What are the major causes of failure in forex trading

[Kelly5]

Major causes of failures in forex trading is as a result of the failure of newbies traders not having the right type if knowledge before going into trading the forex market. Greed is also very high among the traders too

 

[Essy]

Yeah, lack of knowledge is a reason why mist people end up loosing their funds especially in forex, they could have easily learnt that there's no actual loss until you sell it's often floating loss due to a free fall

 

[Ellamma]

One of d major causes are misinformation. You have to be vigilant to know the best time to trade so you don't lose all your money

 

[Skysaint]

Well, there are some basic information about forex trading that a newbie to forex trading should be aware of before trading in the platform wand he can learn this through thorough research and maybe trading with a demo account.

 

[Immilash]

Lack of having the full experience on forex leads to failure. Many people wants to start forex trading but they don't have the full experience, this leads to failure.

 

[Kaffyfolla]

Not Maintaining Trading Discipline: The largest mistake any trader can make is to let emotions control trading decisions. Becoming a successful forex trader means achieving a few big wins while suffering many smaller losses. Experiencing many consecutive losses is difficult to handle emotionally and can test a trader's patience and confidence. Trying to beat the market or giving in to fear and greed can lead to cutting winners short and letting losing trades run out of control. Conquering emotion is achieved by trading within a well-constructed trading plan that assists in maintaining trading discipline.

 

[HayKay]

The number one major cause of failures in forex and other trading markets is not far fetched - it is simply greed. People want to begin trading today and get millions by the next 2-3 months. That way they'll encounter disaster a lot.
Indiscipline that also arises from greed is also another factor, not trusting in your strategies and wanting to jump on the reigning thing would push you down further.

 

[Laurentta]

I think you've said it all. Those are the major causes of failure in forex trading. I feel lack of proper mentorship is the main cause. How can one go into forest trading when he or she knows little or nothing about forever trading.

 

[greenie]

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.

 

[kayode10]

Lack of knowledge is the reason why some people fail at forex trading. there are some people who don't have in-depth knowledge about how forex trading works. They see that other people are making money with the forex trading and it decided to get started with little knowledge.

 

[Bousine123]

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.

You are right the lack of adequate knowledge and skills to start the Forex business should be treated seriously because it will only lead to the make I fast sundo
I think during some people fall victim of scammers sometimes when trying to trade foreign currencies with their business partners, a neighbor lost millions of Naira to scammers.

 

[tyrim88]

One of the issues that most traders faced in the forex market is that they do not really have a bench mark of what they want to achheive at a particular period of trading,and so greed usually sets in when the market is in their favour.

 

[Syldan]

I think one of the major source of failure is lack of knowledge. Alot of people engaged themselves into some kind of business or trading without having good knowledge about how things are done.

 

[Setho]

There are some people who fail in the forex market because they have not put in a lot of work into research and instead they usually trade based on emotions. This is something that is not good because you are always supposed to have a reason for every position in the open.

 

[joy101]

I think lack of knowledge in forex trading can bring failure on it, because before going into forex trading you must have more knowledge about it, you must have good understanding about it.

 

[Syldan]

Actually there are different causes of failure in forex trading though sometimes it depends in the foundation you have before starting the business. some engage themselves into the business without the knowledge on how to run the business effectively.

 

[Sincerem]

I think why people fail in forex trading is that they don't actually take time to learn how the market operates they just jump into it and start trading which would cause them to make certain wrong choices while trading.

 

[tyrim88]

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??

That is just the actor here.most persons usually go into the cryptocurency trading platform just for the huge returns they think they would be getting without properlly learning the the basics of the market.

 

[Sincerem]

Trading Forex require a whole lot of time to master. That is why demo account was invented to help people test their trading scale. Those people who are not qualified in terms of all the necessary analytical skills may find it very difficult to make money with forex too.

 

[tyrim88]

Actually there are different causes of failure in forex trading though sometimes it depends in the foundation you have before starting the business. some engage themselves into the business without the knowledge on how to run the business effectively.

That is also a factor that can make someone to loss some of his investment in forex,but there are other things that can make someone to loss money,like not having a target and knowing when to go out from the market.