Why do Forex traders fail at start? It’s a well-known fact that anybody can learn to trade and win but then 95% of traders lose their money and, at this point we will look at the common reason why they lose.
Forex trading is a profession. Besides in any profession, you need to exert all your effort for you to learn the necessary skills to succeed but then most traders don’t do this, they think that they can buy success inexpensively and not to try which leads into our first mistake.
1. Being Impatience
Most traders cannot control their temper and cannot trade their system with discipline. As soon as they have a losing trade, they get annoyed easily. If you can’t trade a system with discipline, then you don’t have one. Learn to accept your losses quickly and don’t worry if you keep them small, the market will give you some good trends that you can run to cover them and give you great long-term improvements.
2. Trading without having a plan
The first step in reaching success is to make and follow a trading plan. The effective trader works within a documented plan that includes risk management instructions and specifies the expected return on investment (ROI).if you don’t have a plan, you’re selling yourself in what you can achieve in the forex market.
3. Poor in risk management
Traders should focus and exert all their effort on risk management as they do on developing strategy. Poor risk management is the main cause of project failure. It is predictable that every plan has its own risk in the nature because of its complex dependencies connected to the environment, management, system, process, resource, and the shareholder factors.