What are the major causes of failure in forex trading

[Kayzzy3]

Forex trading is profitable despite the many risk involved, while many have made huge profits from the market, many other are counting the loses daily.

But what are the major causes of failure in forex market especially for young trader?

I will list 3 that I know of:

1. Impatience in the learning stages.
2. Lack of proper mentorship.
3. "Make it fast" syndrome.

What other things do you think is are the causes??

 

[Niftyyem]

A successful forex trader must be able to exhibit a high level of discipline. This will help combat the greed nature and the tendency to learn only halfway before venturing into the real thing. He must be able to take reasonable amount of risks.

 

[Erik4150]

Lack of knowledge of how forex trading works is one particular reason why newbies keep loosing money.
Some people think of forex as a quick money scheme where they can make money as fast as possible not knowing that it is more complicated than that.
That is why it is necessary to acquire adequate knowledge and skills before trying forex.

 

[Yan]

Forex trading is profitable despite the many risk involved, while many have made huge profits from the market, many other are counting the loses daily.

But what are the major causes of failure in forex market especially for young trader?

I will list 3 that I know of:

1. Impatience in the learning stages.
2. Lack of proper mentorship.
3. "Make it fast" syndrome.

What other things do you think is are the causes??

Yeah for real, most people think they can trade without proper training and mentorship, forex is quite complex and require a lot of attention to detail. People also don't know how to calculate the risk to reward during trades and then there are the greedy ones

 

[Ltherman]

I think one of the reason people get to blow their accounts is the greed to make it big. Forex trading is a marathon and not a sprint. You can't start with a small equity and expect to make so big profits thats more like using an ant to swallow an elephant.

 

[Peterlight]

Wrong predictions and copy trading too are major cause of failure in Forex trading.

Some people with no knowledge will just jump into it cos they have been lucky trading on it for some few days, they think it is something that drops and goes high at the same rate but Forex trade needs more attention not prediction.

I even heard someone calling Forex trade gambling, but it is more than that.

 

[Trojan8]

I think the biggest factor comes from the fact that people do not learn the ropes before investing in Forex. Most persons just hear that it is profitable and next day they start trading, that's not how it suppose to be done. Forex requires technics that you build with experiences.

 

[Dubai]

Well, as you have highlighted, many people fail in forex trading because they are not patient enough to understand the market trends before trading. Some do not know how to predict the market and the are usually carried away by previous statistics. Also, some fail because they are greedy. They want to trade and earn so much in little time.

 

[Mujahid12]

Forex trading is profitable despite the many risk involved, while many have made huge profits from the market, many other are counting the loses daily.

But what are the major causes of failure in forex market especially for young trader?

I will list 3 that I know of:

1. Impatience in the learning stages.
2. Lack of proper mentorship.
3. "Make it fast" syndrome.

What other things do you think is are the causes??

Absolutely Forex trading is risky, if we use it with mind then it is not risky, it must first should have patience and then it is necessary to have discipline and use of mind to achieve success in it and that tips write you these are wonderful for trader.

 

[Alexandoy]

One forex trader I know when I was working in a bank said that forex is not easy because you need to be cautious but you also need to be daring at times. When the currency is progressing it is one good opportunity to buy. But will the progress continue or will it stop or worse it will ebb? Such question can hog your mind. If you are always daring then that is one formula to fail because sooner or later you will get burned with your audacity in the forex trading.

 

[Bilal0087]

Forex trading is profitable despite the many risk involved, while many have made huge profits from the market, many other are counting the loses daily.

But what are the major causes of failure in forex market especially for young trader?

I will list 3 that I know of:

1. Impatience in the learning stages.
2. Lack of proper mentorship.
3. "Make it fast" syndrome.

What other things do you think is are the causes??

The biggest reason for failure, doing is without patience.
And doing it without any experience, if you want to become successful trader you must have learn much experience for years, then you could be able to predict what will happen in the next moment in cryptocurrency.

 

[Hasan Raza]

Experience is the most important weapon which lead you to the success but if person has lack of experience then he may loss in forex trading.I think one of the reason people get to blow their accounts is the greed to make it big. Forex trading is a marathon and not a sprint. You can't start with a small equity and expect to make so big profits that's why you must remain touch with it for long time before investment.

 

[gammarays]

I think the major causes of failure in forex trading includes lack of experience as most people just jump into it with just few days of demo trading and believe forgetting that forex is more than that. Another is lack of good capital and greed. Most people follow dubious online marketers who tell them that they can grow their $100 to $10000 in a month forgetting that you need a proper bankroll to mitigate against losses.

 

[giddy]

The reason many forex traders fail is that they are undercapitalized in relation to the size of the trades they make. It is either greed or the prospect of controlling vast amounts of moneywith only a small amount of capital that coerces forex traders to take on such huge and fragile financial risk.

 

[WhiteHouse]

Risk management and leverage: you need to plan a scenario before your trade for any possible movements. You need to have an exit strategy that you stick to that also doesn’t become risky. It is better to lose 50% of the time when 50% of the time you are quadrupling your money than to lose 10% of the time but only making 5% of your money every time you win

 

[Nurudeen]

I think the major reason why people lose their money In forex in lack of technical analysis on how the forex market works. Many investors what's to pump in money into the business and cash out instantly without getting good knowledge on how the market works.

 

[olajohn]

Discipline is the keyword in for ex trading. This should be combined with knowledge in placing your trade

 

[Sotherefore]

With my little understanding of forex I will say that if you fail in forex then you are either greedy or you don't have patience, because as a forex trader you must be patient enough to know when to enter the market and went to exist and you must also learn from experts how to trade forex if not if you go into forex as a novice you will lose a lot,don't rush into market because you want to recover the funds you have lose or because you want to make more money if not you will fail woefully.

 

[Heatman]

Forex trading is profitable despite the many risk involved, while many have made huge profits from the market, many other are counting the loses daily.

But what are the major causes of failure in forex market especially for young trader?

I will list 3 that I know of:

1. Impatience in the learning stages.
2. Lack of proper mentorship.
3. "Make it fast" syndrome.

What other things do you think is are the causes??

I have seen a lot of ads about Forex trading but they are more like prediction and it's not what I think Forex is all about.

I'm still looking at who would mentor me on how to trade myself.

 

[GIFTMICHAEL]

Knowledge I mean proper knowledge is important in other to be successful in forex trading.

It is very important to learn and to understand how forex trading works and how long one can wait in other to start benefitting. Most people are impatient and they think everything is sharp sharp.
Knowledge, patient, good understanding and readiness and passion are important in forex business.