Nia

    Nia Member

    this is a very useful input
  5. NewbieTrader

    NewbieTrader Member

    From my experience, people around me who complain about trading in loss are mostly those who are easily overridden by their emotion. This leads to other issues, including lack of discipline.
  6. andengireng

    andengireng Member

    remember, forex business is not for show off, many traders are posting on social media the screenshot of their profit hundreds of dollars overnight only with capital tens of dollars only, but you should think. How many times that person have MC ever ? Already make any WD ? do not just once it's big profit because just beginner luck. Count overall between lost and profit (eg you use monthly count), keep the end of the month always in a profit state
  7. Francmorio

    Francmorio Member

    I think its lack of proper strategy, and not having a proper money management strategy. You need two things, good trading strategy, and a good money management strategy.
  8. NewbieTrader

    NewbieTrader Member

    also good risk management ;)
    people think risk can be eliminated. but actually it can only be controlled, minimized.
  9. Tengkorakfx

    Tengkorakfx Member

    I totally agree with you, we can't eliminate the risk, but what we can do to minimize it properly to get profit as much as possible.
    NewbieTrader likes this.
  10. NewbieTrader

    NewbieTrader Member

    that is true. risk management ;) that was one of the first thing I learned about before jumping into this trading world.
  11. andengireng

    andengireng Member

    To be a successful trader, you must really understand that losses are an integral part of trading, just like profits. There is no holy grail in forex trading, so you must always deal with potential losses, even once twice suffered losses in a certain period of time.
  12. NewbieTrader

    NewbieTrader Member

    true. even after two years of trading, i still have some lots ended up in loss. but that's okay as long as the overall result is profitable. and it's consistent.
  13. andengireng

    andengireng Member

    Yes, it is depend on the traders himself, can he survive or just give up?? One year or two years sometimes is not enough for traders. The key is you have to improve, push yourself.
  14. NewbieTrader

    NewbieTrader Member

    true. and i don't think you cannot really shake off loss. someday, you'll still end up with it. it's just a part of trading. you have to try to enjoy it. but not too much :D
  15. Tengkorakfx

    Tengkorakfx Member

    Well, as long as you put a small number of percent as part of the risk, you don't need to worry on your unstable emotion will be triggered. The market won't go anywhere and we can look for another trading moment on the other day to recover the loss we had...
  16. andengireng

    andengireng Member

    Please set the target as high as you want, but remember that targets without clear planning is just a dreams. Make targets based on a well-planned trading plan. The more detailed your trading plan, the better. Enter details such as risk limitation per transaction, the strategy / trading system used, to the strategy in the form of risk management tools that you will use (cut loss, switching, averaging and so on).
  17. Tengkorakfx

    Tengkorakfx Member

    It depends on what kind of trading style that you would use. If you use swing trading, you can set the target really high based on the price level that the price itself would bounce. Or if you are an intraday trader, you can close your trade after a momentum of a price...
  18. NewbieTrader

    NewbieTrader Member

    Yep. Agreed. And if fast recovery is so difficult, close to improbable, then you should not waste your time trying to get there. Just keep focusing on getting better at trading, add more knowledge and practice.
  19. andengireng

    andengireng Member

    It turns out that not many realize that forex trading - like other businesses - saves potential risks that should not be underestimated. One common mistake made by beginner traders is that they are too lazy to learn how to manage risk and avoid losses that are too large.
  20. NewbieTrader

    NewbieTrader Member

    yeah that is unfortunate. I spent months to actually learn about forex before finally jumping into the real trading. and everyone was like, "what taking you so long?" well, this is why. I need to learn stuff like managing risks.

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