The Main reason Why Forex Traders Fails.

[asiaforexmentor1]

Forex Trading Psychology – The Main reason Why Forex Traders Fail



Forex Trading Psychology
There are many answers in the market to this question: Why do most forex traders fail?
- Some blame it on over trading
- Some blame it on emotions
- Some blame it on revenge mentality
- Some blame it on impulse
- Some blame it on the market
- Some blame it on bad luck
- Some blame it on poor entry
- Some blame it on not taking profits
- etc etc etc
As you can see, there will be tons and tons of reasons that explains why forex traders fail.
This is all that relates to forex trading psychology.
But i strongly believe that it all leads to one answer.
MONEY
Forex Trading Psychology – The Main reason Why Forex Traders Fail


Yes, the answer is MONEY.
The main reason why most traders fail is because of money.
No doubt that we all trade forex for the money.
But it will be the money that kills us in forex.
Forex trading psychology – Let me explain.
To us our money that we put in our forex capital is our hard earn money. Who isn’t?
when we have that mentality that we CANNOT lose the money in our capital.
And as all man are greedy. We want to multiply our capital FAST.
That’s when we lose it all.
To succeed in forex trading, we have to FORGET that there’s money involved.
You have to learn to trade not because of the money. But because you like forex trading and you are passionate about it.
You have to learn to trade right and not trade for the money.
When you trade right and forget about the money, the money will come naturally.
But when you are too focused on the money, all your emotions will trigger.
You will get into impulse trades, probably because you made a lost on the last trade and you want your money back.
Or because you look at the trade and you are so confident about it, you GAMBLED your whole account size on that trade. and to lose it all.
Or because you want to feel good and look good, and you think that you are able to double your account in a week. So you take trades that are way beyond your money management risk %.
Or you made a series of losses, and you think that if you increase your risk percentage on this particular trade, you will make back your losses.
And the list goes on…
FOREX TRADING PSYCHOLOGY – The Main reason Why Forex Traders Fail


All the above reasons leads to the main answer. MONEY.
If we are not trading for the money, but if we just want to focus on mastering our trading and trading it right.
There will no longer be any emotions in place.
I highly recommend traders to forget about the money in forex.
Trade with your forex trading system and stick to it with discipline. Focus on trading right.
It is even better if you can cover up the money part on your forex broker screen. Ignore how much has your account size grown or how much have you lose.
When you are able to do that, you will then see the big picture and you will be more analytical on your forex trades.
So the next time someone ask you on – what is the main reason forex traders fail.
You know your answer: MONEY
This is Forex Trading Psychology at its fullest!
Ezekiel Chew
Asia #1 Forex Mentor

[mattinvestor]

I personally have't done any forex trading myself. I've considered it, but thought that it was too risky (perhaps its my own lack of knowledge and expertise in the sector - and hence fear?)
I prefer property investments - that's my opinion

[Marc]

There's money to be made in Forex Trading - just picking up the crumbs. Mindset plays a big part - and moving your ego out of the way too.

Marc

[outspoken]

Marc, Seriously and realistically, how has this been going for you? If I remember correctly, it was Donna's money to begin with? and it was a small amount? ~$5k? Would you care to share your experience?

[Marc]

I'm so busy with work right now I am not trading though I'll get back into it. Yep I only had a small pot of $$ to play with and real returns come from larger investments e.g. min $100K. When I'm not working full time I'll put a few hours a day into it again and with more $$ to make it worthwhile. I am keeping up with the news etc as it will be an easy path back when I can put some time into it again.

cheers,

Marc

[mattinvestor]

hmmm, yes I suppose mindset does play an importance, but I suppose I need to excel in 1 type of investing otherwise I'll be overwhelmed, and forex trading just doesn't suit me personally I think

[Realist]

The reason traders fail early is because they were lucky not to learn a losing strategy

Most of the remainder learn a losing strategy but win on luck then persist until no funds

As for the very few, well even if they were just lucky they can still upgrade to low margin accounts and if they get to low interest then eventually there is someone else with access to cheaper funds that can hold a wider margin. That's all it is, feeding of everyone elses margin like ping pong, the biggest margin has the least probability of being scooped up by someone else

And basically, a big margin equals low leverage so you have to be bigger than JP Morgan too

[Harvey]

The reason why people don't make money forex trading is the marign you pay to do the trade.

