5 Reasons Why So Many People Fail At Forex Trading
Read the story of Richard Samuels, a post office mailman with a head injury and how he made a fortune with these Neutrino Forex Signals. Learn Forex Nitty Gritty by practicing on the Forex Demo Account First.
1 – Most people treat Forex as a get rich quick scheme. This means they are not willing to invest time, energy nor money to be good or to improve their trading skills. They believe that with a few bucks, they open an account and by using a high leverage, they are going to make a fortune in no time. They couldn’t be more wrong. The leverage is a good thing for a trader when used with caution. But these people use it at a very high limit and this will end with their millionaire dream really quick.
2 – Most people expect to have great returns in a short period of time. If you treat Forex like a business, you know this isn’t the way things work. There are many factors that contribute to people think this way. One of them is again the high leverage traders use. You shouldn’t use a high leverage because you face the high risk of losing your entire account in a couple of trades. Be wise and trade smaller lots. When people think about having great returns in a short period of time they are thinking about day trading.
Well, I’m not going to say that day trading isn’t possible; but I’ll say that only the more experienced traders make profits from it. This is because, and this is another thing that is always focused when people talk about forex trading, there are no commission costs like in other financial markets. This is not absolutely true. It’s true there aren’t any commissions charged but you are charged with the spread. The spread is the difference between the bid and the ask and depends on the currency pair you are trading.
If you want to day trade, you’ll have to trade several times a day, which means that you will pay the spread several times a day. Most beginners don’t realize they are actually losing money because they don’t count with this cost. With day trading, you also need volatility. And volatility is more likely to appear in certain time frames. Volatility isn’t always there and you need to develop a strategy that counts with this factor.
3 – Most people think it’s easy to make money in Forex. Almost every time I see someone asking what he can do in order to get money quick, I see Forex. This is absolutely false. If you enter in the Forex market with this attitude, you’ll get kicked off without even noticing. In order to be a good forex trader, you need to dedicate time, energy and money. You need to learn and keep learning. Things are changing all the time around us and if you want to be successful you have to keep it up. It is not a question of a day or two reading some free ebooks or courses. It’s a constant learning. When you feel you have what it takes, open a demo account on a broker and test what you learned and your skills. Don’t open a real account right away or most probably you’ll lose all your money.
4 – Most forex traders believe they are better than other traders and the market. This is the worst attitude a trader can have. You don’t know everything and you never will. That’s why you need to keep learning even when you are already making profits in Forex. The Forex market is a complex and difficult market but it’s possible to be profitable if you work hard and have the dedication to it. Don’t forget: treat Forex as a business.
When things aren’t working the way you expected, try to see what you did wrong. This is a difficult task I know. But if you go for the easy way and blame the market, you’re in the wrong path. You need to accept responsibility for your actions either when winning or losing.
5 – Most people think that is possible to make money in Forex with no work. Well, let me tell you something that you probably never heard: Forex is a market where most people lose money. And most people lose money because they are not willing to try hard and dedicate time and energy to learn and keep learning.