What are the major causes of failure in forex trading

[Aniwhyte]

A lot of people seems to be making a particular mistake when trading on forex, although I don't have a lot of experience but I sure do have a lot of ideas. Taking High Risk/Not Having Good Money management, money management should be the first thing to consider if you have ever dream of becoming a successful trader , most traders chase the profit instead of controlling the risk, when you use a proper money management trading plan even when you are making some mistakes in the market you tend to have chances of correcting yourself till you are able to get to the right channel

 

[Mawome]

Forex trading is not something you rush, it requires time to really understand the chat cum trading signals before engaging fully on it. My friends traded FX for 4 good year I tell you today he has nothing to show for it. He heard that people are making money in FX so he joined without getting the accurate knowledge.

 

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

 

[Ojonuyo]

Impatience is the killer of wealth and success. Many individual would have been at the top of their career and business if they were patient to see the business grow. Many want success and wealth quickly, so they do not calm down to study the investment process from experienced people before lunching out

 

[Seun4luv]

The major causes of failure in forex trading 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 trades to take on such huge and fragile financial risk

 

[haider00]

Overtrading
Overtrading - either trading too big or too often – is the most common reason why Forex traders fail. Overtrading might be caused by unrealistically high profit goals, market addiction, or insufficient capitalisation. We will skip unrealistic expectations for now, as that concept will be covered later in the article.
Insufficient capitalisation

Most traders know that it takes money to make a return on their investment. One of Forex's biggest advantages is the availability of highly leveraged accounts. This means that traders with limited starting capital can still achieve substantial profits (or indeed losses) by speculating on the price of financial assets.
Trading Addiction

Trading addiction is another reason why Forex traders tend to lose money. They do something institutional traders never do: chase the price. Forex trading can bring a lot of excitement. With short-term trading intervals, and volatile currency pairs, the market can be fast paced and cause an influx of adrenaline. It can also cause a huge amount of stress if the market moves in an unanticipated direction.

 

[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??

Coin Birds​

Coin Birds with money withdrawal Sign Up now and get free coins​

www.coin-birds.com​

​

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 risk in forex trading is very high, but if we control some things then we can convert this risk into profit if do not hurry in forex trading And wait for the rate to come down, then we can get profit and have to keep patience in this to achieve success in forex trading.

 

[Damscooguns73]

The three stated causes are no lies at all. People are not patient enough to learn forex from it beginners class to pro, they just want to know a little and start trading already which does not work that way. And making so much money in a short time thinking is also affecting people

 

[Iamsodex]

First, you need to understand that forex isn't a get rich quick scheme so prepare your mind for something serious. Lack of good trading Knowledge is one of the popular reasons people loose their money in forex, the market is dynamic so you need to understand the right price movement to know when to buy and when to sell.

 

[Tunde01]

You have to be patient in forex trading and have adequate knowledge before u start trading on a real account... Greediness should be avoided

 

[Akinwale701]

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??

apart from the three you've listed up there, I have come across another one which is scam. The truth is a lot of brokers on many forex websites are scammers. you would fall into their hands if care is not taken.

 

[Highflyer]

• Overtrading. Overtrading - either trading too big or too often – is the most common reason why Forex traders fail. ...
• Not Adapting to the Market Conditions. ...
• Poor Risk Management. ...
• Not Having or Not Following a Trading Plan. ...
• Unrealistic Expectations. ...

 

[Afoskalex]

Forex trading is volatile but people just want to make money without following proper money management. The lot you trade with matters.

 

[Nicklas22]

• Overtrading. Overtrading - either trading too big or too often – is the most common reason why Forex traders fail.
• Not Adapting to the Market Conditions.
• Poor Risk Management.
• Not Having or Not Following a Trading Plan.
• Unrealistic Expectations.

 

[kayode10]

Greed: this is my one obstacle to profitable trading in forex. Greed happens when stakes go beyond the way you want it, those who have self control will call s stop, but a person with greed will continue until the trade turns lose.

Self control is very important not only in forex trading but other investments someone engages.

 

[Donkiz]

The issue of impatient in learning process has been quoted severally as one of the causes of failure in forex trading but nobody has come out plain to state how long the learning process is expected to last. In my own case, after I have gone through the whole process of forex trading for 3 months, and used demo account for weeks to do practice, yet I lost money when I started trading, and one of the reasons I was given as why I lost is impatient.

 

[Alogakho Esson]

Foxest trading need sound knowledge of what is foxest trading and how to manage your resources and wallet some people think maybe they will buy foxest and without any further plans and make profits

 

[Khezo]

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??

Forex traders must have a trading plan to better understand market. Traders must also be disciplined to battle the greedy nature of humans to have more.
Lastlsy a trader must always read the news. Its very important to know when and when not to trade. Good luck

 

[Pousinha]

In addition to impatience:

1) lack of studying: forex operations require previous hard studying. It's necessary to know the market behaviour, what the factors that increase or decrease the price of a currency, commodity, etc. (internal and international politics, competence, possible trial involving a company,etc.)

2) behaving like forex being betting: it's the best receipt to lose money (in this case studying lacks at all)

3) trading more money than an user can afford to lose. This point is essential, as even the best traders sometimes lose money. No mind how much they study, always there will be unforeseen events that make the best predictions fail. For ex., no one could predict coronavirus, that in fact ruined some of the best market forecasts.

 

[Oloritoks]

The major causes of failure in forex is that of ignorance, that's not knowing how it work, another aspect is not refusing to learn from their mentor who will take them in a way that they will work according to the rules guiding for rest.