What are the major causes of failure in forex trading

[Abibatabosede]

The major cause of failure in the forex investment is lack of knowledge about how the system/technical analysis of the trading works. Many goes into investing in forex because they heard there is huge profit not minding to study the basis.

 

[Kgudners]

Failure in Forex. Greediness, ignorance, and also if not knowing when to close a trade. It has been an issue for me in particular for some times now. But if one is determined and also do background study on the pair you want to trade on. I think you are good to go.

 

[Sarfraz Ali123]

The reason many forex traders fail is that they are under capitalized 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.

 

[Veetos12]

The main reason many forex traders fail is that they are too greed oe the wish to dominate a large amounts of money with only a small amount of capital that forces forex traders to take on such exorbitant and fragile financial risk.

 

[Planet408]

Greed is one of the major causes of failure in forex trading. People make money in forex and also loose it in forex because of greed. Forex is not something you should start with greed. Start small and then, grow from there.

 

[Divulgence]

The term ‘forex’ is a portmanteau of ‘foreign currency exchange’. It refers to the foreign currency market, where national and regional currencies are traded against one another. Up to US$5.1 trillion ($5,100,000,000,000) in currencies changes hands every day.
The major reason why people fail is greed

 

[idhans]

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??

Some people feel they can learn forex in just a month and start making money. One of the major problems that makes people lose money in forex is trading with higher lot sizes. Lack of indepth knowledge of technical analysis also causes a lot of people to lose money in forex.

 

[Azhar119]

Because the market can be volatile, there is always the risk of losing money when trading a currency pair. In addition to the inherent risk linked to trading, with Forex trading you need to add margin trading and leverage, which means that you can trade large amounts with little initial capital.

 

[Aniwhyte]

There are a lot of causes why one seems to fail in forex trading, one of the mistake I made was not learnings from a mentor directly, I mean someone whom I would sit with one on one and he or she would be tutoring me directly on how to trade.

 

[Abelcairo43]

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??

One other reason why so many forex traders fail is as a result of greediness. A good trader should know when to exit a trade.

 

[Tariq Shehzad]

You may be saying right that 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 for trading.

 

[Tinaconcept]

Learning forex trading is technical and I think that is why many begginers fail. With forex trading experience is the best teacher I think if you don't experience failure you won't excel in it. I wish to learn forex trading myself but I think I lack the patient.

 

[Robrown83]

The major cause of failure in forex trading is lack of knowledge. Many people just heard about forex and rush into it without taking proper training from the professional. Infact, to trade forex you need a lot of experience and be monitoring the market.

 

[Xerryl]

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.

 

[Patrik]

i would say experience, people jump to it thinking they will be rich by depositing a specific amount of money in one single night, you can make money from forex, but you have to wait for the long term

 

[Chizfab]

It has to be lack of proper training, skills and allowing your emotions to have major control over your decisions. One has to be well grounded in forex trading before Investing and trading. You need to be up to date and professional to earn big.

 

[Zamaney]

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

 

[mubinadaddy]

Failure in business in life determine on the kind of knowledge you have about the business, talking of forex trading if you are not well informed in it you are bound to fail and lose lots of money, but if you are well equipped nothing will stop you not to gain.

 

[Chris]

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.
Trading with greed and Poor risk management, and even worse, no risk management is a major reason why Forex traders lose their money quickly.

 

[ansahweh]

For me the major cause is impatience and quick reward. Forex is not a quick reward platform therefore one must avoid short timeframes while trading. Those short timeframes are very unstable and doesn’t guarantee longevity therefore it’s advices to trade longer timeframes.