Why Most Traders Fail



It's an unfortunate reality but most traders fail to be successful. They all start with the same desire to be successful and for a small number, they reach their goal of being profitable year after year but why do the vast majority of traders fail?

Well people generally don't like to lose. They go through life being told stuff like "it pays to be a winner", "don't be a loser" and like the song says "the winner takes it all". Then they come to trading the forex market. The forex world is a very unforgiving place, you're either right or you're wrong. You make money or you don’t, there is no middle ground.

Which bring us to the next point; people find it hard to accept when they are wrong. This can be a very expensive attitude to have because although common sense would say "cut your loses". When a trade starts going against them most traders ignore this, not wanting to except that they got it wrong and remain convinced that the trade will come good. Only to be forced out after losing their account. It is hard to take for most the idea of closing a trade and taking a loss. The reason they are here in the first palace is to make money so closing a trade at a loss goes against this.

There is a real temptation to get emotional attached to a trade and therefore feel compelled to hang in there in a false hope that it will come good. Remember "cut your losses".

With the large amount of technical data available to a trader, news releases and general financial information out there nowadays for newbie traders, the tendency are for them to over complicate things. Their charts get filled with so many indicators that they lose track of their trading plan, or they spend way too much time reading and watching the financial news releases, trying to make some sense of it all. All this without spending the sort of quality time they should on actually studying what price is doing.

It takes a lot to be a successful trader which can be an emotional roller-coaster and it doesn't happen overnight. It's important to prep yourself before you dive in to give yourself the best chance to be as successful as possible. It's not all about the mechanics of trading go to psychology to find out more.




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