The 3 X Major Reasons That Cause 95% of Traders to Lose

[StefGrig]

By Kelly Price: Well known mentor and forex expert

Anyone can learn to trade forex and win but the fact is 95% of traders lose because they either have the wrong mindset or get the wrong education and here are the major mistakes traders make which you must avoid, if you want to win...

1. Following Expert Advice

This includes the vast amount of junk online from ridiculous forex robots and sure fire systems which give promise untold riches for $100.00.

Sounds too good to be true?

Of course it is! Most of the so called experts have never traded and produce back tested track records on paper to support their systems! That's not the same as cold hard dollars, made NOT knowing the prices in the real world.

If you think a forex expert can unlock the door to financial freedom for you, you are going to be very disappointed.

Just like in any other area of life, you have to achieve success on your own - but for the effort involved, the rewards can be life changing.

2. Working to Hard

In point 1, we have covered the lazy traders who make no effort and on the other hand there is the trader who thinks if he is clever, or works hard, it guarantees success - it doesn't.

Forex trading success is all about working smart NOT hard - you don't get rewarded for working hard but being right.

It is my contention that once you have a system (and that should only take you a couple of weeks if you get the right forex education), you can make a triple digit income, working just 30 minutes a day.

3. Poor Money Management & Lack of Discipline

There are also a large group of traders who can get the direction of the market right - but fail to make money due to poor money management.

Money management is much more than placing a stop - it's learning how to trail it correctly to milk the trends and deal with volatility

Many traders make minor profits from trades when they could make huge profits.

Volatility constantly stops them out with small losses before the trend is in motion or they move their stop to quickly and only make a minor profit.

Also many traders simply cannot take losses but to succeed in forex trading you must have the confidence in your trading system, to do so and these periods can last for weeks or months.

You need to stay on course, until you hit a home run - if you cannot trade a system with discipline, you don't have one!

Most traders make the error of thinking the more leverage the better and you can get 200 or even 400:1 so why not use it? Well if you do on a small account its blow out time. You should really only be using 10 - 20:1 and believe me that's plenty.

Be Realistic and Win.

Forex trading is NOT a walk in the park and that's why 95% of traders lose. However, if you accept you need to work at the basics and do it on your own you're on the way to success.

The key point you need to understand is - the market doesn't beat the trader the trader beats himself.

[ForexMartTrader]

There is no one that can assert for sure that 95% of forex traders lose in the forex market. What is quite obvious however, is that there are more losers than winners. Sticking to a set of rules might help a trader, but long term success can only be achieved through constant and continuous learning and practice.

[uncle gober]

now to be able to determine the existence of a broker is reliable or very easy to do, just how the ability of traders to take advantage of a demo account to be able to train with good skill

[ForexMartTrader]

The reasons why most traders lose during forex trading can be traced to lack of adequate forex trading skills.  Learning forex and ensuring that you can earn consistent profits on demo account before trading live account will surely help. 

[Joy Bahadur]

In Fx trading, learning is not easy despite of having too many sources including pips school, learning sometimes boning and usually new traders get tempts to start trading without enough knowledge and become fascinated with the way of trading live which may cause laziness and trapped by wishful thinking get rich quickly scheme       
 

[Bill Lawry]

For novice traders such statistical figure can be scary. I always believe that in every field there are some successful players and most of the players are losers. I think in the forex market, working with a reliable and regulated broker can help traders to a great extent. Apart from this, maintaining discipline in case of executing trades, using stop loss properly, trade in manageable lot, etc. can help traders to avoid unwanted losses. That’s why I am working with a regulated broker AAFX and maintaining all the above mentioned tips.

[Resolve]

I am doing my Forex Trading with the International Forex Broker FXOpen Markets and they have Fast Deposits and Withdrawals 🙂