Forex Trading Failures

Are you wanting to trade currency on the Forex, Foreign Exchange? Did you know that the statistics for those who fail to make a profit trading is around 90%! Say what? Yeah, you heard that right - 90% of those who trade don't make it, because they don't make a profit.

If you're serious about trading, then how can you become one of the 10% who can make a profit? First off, start out with a free demo account, and trade with play money. You'll quickly learn that it's not as easy as it looks to trade, or not as easy as some will try to lead you to believe.

Beyond testing your strategies with a demo account, here's five reasons why 90% of traders fail. If you can learn the reasons why they fail, then you'll dramatically increase your odds of becoming one of the few successful traders. Okay, let's get started.

1. FAILURE TO DETERMINE A TRADING METHOD
  • You must know what constitutes a buy versus a sell signal 
2.  FAILURE TO APPLY PROPER DISCIPLINE
  • Stick to your trading methods that you know are successful, and don't deviate from them.
3.  EXPECTING TO MAKE A TON OF PROFIT
  • In your first year of trading focus on breaking even, because your profits will most likely be little.
4.  ZERO PATIENCE
  • The majority of the time there isn't a major trend change to follow, which requires patience!
5.  FAILURE TO APPLY PROPER MONEY MANAGEMENT PRINCIPLES
Hope those five quick tips help, and if you would like to continue your trading education, a great place to learn from is ElliottWave.

No comments: