What are the major causes of failure in forex trading

[tyrim88]

As a trader one must have to be able to see all the aspects of trading the good side and the bad or wrong side too.i think that there are soo many causes but risk management is also one of them.most of the traders are failed to manage the risk of trading.so it is szme applied in forx trading

Forex trading has so many factors that could make someone to loss in the trading market,but one that is common is the gred factor,which is the restrain the trader would have to set as his trading schedule for the day.

Post automatically merged: Sep 19, 2021

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 money with only a small amount of capital that coerces forex traders to take on such huge and fragile financial risk

There are a lot of afctors that can actually make an investor to get into a loss in the forex market.One of them is greed,when you don't know when to leave the market,it will be very detrimental to your capital.

 

[Skysaint]

I think the major cause of failure in forex trading is underrating the business, maybe you heard of someone earning through forex and you think it's just as easy. I did have friends who blindly traded with a live account in forex, and nobody told them to quit the site after encountering repeated losses

 

[Shigobad2020]

I concor with you forex trading is profitable despite the fact many risk involved,forex trading is indeed profitable ,but there are certain challenges and failure in it ,all you have to do is to hold on to your self,don't see failure as something bigger , just work as good as you wanted it to be

There are many risk factors that is involve in forex trading and its very wide, you have to be a professional in forex trading before you can even try venturing into it or else you will fail.

 

[Kelly5]

You have simply listed them all already. The listed factors are actually a fact in most cases because you see people that have no knowledge about how the forex market works trading it

 

[Kubiat-Abasi]

The major causes is inexperience and greed. Failure to master the technicalities involved in forex trading and automatically reduce the level of greed leads to a decline!

 

[GoldenLady]

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??

Poor portfolio allocation is what I know of. You want to trade everything so you end up trading nothing. This is especially for those who take signals from others

 

[eLdavis]

The major causes is inexperience and greed. Failure to master the technicalities involved in forex trading and automatically reduce the level of greed leads to a decline!

Well said, most times even with experience, if the greed is not taken care of it could lead to losses. Greed has been the major cause of many traders blowing their accounts. They over leverage their accounts just cause they are after Hugh profits.

 

[Hojo]

I think the major causes of failure in forex traders is inexperience, a young trader who just finished learning forex trading today will want to become a millionaire tomorrow

 

[Stnicholaz]

I will say greedy and lack of proper knowledge before investing is forex trading. The get rich quick sedrome and don't want to learning master the about forex trading before invest huge amount of money.

 

[Shigobad2020]

I will say greedy and lack of proper knowledge before investing is forex trading. The get rich quick sedrome and don't want to learning master the about forex trading before invest huge amount of money.

Greediness apart , lack of proper knowledge before going into forex trading investment is the main reason why most people fail when investing in forex, because it has happened to me.

 

[Elfinito]

Fear and greed are some other factors.
A lot of traders are afraid of the market adn they always live to regret it.
The other is greediness, when you want to be rich in a space of time, you end up losing much

 

[eLdavis]

I will say greedy and lack of proper knowledge before investing is forex trading. The get rich quick sedrome and don't want to learning master the about forex trading before invest huge amount of money.

Indeed greed is the major cause of many of our losses on forex trading. We lack the proper knowledge on how to trade and we have greed in wanting to become millionaires in just one trade. Hence most people over leverage their accounts.

 

[Solutionav]

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??

All this factors you listed are very important because this is what hinder most people from becoming the best and some person lack focus and feel discouraged after much failure

 

[kayode10]

Lack of in-depth knowledge is one of the reason why people fail in forex trading. Some people rely on speculation and this is not different from gambling. You also need a mentor to guide you.

 

[Shigobad2020]

Indeed greed is the major cause of many of our losses on forex trading. We lack the proper knowledge on how to trade and we have greed in wanting to become millionaires in just one trade. Hence most people over leverage their accounts.

Normally the reason why most of the people , I mean investors failed drastically and loose when investing in forex is that they are not careful when dealing in forex trading.

 

[kayode10]

Greediness is one of the reason why some people lose money in forex trading. they always want to make double of the amounts they are investing into the business within short time.

 

[eLdavis]

Normally the reason why most of the people , I mean investors failed drastically and loose when investing in forex is that they are not careful when dealing in forex trading.

Yes they are not careful and the reason they are not careful is cause they lack the proper knowledge needed before going into forex trading, so they do not know the things they should do and the things they should not do.

 

[Hojo]

I think lack of concerntration , patience and hardwork can bring failure in your trading career , the best way is to avoid the three things I mentioned

 

[YERUS]

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??

If you have self discipline as a forex trader, impatience would not come into play.
The forex trading needs carefulness and alertness.
A trader who is too hasty to make it, will end up blaming the market for turning against him.

 

[Toyoabasi]

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??

Especially this 'make it fast' syndrome...
People take up forex trading forgetting it is not a gamble.
In a bid to make so much money, they fail to carry out proper analysis and end up losing so much.