[Rabia]

I don't have much knowledge about forex trading that's why i did not try it. So can not say any thing surely why it fails as i do not have any personal experience myself.

[Rosco]

I don't have much knowledge about forex trading that's why i did not try it. So can not say any thing surely why it fails as i do not have any personal experience myself.

I didn't know anything about Forex trading, so on Tuesday I got a local Forex trader to do a webinar for my clients. I'll try to put the video up of the webinar on property talk later today and it goes for around 1 hour.

Forex trading was very different to what I thought and it was great to get a basic understanding. I'm not sure if Forex trading is for me, but then I'm trying to question myself as to why not. Sometimes it is good to look at other options to create wealth and a lifestyle, and to have multiple income streams rather than be too tidied in to one area.

I'm particularly interested in Forex Trading for our reasonably wealthy clients children (around Uni age), as I think it could be a good learning experience for University aged young adults, and perhaps a skill that could make them think differently about wealth/life balance.

Ross

[Davo36]

To succeed in forex trading, we have to FORGET that there’s money involved.
You have to learn to trade not because of the money. But because you like forex trading and you are passionate about it.
You have to learn to trade right and not trade for the money.
When you trade right and forget about the money, the money will come naturally.

I've heard this sort of thing (expressed in 100 different ways, about various products) and it's pure snake oil.

If you forget it's money, the money will come naturally! Really? Utter BS IMHO.

Can anyone get passionate about forex trading? And if so, would that be good? Like would that be a good way to live your life? I very much doubt it.

The reason most people don't do well in forex has nothing to do with this kind of nonsense. It's because no one knows which way the currencies are going to move. It's as simple as that.

There are teams of people who do this for a full time living, for banks. And you know what? They get it wrong nearly all the time. Yep. But they make a small amount when they get it right, which pays their wages and hopefully earns the banks a bit of money. But no one gets rich doing this. Even with all the info, technological knowhow etc.

[Marc]

After a brief period Forex trading I have given it up for the simple fact that its bloody time consuming, very risky and us "bottom feeders" as we are known in the Forex world don't have a chance to make money especially now they have the robots doing the trading and stuffing up (HFT). The movements can be very fast with no clear logic even after you spend hours researching the news - thats due to the robots.

Plus to make it beneficial you need a HUGE amount of money at least 100k USD - if less than that don't even bother. Plus there are so many dodgy Forex brokers out there - the kind where you load up your trading account with them and their business starts failing and you cannot get your money out or they run off with your cash - so many examples of that its scary.

[Alliee]

There are lots of tips to become a successful forex trader but what are the main reason why people fail? The main reason of failure are :-

1:- Treating Forex as a get rich quick opportunity.
2:- Beginners want to achieve great returns on a short period of time.
3:- Thinking it’s easy to make money on Forex.
4:- Thinking you’re smarter than the other traders or smarter than the market.
5:- Thinking that you can make money in Forex with no work at all.

[Marc]

There are lots of tips to become a successful forex trader but what are the main reason why people fail? The main reason of failure are :-

1:- Treating Forex as a get rich quick opportunity.
2:- Beginners want to achieve great returns on a short period of time.
3:- Thinking it’s easy to make money on Forex.
4:- Thinking you’re smarter than the other traders or smarter than the market.
5:- Thinking that you can make money in Forex with no work at all.

Yep all standard stuff and I even brought a heap of books on mindset and trading but ultimately most of us are so small with our trading accounts that we need a good pip movement (20 pips +) in our direction to earn anything. If you placed a trade with a million USD then yes its good as even a couple of pips movement in your direction will earn you a good profit.

To be honest the only people that make loads of $$ in our realm are the ones selling training and forex trading accounts and the software like eSignal.

[jummy125]

I think the main reason of Forex traders fails is Global Economical Crises