Why do most forex traders fail
5 reasons why traders fail
Most traders never succeed and lose a lot of money. In this post, I'll show you 5 common reasons that lead to failure in trading.
Again and again I notice the widespread laziness among private traders.
As an absolute beginner, you will be forgiven for not knowing that trading is hard work and you still believe in "getting rich quick with 5 trades".
In a few weeks you will likely be grounded, cut your account in half and, in the case of positive ambition, take a more sober approach to trading.
I find it much worse when traders still believe in the "trading miracle" after years of unsuccessful trying. A kind of gift that comes to you overnight and from then on ensures the "right" trades.
Every day starts with the same scheme. Charts gawk until you drop and after hours of boredom there are 3 more pointless trades, because there indicator X crossed indicator Y seven times in the 5 minute chart.
All in all, it leads to a personal downward trend, which with a high probability will never end.
On the SMB Capital blog, I discovered the 5 reasons most traders fail.
1) Many are not qualified
2) Many are poorly trained
3) Many do not have the necessary passion for trading and the will to get better
4) The learning curve is too high
5) You are not good enough
I agree with these statements 100%. It must be said that in Anglo-Saxon areas such as the UK and the USA there is a completely different investment culture and many university graduates can find work with investment banks, hedge funds or prop trading companies. We don't have that, so it's hard to learn from professional traders.
Still, it is feasible if you know where and how to work.
What traders are looking for and what they need to develop is “mindset” and not chart technique or indicator.
The right attitude to the market, discipline and patience, emotional intelligence are key factors. Traders who have been trading for a few months have to work on this every day. Of course, also in the development of the strategy, only if the mindset is wrong, then nothing will happen with the implementation of the strategy.
At some point a trader has to seriously ask himself:
- Do I want to and can I become a successful trader?
- Can I do it on my own or does it make sense to use external help?
The trader must answer these questions himself and be honest with himself. After all, it is his money that is burned ...
What do you think is your biggest challenge in trading right now?
Use the comment field or write us an email at team (at) tradingfreaks.com.
P.S: You can work with us in the Trading Lounge and develop yourself quickly and in a targeted manner. It depends on you..
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