Authored by Christopher Reed in Forex Trading
Published on 11-28-2008
Out of the whole population of forex traders worldwide only a few are able to succeed in the forex trading business. Here is a list of major reasons why the 90% of the traders fail in the forex trading business:
1. Looking for a quick and easy cash
The forex business is not a get-rich quick method. Getting to achieve a constant profitable income in forex trading is really difficult. It requires a lot of time to get your self acquainted with the forex basics and know-how’s. It also requires discipline, ability to control emotions etc for you to be able to reach the success you are aiming for in this business.
2. Looking for the “perfect” forex trading system
There isn’t an ultimate forex trading system. Traders spend all their trading lives trying to search for the best but still failed to find one. The reason for this is that the forex market is very volatile in that the market can change anytime.
3. Lack of education
In the forex, traders NEED to have the right education. Some people enter forex trading without even knowing what this is. You have to educate yourself in order to succeed. There are a lot of free resources available online that are even written by forex professionals. These materials will be of great help to you so find time to read one if you are really interested.
4. Lack of discipline and patience
Discipline and patience are not only required in the forex business, in fact you have to have these two in any other business. But to be specific, you both in the forex trading business because you want to abide to every strategy that you formulate. If not, then everything can turn out to be a disaster.
5. Lack of money management
Keep in mind that in forex trading, you will encounter risks – and a lot of them! Most of the traders fail because they only think of how much they will be earning and never plan for a fall-back in case they don’t. If you are able to properly manage your income, you are also limiting the risk you have to face on your next trades.
6. Lack of support from your mentors
Having a good mentor will guide you every step of the way. A mentor should be able to advice you on your trades.
7. Lastly, those who have unrealistic expectations are more likely to fail
Be practical. You don’t want to disappoint yourself with an overly unrealistic expectation. Don’t expect a hundred dollar earnings from a day’s trade especially if you are a beginner.