why do forex traders lose this much - 95% loss rate

[lmshow]

why do forex traders lose this much - 95% loss rate in the forex market

 

[Barren]

why do forex traders lose this much - 95% loss rate in the forex market

Because most newbie traders are trading without knowledge. Forex can be a lucrative business if you know how to play. Many newbies think they can make money by gambling, but most are sure to burn their accounts. Forex is 90% knowledge and 10% gambling. So, if you don't know the basics, use a demo account instead of real live account, sharpen your skills and when ready go to a real live account

 

[BBell]

I do agree that knowledge is huge. Excellent traders don't call it gambling. Say their strategy works 8 out 10 times. So 8 wins per 10 trades. If you only risk 2 - 3% then that's quite a bit of profit based off the strategy, and the plan. It's not gambling when you know your plan, and the math.

 

[jimmirod]

Mostly for being impatient, for me psychology is a 40%, money management 30% and apply knowledge another 30%, so most beginners take interest only in knowledge skipping psychology and money management.

 

[BBell]

You're very right. I hear and see all the time, what is a trend-line, what is S&R, etc. But psychology was never asked about.

It was my biggest weakness. Something I have gotten much better at, but still continuing to work on it.

I swear the market will tell you everything you need to know about yourself. GREED. FEAR. HANDLING MONEY, and more.

 

[arcanis]

Because people want to make money fast and they forget that they need to study a lot before that, I took about six months studying and doing backtests before trying anything in a real account and that's why I have a profitable strategy.

 

[klaver]

why do forex traders lose this much - 95% loss rate in the forex market

It happened to me...in a hurry to amass profits is very detrimental

 

[joyaxiam]

There are a lot of reasons why fx traders lost so much, these can be categorised as reasons of traders' personality, and the systems they deployed. It is a very difficult business as well as a very easy one in trading. The hardest part is to develop a robust trading system which suite his/her personality and trading style and stick with the trading rules religiously. There is never a one trading system fit all as such in this business. A lot of trading systems, indicators are junkies anyway. The only thing that really works in the forex market is the price, volume and time (the cycle). If a trader's trading system build around these concepts then his/her chances of succeeding are high.

 

[BBell]

Because people want to make money fast and they forget that they need to study a lot before that, I took about six months studying and doing backtests before trying anything in a real account and that's why I have a profitable strategy.

I believe this is the reason you are successful. You took the time to backtest, and see what worked and what didn't. Then you probably created a plan around this, and you probably have you numbers. When you take xyz trade, you have an X% chance of winning due to your backtesting.

 

[Rufino Fiorentini]

Loss in the forex market is a very simple issue. If you face loss in the forex market then you learn from those losses. If you face loss in the forex market then that doesn’t mean you can't earn profits from the forex market anymore. Many traders face losses because of knowledge. If you start trading without any knowledge then there's a chance of losing money. I trade with Eurotrader. I always try to gain more knowledge about forex. My broker really helps me a lot.

 

[Wraith]

why do forex traders lose this much - 95% loss rate in the forex market

From my own experience , we tend to want a lot of money quick, since we see a lot of guys who trade posting and selling their classes saying they make a lot of money so we assume we can after attending one class or reading one book or video and we hop right onto live trading, with the correct mindset at first but when its all going good we start thinking about the money we could be making, then start increasing the lot sizes and riskier trades till one bad trade creates a snowball effect and a string of major losses take the entire account under...

In a nutshell, Psycology.

 

[Mairy]

Because they dont know how to trade in forex.. We should learn first

 

[Mark2]

see these question a cross the forex forum , in the metter of a fish can climb a tree , all account as 100 % with 1 % risk will be cripple with in 4 month with out a necessary knowledge , even with some knowledge the risk is still there . buckle up

 

[Miguelf]

people want to make to millions for today. and that's not possible, you have to learn as much as possible, try it on demo accounts and create a strategy. after that strategy is profitable for a few months, you can give it a try in a real account. with the proper risk management

 

[mrtakeprofit]

Greed, lack of patients, lack of confidence, and lack of education and or funds.

 

[simiboitham]

That's because new beginners are up against forex robots and algo trading making it impossible to "beat the system"

 

[danveer.saini1]

beginners dont understand proper risk management

 

[etiqer]

why do forex traders lose this much - 95% loss rate in the forex market

Because risk management and psikoji

 

[elhajjhassan94]

why do forex traders lose this much - 95% loss rate in the forex market

intresting 47K reply and comment if we combine all of those we will get the answer

 

[BareNakedPriceAction]

Why doesn't anyone address the pink elephant in the room ever? No one ever talks about liquidity and its role in the market. Time after time the saying stands true, "see the liquidity or be the liquidity." By just being aware of where the liquidity is you can increase your success rate quite dramatically. My whole trading game changed for the better when before entering a trade I make sure to follow the liquidity sweep not preceed it. Do the reverse and like clockwork the market comes down and takes out your stoploss. Stoploss pools are just liquidity waiting to be taken. Correct me if I am wrong but in order for a buy trade to happen there must be an opposing sell trade. Liquidity is needed for the market to move so if you wait for the liquidity grab or sweep or whatever one wants to call it then enter the market with the trend this would prevent you from becoming the liquidity.