Why Do Most Forex Traders Lose?
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It's estimated that 95% of all forex traders will lose money and give up within the first 2 years. Those are terrible odds. This article will look at the key reasons from the perspective of a winning trader who used to lose consistently.
I believe that discipline and patience are the main reasons why most traders lose and give up. There are many strategies and systems available for trading forex and some of them actually work. However in our society we have been conditioned to want instant gratification. The next time you are standing in a line-up at your bank or grocery store look at the other people's expressions. Most people hate waiting at all and are very impatient.
With trading it is very important to play by the rules of your system, how can you get consistent results if you trade inconsistently? It is impossible and many traders because they are impatient and want to get in a trade will just enter in at times that are not dictated by the rules of their system. It is mentally challenging to know that there are only 2 directions and if you just pick one right you will make money. How hard can it be to pick one direction we think. Well, apparently for 95% of people it's hard. If it was easy then everyone would win and the game could not exist
If you take a disciplined approach and are patient and wait for all of the conditions to line up before you get in a trade then you will be on your way to success. If this is too hard for you then it would be best to find someone else to manage your money.
Another reason why a forex trader may lose is that they do not spend enough time testing their system or methodology. It is a good idea to go back in time and see how your method would have performed over the last couple years. It's also important to consider the time of day that you trade. If you are a robot then you can trade 24 hours a day but probably you will need to eat and sleep like the rest of us. If you trade for 4 hours a day then you should make it the same 4 hours and get statistics for the past year or 2 for those same 4 hours only. |
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Author Resource:-
Get a head start with quality forex trading courses from one of the most reputable educators.
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By :
Alex Harper
Submitted
2010-08-10 09:34:07 |
Article From Article Mayhem
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