I will be sharing an important topic Today "Reason why Some Forex Traders Fail"
Forex trading is not a child play, but it is a good financial Market to make wealth steadily, A forex trader need to understand all the basics in forex, not just interested in it because he/she see people make huge amount of money from it, Many traders today believe that " if my friend can do this I can also" not aware of the sleepless night that friend as gone through, the kind Looses,Before he/she became successful in forex. I will be sharing with Us some Reasons why forex Traders fail.
INSUFFICIENT TRADING CAPITAL
The number one problem traders face is SMALL TRADING CAPITAL. Yes in forex you need to have a good strategy and practise well on it, you may be doing fine On your training through your DEMO account, all your trades are in PROFIT, so you want to go LIVE with your money then you loose.. WHY, do you remember you have like $10000 On your Demo account that you use to trade, but On your Real account you use $100,$1000 have seen some traders use $10 account grow it to $500 but at the end blow the account, that is because they are not earning much as the time they have put in trading, the effort so it leads to Gambling and that blow account easily that is not because the strategy is not good but it all because of GREED and less capital.
WHY TRADERS GIVE UP.
The number 1 Enemy in forex is your "Emotion" In forex if you can't control your Emotion your Emotion you are already a looser, A friend of mine gave up in forex just because he had a good strategy and still the market go against him, on the same trade another person without having a good KNOWLEDGE about Forex Double is account, this is normal in forex but with a good RISK TO REWARD RATIO I believe we will be able to make money, have once entered 5 trades loose 3 and win 2 and I still made profit at the end, that is the power of Risk management.
KNOWLEDGE
Before getting into forex you need to know what you are doing, there are some traders that jump from system to system m, from one strategy to another, no strategy works 100% but you can get a good one and practice on it once you are confidence with it you can't get turn off in every trades. And also to know a kind of trader that you want to be, maybe FUNDAMENTAL TRADER OR TECHNICAL TRADER, do you want to be a swing trader or scalp trader all this questions as to have an answer Before you start youe trading journey.
FOREX IS NOT A QUICK GET RICH SCHEME.
Many Traders Play "OFFENCE", means they are trying to get there Lambogini in just a week, quick money, yes that all what we all wanted, FOREIGN EXCHANGE market is based on money even banks trade forex but the market don't reward the Offence traders, CONSISTENCY MATTERS ALOT in forex. So it good to play "Defence" in forex, means keep your money. In forex it really takes time to understand the perspective of trading, but many people don't want to waste there time trading On Demo because they knew it an Audio money lol, but certainly this is just because majority believe in getting money quick. So if you want to be an profitable trader, sit back tight and have a good strategy and work on it. As for me I like money😀, and I believe majority of Us Do, but still we have to be less money focused, we need to have the motivation to trade for money, you are not doing this for fun but you need to be less focus on the money to be a successful trader.
DISCIPLINE
Many traders fail to be Disciplined in the market, you need to create time to analyse the market and master your strategy, study your candle stick pattern and follow price actions, yes forex can be frustrating but as a trader we have to adapt.
Be a profitable Trader and stop Blowing accounts... My mentor always says "SEEK KNOWLEDGE FIRST"
Thanks for reading my article and I wish you learn one or two things in your trading career, more update coming up soon....
Thanks for sharing your knowledge